July 2018

Continued on Page 4  Transition Begins, Page 3  CPE Schedule, Page 7  Page 8 From the AICPA When will the Internal Revenue Ser- vice (IRS) issue guidance on new Inter- nal Revenue Code section 199A? That’s the number one question on CPAs’ minds related to the Tax Cuts and Jobs Act. The answer is soon, according to Acting IRS Commissioner David Kaut- ter. On June 8, when speaking at a tax conference in Charlottesville, VA., Kautter said that the proposed section 199A regulations could be released “within a couple of weeks.” Kautter also said the IRS is trying to hit the key points with the proposed regulations (implying they will not address many of the less-urgent points in the initial guid- ance). He noted that the proposed regu- lations will likely include general rules, aggregation rules, anti-abuse rules, and the definition of specified services. Kautter had first predicted at a May tax meeting in Washington, D.C. that the proposed regulations would be released in July. At that time, he said that the proposed regulations probably would not answer all practitioners’ questions and that public comments would help shape the final regulations. Under the new law passed by Con- gress last December, qualified business income (QBI) from many pass-through entities is eligible for a 20 percent de- duction, although many basic questions about the provision will remain unan- swered until the Treasury Department and the IRS issue guidance. The American Institute of CPAs be- gan its push for immediate guidance in February. In a letter to Treasury and IRS officials, the AICPA stated, “Taxpayers and practitioners need clari- ty regarding QBI in order to comply with their 2018 tax obligations and to make informed decisions regarding cash -flow, entity structure, and other tax planning issues.” The AICPA has since reinforced the urgency for guidance in meetings with the IRS and Treasury, and also provided real-life examples of chal- lenges about how the rules may impact our members and their clients. The AICPA identified six top priori- ties for QBI guidance and suggested how guidance in those areas should be written. The six issues are :  Definition of QBI  Aggregation method for calculation Mid-Year Committee Meeting… Over 40 members of seven of the Society’s standing committees met at Ma- honey State Park on May 30, 2018, for the annual Mid-Year Committee Meetings. The meetings included a working lunch for the Society leadership. In the left picture, members of the Industry Committee discusses future events and possible nominations for Society members for annual Society awards. In the right picture, members of the State & Local Governmental Accounting & Auditing Committee meet to discuss final plans for the 2018 Conference in Lincoln. The Committee meetings were followed by a quarterly meeting of the Society’s Board of Directors.