AICPA Economic Outlook Survey documents deep impact of pandemic

The AICPA released its quarterly Business & Industry Economic Outlook Survey yesterday and the results, unsurprisingly, weren’t pretty.

With commercial activity hobbled by pandemic-related restrictions, the CFOs, controllers, CEOs, and senior-level CPAs and CGMAs we poll reported that their companies in aggregate have slashed profit outlooks and pulled back hiring plans for the coming year. Our CPA Outlook Index – a comprehensive gauge of executive sentiment within the survey – dropped to its lowest level since early 2009, when the Great Recession was still in full bloom. Optimism in the U.S. economy is at its lowest ebb since late 2011.

July 15 filing date — To move or not to move

“… there is nothing either good or bad, but thinking makes it so.”

— William Shakespeare

I work for a membership organization, and representing our members’ best interests is what we do best. Lately, members have been telling us how they feel about the upcoming federal July 15 tax filing date. We’re hearing both sides of the story, from “don’t you dare alter the July 15 due date” to “everything has got to be extended until ... [pick a date].” It’s clear some members are not interested in any extensions and some want an extension until August, September or October. I’ve even heard November and December mentioned.

Future-proofing the tax system with small businesses in mind

Life has quickly changed because of the COVID-19 pandemic. The responses from Congress, the Department of Treasury, IRS and Federal Reserve have been wide ranging. The coronavirus has caused tremendous upheaval for small businesses and their employees. Technology, the economic environment and new ways of working are being pushed to new phases, requiring new tactics.

COVID-19 has highlighted elements in the U.S. tax system that create barriers for small businesses. In a May 7^th comment letter to Congress, AICPA identified a dozen of these barriers that Congress needs to address to future-proof our tax system and bring it into the 21st century. This post highlights three of the barriers small businesses frequently encounter:

AICPA survey highlights gaps in Americans’ disaster prep

It’s understandable that as most Americans focus on the COVID-19 pandemic, the risk of natural disasters may not be top of mind. However, with the upcoming Atlantic hurricane season expected to be more active than usual and tens of millions of Americans in a more financially precarious position over the last couple of months, it’s more important than ever to prepare. Recently published AICPA data found that 6 in 10 Americans (60%) say it is likely a natural disaster will impact them in the next three to five years. And while many Americans have taken at least one step to prepare, there are still more ways to help protect their finances and their families should disaster strike.

Neal Stern, CPA, member of the AICPA’s National CPA Financial Literacy Commission, spoke with AICPA Insights about emergency preparedness and the AICPA survey results.

Wellness in mind: Resources for self-care

We need to practice self-care now more than ever — in the face of an unprecedented crisis, surrounded by the unknown. Even without the pandemic adding stress to our lives, anxiety, sadness and self-doubt can affect us at any time. May is Mental Health Awareness Month, making this an ideal opportunity to learn how to manage your feelings with patience and kindness.

Whether it’s taking moments to acknowledge how you feel in times of turmoil, using your senses to create calm for yourself while working from home or adapting to the changing expectations of your job, there are many simple steps you can take to promote your physical and mental well-being. We’ve compiled the following resources to help you get started:

New AICPA Chair shares her vision for our new normal

True story: In high school, I was voted “Most Likely to Become President.” As a part of a military service family, this plan made total sense to me — until I arrived at college in Washington D.C. and realized I wasn’t really interested in the “D.C. scene.” So, I needed to rethink my plan. I did like business classes, however, so I changed my major. I contemplated every area of business — finance, marketing, management — and landed on accounting because it encompassed all of those things and more.

Now, as we embark on the new normal in response to COVID-19, I know that my choice is more relevant than ever. Accounting is the core of business. It’s the starting point as we envision a new venture. It’s the map we follow as a business grows and evolves. And it’s the guide to resilience for overcoming unexpected financial events. As accountants, we understand that businesses rely on us to serve as trusted advisers every step of the way.

How to break the mold and go beyond tax

“Now, more than ever, the accounting profession needs to reimagine. That means looking beyond chaos to find opportunity in a new and better normal.” — AICPA Spring Council 2020 “Reimagine” video.

