ESA Deadline Extended, Message from MICPA Chair Stephanie Bergeron, IRS Updates and more

by MICPA | May 10, 2016   ()

New Laws Clarify Essential Services Assessments (ESA); Deadline Extended
Last week, the Governor approved changes to statute that affect the Essential Services Assessment (ESA). The changes should make it easier for businesses with eligible manufacturing personal property (EMPP) to comply. House Bills 5525, 5526, 5545 and HB 5527 clarify reporting and filing requirements, streamline the appeals process, transfer the State Tax Commission’s responsibilities to the Michigan Department of Treasury and, beginning with the 2017 tax year, define acquisition cost for construction in progress as 50 percent of the fair market value at the time of acquisition by the first owner.

Of critical significance, the deadline for eligible taxpayers who failed to file or filed an incomplete Form 5278 with their local unit to claim the EMPP exemption for 2016 year only has been extended until Tuesday, May 31, 2016. Form 5278 must be filled out completely and be received by the local unit of government by the May 31 deadline. (Postmarks are not acceptable.) ESA Topic 12 provides an overview of the law change. Download a revised copy of Form 5278 for 2016 and a revised filing checklist for Form 5278.

New Message from MICPA Chair Stephanie Bergeron
Check out the latest video message from Stephanie Bergeron, chair of the MICPA board of directors as she discusses the proposed AICPA/CIMA joint venture.

IRS Updates Procedures for Accounting Method Changes
Last week, the IRS updated procedures (Revenue Procedure 2016-29) taxpayers must use to make automatic changes in accounting method. ;Read More

FASB Issues More Revenue Recognition Clarifications
An article in Journal of Accountancy online explains the new ASU 2016-12, which is the Financial Accounting Standards Board’s third round of clarifications to its revenue recognition standard, focusing on narrow-scope changes and practical expedients. and Launch Financial Information Exchange for Private Companies and launched RIVIO Clearinghouse last week. The cloud-based platform, which delivers CPA source-validated financial documents such as audited financial statements to bankers, shareholders and other investors, offers strong fraud prevention. READ MORE

Reminder: All Licensed Michigan CPAs Must Earn 40 Hours Annually
The Michigan Department of Licensing and Regulatory Affairs (LARA) requires all CPAs licensed in the state to earn 40 hours of continuing professional education (CPE) annually by June 30. The state has indicated that next year they will review licensing renewal applications to see if CPAs earned 40 hours, including eight hours of accounting and auditing and two hours of ethics, in each earning year. Failure to meet the requirement each year may result in a citation and a fine. As the June 30 earning deadline approaches, please visit the MICPA online store to see hundreds of high-quality courses guaranteed to qualify for CPE with the State of Michigan. You can also call MICPA Member Services at 248.267.3747 for assistance.

Profession Supports Michigan Accountancy Foundation Scholarships
Thanks to the profession’s generous support, 336 accounting students have received Michigan Accountancy Foundation Fifth/Graduate Year Scholarships since the program began. Please consider supporting future students with your MAF donation today.

Renew Your Membership Today
It’s simple to renew online today and maintain your membership in one of the most respected professional associations in the country. 

Source: MICPA
Source: MICPA

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