AICPA News – Nov. 2021

A bare majority of executives (51 percent) expressed optimism about the U.S. economy over the next 12 months, although that represents a steep drop from last quarter’s measure of 70 percent. Survey respondents cited several factors for the decline:

• Inflation fears. More than three-fourths (77 percent) of executives are now concerned about inflation, particularly regarding raw material and labor costs. Salary and benefit costs are expected to increase at a rate of 3.7 percent, or higher than at any time since the pre-recession economy.
• An uncomfortably tight labor market. Some 40 percent of business executives said their companies have too few employees and are looking to hire immediately. Another 14 percent said they also have too few employees but are hesitant to hire.
• Concern about the impact of COVID-19 variants.

The AICPA survey is a forward-looking indicator that tracks hiring and business-related expectations for the next 12 months. In comparison, the U.S. Department of Labor’s August employment report, scheduled for release tomorrow, looks back on the previous month’s hiring trends.

Other key findings of the survey:

• To improve recruitment and retention, 64 percent of business executives said their companies were offering higher wages or salaries, while 46 percent said they were offering more flexible work arrangements.
• Fewer business executives expressed optimism about prospects for their own companies over the next 12 months (65 percent, versus 76 percent last quarter)
• Fewer companies say they expect to expand over the next 12 months (64 percent versus 69 percent last quarter)
• Expectations slid for both profit and revenue growth over the next 12 months. Revenue growth is now expected to be 4.3 percent over that term, down from a five percent projection last quarter. Profit growth is now anticipated to be 2.5 percent, compared to four percent last quarter.

AICPA Foundation Grants 25 Minority Doctoral Fellowships

In September, the American Institute of CPAs (AICPA) Foundation granted fellowships to 25 minority doctoral students as part of its effort to increase diversity among educators in accounting programs.

The funding comes from the AICPA Fellowship for Minority Doctoral Students program, which serves to bolster racial and ethnic diversity and inclusiveness among accounting educators at colleges and universities. It provides $12,000 to each student, renewable for up to an additional four years, assuming students continue to meet eligibility requirements.

The 2021-22 Minority Doctoral Fellowship recipients, as well as the doctoral programs they are attending, are:

• Mary Adebukola Adenle, The University of Texas at Austin
• Christiana Antwi-Obimpeh, University of Texas – San Antonio
• Jose Nicolas Arguello, University of Tennessee, Knoxville
• David Gabriel Caceres, Florida International University
• Moniquca Chappell, Florida State University
• Asabe Adama Mairama Danpollo, Cornell University
• Jewel Onyx Evans, University of Chicago
• LaToya Flint, University of Mississippi
• Roberto Gonzales, University of Texas at Arlington
• Paige G. Harrell, Emory University
• Brittani Shantel Jackson, Indiana University
• Devon P. Jefferson, Virginia Commonwealth University
• Monica Kabutey, University of North Texas
• Carissa Malone, Virginia Tech University
• Tendai Masaya, Yale University
• Timothy Edward Messenger, University of Oregon
• Iguehi Rajsky, Temple University
• Jeremy Richardson, Texas Tech University
• Vernan Orlando Rivera, University of Connecticut
• Edgar Rodriguez-Vazquez, University of Washington
• Jessica Thornton, University of Illinois at Urbana-Champaign
• Andrea Tillet, Florida State University
• Raul Villamil-Otero, University of South Florida
• Lawrence D’Andrea Williams, Florida Atlantic University
• Isaac Lord Yamoah, University of Illinois at Urbana-Champaign

All Minority Doctoral Fellows must be ethnic minorities and U.S. citizens or permanent residents, who have earned a master’s degree or worked at least three years full-time in the accounting profession. The 2022-23 application will be available on March 1st, 2022. The Minority Doctoral Fellowships are funded by the AICPA Foundation.

AICPA Shows Strong Support for Disaster Retirement Savings Act

The American Institute of CPAs (AICPA) is signaling strong support for the bipartisan Disaster Retirement Savings Act (S. 2583), introduced by Senators Bill Cassidy (R-LA) and Bob Menendez (D-NJ). The bill would permanently remove penalties for individuals impacted by natural disasters who choose to use retirement funds to cover unexpected expenses associated with those disasters.

The AICPA developed 10 recommendations to improve the patchwork situation that currently exists and alleviate tax compliance burdens during and in the aftermath of a disaster. These proposals are designed to help homeowners and business owners alike with the expensive and lengthy process of recovery. The Disaster Retirement Savings Act addresses one of these important recommendations.

• In a 2013 letter to Members of Congress, the AICPA requested permanent tax provisions related to disaster relief.
• In November of 2014, AICPA Tax Executive Committee then-Chair, Troy Lewis, testified before a Senate small business panel, explaining the impact that the current system is having on taxpayers and their advisers.
• In July of 2015, Representative Tom Reed (R-NY) introduced the National Tax Relief Disaster Act, which incorporated many of AICPA’s proposals.
• In July of 2017, AICPA submitted disaster relief provisions in response to then-Senate Finance Committee Chair Orin Hatch’s (UT-R) request for tax reform comments.
• In November of 2019, the AICPA commended Rep. Tom Rice (R-SC) in a letter for his continued efforts to provide permanent and consistent tax relief to individuals and businesses affected by natural disasters.
• In June of 2021, AICPA expressed support for the bipartisan Filing Relief for Natural Disasters Act introduced by Representatives Judy Chu (D-CA) and John Katko (R-NY).
• In September of 2021, AICPA voiced strong support for the bipartisan Filing Relief for Natural Disasters Act, introduced by Senator Catherine Cortez Masto (D-NV).