These extraordinary times are only matched by the extraordinary work CPAs in tax are doing. More than ever, CPAs provide services that they wouldn’t have envisioned even a few months ago.  

As CPAs working in tax, you aren’t just maintaining the status quo. You’re the go-to advisers for your clients and are expected to:

3 ways to stay marketable during an economic downturn

These are tough economic times, with unemployment levels at a record high. It’s an unsettling situation, but there are steps you can take today to future-proof your career. On a recent Go Beyond Disruption podcast, Beth Berk, recruiter for the finance and accounting profession; and Clar Rosso, the Association’s EVP of Engagement, Learning and Innovation; shared three things you can do to stay marketable during an economic downturn.

7 areas to consider when evolving your tax practice

There’s no question that this was a tough tax season. And, with the tax deadlines delayed until July 15, it isn’t over. In our recent Tax Section survey, 60% said COVID-19 had an enormous effect on tax season. Practitioners noted the top three pain points related to assisting with the Paycheck Protection Program (PPP), understanding new legislation and guidance and struggling with ambiguity in the relief.

Another step closer to evolving CPA licensure

On Wednesday, May 20, we took a big step toward propelling the CPA profession into the future.

If you read the blog posts I wrote in January, May and July of 2019, you’ll be familiar with CPA Evolution — a joint effort of the AICPA and the National Association of State Boards of Accountancy (NASBA) to design and implement a new approach to CPA licensure.

Our goal is to transform the CPA licensure model to recognize the rapidly changing skills and competencies the practice of accounting requires today and will require in the future.

Cyber criminals are finding ways to steal your digital dollars

The cryptocurrency market — such as bitcoin, ethereum and others — has taken hold in the financial world, with the market now worth more than $200 billion and growing daily.

With so much money at stake, it’s no surprise that bad actors find new ways to use the system to their financial advantage. In 2019 alone, an estimated $4.26 billion in cryptocurrencies was lost due to hacks, cybertheft, scams, misappropriation or insider fraud, up about 250% from 2018.

“With traditional money in our banking system, there’s a paper trail, a record of transactions,” said Mark DiMichael, CPA, CFF and forensic specialist with expertise in cryptocurrencies. “With cryptocurrencies, there is no paper trail. You can move large amounts of money without having to carry around a duffel bag of cash. It could be carried on a thumb drive or sheet of paper.”

Preparing accounting students for a changing profession

We are in an unprecedented time of change for the accounting academic community. I’ve seen a fire lit beneath educators the likes of which I’ve never seen before as it relates to evolving their classrooms and curricula. Accounting programs have had to quickly make changes, like adapting to full-time remote learning almost overnight in response to the coronavirus pandemic, as well as longer-term changes to ensure programs are preparing the next generation of accountants for the realities of a rapidly evolving business environment.

Research conducted by the AICPA found that public accounting firms are hiring fewer new accounting graduates. Instead, they’re hiring more non-accounting graduates who possess different skill sets, particularly those related to technology. Practitioners are increasingly advising schools that accounting curricula need to help students gain a better understanding of technology and its applications within the profession.

3 retirement questions your clients are asking amid COVID-19

There are a lot of unknowns related to the COVID-19 crisis. Your clients may be feeling stressed and even uncertain about their financial future, and are likely asking questions:

• When will things stabilize?
• When will the market volatility be behind us?
• How will my retirement goals be impacted by everything going on?

Although no one has all the answers, as a CPA financial planner, you have a strong relationship with your clients, vast knowledge of tax and planning strategies and you offer objective advice that is in your clients’ best interest.

Accounting firms lead the way to a more diverse business environment

The U.S. population is growing increasingly diverse, and the U.S. Census projects that minority populations will comprise more than half the population by 2045, with the largest growth among multiracial individuals.

Accounting firms are leading the charge in supporting a more diverse business environment.

