Legislative Update: Plus: IRS Commissioner Nominee Before Senate.

• Author: Fox, Jason
• Position: Capitol Beat

After returning from summer recess, the Legislature is entering the last month of the two-year legislative session. Legislators in the Senate and Assembly will be making a last-minute push to get their bills to the governor's desk by the Aug. 31 deadline.

District Drop-ins

While legislators were in their districts during the summer recess, CalCPA members took advantage of the break to reconnect with their state representatives and build upon the foundation laid during January's CPA Day.

During the last week of July, CalCPA members met with their local representatives and their staff to continue to develop their relationships and reiterate the profession's opposition to the institution of a sales tax on business services and the importance of responsibly addressing conformity of the state tax code to the new federal tax laws.

While aspects of these issues have been raised to legislators at CPA Day and through the course of the legislative session, these key issues will not be going away and have the chance to move relatively quick next year. Additionally", it's important we continue to stress these points and provide a face to the issues. With tax on services growing as a threat and major tax conformity provisions expected in 2019, tying the impact of these policies to their districts and community provides helpful context for legislators to consider.

These efforts help position the CPA profession as thought leaders qualified to assist legislators in creating fair, effective and efficient tax policy for all state taxpayers.

IRS Commissioner Nominee Appears Before Senate Committee

Charles Rettig, a longtime CalCPA member and nominee to become the new IRS commissioner, appeared before the Senate Finance Committee in July as the committee vetted his appointment.

Rettig, a well-known and respected tax attorney, highlighted that a top priority will be to successfully implement the major federal tax law changes passed by Congress, particularly by providing timely, clear and accurate guidance on the application of the new laws.

Rettig reiterated that he would work to make sure the IRS correctly applies the laws enacted by Congress in a fair and impartial manner. Additionally, he discussed modernization of the IRS information technology systems and operations to better protect taxpayer data, enhancing services for taxpayers and guard against cyberthreats.

Rettig also committed to re-establishing the public trust in the IRS and safeguarding against...