There still is a conformity bill related to Section 199 of the Internal Revenue Code that has not yet passed the legislature as of today, although it affects tax year 2012, not 2011. HB 1153 and SB 462 allow the entire amount of the deduction allowed for domestic production activities pursuant to §199 to be deducted for Virginia income tax beginning on and after Jan. 1, 2012. This provision has been an item of contention for the past few years, which is why we agreed to have it addressed in a separate bill. We will watch that bill and report on its outcome.
We are also monitoring closely several other bills affecting CPAs. You can see all of the legislation we are tracking at our 2012 Session Watch page. You can also read Emily Walker’s blog post about two hot items we are working on — one deals with the penalties associated with tax due returns on extension that are electronically filed, and the second requires the Auditor of Public Accounts (APA) to outsource all audit work to CPA firms.