The CEO Action for Diversity & Inclusion initiative, launched by PwC, has drawn commitments from more than 900 CEOs to initiate meaningful and complex conversations about diversity and inclusion, address unconscious bias and improve diversity and inclusion throughout their organizations. The Association of International Certified Public Accountants, combining the strengths of the AICPA and The Chartered Institute of Management Accountants (CIMA), has signed the CEO Action pledge.

Bouncing back: How to recoup after a busy season

When this extended busy season ends, we’ll notice summer days feeling warmer and brighter. When crossing that proverbial finish line, I acknowledge freedom that leaves me feeling spacious, accomplished and abundant. Busy seasons (especially this one) can be hard, but we all come out a little stronger, wiser and more learned each year.

Once you feel this freedom, do you ever feel a little confused about what to do with this free time? Before you rebound to the nearest couch for a Netflix marathon, restore your body, mind and soul. 

I’m no Dave Brubeck, but today’s post includes my rendition of “Take 5.” I invite you to explore my Take 5 Method to come alive again. You dedicate a lot of time, energy and knowledge to your work. After the busy season, give yourself permission to be selfish during this transition time and prioritize what brings you back to YOU.

Learning from disruption: Reflections from AICPA Chair

Over this past year, while I’ve been Chair of the American Institute of CPAs (AICPA) and Vice Chair of the Association of International Certified Professional Accountants, I’ve often talked with members about how technology is driving an unprecedented pace of change and how we need to disrupt ourselves as a profession.

What I couldn’t know in 2019 is the shape and extent of disruption we are experiencing in 2020. The entire professional ecosystem has been impacted by the fallout from the COVID-19 pandemic. In all areas of practice, members are having to adapt. Some are identifying solutions for business continuity, while others are addressing clients’ tax concerns and liquidity needs. Many members are trying to mitigate economic harm to their own small businesses and their employees.

And, as I’m sure you know first-hand, the disruption caused by the pandemic has upended many of our professional routines. We’ve had to figure out new ways to work remotely and employ technology on an accelerated timeline.

6 ways CPAs are making a difference right now

Healthcare and frontline workers have the daunting task of keeping communities safe, clean and fed. We salute them. Accountants and finance professionals have the responsibility to lead businesses through the economic recovery.

You’re needed now more than ever. Here are six ways you’re making a difference.

1. You help small businesses stay afloat and preserve jobs.

Small businesses are dealing with a multitude of COVID-related problems and are relying on your expert advice, including understanding the details and application process for the Paycheck Protection Program. In this podcast, experts untangle key parts of the application, and the Town Hall Series: CARES Act and Paycheck Protection Program offers up-to-the-minute news on PPP and the CARES Act.

Small businesses should focus on PPP’s intent, keep using funds

When the Department of the Treasury and Small Business Administration (SBA) launched the Paycheck Protection Program (PPP) many businesses saw an opportunity to stay open and their employees paid during this very difficult time.

There is no question that small businesses are the heart of our nation’s economy, and without them our road to recovery will be longer and significantly more difficult. I am inspired every day by the stories I hear about our profession’s tireless efforts to support small businesses everywhere. The AICPA is committed to our economic recovery, and I would like to provide some perspective to advance the understanding of the PPP.

3 tips to take your videoconferencing to the next level

While your day-to-day routine may have changed in the last few months due to COVID-19, your meetings probably haven’t fallen off your calendar. Many organizations are turning to virtual meetings, utilizing cameras and audio connections to keep work going and employees engaged. 

Just because you’re at home and without a studio doesn’t mean you can’t look your best. Our Multimedia team put together a video with three key things you need to master to keep yourself looking and sounding good. Here’s what they said:

Can you separate PPP facts from the myths?

Do you remember playing the telephone game in elementary school? I’ll spare you the rules. But, in the end, the game exposes the way information mutates after numerous people filter it. As information about the Small Business Association’s Paycheck Protection Program rolled out, it quickly started to feel like a large game of telephone with misinformation floating around rampantly. Small businesses are extremely vulnerable during these times and cashflow is top of mind for every CPA and their client. Nobody can afford to live with confusion around a program promising direct relief. Let’s address a few pieces of PPP information — or misinformation. See if you can guess if the following are MYTHS or FACTS:

The tax season in the Upside Down

In early May tax practitioners are typically easing back into work after a well-deserved break. For many reasons, that is not the case this year.  

