May 2024
CPA
Newsletter from the Iowa Society of CPAs, your primary source for profession-related information
What sets ISCPA apart? Advocacy
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ach legislative session is unique for ISCPA’s state advocacy team. From meetings to special requests, ISCPA members, staff, and our lobbyists dedicate themselves to working as the voice of the profession in Iowa. ISCPA CEO Dawn Latham said, “Advocacy for the profession is a key component of our strategic plan. The involvement of our members during Iowa’s legislative session, from participating in CPA Day at the Capitol to reviewing bill text on various issues, helps advance this important initiative. A huge shout out to the members of our Legislation and Taxation Committees for their engagement these past few months, and of course, we value the guidance of Brad Epperly, our legislative counsel.” Your Society actively monitored more than 175 bills this session for issues affecting Iowa CPAs.
Taxation Tax reform was a top priority in the Statehouse this year, and separate bills were introduced with the same intent of lowering the state income tax rate. In the final days of the session, SF2442 was a compromise bill, accelerating the current phase down to create a flat individual income tax rate of 3.8% for tax year 2025. The legislature also moved on legislation that would amend Iowa’s Constitution, requiring a two-thirds majority approval for legislators to raise individual income taxes. The same language must be adopted during the next legislative session. If that occurs, it will be placed on the ballot for voter consideration in 2026. Members of the ISCPA Taxation Committee and Legislation Committee held monthly meetings with the Iowa Department of Revenue during the legislative session. This is an opportunity to discuss legislative issues pending before the state legislature and other matters important to members.
Commissions and Boards Last year, the Boards and Commissions Review Committee reviewed Iowa’s boards and commissions and submitted a recommendation to eliminate and consolidate several boards. The final report recommended decreasing the Iowa Accountancy Examining Board (IAEB) by removing one public member, the designated LPA member, and one CPA member. After the Senate and House considered widely different bills, a compromise was made, and a final bill (SF2385) was sent to the governor for signature. This bill adjusts the IAEB to five board members.
CPE Legislation that would allow excess continuing education credits earned during one renewal period to be used toward the subsequent renewal period did not survive the second funnel in March but did return as an amendment to the State Government Reorganization bill. It is expected to be signed into law.
Auditor of State Members from the Legislation Committee and the Governmental Auditing and Accounting Committee met with Auditor of State, Rob Sand in January. The discussion included current pipeline challenges and the small number of firms performing government audits in Iowa. ISCPA also monitored legislation that would allow CPA firm income earned from performing Yellow Book audits to be tax exempt. This bill was not enacted into law. ISCPA carefully monitored legislation (SF2311) allowing state departments to hire CPAs outside of the Office of the Auditor of State to perform the required audit work and submit the results to the AOS. The bill passed in the House but did not get out of Senate committee before the second funnel deadline. Continued on page 2
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