MSATP's Summer Free State - 2023

FREESTATE FREESTATE ACCOUNTANT

2023-2024 Board of Directors

Executive Director's Corner

Dear Members of the Society,

As we move forward in this dynamic and ever-evolving landscape, I would like to share my vision and passion with you as the Executive Director of the Maryland Society of Accounting and Tax Professionals (MSATP)

Our mission statement, which articulates that MSATP is a collective embodiment of solo, small, and mid-sized accounting, tax, and financial service businesses, is more than just words. It is a testament to our shared dedication to creating an environment where our members' businesses survive and thrive.

My passion lies at the heart of this mission – building partnerships and forging relationships that uplift and empower our community. This passion stems from the core belief that when we combine our resources, knowledge, and experiences, we create a formidable force capable of tackling the diverse challenges that our profession faces

Nurturing a Community Spirit

One of the fundamental aspects of building a resilient community is fostering relationships among members Through networking events, seminars, workshops, and social gatherings, we provide platforms for our members to connect and share invaluable insights and experiences These relationships are the building blocks that help nurture a community spirit and collectively work toward the profession’s betterment

Advocacy for Our Profession

As financial professionals, we play a critical role in shaping the economic fabric of our society. It is paramount that we ensure the integrity and sustainability of our profession. Through our collective efforts, MSATP advocates for policies and regulations that are in the best interest of accounting and tax professionals. By building strong relationships with stakeholders, including legislators and regulatory bodies, we become the voice of our community, protecting the profession and promoting its growth

"Alone, we can do so little; together, we can do so much." - Helen Keller

Education and Continuous Learning

In an era where change is the only constant, it is imperative that we, as professionals, continually update our knowledge and skills MSATP is committed to providing a wide range of continuing education programs and resources By partnering with educational institutions, industry experts, and other professional bodies, we ensure that our members have access to the latest tools and information that foster innovation, efficiency, and integrity in their practices

Building Bridges with Strategic Partnerships

Beyond the immediate community, there is a wealth of collaboration opportunities that can significantly enhance our collective capabilities. I aim to aggressively seek strategic partnerships with technology firms, educational institutions, and other relevant organizations. These partnerships will bring innovative solutions to the table and open up new avenues for growth for our members.

The synergy derived from building partnerships and relationships is the catalyst that will propel MSATP to greater heights. I am humbled and excited to work alongside each of you as we weave our shared passions into a tapestry of success and fulfillment for our members and the profession

Thank you for your unwavering support and commitment to MSATP Let us continue to build, grow, and thrive together

Sincerely,

Gigi Hawkins

The Maryland Society of Accounting and Tax Professionals (MSATP) proudly announces the election and appointment of its new board members, whose tenure will commence on July 1, 2023. The recent elections reflect the Society’s commitment to leadership excellence and dedication to serving Maryland’s accounting and tax professionals.

Meet the New Board Officers

Donya Oneto has been elected as the new President of the MSATP. With her vast experience in accounting and strong leadership skills, she is poised to lead the Society in achieving its goals and objectives. Her innovative thinking and dedication to excellence will undoubtedly steer the Society to new heights.

Ellen Silverstein will be serving as the First Vice President. She brings a wealth of knowledge and expertise to the role. Her appointment promises to strengthen the Society’s core values and ensure steady growth.

Hannah Coyle has been chosen as the Second Vice President. Coyle’s expertise and commitment to the profession’s development will be a great asset in her new role

Jonathan Riviln will be taking on the role of Secretary His organizational acumen and meticulous attention to detail will serve to bolster the Society’s operations and documentation processes

Ann F Elliott has been elected to the important position of Treasurer. Her financial prowess and ethical standards make her the perfect fit to oversee the Society’s financial matters.

Barbara Smith will assume the role of Immediate Past President Her continued involvement ensures that the board will benefit from her experience and insights as they chart the future direction of the Society

Introducing the Delegates

In addition to the executive positions, five delegates have been elected: Sean Coggins, Matthew Eddleman, Michael Kohler, Michael McIlhargey, and Nicole Moore

Although new to the board, Nicole Moore has actively volunteered on many committees. Her first term as a board delegate is eagerly anticipated, as her previous involvement has demonstrated her commitment and contribution to the Society’s mission.

Christine Giovetti will be serving as the Board of Trustees Delegate. Her expertise and dedication to the profession make her a valuable addition to the MSATP governance structure.

Looking to the Future

These new board members will play a pivotal role in supporting and advancing the objectives of the Maryland Society of Accounting and Tax Professionals With their combined expertise and dedication, the Society looks forward to an era of innovation, growth, and excellence in service to Maryland’s accounting and tax professionals

MSATP congratulates the new board members and expresses gratitude to the outgoing board for their dedicated service

If you want to make an impact by joining the board of directors, please email Gigi Hawkins at ghawkins@msatp org

Over the years, real estate owners/investors have become more comfortable in learning to apply Cost Segregation to drive cash flow for them to use to either pay down debt, improve current real estate holdings, or purchase additional properties Accelerating the depreciation in a property puts the building owner “in charge” of their money, vs letting the government dictate / manage the flow of the owner’s money.