For those who have seen “Stranger Things” (no spoilers for season 3, please!), you may feel like you’re in the Upside Down. If you haven’t seen the TV show, think alternate parallel universe. And not in a good way.

A global pandemic has us grappling with what it means for our personal and work lives. There was unprecedented filing relief extended to all types of income tax returns due between April 1 and July 15. Legislation led to new types of credits, as well as many other relief measures. This included the Small Business Administration’s Paycheck Protection Program, which has tax practitioners brushing up on many new rules. A lot of practitioners struggle with remotely serving clients and working from home because of all the potential distractions that come with it.

More than a sense: 5 innate tools to reduce stress

When life is busy, it’s easy to neglect our well-being. We may think, “I don’t have time” or “I’m too tired,” but what’s more important than health? We can’t give our best to anything or anyone if we don’t make time for self-care.

Simple truth: The more you invest in yourself, the more your body and mind will give back to your work, your relationships and beyond.

According to Ayurveda, one of the world’s oldest medicinal practices, a primary component of health that is often overlooked is how we treat our five senses: hearing, sight, smell, taste, touch. In a standard work day, most of us are misusing or abusing our senses; this can exacerbate our stress levels, especially when the body and mind are fatigued. If we learn to use our five senses, we uncover steadiness and energy boosts.

Zoom virtual backgrounds for CPAs

With remote working becoming the norm, who hasn’t had to take a video call for work? Meetings, check-ins and briefings are all happening on video apps now, but a backdrop of piled-up laundry, milling family members or unwashed dishes probably isn’t what you want to share with your colleagues while discussing the latest financial report.

What can you do about it? Use one of our new Zoom virtual backgrounds. These easy-to-implement backdrops cover up everything behind you. We always want finance professionals to look their best, so we’ve created a range of options to make working from home a little more interesting. Just right-click and save!

COVID-19 creates 11 new state tax issues

This is the most unusual tax season on the books -- April 15 came and went and yet tax season isn’t over. Over the past several weeks, we’ve heard from members about state and local tax filing, payment and administrative issues. We’ve shared 11 recommendations with the state CPA societies and encouraged them to consider these with their state and local tax authorities.

A recap on the past couple of months 

As you know, over the past two months, the AICPA® has been busy advocating on your behalf and working with Congress. We successfully urged Treasury and the IRS to provide immediate filing and payment relief, along with broader relief for all returns. This led to a delay in federal filings and payments until July 15 for returns due from April 1 to July 15. Our teams continue to advocate and monitor the situation, and we will keep you informed as developments arise.

Here's how to help non-filers in your community

The U.S. government is issuing stimulus checks to every eligible American. But for millions of people of low socioeconomic status (SES) — those most in need of the stimulus checks — there’s an extra step.

The IRS created an online form for people who don’t normally file a tax return, known as non-filers. It’s a free and easy way to provide basic information so people of low SES can receive their economic impact payment as soon as possible. Do you know someone who needs help getting their stimulus check? On their own or with the aid of a trusted person, the individual can visit IRS.gov and select the non-filer application.

Don’t get scammed out of your stimulus check

The federal government is in the process of delivering cash to many U.S. citizens to help stimulate the economy, providing tax credits to individuals of $1,200 ($2,400 for joint filers) plus $500 for each qualifying child.

For those struggling to pay bills or who have lost their jobs, these payments can help them stay afloat during these extraordinary times. But it’s also a potential windfall for scammers, who are continually trying to find new ways to steal from unsuspecting individuals.

“Scammers prey on people’s emotions and weaknesses,” said Howard Silverstone, CPA and American Institute of CPAs (AICPA) Forensic and Litigation Services Fraud Task Force member. “Right now, people haven’t been going to work every day. They’re home with the kids. They’re stressed. They may have lost their jobs. They need that money. Scammers know this and are preying on it.”

