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The holiday season is a time of joy, connection, and reflection, and this year’s MSA Holiday Soirée was nothing short of spectacular. Hosted amidst the warm and cheerful ambiance of the season, overlooking the lake at the Merriweather Lakehouse in Columbia, MD, this event brought together members of the Maryland Society of Accounting and Tax Professionals (MSATP) community to celebrate the holidays, honor excellence, and support the next generation of accounting and tax professionals.

Celebrating Scholarship Recipients

One of the highlights of the evening was recognizing the 2024-2025 MSA Scholarship recipients. These talented students represent the future of the profession, and we are proud to play a part in their educational journeys. This year’s scholarship recipients include:

• University of Baltimore: Katie Boettinger, Philip Clarke
• Towson University: Conner Utz, Tylek Simms, Andrew Polun, James Puii, Samuel Quinteros, Kenya Medrano, Carina Hernandez-Soto
• University of Maryland: Akishita Alousyes, Abby Benton, Urszula Cieslak, Dorian Houston, Jaclyn Jacobs, Sharon Lee, Mackenzie Thompson, Khanh Vi Doan, Wilber Villeda
• Salisbury University: Riley Bruce, Vanessa Virgil
• Stevenson University: Oyebowale Oyeniran, Anaya Harris

These students were selected not only for their academic achievements but also for their dedication to the field of accounting and tax preparation. We are thrilled to celebrate their hard work and commitment.

Strengthening Our Community

Beyond the awards and recognition, the Holiday Soirée was a chance to connect with peers, share stories, and celebrate our collective achievements. The event brought together professionals from all corners of the state to revel in the spirit of the season. Laughter, camaraderie, and shared aspirations filled the room, reminding us of the power of community in helping us all thrive.

Thank You to Our Sponsors

This event would not have been possible without the generous support of our sponsors. Their contributions played a vital role in ensuring the success of the evening and the ongoing initiatives of MSATP. We extend our heartfelt gratitude to our sponsors: CostSeg, Frost Law, and Magna5 IT, for their commitment to our community and mission.

Looking Ahead

As we close out another year, the Holiday Soirée served as a reminder of the incredible talent, dedication, and heart within the MSATP community. It was a celebration not only of the holidays but also of the bright future we are building together. We are excited for the opportunities that 2025 will bring, and we look forward to continuing to support and grow our thriving community of accounting and tax professionals.

Thank you to everyone who attended and contributed to making this year’s Holiday Soirée such a memorable occasion. Together, we thrive!

To view photos from the event, click here.

For the 2023 tax year, Maryland has updated its rules regarding the state tax cap on federal returns and what to do for Maryland returns. Here’s the updated information compiled from the MarylandTaxes.com website:
Instructions for FORM 502 — itemized deduction calculation:
“Copy the amount from federal Form 1040, Schedule A, line 17, Total Itemized Deductions, on line 17a of Form 502. Certain items of federal itemized deductions are not eligible for State purposes and must be subtracted from line 17a. State and local income taxes used as a deduction for federal purposes must be entered on line 17b.”

New for 2023:
Maryland has passed legislation (Senate Bill 523) to allow a workaround for the federal SALT deduction cap. This allows pass-through entities (partnerships and S corporations) to elect to pay state income taxes at the entity level, which can be deducted on the federal return without limitation. The taxes paid by the entity are then passed through to the individual owners as a state tax credit.

This Means…
For individuals not eligible for the pass-through entity workaround, the instructions remain largely the same as before. Start with the maximum state and local taxes (SALT) as per your federal return. Treat as much of the $10,000 federal deduction as property tax up to the total amount of property taxes paid, and the rest of the federal deduction is the state income tax. This limits the Maryland addback because only the state income tax is “added back” — i.e. not deductible for Maryland.

Example:
If the state income tax withheld is $8,000 and the property tax paid is $4,000 for a total of $12,000 paid, the deduction for state and local taxes (SALT) for federal taxes is $10,000. The Maryland total deduction starts with the $10,000 allowed on the federal return. $4,000 of this is treated as the full amount of the real estate tax paid, and $6,000 is treated as the state income tax paid and is therefore not deductible on the Maryland return ($10,000 less $4,000). So, the $4,000 is the net Maryland itemized deduction for taxes.