Real estate typically appreciates in value. To further reduce the tax liability and capital gains implications when the owner sells, there is another strategy called the 1031 Exchange that allows for deferral of gains, thus saving on taxes

Investopedia further elaborates on 1031 Exchanges in this manner:

A 1031 exchange is a tax break. You can sell a property held for business or investment purposes and swap it for a new one that you purchase for the same purpose, allowing you to defer capital gains tax on the sale

Proceeds from the sale must be held in escrow by a third party, then used to buy the new property; you cannot receive them, even temporarily The properties being exchanged must be considered like-kind in the eyes of the IRS for capital gains taxes to be deferred.

If used correctly, there is no limit on how frequently you can do 1031 exchanges.

The rules can apply to a former principal residence under very specific conditions

COST SEGREGATION AND THE 1031 DILEMMA

The overarching question comes into play in terms of the effect of applying Cost Segregation to a property that is involved in a 1031 Exchange Robert Taylor, CSSI’s VP of Operation has these carefully articulated these thoughts about the 1031 Exchange and Cost Segregation:

“You may be able to include personal property in a 1031 Exchange depending upon the state definition of the personal and real property. Please note the 15-year property identified in our study is real property and can be included in the exchange

Personal property can no longer be applied to a 1031 Exchange per the Tax Cuts and Jobs Act The 5- and 7year assets identified in our study are personal property However, real and personal property for 1031 purposes are defined at the state level (personal property in our study is defined at federal level for tax purposes). We are not experts in state tax, but from what we have seen, most states only include movable type equipment as personal property items This means the personal property included in our study that is attached to the building such as flooring, cabinets, etc could be included in the exchange, and would not cause a large issue within the exchange If this is the case for the particular state in which the 1031 is occurring, it could still be beneficial to have the study done even if you are selling in the near future ”

This link contains the language that states what is defined as real property for 1031 Exchanges. Bottom line Advanced planning is always the best defense If you or one of your clients are considering a 1031 option and applying Cost Segregation, we are happy to talk through the options

LEGISLATIVE REPORT

By James Arnie

The 2023 session of the Maryland General Assembly convened on Wednesday, January 11, 2023, and adjourned at midnight on Monday, April 10, 2023 Both Houses provided for in-person committee hearings the entire session; however, individuals could sign up for “virtual” testifying on any specific bill

During the 90-day session, there were 1,301 bills were introduced in the House (does not include 394 bond bills and 4 resolutions) and 974 bills introduced in the Senate (does not include 386 bond bills and 5 resolutions). In 2022, there were 1,011 bills introduced in the Senate and 1,487 bills introduced in the House. (Remember, 2022 was an election year for the Maryland General Assembly representatives)

A total of 153 bills were referred to the Society for review to determine if they were significant and should the Society testify “in favor of” or “in opposition to” any bills. These bills were applicable to the categories as follows: Corporate Income Tax, 16; Cyber Security, 1; Estates and Trusts, 11; Financial Literacy, 2; Personal Income Tax, 61; Personal Property Tax, 3; Regulatory, 10; Sales and Use Tax, 19; and Small Businesses, 30. In 2022, there were 163 bills referred to the Society for review.

During the 2023 session, the Society presented inperson testimony in favor of six bills that the Comptroller of Maryland had introduced (There were three bills, and each bill had a cross-filed bill for a total of six bills). In addition, the Society presented written testimony that was “in support of” ten bills and “in opposition to” four bills. The bills listed below, by tax type, were passed during the 2023 session of the Maryland General Assembly.

PERSONAL INCOME TAX

Income Tax – Subtraction Modification – Union Dues

HB 0002 Signed by the Governor – Chapter 0513

The subtraction allowed under this bill includes the amount of union dues paid by an individual during the taxable year that were allowed as a deduction under Section 162 of the Internal Revenue Code prior to January 1, 2018, without regard to the limitation imposed by Section 67 of the Internal Revenue Code. Applicable to all taxable years beginning after December 31, 2022.

Income Tax – Subtraction Modification for Adoption Expenses – Alterations

HB 0180 Signed by the Governor – Chapter 0551

SB 0141 Signed by the Governor – Chapter 0550

This bill alters the value of the subtraction modification under the Maryland income tax for the adoption of a child Specifically, for a taxpayer who adopts a child with a special need, the value of the subtraction increases to $12,000, regardless of whether the child is a Maryland resident at the time of adoption For a taxpayer who adopts a child without a special need, the value of the subtraction increases to $10,000, regardless of whether the child is a Maryland resident at the time of adoption. Applicable to the tax year 2023 and beyond.

Income Tax Checkoff – Maryland Veterans Trust Fund

HB 0316 Signed by the Governor – Chapter 0618

SB 0354 Signed by the Governor – Chapter 0617

Establishes the Maryland Veterans Trust Fund (MVTF) checkoff on the individual income tax return form. After the Comptroller deducts administrative expenses, the contributions are credited to MVTF. Applicable to all taxable years beginning after December 31, 2024.