Reimagine productivity: Tips and tricks

Over the previous articles in this series, we’ve covered big-picture wellness topics that can help you decrease stress, perform better at work, and find more satisfaction in your career. Allowing yourself to be emotional at work, eating healthy, going about your day with intention are behaviors that will benefit you today and for years to come.

Along with these vital concepts, it’s nice to have some hard-and-fast tips for getting a little more done without having to burn the midnight oil. You can call them life hacks, productivity tricks, efficiency systems, or whatever else you’d like. I like to think of them as performance optimizers. And when you’re in the throes of busy season, you need all the optimization you can get.

The dashed hopes of an “easy” tax season

“Illusions commend themselves to us because they save us pain and allow us to enjoy pleasure instead.”  Sigmund Freud

If there’s one thing I’ve learned in the 37 years of working at the AICPA, it’s that you don’t want to mess with tax filing season. Sure, tax season is never “easy” and spreading the work over a longer period is important. But most CPAs just want to get it over with. I was in practice before I came to the AICPA and I can still empathize with these sentiments all these years later.

Minimizing tax filing season disruptions and changes is important to the IRS, too. Sure, there have been a few snafus over the years. But, by and large, the IRS manages massive amounts of data well and it does us proud in administering a system with 156 million individual returns and 112 million refunds amounting to $321 billion. The average refund is about $3,000. April 15 is prominent in the IRS’ psyche because it’s prominent in the psyche of the American public.

Remain the best advocate for clients amid scaled-back IRS operations

COVID-19 has altered how businesses, governments and agencies operate around the world. The Internal Revenue Service (IRS) is no different. The IRS recently announced it has scaled back some of its operations.

To protect employees and taxpayers, agents are now working remotely and only holding teleconferences. Scheduled meetings are still likely to take place on their scheduled date virtually, and agents are requesting teleconferences with taxpayers to work their cases.

However, scaled-back operations and staff working remotely doesn’t mean the IRS is unavailable to you.

6 things your clients must know today for a better tomorrow

The coronavirus (COVID-19) pandemic has created different day-to-day challenges than a few weeks ago. Just last month, you were probably discussing business expansion or future growth opportunities with clients and now you’re talking about how to stay afloat during uncertain times.

Practically overnight, your clients’ needs have changed completely. Some of your client questions might even go beyond what you have been accustomed to addressing.

Here are some ways to help center your client communications to focus all parties on building a brighter and stable future.

Clients and CPAs can benefit from a 100% forgivable loan

As companies struggle with the economic uncertainty caused by the COVID-19 pandemic, small businesses — the backbone of the economy — have the power to pave a path toward economic recovery. They can do that, in part, by keeping their staff employed or by rehiring them if already laid off or furloughed.

New legislation has given them the power to do that.

CPAs can reap many benefits for helping clients apply for newly available loans under the Paycheck Protection Program (PPP), a joint effort by the Department of the Treasury and the U.S. Small Business Administration to provide small businesses with $349 billion in forgivable loans for keeping or rehiring employees and to cover certain other expenses.

3 reasons it’s time to embrace virtual learning

The coronavirus (COVID-19) pandemic has made an impact worldwide like generations of us have never seen. From how we buy groceries, the ways we socialize, school our children and work, our current normal is often virtual.

Suddenly, you’re working from home in your sweatpants (admit it) and holding meetings via videoconferencing. You might feel uncomfortable with the technology you’re now forced to use. The good news is you’re learning on the job. When life gets back to normal, many of you will have picked up a new technology skill or two that you’ll continue to use for work or even in your personal life.

Expand your knowledge each day with this 14-day challenge

We’re all doing our part to slow the spread of coronavirus, and it’s easy to feel discouraged by the many changes we’ve had to absorb over a short period of time. To make lemonade out of lemons, why not take this 14-day challenge?

The 14-day challenge invites you to expand your knowledge each day with tools and resources designed to help you face complications that the global pandemic has presented.

Day 1: This client letter regarding the coronavirus is helpful communication to let your clients know about resources and the impact of the coronavirus to your practice.

