PROJECT DESCRIPTION
Prior to my role as NCCPAP’s public relations manager, its members had been regularly meeting with the IRS, testifying before members of Congress and shaping tax policy in their respective states with little to no recognition in the press. Our PR efforts significantly increased NCCPAP’s visibility as members became regular contributors to financial and tax publications.
Recognition in local and national media outlets further solidified NCCPAP members’ reputations as experts in their field. CPAs who serve NCCPAP to shape tax policy do so on a voluntary basis. Getting them recognized in publications that garnered press for the organization had a positive secondary effect by providing marketing for their own practices. This not only increased their own value in the view of their clients and prospective clients, but elevated the value of a NCCPAP membership.
FOR IMMEDIATE RELEASE
Congress Choosing Not to Extend Tax Provisions Will Hurt Millions of American Who Foreclosed in 2014
Issued by the National Conference of CPA Practitioners (NCCPAP)
November 6, 2014, Mineola, NY -- Congress has not passed any of the over 50 tax provisions that have already expired in 2014. Congress still has the ability to pass what’s referred to as “Extenders” making them count for the 2014 tax season. Delays in passing Extenders could postpone the start of the 2014 tax season causing serious financial complications for millions of Americans.
President of the National Conference of CPA Practitioners (NCCPAP), Sandra G. Johnson, CPA said: “Once again the American public is asked to wait on Congress to pass the Extenders. Small business owners and the average American live on tight budgets. Not knowing which deductions or tax credits they will have, or delaying when they will be able to receive their refund, causes extreme hardships for many. Giving Americans no choice but to sit and wait is unacceptable. We implore Congress to pass these Extenders now.”
Neil Fishman, CPA a Vice President on NCCPAP’s National Board said, “NCCPAP feels strongly that at least two of the Extender provisions should either be made permanent or kept as they were in 2013. If they are not passed, the financial challenges that affected taxpayers will face will be significant.”
One of the Extenders Fishman references deals with taxpayers who face a foreclosure or short sale on their primary residence. If a bank writes off $100,000 of debt, during the short sale of a home, that $100,000 is added to a taxpayer’s taxable income. This bumps the taxpayer into a higher tax bracket, which increases the amount of taxes owed. A taxpayer who underwent a short sale is typically not in the financial position to come up with thousands of dollars to pay the IRS. Passing this Extender would mean not tacking on the amount written off onto the taxpayer’s income.
Another provision deals with depreciation. On January 1, 2014, the amount that could be immediately taken as depreciation on equipment (Section 179) in the year of purchase, dropped from $500,000 to $25,000, which was the limit in the law before the $500,000 was enacted. Fishman stated, “Although this provision is likely to be passed, it needs to be done quickly to permit business owners to determine before year-end if new assets should be purchased this year. This will also help business owners calculate the true purchase cost of the assets. Capital expenditures like these could help to further stimulate the economy.”
The IRS has taken a “best guess” approach as to which expired provisions might be extended in an effort to curtail a repeat of the 2012 tax season when Congress did not pass the Extender legislation until January 2013. Taxpayers depending on a refund to pay expenses—for example to pay off holiday bills--file early. These are the taxpayers who were hurt by this delay in 2013 and stand to be hurt for this upcoming tax season. Johnson explained another complication, “Since some forms were not available to be filed until mid-February 2013, the entire 2012 tax season was compressed. Business owners who wanted to file earlier had to wait. It was an unnecessary stress placed on CPAs who, at that point, had less than 60 days from the time these forms were available to get tax returns done. “
Congress has not presented the President with any Extender legislation through the first ten months of this year. Each year, Congress has the responsibility to consider which tax provisions should be continued for another year, made permanent or allowed to sunset. For many years, Extenders were dealt with in advance of year-end. In recent years, this has not been the case: Congress has waited until the “lame duck” session to deal with expired or expiring provisions.
ABOUT NATIONAL CONFERENCE OF CPA PRACTITIONERS (NCCPAP)
NCCPAP is a professional organization that advocates on issues that are of importance to CPAs in Public Practice throughout the United States. NCCPAP members represent over one million businesses and individual clients. NCCPAP monitors and influences tax administration and tax policy by meeting with Internal Revenue Service representatives and state taxing authorities as well as national and state elected officials. In addition, NCCPAP provides a platform for its members to exchange ideas and information on managing and running a successful CPA practice in today’s competitive environment.
“It has been my pleasure to know and work with Alexis Burd in my capacity as chair of the public relations committee of the National Conference of CPA Practitioners. Alexis is an excellent writer, a very good listener and has been very attentive to our organization’s needs. Her follow-up with assignments has been excellent and we have achieved significant growth in our public relations activities under her guidance.”
Carol Markman, CPA
Public Relations Committee Chair
NCCPAP