Income Tax – Out-of-State Taxes Paid by Pass-Through Entities – Addition Modification

SB 0240 Signed by the Governor – Chapter 0445

The addition under this bill includes the amount of a credit that is claimed under Section 10-703 of this title and is based on a tax imposed on any pass-through entity by another state that is deductible in determining the pass-through entity’s income under the Internal Revenue Code Applicable to all taxable years beginning after December 31, 2022

Income Tax – Work Opportunity Tax Credit – Technical Correction

SB 0242 Signed by the Governor – Chapter 0020

Corrected the reference to the Internal Revenue Code in defining “federal work opportunity credit,” means the work opportunity tax credit allowed under Section (51) 38 of the Internal Revenue Code Bill takes effect July 1, 2023

Income Tax – Child and Dependent Care Tax Credit –Alterations

SB 0243 Signed by the Governor – Chapter 0021

Altered the eligibility for the State child and dependent care tax credit to resident taxpayers Applicable to all taxable years beginning after December 31, 2022

Office of Statewide Broadband – Study of Broadband Expansion Incentives

HB 0551 Signed by the Governor – Chapter 0440

Requires the Office of Statewide Broadband (OSB) within the Department of Housing and Community Development (DHCS) to study and make recommendations regarding (1) how the state can incentivize broadband service providers to expand broadband infrastructure to communities that are unserved or underserved, including through either regulatory or financial incentives; (2) how the State can ensure that federal broadband infrastructure grants are deployed to best serve the needs of Marylanders; and (3) how other states have encouraged private investment in broadband networks and how this State might implement similar measures; and on or before January 1, 2024, submit its findings and recommendations to the Governor and, in accordance with Section 2-1257 of the State Government Article, the General Assembly Effective July 1, 2023

Income Tax – Subtraction Modification for Military Retirement Income (Keep Our Heroes Home Act)

HB 0554 Signed by the Governor – Chapter 0613

SB 0553 Signed by the Governor – Chapter 0614

Enhances the existing military retirement income tax subtraction modification by increasing the maximum amount of military retirement income received by an individual that may be exempted from Maryland income tax Specifically, the bill increases the maximum value of the subtraction modification from $5,000 to $12,500 for individuals younger than 55 and from $15,000 to $20,000 for individuals aged 55 and older Applicable to all taxable years beginning after December 31, 2022

Income Tax Credit – Food Donations by Qualified Farms – Sunset Repeal and Alterations (Farmers Feeding Families Act)

HB 0584 Signed by the Governor – Chapter 0454

Permanently extends the State income tax credit for eligible food donations by qualified farms In addition, it increases the value of the credit from 50% to 100% of eligible food donations and from 75% to 100% of the value of donated certified organic produce (subject to an existing $5,000 limit) Finally, states it’s the intent of the General Assembly that the Maryland Department of Agriculture (MDA) continue to fund the credit program's marketing and facilitate eligible food donations by qualified farms, as specified. Applicable to all taxable years beginning after December 31, 2022

Income Tax – Student Loan Debt Relief Tax Credit –Alterations

HB 0680 Signed by the Governor – Chapter 0738

Increases, from $9 million to $18 million, the maximum amount of student debt relief tax credits the Maryland Higher Education Commission (MHEC) may approve for any taxable year; (2) requires MHEC to annually reserve $9 million of the authorized credits for State employees, as specified; (3) requires MHEC to prioritize tax credit recipients and amounts based on whether the qualified taxpayers graduated from institutions of higher education in the State at which at least 40% of attendees are eligible to receive federal Pell Grants; (4) extends from two to three years from the close of the tax year for which a credit is claimed- the timeframe within which the individual who claims the credit must use the credit for repayment of the individual’s eligible student loan debt; and (5) requires MHEC to engage in specified outreach regarding the tax credit program Applies to the tax year 2023 and beyond; the provision relating to the expanded timeframe for using the credit applies retroactively to credits claimed after the tax year 2019 Effective July 1, 2023

Family Prosperity Act of 2023

SB 0552 Signed by the Governor – Chapter 0003

HB 0547 Signed by the Governor – Chapter 0004

Permanently extends the temporary expansions to the Maryland earned income credit that was enacted under Chapters 39 and 40 of 2021 and further eliminates an existing limit on the value of the State refundable earned income credit for individuals without qualifying children In addition, the bill permanently extends and alters eligibility for the State child tax credit originally enacted under Chapter 40. Applicable to all taxable years beginning after December 31, 2022.

