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Vol. 17 No
On Balance is published five times a year by the Wisconsin Institute of Certified Public Accountants (WICPA). Change of address should be sent to: Membership, W233N2080 Ridgeview Pkwy, Suite 201, Waukesha, WI 53188; Phone: 262-785-0445 or 800-772-6939; Fax: 262-785-0838; email: comments@wicpa.org. Statements and opinions expressed are those of the authors and not necessarily those of the WICPA. Publication of an advertisement does not constitute an endorsement of the product or service by On Balance or the WICPA. Articles may be reproduced with permission. © Copyright 2021 On Balance.
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2020-2021 WICPA OFFICERS/BOARD MEMBERS INSIDE STAFF
Chair
Wendi M. Unger, CPA
Chair-elect
Angela C. Thomas, CPA
Past Chair
Neil R. Keller, CPA/ABV, CVA
Secretary/Treasurer
Lucien A. Beaudry, CPA, JD
Directors
Jeff Dewane, CPA, CGMA, CMA, MBA John R. Heindel, CPA Daniel Holzhauer, CPA Ruth A. Kallio-Mielke, CPA Wendy A. Peters, CPA Steven A. Pullara, CPA Matthew J. Schaefer, CPA, CGMA Kyle R. Stephens, CPA
AICPA Council
Ryan J. Hanson, CPA, CGMA Neil R. Keller, CPA/ABV, CVA
President & CEO
Tammy J. Hofstede
Design & Layout
Brett Stallman
Advertising Sue Daniels
Editor
Marcia Tillett-Zinzow
Printing Delzer
ATTENTION!
THE CURRENT CPE REPORTING PERIOD ENDS DEC. 31, 2021
Reporting Period: Jan. 1, 2020 – Dec. 31, 2021 CPE Requirement: 80 total CPE credits Ethics Requirement: 3 Ethics CPE credits
Visit wicpa.org/CPErequirements for more information about CPE requirements.
Embracing change and moving forward
As I write my final column as chair of the WICPA board of directors, I look back on a year unlike any other. It was a year full of change — and that’s an understatement. However, change for our profession is not unusual or unexpected. We adjust as needed to new regulations, new tax laws, new FASBs and new GASBs. We hire new people, and we see current employees decide to change their career paths. Change is normal and even needed to move our profession forward. The WICPA organization also saw significant change over the last year. • Conferences and training went to a 100% virtual format. • All our board and committee meetings also went virtual.
The in-person networking we all enjoy so much came to a bit of a halt, but we did not let this discourage us. • The WICPA instituted new member orientation sessions and has since added member orientation virtual sessions for any member who is interested. • We continued our discussions with the Wisconsin
Department of Revenue and local legislators to move forward the legislation and regulation discussions that had stalled due to the pandemic. • In addition, the WICPA and the board took a hard look at the organization’s diversity and inclusion practices and philosophies. We shared our personal thoughts and ideas as well as what each of our organizations was doing. Today, the pandemic is changing, too. We have two vaccines now, and it appears they are doing what they should: reducing the number of positive cases. Some school districts in the state are allowing or at least leaning toward returning to in-person learning. We may soon be able to go see our favorite sports teams play — and to once again network face-to-face with our fellow members.
When I took over as chair last year, my goal was to leave the WICPA in a better position than I found it. Little did I know that a pandemic would try to throw a wrench into that commitment. So as I sit back and look at all the changes that have occurred, I think about what it all means. Are we better off than we were? Different — yes. Stronger — yes. Better off — definitely! We have survived a pandemic, and as an organization, we have come through stronger and more adaptable, flexible and resilient than ever before. We need not be afraid of change. We know how to handle it. We know how to react. We have proven that we can do anything we set our minds to, no matter what the situation may be. I have enjoyed my time as chair and look forward to handing the baton to the exceptionally qualified chairelect, Angela Thomas. As I leave, I would like to thank the WICPA’s amazing president and CEO, Tammy Hofstede. She has truly taken this organization to the next level. I appreciate all her hard work and all the guidance and patience she has afforded me in my role as chair. The sky is the limit for the WICPA and its members, especially when we embrace change. As Benjamin Franklin said, “When you’re finished changing, you’re finished.” We are not there, nor should we ever be.
Wendi Unger, CPA, is a partner with Baker Tilly in Milwaukee and the 2020-2021 chair of the WICPA board of directors. Contact her at 414-777-5423 or wendi.unger@bakertilly.com.
