What you need to know in 2011

January 6, 2011

This is not just another “top 10” list – this list focuses on the very things you need to know for 2011 as a member of the CPA profession and The Ohio Society of CPAs.

  1. OSCPA is THE top advocate for CPAs in Ohio.
    In 2010, OSCPA took the lead on issues directly impacting the CPA profession and Ohio’s business community and fought overly burdensome and redundant regulations at the state and federal levels on your behalf. In 2011, OSCPA will continue to represent Ohio CPAs on issues such as: 

    State and local government reform
    1099 repeal
    Uncertain tax position disclosure requirements
    Tax preparer regulations

    Municipal tax uniformity
    Federal and state tax conformity

  2. Regulation is going to keep coming – and OSCPA will continue to have your back.
    The year began with the announcement that tax preparer regulations were coming. Soon followed health care reform and financial regulatory reform. And that is just at the federal level. In 2011, expect more to come on the tax preparer regulations as well as a hard look at tax code simplification (a.k.a., reform). At the state level, look for positive change – Gov.-elect Kasich and the Ohio General Assembly are seeking ways to eliminate or change burdensome regulations at all levels, and OSCPA is working with them all to help achieve needed relief.
  3. Ohio state and local governments will see $8 billion worth of change.
    Gov.-elect John Kasich and Lt. Gov.-elect Mary Taylor, CPA, facing an $8 billion shortfall in 2011, have a tough road ahead of them to “skinny-down” state and local bureaucracy.
  4. Opportunities for positive long-term changes.
    Though all Ohioans likely will feel some pain as a result of the budgeting process, times of financial crisis such as Ohio is experiencing can also create opportunities to tackle politically sensitive but needed reforms to “sacred cows.” For well over a year, OSCPA has been sharing specific recommendations on from our Ohio Budget Advisory Task Force how to help our state become not only fiscally stronger but also more attractive for existing and new employers.  We have been working with legislative leaders to identify best practices and needed changes. If you are aware of government pain points keeping Ohio bogged down, send your thoughts to government@ohio-cpa.com. Be sure to identify the specific regulation of concern to you and how to improve it.
  5. 1099 is going to be a hotbed of controversy.
    OSCPA and the business community at-large are going to keep the 1099 issue at the forefront until it is repealed or a much higher threshold is instituted.
  6. IFRS decision needs to be made.
    The SEC previously said it will make a determination on if, and when, to converge U.S. GAAP with IFRS. The United States is between a rock and a hard place. Businesses need more time to prepare for a convergence; however, if the U.S. delays a convergence any longer, our country could lose its seat at the table as far as IFRS decision-making goes.
  7. You need to have a PTIN to file a federal tax return.
    Unless you live under a rock you know that you need a new (or renewed old) PTIN to prepare a federal tax return beginning in 2011. Also, preparers who anticipate filing 100 or more Forms 1040, 1040A, 1040EZ and 1041 during the year must file electronically.
  8. It’s good to be a CPA.
    Accounting ranks as one of the top 50 careers for 2011, according to U.S. News & World Report. The Bureau of Labor Statistics also projects accountant and auditor employment growth of 22% between 2008 and 2018 – adding 279,400 more positions to the 1.29 million already existing jobs.
  9. Separate standards for private companies.
    The answer to the long-debated question “should private companies have separate financial reporting standards?” is yes. Now the Blue Ribbon Panel Standard Setting for Private Companies needs to answer who will set and monitor the standard. FASB? AICPA? New body?
  10. CPAs don’t expect major economic comeback until 2012.
    A slight majority (53%) of respondents to OSCPA’s eighth annual Ohio Business Poll don’t believe the U.S. has begun a sustainable economic recovery in 2010. Generally, they also don’t expect business conditions to return to prerecession levels until after 2012.

Let’s bring this thing full circle – 2011 is most definitely not 2010. The economy is slowly improving and the unemployment rate is slowly declining. But that doesn’t mean 2011 is going to be any less cumbersome when it comes to regulatory activity and government intervention. Following the economic recession, government has been working at a micro-level to “protect consumers” and prevent future economic meltdowns.
OSCPA pledges to:

  1. To keep you updated on the news you need to know to keep your business operating effectively and efficiently.
  2. To be your advocate fighting to promote and protect your interests at the state and federal levels.

Check out these other year-end reviews and predictions for 2011


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