Income Tax – Automated External Defibrillator Tax Credit (Joe Sheya Act)

HB 1074 Signed by the Governor – Chapter 0306

SB 0624 Signed by the Governor – Chapter 0307

Allowing an individual or a business entity to claim a credit against the State income tax for the purchase of an automated external defibrillator during the taxable year. The credit allowed (1) is applicable for only one automated external defibrillator purchased for use at a restaurant location in the State with an annual gross income of at least $400,000, and (2) may be claimed only once by an individual or business entity for each restaurant location For any taxable year, the credit allowed may not exceed the lesser of (1) $1,500; or (2) the State income tax imposed for the taxable year, calculated before the application of the credits allowed under this section and under Sections 10701 and 10-701 1 but after the application of any other credit allowed under this subtitle. Any unused amount of the credit may not be carried over to any other taxable year. Applicable to all taxable years beginning after December 31, 2022, but before January 1, 2028 It shall remain effective for a period of 5 years, and, at the end of June 30, 2028, this Act, with no further action required by the General Assembly, shall be abrogated and of no further force and effect The act takes effect July 1, 2023

Income Tax – Credit for Federal Security Clearance Costs – Alterations

SB 0721 Signed by the Governor – Chapter 0438

Reauthorizes an individual or a corporation that employs not more than 500 employees to claim credits against the State income tax for (1) security clearance administrative expenses, not to exceed $200,000; expenses incurred for rental payments owed during the first year of a rental agreement for spaces leased in the State if the individual or corporation is a small business that performs security-based contracting, not to exceed $200,000; and (3) subject to paragraph 2 below, construction and equipment costs incurred to construct or renovate a single SCIF in an amount equal to the lesser of 50% of the costs or $200,000 The maximum amount of credits authorized to be awarded each year is $2M

(2) The total amount of construction and equipment costs incurred to construct or renovate multiple SCIFs for which an individual or a corporation is eligible to claim as a credit against the State income tax is $500,000. Applicable to taxable years beginning after December 31, 2022, but before January 1, 2028.

CORPORATE INCOME TAX

Corporations and Associations – Revisions

HB 0209 Signed by the Governor – Chapter 0560

Alters numerous miscellaneous provisions of the Corporations and Associations Article, including those relating to (1) the issuance of stock or convertible securities as part of a conversion; (2) stock certificates, scrip, and limited liability company (LLC) certificates issued in bearer form; (3) remote participation at stockholders’ meetings; (4) conversions of a close corporation; (5) directors of a nonstock corporation; (6) dissolution of a real estate investment trust (REIT); and (7) the Maryland Control Share Acquisition Act and statutory trusts The act shall take effect on October 1, 2023

Film Production Activity Income Tax Credit – Alterations and Maryland Entertainment Council

SB 0452 Signed by the Governor – Chapter 0434

Alters the film production activity tax credit by (1) expanding eligible film production activities; (2) expanding eligible costs; (3) increasing the amount of eligible costs that qualify; and (4) increasing the maximum amount of credits the Department of Commerce may award each year (from $12 0 million) to $15 0 million for fiscal 2024, $17 5 million for fiscal 2025, and $20 0 million for fiscal 2026 The bill also establishes the Maryland Entertainment Council to assess Maryland’s existing assets, opportunities, and competitive position with the film, television, and entertainment industry, study specified related topics, and make related recommendations.

Applicable to all taxable years beginning after December 31, 2022 The act takes effect July 1, 2023 Section 2 of this Act shall remain effective for a period of 2 years and, at the end of June 20, 2025, Section 2 of this Act, with no further action required by the General Assembly, shall be abrogated, and no further force and effect

Income Tax – Captive Real Estate Investment Trusts –Alterations

SB 0968 Signed by the Governor – Chapter 0478

Modifies the definition of a “captive real estate investment trust (REIT)” for purposes of the Maryland income tax addition modification for the amount of the federal dividends paid deduction claimed by a captive REIT Specifically, the bill excludes from the definition of a captive REIT a corporation, trust, or association that otherwise meets the ownership requirements for status as a captive REIT and is more than 50% owned or controlled by (1) an entity organized as a trust in which a listed Australian property trust owns or controls, directly or indirectly, 75% or more of the voting power or value of the beneficial interest or shares of the trust or (2) a qualified foreign entity, as defined by the bill Applicable to all taxable years beginning after December 31, 2022

SALES AND USE TAX

Sales and Use Tax Exemption – Redevelopment Areas in Baltimore County – Sunset Extension

SB 0174 Signed by the Governor – Chapter 0017

HB 0237 Signed by the Governor – Chapter 0018

Extends the termination date of a sales and use tax exemption for the sale of specified construction materials and warehousing equipment in Baltimore County (property previously owned at any time by Bethlehem Steel Corporation, or any of its subsidiaries and was, as of January 1, 2016, the subject of an approved application for participation in the Voluntary Cleanup Program under Title 7, Subtitle 5 of the Environment Article) from June 30, 2026, to June 30, 2036

Home Amenity Rentals – Sales and Use Tax Imposed and Local Tax Authorized

SB 0691 Enacted Under Article II, Section 17(c) of the Maryland Constitution – Chapter 0805

Imposes the State sales and use tax on specified home amenity rentals; and authorizes counties and municipalities to impose a home amenity rental tax

“Home Amenity” means any portion, whether indoors or outdoors, of a residential property, excluding bedrooms or any portion of the property intended for sleeping quarters, that is occupied by the hour and for not more than 15 hours consecutively. Effective July 1, 2024.