2020
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WICPA
YEAR IN REVIEW
It has been quite the year! While COVID-19 created many challenges and forced changes, it also shaped opportunities for us all. The WICPA had to quickly change course in many areas for our members. As you have observed over the last year, and especially the last few months, the influence of the WICPA and its members has provided support and protection for our members, their clients, businesses and the public. Many of these successes were related to advocacy and our continued relationships with state and federal legislators and members’ involvement with expressing their voices to legislators. Despite the pandemic and its challenges, we did not eliminate opportunities to evaluate how we could continue to serve members in new ways. As we wrap up our fiscal year on April 30, I am pleased to share what we have accomplished for members over the last year.
Advocacy: enhancing member success
Advocacy promotes the profession, protects its credibility and is a powerful benefit of your membership. Maintaining a strong presence at the State Capitol in Madison and Washington, D.C., and attending political events and fundraisers are critical to ensuring our voices are heard when it comes to legislation that impacts Wisconsin CPAs. In addition to offering the WICPA members as a resource, we successfully succeeded in presenting our positions on legislation impacting CPAs, their clients and the business community. • The WICPA and members' voices were heard to include accounting services as essential business in Gov. Evers’s “Safer at Home” order. • The WICPA, along with the other state CPA societies and the AICPA, were able to successfully extend the IRS tax filing deadline and payments with no penalties or interest and to encourage our members of Congress to support proposed legislation to assist individuals and businesses in this difficult time. • We worked with Gov. Tony Evers, leadership of both parties in the legislature and Department of Revenue Secy. Peter Barca to successfully achieve extending the Wisconsin filing deadline and payments without penalty or interest. • Conversations were held with DSPS and the Accounting Examining Board regarding cancellations of the CPA Exam due to the emergency declaration, which resulted in extensions and waivers for CPA Exam candidates. • We successfully implemented continuous testing of the CPA Exam, which went into effect July 1, 2020. Continuous testing allows candidates to sit for the CPA Exam year-round.
Although the legislature did not come back into session last year to pass pending legislation once the pandemic occurred, two bills were immediately reintroduced in January 2021 and signed into law by Gov. Evers on Feb. 19. They were as follows: • Clarifying language for Wisconsin Act 368 regarding the treatment of pass-through entities. The changes we addressed in our legislation provide similar treatment in the rules that apply to both partnerships and tax-option corporations making the entity election to provide conformity, effective for years after Dec. 31, 2019. This bill was passed unanimously in the Assembly with votes of 94-0 and in the Senate with votes of 32-0 and is now 2021 Wisconsin Act 2. • Supported the Wisconsin Department of Revenue’s Taxpayer Enhancement Package because taxpayers and businesses benefit from this clarification and increasing compliance. The bill also simplifies the Department of Revenue’s administration to make the tax compliance process more effective and efficient as well as incorporates updates for Wisconsin tax code to follow the Internal Revenue Code. This will avoid taxpayer confusion. (This bill was included in 2021 Wisconsin Act 1). The most significant success revolves around the Paycheck Protection Program (PPP) relief funds: • The WICPA again worked closely with other state CPA societies and the AICPA to clarify the intent of the CARES Act regarding forgiveness and deductibility of PPP loan proceeds. This was accomplished at the federal level at the end of December 2020. • As timing was of the essence for our members, their clients, Wisconsin businesses and tax filing timing, we advocated for Wisconsin to be in conformity with the federal legislation. This did not come without significant opposition at the start. We joined a coalition with several other organizations, saw a record increase of member outreach and ultimately — through collaboration with key legislators and leaders — obtained bipartisan support. The legislation also excludes from taxable income all income received in the form of allocations issued by this state with moneys received from the coronavirus relief fund to be used for economic support, including broadband expansion, lodging industry grants, supplemental childcare grants, grants to small businesses, a rental assistance program, a farm support program and the grants awarded under the ethnic minority emergency grant program. The Assembly vote was 87-3, and the Senate vote was 27-5, and Gov. Evers signed the legislation (within an unbelievable 30 days) on Feb. 19, creating 2021 Wisconsin Act 1. Also in process is legislation introduced by Sen. Dale Kooygena: • In collaboration with the Accounting Examining Board, this legislation will allow accredited highereducation credits (such as from a technical college) that do not transfer to a four-year college to count toward the 150-hour requirement to obtain a CPA license in Wisconsin. There is bipartisan support for this bill. At the time of publication, this legislation is in the public hearing stage, and we anticipate it will pass within the next few months.