4 ways to help your clients get through coronavirus anxiety

As a CPA, your clients often turn to you. Now, with all of the uncertainty and questions ranging from financial to personal, clients need you more than ever. Here are four tips to help you support your clients during the weeks and months to come.

1. Your relationships are key. You’ve developed strong bonds with your clients, had conversations about difficult topics and been there for them during the hard times as well as the good. They know you’re willing to listen and eager to offer advice. The trust you’ve built from these experiences will serve you during this tumultuous time.

2. Be intentional about your communications. Every client is unique, so your communications shouldn’t be one-size-fits-all. Reach out to clients and work with them to determine the ideal frequency and method of communicating going forward. Given their current stress level and current portfolio, what makes the most sense? Once you have the logistics worked out, focus on providing personalized advice. You’ll further reinforce your role as their trusted adviser.

You’re the future of accounting. Help shape the CPA exam.

A major research initiative is underway that will help shape the future of the Uniform CPA Examination^® (CPA Exam), and your critical feedback is needed by April 30^th. If you work in public accounting, business and industry, academia, or even for yourself, you’ve likely noticed that the accounting profession is rapidly changing.

CPAs face new challenges

Advanced technology is changing how businesses operate — many businesses are more data-driven than ever before. Data analytics is fundamentally changing the way auditors collect and document audit evidence and make decisions. As technological developments continue, auditors must expand their technical knowledge and skills and revise audit planning and testing procedures to perform effective and efficient audits. These changes extend beyond auditing and expand to nearly all parts of the accounting profession.

Reimagine productivity: Working with intention

It’s fair to say life has gotten a little crazy. With the uncertainty of the financial markets and the constant barrage of news on coronavirus, we all feel a little overwhelmed. When life and work become overwhelming, it’s easy to go on autopilot.

But when you just go through the motions at work and let the day control you, you do more harm than good. Putting your mind on autopilot eliminates the intrinsic rewards of a job well done, making every assignment feel like a slog. Over the long run, it only demotivates you and makes you resent going to work.

Intentionality is the opposite of living on autopilot. It can alter everything from the way you approach your long-term goals to how you act and operate in your career. Understanding how to use intention effectively can increase what you put into your work, and what you get out of it. And the best part is that the only barrier to living more intentionally resides between your ears.

Five steps for business continuity amid COVID-19

As a former CFO, I have managed through crises, including the Gulf War, 9/11 and the 2008 financial crisis. The financial disruption of the coronavirus (COVID-19) pandemic is like having all three of those events occur simultaneously. Our entire global economic and social system is operating in uncharted territory.

Amid the uncertainty, the finance function can create value and elevate its role as a strategic business partner. As CPAs and CGMA® designation holders, our training and experience equip us with the expertise and skills to mitigate risks and lead the recovery efforts for our organizations, businesses and communities.

To help guide you, the Association of International Certified Professional Accountants®, the global voice of the AICPA® and CIMA®, delivers the latest news, resources and guidance through our AICPA and CIMA Coronavirus Resource Centers.  Visit frequently to stay up to date on the coronavirus and learn about upcoming events, such as the free webcast series I’ll host with finance leaders in the coming weeks. This series will offer expert insights on business planning to help you lead your organization through this crisis.

Free AICPA resources to help you navigate COVID-19

The coronavirus (COVID-19) pandemic is causing enormous consequences around the globe, and we know many of our members are experiencing uncertainty and concern for what’s next. The Association of International Certified Professional Accountants, the global voice of the AICPA and the Chartered Institute of Management Accountants (CIMA), is here to help you through these challenging times.

Your firms, organizations, clients and communities are depending on your expertise during this crisis. And it’s our job to make sure you have the help and information you need to manage through this pandemic.

We created the AICPA Coronavirus Resource Center to provide you with the latest news, resources, event information and guidance to help you advise your organizations, clients and customers. You’ll also find resources to help you and your staff better manage our new way of working. Bookmark the page and visit often for the latest updates on COVID-19 and new learning opportunities like these:

9 actions the government must take now to support businesses and employees

The American Institute of CPAs® is calling on Congress and the Trump administration to take nine key steps to protect U.S. businesses and employees struggling due to the impact of the coronavirus (COVID-19) on the economy.