ESTATES AND TRUSTS

Maryland Estate Tax – Portability – Time Period for Election

HB 0179 Signed by the Governor – Chapter 0714

SB 0055 Signed by the Governor – Chapter 0713

Altering the period of time within which a person is required to file a Maryland estate tax return for the purpose of allowing a surviving spouse to take into account the deceased spousal unused exclusion amount to be consistent with the time for making a federal election; and applying the Act retroactively to any decedents dying on or after January 1, 2019

Estates and Trusts – Registers of Wills – Electronic Filing and Signatures

HB 0244 Signed by the Governor – Chapter 0661

SB 0253 Signed by the Governor – Chapter 0660

Requires a register of wills to accept any document, except an original will, that is filed electronically through a system established by the register and in accordance with the Maryland Rules; however, the bill does not prohibit the filing of a document in paper form with a register Prohibits a register from refusing to accept any document based on the manner in which it was signed “Sign” means, with present intent to authenticate or adopt a record, to (1) execute or adopt a tangible symbol or (2) attach to or logically associate with the record an electronic symbol, sound, or process.

Estates and Trusts – Trusts – Decanting (Maryland Trust Decanting Act)

SB 0446 Signed by the Governor – Chapter 0716

HB 0687 Signed by the Governor – Chapter 0715

Establishes the Maryland Trust Decanting Act, which provides specified authority to an authorized fiduciary to distribute property of a first trust to one or more second trusts or to modify the terms of a first trust It must be construed to apply retroactively and must be applied to and interpreted to affect any trust created before, on, or after October 1, 2023 (the bills effective date) that has its principal place of administration in this State or is governed by the law of this State.

Estates and Trusts – Registered Domestic Partnerships

SB 0792 Signed by the Governor – Chapter 0647

Allows for registered domestic partnerships to have the same effect as marriage under various provisions of the Estates and Trusts Article of the Maryland Code Among other things, it establishes (1) the requirements that must be met for a domestic partnership to be registered with the register of wills and how the domestic partnership may be terminated and (2) the benefits for which the surviving partner of a registered domestic partnership qualifies Also removes certain terms from the definition of “child” under the Estates and Trusts Article and alters provisions governing the distribution of an intestate estate (an estate not distributed by a will)

REGULATORY

Office of the Comptroller – Taxpayer Advocate Division

SB 0660 Signed by the Governor – Chapter 0444

HB 0707 Signed by the Governor – Chapter 0443

Establish a Taxpayer Advocate Division in the Comptroller’s Office to assist taxpayers and their representatives in resolving certain taxpayer problems and complaints and represent taxpayers’ interests in a certain manner This will be accomplished by adding four new positions to the Taxpayer Advocate Division and transforming the Ombudsman Office into the Taxpayer Advocate Division. The act will take effect July 1, 2023.

Modernization of State Financial Systems – 21st Century Financial Systems Enterprise

SB 0659 Signed by the Governor – Chapter 0022

HB 0709 Signed by the Governor – Chapter 0023

Requiring the Office of the Comptroller, the Office of the State Treasurer, the Department of Budget and Management, the Department of Information Technology, and the Department of General Services, in consultation with a representative of the Modernize Maryland Oversight Commission, to develop, implement, manage, and oversee the 21st Century Financial Enterprise; and requiring the Office of the Comptroller to report to the General Assembly on or before December 31, 2023, and every six months thereafter, ending with the final report due on or before January 1, 2027 The act shall take effect July 1, 2023

Corporations – Filing Requirements for Dissolution and Termination of Registration or Qualification – Repeal

HB 0999 Signed by the Governor – Chapter 0457

Repeals a prohibition against the State Department of Assessments and Taxation (SDAT) from accepting articles of dissolution of a corporation for record unless specified reports have been filed Also repeals a requirement that SDAT issues a certificate of termination to a foreign corporation if all specified reports have been filed Effective July 1, 2023

Comptroller and State Department of Assessments and Taxation – Enhancing Access to Property Tax Benefits –Report

HB 0665 Signed by the Governor – Chapter 0662

Requires the Comptroller and the State Department of Assessments and Taxation (SDAT) to confer during the 2023 legislative interim to identify ways the Comptroller could collaborate with SDAT to enhance access and raise awareness of specified property tax benefits available to taxpayers Effective June 1, 2023, and remains effective for a period of 1 year and 1 month At the end of June 20, 2024, this Act, with no further action required by the General Assembly, shall be abrogated and of no further force and effect.

Corporations and Associations – Electronic Copies Fee –Repeal

SB 0723 Signed by the Governor – Chapter 0070

Repeals a $1 per-page fee for electronic copies of any paper that is recorded or filed with the State Department of Assessments and Taxations (SDAT) The act shall take effect October 1, 2023

SMALL BUSINESSES

Disclosure of Tax Information – Maryland Small Business Retirement Savings Board – Authorization

HB 0086 Signed by the Governor – Chapter 0337

SB 0189 Signed by the Governor – Chapter 0338

Authorizing the disclosure of a business entity’s federal employer identification number, name, physical address, mailing address, contact name, e-mail address, and phone number to the Maryland Small Business Retirement Savings Board and its authorized contractors to administer the Maryland Small Business Retirement Savings Program and Trust. Effective June 1, 2023.

