News, Legislative Update

Legislative and Accountancy Board Update – January 2021

Published on January 20, 2021

This month’s update includes information about Arizona’s legislative session, conformity letters sent to lawmakers, PAC contributions, corporate e-filings, the taxpayer advocate report to Congress and an update from this month’s Accountancy Board meeting.

Arizona’s Legislative Session

The First Regular Session of Arizona’s 55th Legislature officially began on Jan. 11 and Governor Ducey delivered his State of the State Address to the Legislature. In his address titled “Arizona Resilient,” the governor focused on lowering taxes and continued job creation. After the abrupt end to the legislative session in 2020, Governor Ducey stated that he and legislative leadership are near consensus on COVID-19 liability legislation to protect Arizonans from frivolous lawsuits. With the new school year beginning, the governor also said it was time for students to return to in-class learning. Read the governor’s full speech and watch the governor’s pre-speech video. Following the State of the State address, the governor released his FY 2022 Executive Budget Proposal. The Joint Legislative Budget Committee also released its FY 2022 baseline projections.

Income Tax Conformity Letters

The ASCPA, with assistance from DeMenna Public Affairs, hand-delivered letters to all 90 Arizona legislators requesting full conformity in the 2021 session. We ask lawmakers to pass conformity as quickly as possible to make paying taxes easier for Arizonans. DeMenna Public Affairs also had meetings with the chairs of the Finance and Ways & Means committees and legislative leadership urging early passage of the legislation.

ASCPA PAC Contributions

The 2022 election cycle has officially begun. Since campaign contributions are prohibited while the Legislature is in session, the first week of the year is known as “Hell Week” in Arizona politics, when a marathon of fundraisers is held in advance of the start of session. While this year was different due to COVID-19, the ASCPA PAC contributed to more than 30 candidates. Thank you to all ASCPA PAC contributors who enable us to support candidates who support CPAs and our commonsense goals. If you haven’t done so yet, we encourage you to invest in the profession with a contribution to our PAC.

Corporate E-Filing

The Arizona Department of Revenue is reminding taxpayers that the e-file option introduced for corporations, partnerships, S corporations and fiduciaries for tax year 2019 is now mandatory for tax year 2020 and going forward. Nearly a dozen software providers are approved to submit returns for companies, while nearly two dozen are approved for fiduciaries. Review the ADOR E-File Program.

Taxpayer First Act Report

The National Taxpayer Advocate delivered the annual report to Congress, focusing on the impact of COVID-19 to taxpayers and the needs of the IRS. While focusing largely on the impacts of the pandemic on American taxpayers and the IRS, the report also outlines general areas of improvement and potential changes. Read the full report.

State Board of Accountancy

At this month’s State Board of Accountancy meeting, the oral proceedings for the rulemaking request to include emails as address of record was held. This was the formal portion for public input on the proposed rulemaking, though no public input was received. Next, the requested rule change will go to the Governor’s Regulatory Review Council for consideration. The Board also received an update from staff regarding NASBA’s efforts on remote testing for the Uniform CPA Exam during the COVID-19 pandemic.

For additional information on our advocacy activities, please contact John Baumer.