In speaking with CPA firms, businesses and AICPA® members across the country, the AICPA identified the below actions as most urgent and necessary for the following groups. Note that the information on current federal activity is current as of the publication time of this blog (24 March 2020, 9am ET).

All businesses:

10 ways to stay social at a distance

To limit the spread of COVID-19, we all have to do our part. For the majority of Americans, this means working or schooling from home, limiting all discretionary travel – including social trips – and avoiding groups of 10 or more.

For some, a few days at home may be a welcome break from the daily grind. But if not managed correctly, increased time at home during these stressful, uncertain times can take a toll on your mental and physical health. The American Psychological Association reports that social isolation can lead to poor sleep, poor cardiovascular health and depressive symptoms, as well impairing our ability to focus and manage emotions. While staying home and practicing social distancing are critical to reducing the spread of the virus, it’s also important to take care of your mental health.

Coronavirus: Prepare your clients and protect your practice

March 20 update:  Treasury Secretary Mnuchin announced via Twitter on March 20 that the deadline to file returns has now been extended to July 15, along with the previous extension to pay. We continue to urge taxpayers who are anticipating refunds to work with their practitioners as they are able, to file as soon as possible.  More information is expected, and we will update you as the details emerge.

 March 18 update: Notice 2020-17, Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic, was released on March 18. The notice provides for an extension of time to pay federal income taxes originally due April 15, 2020 until July 15, 2020. The relief is only applicable to individual tax amounts up to $1,000,000, regardless of filing status or up to $10,000,000 for each consolidated group or for each C corporation that does not join in filing a consolidated return. No extension is provided in the notice for the payment or deposit of any other type of federal tax, or for the filing of any tax return or information return. The AICPA continues to work with Treasury for appropriate relief. Continue to check out the AICPA Coronavirus Resource Center for the latest updates and press releases.

What near-zero interest rates mean for your wallet

The Federal Reserve cut interest rates to near-zero in an emergency move Sunday meant to make borrowing as cheap as possible as the U.S. economy feels the economic impact of the spread of the coronavirus (which causes COVID-19). The benchmark U.S. interest rate is in a range of 0% to 0.25%. The Fed also announced it will buy at least $500 billion in Treasury securities and $200 billion in mortgage-backed securities in the coming months as part of a quantitative easing program.

The reduction of interest rates, alongside the announcement of a $700 billion purchasing program, has not calmed investors. All U.S. indices opened sharply down Monday and continued to fall throughout the day, all closing down more than 10%. Though the economic impact of COVID-19 is concerning, the health and well-being of Americans and their families is a top priority. As a part of that well-being, there are steps Americans can consider to protect their financial standing.

Reimagine productivity: Self-care moments

When work gets busy or stressful, the little things we do to make ourselves feel good are often the first activities to fall by the wayside. At a time when every minute at the office feels precious, spending some time enjoying a good meal, taking a walk or listening to music can seem like a frivolous and selfish gesture. As paradoxical as it sounds though, foregoing these small pleasures, which are gestures of self-care, can actually have a negative impact on our work. When you don’t care for yourself, your mood, productivity and quality of work are all likely to suffer. Additionally, you may not show up to work with the desired energy to share with those around you. Regardless of when your “busy” time of year is, it’s important not to lose sight of your needs as a person.

Carving out a little time for self-care every day can be hugely beneficial. To accomplish this feat, you need to understand what self-care is, why it’s important and how to implement it in your daily routine.

Three common challenges (and three solutions!) for women in the profession

In honor of International Women's Day—a century-old global event that brings the world together in celebrating the social, economic, cultural and political achievements of women—we look at challenges women face in the workplace and ways the Association of International Certified Professional Accountants, the unified voice of the AICPA and CIMA, can help.

Support amidst challenges

1. Find a sponsor. Sponsors can play a significant role in advancing a career. The people they know can become the people you know. They can open doors for you and introduce you to clients. They can advocate on your behalf in meetings and casual conversation and protect you from political dynamics of the workplace.