Since the introduction of the $10,000 state and local tax (SALT) deduction cap as part of the Tax Cuts and Jobs Act (TCJA) in 2017, Maryland has made several changes to its Form 503 to address the treatment of relevant deductions. Here’s a summary of the changes:
1. 2018-2020: Maryland initially followed the federal SALT cap, limiting the deduction for state and local taxes to $10,000 on both federal and state returns. This resulted in a significant increase in tax liability for many Maryland residents who itemize deductions.
2. 2021: Maryland passed the RELIEF Act, which allowed residents to subtract the amount over the $10,000 SALT cap from their Maryland adjusted gross income. This provided some relief to taxpayers by allowing them to claim the full amount of their state and local taxes paid on their Maryland return, even if they were limited on their federal return.
3. 2022: Maryland continued to allow the subtraction of the amount over the $10,000 SALT cap from the Maryland adjusted gross income, providing ongoing relief to taxpayers.
4. 2023: Maryland passed Senate Bill 523, which introduced a workaround for the federal SALT deduction cap. This legislation allows pass-through entities (partnerships and S corporations) to elect to pay state income taxes at the entity level, which can be deducted on the federal return without limitation. The taxes paid by the entity are then passed through to the individual owners as a state tax credit. For individuals not eligible for this workaround, the treatment of SALT deductions remains largely the same as in previous years.

Throughout these changes, Maryland has required taxpayers to add back any state and local income taxes deducted on their federal return when calculating their Maryland itemized deductions. This ensures that taxpayers do not receive a double benefit for these taxes at the state level.

The Maryland Society of Accounting and Tax Professionals (MSATP) strongly opposes House Bill 1515, which aims to reduce the sales tax rate while simultaneously expanding it to cover a wide range of services. If enacted, this misguided legislation would place undue burdens on accounting and tax practices, as well as on the individuals and businesses they serve.

Under the proposed changes, many services provided by accounting and tax professionals would become subject to the sales tax for the first time. This means that in addition to paying more for these essential services, Marylanders would also face the headache of sales tax compliance on tax preparation and accounting. Small businesses and lower-income individuals would be hit especially hard.

But the impact goes far beyond our own industry. HB1515 would impose the sales tax on virtually all services, with only narrow exceptions. From haircuts to home repairs, Marylanders would pay more for services across the board. Businesses, already struggling with inflation and economic uncertainty, would be saddled with a slew of new compliance costs and recordkeeping requirements. This is the last thing they need.

The bill’s sponsors may believe that the sales tax rate reduction offsets the harm of taxing services. But this view ignores the disproportionate impact on service-based businesses and lower-income households. It also disregards the sheer complexity of complying with sales tax rules for the vast universe of newly taxed services. The rate cut is little more than a fig leaf.

We at MSATP stand united with our members and the broader business community in opposing HB1515. This bill is fundamentally flawed and cannot be salvaged. Lawmakers should reject it outright and pursue responsible tax policies that support economic growth and opportunity for all Marylanders.

To our valued members, rest assured that we hear your concerns and are working tirelessly to defeat this legislation. We will keep you apprised of developments and provide resources to help you navigate these proposed changes and make your voice heard. Together, we will continue to advocate for an environment in which accounting and tax professionals, and the clients we serve, can thrive.

As we come to the close of Black History Month, it is a poignant time for us at the Maryland Society of Accounting and Tax Professionals to reflect on the progress made and the long road ahead in the pursuit of equity, inclusion, and diversity within the accounting profession. This month has provided us with a valuable opportunity to celebrate the achievements and recognize the contributions of African American accountants. However, our commitment to fostering an inclusive community does not end as February does. Rather, it reaffirms our resolve to continue this vital work every day of the year.

The strides we’ve made towards equity and inclusion are commendable. Initiatives like scholarships, mentorship programs, and diversity-focused recruitment strategies have begun to change the landscape, making the profession more accessible and welcoming to Black professionals. Yet, as we celebrate these achievements, we must also confront the challenges that persist. The underrepresentation of African Americans, especially in senior and executive roles, underscores the need for sustained effort—not just in hiring but in supporting and promoting Black accountants throughout their careers.