Fair Wage Act of 2023

SB 0555 Signed by the Governor – Chapter 0002

Accelerated the increase in the State minimum wage rate for all employers to $15 00 per hour beginning January 1, 2024

Effective July 1, 2023

Labor and Employment – Noncompete and Conflict of Interest Provisions – Application of Prohibition

SB 0591 Signed by the Governor – Chapter 0266

An employee who earns equal to or less than 150% of the State minimum wage rate established under Section 3-413 of this title, a non-compete or conflict of interest provision in an employment contract or a similar document or agreement that restricts the ability of an employee to enter into employment with a new employer or to become selfemployed in the same or similar business or trade shall be null and void as being against the public policy of the State. Effective October 1, 2023.

Labor and Employment – Worker’s Compensation –Hernia

HB 0902 Signed by the Governor – Chapter 0412

SB 0839 Signed by the Governor – Chapter 0411

Establishes that a hernia caused as a result of repetitive trauma may be considered an occupational disease that is compensable under worker’s compensation law In order for a hernia to be compensable, the accidental personal injury or strain that caused the hernia must be reported to the employer within 45 days after its occurrence. However, if a covered employee fails to file a claim for compensation within this time period, the claim may still be filed within two years after the date the injury occurred, unless the employer or its insurer has been prejudiced by the failure Hernias caused as a result of repetitive trauma are not generally compensable under workers’ compensation law, as held in the case of Greer v Montgomery County 246 Md App 245 Ct Spec App 2020 Effective October 1, 2023

Disclaimer: This report provides a summary of the legislation that was passed by the Maryland General Assembly during the 2023 session and signed into law by the Governor or Enacted Under Article II, Section 17(b) of the Maryland Constitution This report does not list every requirement that must be met to be in compliance with the legislation and any individual or business that must comply with or be knowledgeable of the legislation enacted into law should review the bills on the Maryland General Assembly website to ensure they are aware of and in compliance with all requirements of the legislation.

As we journey through life, our needs and priorities evolve. As we age, one aspect that becomes increasingly important is the sense of belonging and community. While professional communities are often associated with career development and networking, their impact goes far beyond that. This article explores the significance of being part of a professional community and how it can positively affect the aging process.

Social Connection and Well-being:

As individuals age, social connections become vital for their overall well-being. Being part of a professional community offers a platform to interact with like-minded individuals with similar interests, experiences, and challenges. These connections foster a sense of belonging, combat loneliness, and provide emotional support Studies have shown that strong social networks can lead to better mental and physical health outcomes, lower rates of depression, and improved cognitive function

Lifelong Learning and Cognitive Stimulation:

Professional communities are hubs of knowledge and continuous learning Engaging in intellectual discussions, workshops, or webinars within these communities provides ongoing cognitive stimulation Research suggests that staying mentally active through learning activities can help prevent cognitive decline and reduce the risk of dementia. By challenging the mind and acquiring new knowledge, individuals can maintain cognitive agility and promote brain health as they age

Sense of Purpose and Engagement:

Retirement or transitioning into a different phase of life can sometimes leave individuals feeling a lack of purpose or a void in their daily routines. Professional communities offer opportunities for continued engagement, utilizing skills, and contributing to the community's growth. By staying involved and sharing expertise, individuals can maintain a sense of purpose and fulfillment, which is crucial for healthy aging This active involvement can also lead to a smoother transition into retirement as individuals find new ways to apply their skills and passions

Embracing the power of professional communities can lead to a more fulfilling and vibrant aging journey.

Health Promotion and Lifestyle Choices:

Aging is closely intertwined with health and lifestyle choices Being part of a professional community can positively influence health-related behaviors Within these communities, members often exchange information on health practices, share wellness tips, and support each other in making healthy choices. This collective effort can inspire individuals to adopt healthier lifestyles, including regular exercise, balanced nutrition, and stress management techniques Such positive health behaviors contribute to better overall health outcomes and a higher quality of life in aging.

Opportunities for Intergenerational Connections:

Professional communities often encompass individuals from diverse age groups This diversity allows for intergenerational connections and the sharing of experiences across different life stages. Older adults can offer wisdom, mentorship, and guidance to younger professionals, while younger members can provide fresh perspectives and technological expertise. These intergenerational interactions promote mutual learning, foster empathy, and challenge age-related stereotypes, creating a more inclusive and cohesive community

Being part of a professional community offers numerous benefits, especially as we age. It provides a sense of belonging, promotes social connections, and supports overall well-being By engaging in continuous learning, staying actively involved, and making positive lifestyle choices, individuals can enhance their cognitive function, find purpose, and improve their overall quality of life. Furthermore, professional communities provide a platform for intergenerational connections, enriching the experiences of all members Embracing the power of professional communities can lead to a more fulfilling and vibrant aging journey.