Test your knowledge on tax extensions

March is here, and that means it’s time to talk to your clients about possibly extending their returns. How knowledgeable are you about extensions?

Find out with this short quiz:

#1: True or false: An extension of time to file means that the tax isn’t due until the return is filed.

False.

An extension extends the time to file, but not the time to pay. If an extension is filed but taxes are ultimately owed, there will be interest and penalties charged each month that the balance isn’t paid.

Fraud is harder on emotions than finances for aging clients

Financial abuse and fraud that targets elderly clients can do more than devastate their savings and ruin their credit. The AICPA’s recent Personal Financial Planning (PFP) Trends Survey found that falling victim to fraud is much more likely to have an emotional impact on the elderly than a financial one.

Of the many types of fraud or elder abuse CPA financial planners have seen perpetrated on their older clients over the past five years, phone and internet scams top the list. The next most common issue is the inability to say “no” to relatives and identity theft.

What the emergency Fed rate cut means for your finances

As a result of increasing fears about the impact the coronavirus may have on the U.S. economy, the Federal Reserve announced an emergency cut to the target range for the federal funds rate of 0.5%. The new target rate is now 1% to 1.25%. This reflects the largest rate decrease in more than a decade and the first emergency cut since 2008.

Most Americans are primarily focused on the health and wellbeing of themselves and their loved ones during this time of uncertainty, and rightfully so. But it’s important not to overlook how the Federal Reserve announcement may impact their financial wellbeing.

Neal Stern, CPA, member of the AICPA’s National CPA Financial Literacy Commission, spoke with AICPA Insights about what the rate cut means for Americans’ finances.

Reimagine productivity: Eat better, work smarter

The link between nutrition and workplace performance

In his 1825 book The Physiology of Taste, Jean-Anthelme Brillat-Savarin provides a series of aphorisms “to serve as a preamble to his work and a lasting foundation for the science of gastronomy.” The most famous, “Tell me what you eat, and I shall tell you what you are,” has even been condensed into a cliché you’ve heard countless times: You are what you eat. Clichés are clichés for a reason, of course. In the case of this one, science has only found more evidence linking nutrition to all aspects of health, including work performance.

During busy season, it’s easy lose track of the fuel you put into your body. You may skip meals entirely or grab whatever’s convenient to just keep plowing ahead. But opting for junk, skipping meals or eating erratically will decrease your efficiency, spoil your mood and hamper the quality of work. Instead, be mindful of what you eat, when you eat it and build nutrition into your day to ensure your brain functions at its best.

Promoting diversity and inclusion for 50 years and counting

At the National Association of Black Accountants, Inc. (NABA), we are celebrating our 50th anniversary of challenge, achievement, success and survival in the diversity and inclusion (D&I) arena. Our business model continues to mature. We honor and salute our partner, the AICPA, for its dedication to the D&I mission.

By 2045, the United States will be significantly more diverse. The U.S. Census projects that more than 50% of the population will be non-white: 24.6% Hispanic, 13.1% black, 7.9% Asian and 3.8% multiracial. Slightly more than 49% of the population will be white.

Yet corporations still struggle to determine how they can increase diversity in the workforce and define success for their initiatives. I recently discussed D&I in accounting with Barry Melancon, CPA, CGMA, President & CEO of the American Institute of CPAs. Our conversation covered the D&I business imperative and how firms can move further along on the inclusion maturity model. Below are some highlights.

Top 10 questions for tax practitioners

Tax season 2020 is now underway.

This means more client interactions. Wonderful! This is why I do what I do!

It also means more client interactions. Sigh. Sometimes it’s hard to juggle my workload and client requests.

As tax season rolls on, so do the client questions. Of course, in business and in life, there are no stupid questions. This is especially true when they come from your clients. But they may not ask what they really need to know.

We polled practicing CPAs to find out what pressing issues and questions their clients have. Along with some fun (read: not real) answers, I’ll give you some tips on how to take the discussion further.