Celebrating the profession
The WICPA celebrated its 115th anniversary by recognizing CPAs for their hard work and the impact they have on communities and businesses throughout Wisconsin, and we worked with Gov. Evers to issue a proclamation that recognized Wisconsin CPAs and designated an entire week in November as Wisconsin CPA Week. WICPA members, firms and companies are the economic engines of our state’s economy. With high standards of ethics and professionalism, CPAs are critical to the vitality and prosperity of the state and responsible for the fiscal health and well-being of individuals, businesses and institutions.
Connecting
• A High School Educator Committee was formed to provide a setting in which high school educators can have a forum to discuss accounting in the classrooms and engage WICPA members to promote the profession at their schools through career fairs, speaking in the classrooms and providing input on topics for the Educator Accounting Symposium. • WICPA Connect, the members-only online community, proved very helpful in assisting members with questions and opportunities to collaborate. Connect was also a key resource in providing immediate communication to members regarding state and federal legislative updates. • Private communities were created in Connect for all committees and boards to communicate, track discussions and share materials more efficiently. • New-member virtual orientation meetings were developed to connect new members with WICPA staff, leadership and benefits of being a member. • Continued meetings with members and creating and enhancing relationships resulted in the WICPA being a key resource for assistance regarding licensure, CPE
requirements and the CPA Exam. Presentations were given to groups throughout the state on the CPE requirements, the CPA Exam and the licensure process. • Due to the significant number of questions related to the CPA Exam and licensure, a CPA Exam Checklist and CPA Certificate & License Checklist were developed for high schools, colleges, students and aspiring CPAs to easily track the steps and requirements to become a CPA. • New members, CPAC/LIF contributors and Educational Foundation donors have been recognized on a regular basis in On Balance. In addition, the New Members and Kudos sections of On Balance have also been promoted through social media. • Continued connections and relationships with legislators, leaders and agencies have also been instrumental to serving the CPA profession. • The WICPA partnered with WEDC and provided a free presentation to inform and answer questions about the “We’re All In” small business grant program, which assisted with the costs of business interruption, so that members were able to support their clients with the grant applications. • As we continue to explore benefits and discounts for services relevant to our members, we added new affinity partners: UWorld|Roger CPA Review, Wiley Efficient Learning and LibertyID.
Continuing professional education and events
• We were able to quickly shift our CPE programs and events to livestream when the pandemic hit. Our livestream events included the ability to ask questions of the speaker during the presentation. On-demand session recordings continued to be available afterward. • Our breakfast programs took on a new format with Wednesday/Friday livestream season passes available and covered a variety of topics. • Pricing was reduced for members and sponsors, to accommodate the financial impact of the pandemic and the WICPA incurring fewer expenses related to livestream programs. • Several free programs were offered to members to assist with completing CPE requirements. The programs included technology, guidance related to businesses and the impact of COVID-19, and legislation.
Diversity
The WICPA is exploring opportunities with the National Association of Black Accountants (NABA) and the National Society of Black Certified Public Accountants (NSBCPA) on a CPA Breakthrough program to support CPA candidates with mentors, financial support and resources for the CPA Exam. We also offered members a free diversity series and unconscious bias program, which counted toward formal CPE credit. Thank you for your continued membership, your involvement, your commitment to the accounting profession and for making these initiatives possible!
Tammy J. Hofstede is president & CEO of the WICPA. Contact her at 262-785-0445 ext. 4518 or tammy@wicpa.org.
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The WICPA would like to extend special thanks to the following legislators for their leadership, support and committee work in regard to our legislation and for quickly introducing and obtaining bipartisan support for PPP conformity and tax relief for Wisconsin businesses: Senators Howard Marklein, Dale Kooyenga and Chris Kapenga; and Representatives Robert Wittke, John Macco, Jimmy Anderson, Gordon Hintz, Terry Katsma, Tip McGuire and Shannon Zimmerman. We would also like to thank the Department of Revenue and Gov. Tony Evers for his prompt attention and enacting into law what is now 2021 Wisconsin Act 1 and 2021 Wisconsin Act 2.
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YOUR SOURCE FOR KEY UPDATES & INSIGHTS ON TIMELY ISSUES
TUESDAY, MARCH 23
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