NCACPA volunteer leaders and advocacy staff met on Wednesday, February 17 with senior staff from the N.C. Department of Revenue to discuss the association’s potential legislative priorities for the year. The meeting, which included Board Chair Kelli Knoble, Advocacy Advisory Council Chair Jason Poole, and Taxation Committee Co-Chair Jack Schmoll, also touched on several other issues of concern to NCACPA members and their clients.
GUIDANCE ON PPP EXPENSES
NCACPA strongly encouraged NCDOR to publish guidance to clarify when taxpayers should add back expenses paid using the proceeds of a forgiven Paycheck Protection Program (PPP) loan. HB 1080 (S.L. 2020-58) excludes the amount of PPP loan forgiveness from state income tax but does not conform to federal law regarding deductibility of expenses paid using the proceeds of the forgiven loan.
POWER OF ATTORNEY UPDATE
NCACPA worked with NCDOR and the General Assembly to improve the Power of Attorney process, resulting in an updated Power of Attorney policy effective January 1, 2021. NCDOR is working on a document management system and expects its vendor to complete the work in late Q2 or early Q3 of this year. The first priority is to be able to receive POAs via DocuSign.
EXTRA CREDIT GRANTS
S.L. 2020-1 includes a provision supported by NCACPA that allows practitioners to easily apply for the $335 Extra Credit Grant on behalf of their qualifying clients who did not automatically receive the funds last year. Tax preparers will be able to apply to NCDOR without having to submit an amended return.
NCDOR expects to have the Extra Credit Grant application form posted online by February 26. The department is continuing to develop a bulk file submission process and expects it to be ready for implementation in early to mid-March, along with a designated phone line for paid preparers and a video demonstrating the filing process.
If you have questions about these or other policy issues, please NCACPA Director of Advocacy Robert Broome, CAE.