Revolutionary Solutions: The Merchant Comparison Tool

By Hailey Jennings

Living in the modern age comes with constant technological innovations that have the ability to stretch across all areas of our lives Using these advancements in the correct application can increasingly heighten our quality of life Finding the right fit is the hardest part

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With no shortage of tools available to navigate this field, why trust ours? The answer is simple, the foundation that we were built on. We believe consistency breeds trust and that every client counts, no matter the size We are a small local business that prides itself on helping other local businesses flourish and succeed It's easy to look at this like it's another tool your neighborhood credit card processing company is pushing But when you look at the organization standing behind it, you're capable of seeing everything it's supposed to be

We believe that the most important pillars to stand on are community matters, people matter, and local matters. With an ever-changing landscape in the professional world, we know that finding balance is key. A place where old-school customer service and new-school technology matter USB Payment Processing has been a proud sponsor of MSATP for the last 8 years Through this time with your organization, we have listened often to the challenges accounting professionals deal with within the payment space As trusted advisors for your clients, you are often looked for to have answers for all the financial things that impact their business So with that in mind combined with our 27 years of expertise in the payment space, The Merchant Comparison Tool was born

The Merchant Comparison Tool was created with data and strategic information from merchants in the Mid-Atlantic, so it is regionally specific and current This tool allows you to assess a customer's payments expender compared to others in the area in under one minute, all while maintaining privacy. From your desk, the ability to add value to your clients will be significant with an algorithm that is adjusted annually. Allowing you to bill your clients for 10% of their savings, five clients would offset your current membership fees and allow growth for longevity and trust You can ensure that you are providing accurate industry-specific results to small businesses with real-time data from real customers

Stress is a common encounter for most people in the workplace The Incredible Productivity Stats (Editor's Choice) states that “The average employee is only productive for 2 hours and 53 minutes per day. Engaged employees are more productive, resulting in a 21% increase in profits. 41% of stressed employees state that stress negatively affects productivity ” But what if there was a tool you could use to take something off your plate? A July 2022 article in Accountancy Age explored a survey that showed 99% of accountants are suffering from burnout, while 24% reported medium-high to high levels of burnout Finding different methods and tools that work best for you to decrease your stress levels in the workplace is imperative

As an organization, we have heard your concerns over the past 7 years We understand that providing a comprehensive look at cost and cost savings is a vital skill, it allows the factor of mystery to be nonexistent. Creating a new level of trust as an advisor added to your services, this in turn increases your in your customer’s eyes

Over the years, we’ve had the opportunity to cultivate our relationship with your organization, in doing so we have gained vital insight into your everyday professional world This gave us the opportunity to build a tool that allows us another avenue to strengthen our relationship and continue to grow With thirteen financial institutions and several professionals using USB as “Trusted Partners”, The Merchant Comparison Tool is capable of helping any bussiness solve the looming issue of payments, creating a seamless fit.

Visit our website to learn more at www.merchantcomparisontool.com and find out for yourself. Or call us today at (410) 828-4286 and ask to speak with Hailey to learn more about what The Merchant Comparison Tool can do for you.

This tool allows you to assess a customer's payments expender compared to others in the area in under one minute, all while maintaining privacy

Protect Your Tax Practice with Bellator Cyber Guard

By Ben Skrajny

As a tax professional, ensuring the security of your client's sensitive data is not only best practice, it’s a legal obligation A WISP isn’t just a piece of paper; it shows exactly what actions a tax professional has taken to protect their client’s data. Failure to implement a Written Information Security Plan (WISP) can lead to severe penalties and reputational damage This article will help you understand those requirements and how Bellator Cyber Guard can help

The Penalties of Ignoring WISP Requirements

Regulatory Fines: Tax professionals are subject to various data protection regulations, such as the FTC Safeguards Rule (FTC Fines ranging from $10,000-$100,000), state-specific laws, and IRS publications. Failure to have a WISP that meets regulatory requirements can lead to hefty fines imposed by authorities

Legal Liabilities: In the event of a data breach or unauthorized access to a client's information, your tax practice could face costly lawsuits, potentially crippling your business financially.

Client Loss and Reputational Damage: News of a data breach spreads quickly, and clients expect their tax professionals to handle their data securely If a breach happens, it is very important to notify clients immediately A breach can erode trust and lead to a significant loss of clientele

Operational Disruptions: Dealing with a data breach or security incident can disrupt your day-to-day operations, resulting in downtime and loss of productivity a vast majority of SMB’s who suffer a data breach close within 6 months

How Bellator Cyber Guard Can Help

At Bellator Cyber Guard, we understand tax professionals' unique challenges in safeguarding their clients' sensitive data. Our comprehensive WISP services offer the following benefits to help you stay compliant and secure

Custom Tailored WISP Development: AICPA-certified experts work closely with you to develop a WISP that aligns with your tax practice's specific needs and meets all regulatory requirements, ensuring comprehensive data protection.

