Capitol Corner




Not a CTCPA member?  Join today to receive even more legislative and regulatory news straight to your inbox!


Find your legislators in our Advocacy Action Center
   

Become a Legislative Key Contact.

 
We've got our eye on happenings at the Capitol! If 
state or federal legislation or accounting standards activity will affect you, your company, or your clients, we'll keep you updated here.

State News

Judiciary Committee Proposes Sweeping Police Reform
The state’s Judiciary Committee proposed sweeping legislation Thursday that requires mental health checks for police officers, addresses police union contracts that negate state transparency laws and sets up an independent office to investigate deadly police use-of-force incidents. The 63-page draft legislation comes weeks after state residents staged dozens of public protests following the death of George Floyd in Minneapolis as he was being taken into custody for a minor charge.
With CT’s economy still ailing from Great Recession, pandemic digs a deeper hole for state to scale
After months of relative isolation and various other sacrifices made by state residents and companies, Connecticut can, at least for now, declare a cautious victory against COVID-19. Infection rates, hospitalizations and deaths continue to dwindle as the daily reality of social distancing, mask wearing and other precautions remain the norm. But the pandemic has battered the state and national economies, and the recovery almost certainly won’t be the V-shaped bounce-back some economists...
Gov. Lamont’s executive orders have helped CT beat back COVID-19, but some businesses want to curtail his powers
When Gov. Ned Lamont announced in May that he would force Connecticut nail salons — shuttered by his own order since COVID-19 struck the state in March — to wait another month to reopen, Luis Ramirez was at his wit’s end. The owner of Roxy Nails Design in Hartford’s Frog Hollow neighborhood, Ramirez had scraped together $800 for safety improvements to his salon, even with overdue rent piling up, as he anxiously prepared for what was supposed to be a May 20 return to business. However,...
Pandemic restricts CT's credit card; planned projects would shatter it by $2B
As legislators fled the Capitol as the coronavirus spread through Connecticut last March, they failed to approve the annual limit on the state’s credit card — a seemingly routine task, but one whose absence now jeopardizes billions of dollars in planned projects. It’s unclear whether lawmakers will address this oversight later this month when they return to Hartford for a special legislative session, or defer action until after the November elections. Their ability to postpone delivering...
Boston Fed forecast shows CT tax revenue dropping up to 20% this year
Connecticut's tax revenue could drop as much as 20% in the 2021 fiscal year that began July 1, compared with fiscal 2020, according to a forecast released by the Federal Reserve Bank of Boston. The study, which forecasts 2021 tax revenues for New England's six states, predicts Connecticut's revenue will drop between 6% (in the event of a quick economic recovery) and 20%. Connecticut collected nearly $12 billion in tax revenue in the first 11 months of fiscal 2020, according to CT Data.

More >

Accounting Standards and Regulations

CPA Evolution Project Continues with Proposed Changes to CPA Exam, Educational Requirements for Initial Licensure
The National Association of State Boards of Accountancy (NASBA) Eastern Regional Meeting, held virtually this spring, covered several issues – most notably the CPA Evolution Project.  NASBA, in partnership with the AICPA, has spent almost...
GASB Proposes Application Guidance on CARES Act and Coronavirus Diseases Issues
As part of its continuing efforts to assist state and local governments during the COVID-19 pandemic, the Governmental Accounting Standards Board (GASB) today released a proposed staff Technical Bulletin containing application guidance related to...
FASB votes to delay revenue recognition effective date for private companies
The board originally had proposed amending the revenue recognition standard effective date just for franchisors that are not public business entities. But feedback FASB received on the proposal related to coronavirus pandemic challenges convinced...
Auditing Standards Board to consider one-year deferral of effective dates
The effective dates for seven recently issued generally accepted auditing standards may be deferred by one year when the AICPA Auditing Standards Board (ASB) holds a special open meeting from 2 to 4 p.m. on April 20 to discuss relief due to the...
IRS crypto guidance every tax practitioner should know
The IRS is getting serious about cryptocurrency. This fall, it released three documents that all tax practitioners need to pay attention to ahead of the 2019 filing season: a retroactive revenue ruling, FAQs for reporting cryptocurrency ownership...

More >

 

Federal News

President Trump signs 5-week PPP extension
The extension keeps a source of funding open to struggling small businesses while Congress works on a second, more targeted funding program. The PPP, which has approximately $129 billion in funding remaining, was launched in early April as the COVID-19 pandemic battered the U.S. economy and forced many businesses to close. The program provides forgivable loans that small businesses and other qualifying entities can use to cover payroll and other select costs.
Taxpayers should file by July 15 tax deadline; automatic extension to Oct. 15 available
The Department of the Treasury and IRS today announced the tax filing and payment deadline of July 15 will not be postponed. Individual taxpayers unable to meet the July 15 due date can request an automatic extension of time to file until Oct. 15.
Relief for taxpayers affected by COVID-19 who take distributions or loans from retirement plans
This includes expanding the categories of individuals eligible for these types of distributions and loans (referred to as "qualified individuals") and providing helpful guidance and examples on how qualified individuals will reflect the tax treatment of these distributions and loans on their federal income tax filings.
SBA and Treasury Announce New EZ and Revised Full Forgiveness Applications for the Paycheck Protection Program
In addition to revising the full forgiveness application, SBA also published a new EZ version of the forgiveness application.
IRS adds phone operators to answer Economic Impact Payment questions
IRS telephone assistance and other services will remain limited, and answers for most of the common questions related to Economic Impact Payments are available on IRS.gov. The IRS anticipates bringing back additional assistors as state and local advisories permit.

More >