Streamlined Implementation: Our team of AICPA Certified Experts will guide you through implementing the WISP, making it seamless and hasslefree for your practice but will fully develop the plan for you after a simple 30-minute intake process

Incident Response and Recovery: In the unfortunate event of a security incident, we have a robust Incident Response Plan to minimize the impact and facilitate a swift recovery

The Three Simple Steps to WISP Compliance

Consultation and Assessment: Our team will conduct a thorough assessment of your tax practice's current security measures and potential vulnerabilities. Based on the evaluation, we'll develop a personalized WISP strategy.

Tailored WISP Development: With a deep understanding of your practice's unique requirements, we'll craft a comprehensive WISP that complies with all relevant data protection regulations

Implementation and Ongoing Support: We'll be able to help you smoothly integrate the WISP into your daily operations and provide recommendations and updates to keep your practice secure at all times

In conclusion, safeguarding your clients' sensitive data is a legal obligation and essential for maintaining trust and credibility in your tax practice With Bellator Cyber Guard's proven WISP services, you can avoid the hefty penalties of non-compliance and focus on providing exceptional service to your clients with peace of mind.

Protect your tax practice today with Bellator Cyber Guard's WISP services Contact us to schedule a consultation and take the first step on your path to compliance

MEMBER NEWS

WelcomingaNew BundleofJoy

Board Member Delegate Sean Coggins and his wife, Sarah, have been blessed with a beautiful new addition to their family. Let us all join in celebrating the arrival of their precious baby boy, Casey Coggins, who was born on March 27, 2023.

Sean and Sarah are overjoyed to announce that Casey is now the youngest member of their family, joining his two older brothers. Connor, aged 4, and Carson, aged 2, are undoubtedly excited to have a new playmate and little brother to share their adventures with.

GRANDOPENING

McIlhargey Tax and Accounting Services, LLC

Board Member Delegate Michael McIlhargey has opened a virtual practice offering bookkeeping, monthly accounting services, tax prep, planning services and IRS representation

www.mtascpa.com

CogginsCPA

Board Member Delegate Sean Coggins has opened a virtual practice offering assurance, accounting, and advisory services.

www.cogginscpa.com

Sean was also recently featured on Serena Shoup's, The Ambitious Bookkeeper Podcast speaking about unlocking the secrets to Cannabis Bookkeeping.

Listen to the podcast

Submit Your News!

ON YOUR RETIREMENT

Marion Thompson, CPA

After 40 years of tax preparation, accounting, and serving clients and the industry Marion Thompson of Thompson Tax Associates, Past President and Past Chair of the Education of the MSATP, has retired

We wish you a relaxing retirement!

Kathleen Ostrowski, CPA

Kathleen, a member of the Society for 27 years and a committed volunteer has retired but will be volunteering at the seminars throughout seminar season.

Congrats, we appreciate your commitment to the Society!

Your expertise, achievements, and insights are an invaluable part of our community, and featuring them in our quarterly magazine is an excellent way to acknowledge and celebrate our collective progress. Please submit staff announcements, professional achievements, the selling of a practice, opinion pieces and more.

Submitting your news is easy - send your articles, stories, or news items to ghawkins@msatp.org.

Member Benefits Spotlight

Verifyle

FREE access to Verifyle Platinum If you haven't done so already, it’s time to safeguard your client’s information and enhance your practice’s efficiency Verifyle Platinum is an ultra-secure document storage and communication platform designed with professionals like you in mind It offers a space to share, store, and communicate securely

With Earmark's Unlimited Subscription, members can enjoy unlimited free CPE courses every week, an ad-free experience within the app, and the option to skip sponsor messages during registration for sponsored courses. It's a game-changer for professionals in small firms, providing a convenient and affordable education

As a NASBA-approved CPE sponsor and IRS-approved CE provider, Earmark offers a vast range of courses covering accounting, tax, technology, fraud detection, personal development, practice management, and more. Our CPAs, CMAs, and EAs can now meet their continuing education requirements simply by tuning in to insightful podcasts. We're particularly excited about the exclusive Federal Tax Updates podcast, providing biweekly federal tax news and analysis.

Quickly and easily get answers to all your federal and state tax questions in one place! Don’t waste time searching various resources for crucial news and information that you need quickly.

Housed on the powerhouse platform, CCH® IntelliConnect®, the Wolters Kluwer TaxAware Center has all the state and federal tax news, information, and tools necessary for today’s tax professionals

CORPORATE SPONSORS

JERRY LOTZ | 410.960.8269

We help tax professionals and their clients who own lease, residential rental, multi-family and commercial properties by providing the calculations that accelerate depreciation and save income taxes

WWW.COSTSEGES.COM

JONATHAN POCIUS | 240.699.0060

PeopleWorX is an end-to-end workforce management company providing payroll, HR, Time & Attendance, Employee Benefits, and more We offer a complete, integrated, single sign-on solution while pairing our technology with expert support Customers can also package our solutions with our add-on HR services

WWW.PAYROLLSERVICESLLC.COM

MARC REIBMAN | 410.828.4286

USB Payment Processing is a 26-year-old small business solutions company specializing in payment acceptance, point of sale, and software technology, helping you and your clients save money.

WWW.USBNE.COM