The challenges are multifaceted, involving unconscious bias, limited access to crucial networks, and systemic barriers that hinder career progression. It’s our collective responsibility to tackle these issues head-on, creating equitable pathways for leadership that are accessible to all talented professionals, irrespective of their background.

As we move forward, let us:
Continue to support and develop programs aimed at the advancement of Black accountants.
Foster organizational cultures that celebrate diversity, recognizing and nurturing the unique talents of all members.
Implement transparent promotion and leadership development practices, ensuring equal opportunities for every professional.
The Maryland Society of Accounting and Tax Professionals is committed to leading by example, advocating for a profession that not only reflects the diversity of the society it serves but also benefits from the full spectrum of talents and perspectives African American accountants bring.

As Black History Month ends, let us carry forward the momentum, recognizing that our work towards creating a more inclusive, equitable, and diverse accounting profession is ongoing. Together, we can make a difference, ensuring that the future of accounting is vibrant, diverse, and inclusive. The journey does not end here; it is a continuous path we walk together, striving for progress each day.

In the ongoing fight against tax preparer fraud, the Maryland Society of Accounting and Tax Professionals (MSATP) has taken a decisive stand, championing legislation that promises to enhance protections for Maryland taxpayers and uphold the ethical standards of our profession. The heart of our advocacy efforts is centered around the support for House Bill 452, also known as the Stop Scam Tax Preparers Act. This critical piece of legislation represents a significant step forward in our commitment to integrity within the accounting and tax preparation industry.

A Unified Front Against Fraud
Led by Maryland’s Comptroller Brooke Lierman, the initiative to combat fraudulent tax preparers has found a strong ally in the MSATP. Our involvement underscores the importance of protecting the public from those who seek to exploit the complexities of the tax system for their gain. The proposed legislation mandates the Maryland Department of Labor to oversee the tax preparers’ board, thereby fortifying enforcement efforts against unscrupulous actors within the tax preparation sector.

Testimony for Change
In a testament to our dedication, Giavante’ Hawkins, the Executive Director of MSATP, presented a compelling testimony in support of the Stop Scam Tax Preparers Act on Thursday in the House. Through his words, Hawkins not only conveyed our collective concern over the damages caused by fraudulent tax preparers but also highlighted the necessity of stringent oversight and regulation to safeguard Maryland’s taxpayers.

Our Vision for a Fraud-Free Future
The support for House Bill 452 aligns perfectly with the MSATP’s vision of a professional environment defined by trust, integrity, and the highest ethical standards. By advocating for this legislation, we aim to ensure that every taxpayer in Maryland has access to fair, transparent, and professional tax preparation services. Furthermore, our support extends beyond this bill to encompass a broader legislative package designed to protect Maryland taxpayers from scams while also promoting awareness of vital tax credits, such as the senior tax credit and the earned income tax credit.

Looking Ahead
As we continue our advocacy efforts, the MSATP remains committed to not only supporting legislation that combats tax preparer fraud but also to enhancing the professional standards that define our industry. Our support for the Stop Scam Tax Preparers Act and other related initiatives is a clear demonstration of our dedication to protecting Maryland residents and ensuring the integrity of the tax preparation profession.

We encourage all members of the MSATP and the wider community to stay informed about our advocacy work and to join us in supporting these essential legislative efforts. Together, we can make a significant impact in the fight against tax preparer fraud and work towards a future where the rights and interests of Maryland taxpayers are fully protected.

Your feedback and involvement are crucial to our continued success in these advocacy efforts. For more information on how you can contribute or to stay updated on the progress of these legislative initiatives, please visit our website or contact our office directly. Together, we can make a difference.

As we enter the legislative session this January, MSATP will be at the forefront, advocating for policies that support tax, tax preparation, and small business interests. Our 2024 Legislative Priorities are thoughtfully designed to reflect and further our mission statement.

Here’s how:

Business Tax Environment: We stand against complex tax rules like the throwback rule and mandatory unitary combined reporting. Our stance is based on fostering a thriving business environment for our members, especially for solo practitioners and small to mid-sized firms.
Sales Tax on Services: We oppose expanding sales tax on services, as it could adversely affect small and mid-sized businesses, which are less equipped to handle new expenses or administrative tasks.
Maryland’s De-coupling Provisions: We advocate for a careful evaluation of Maryland’s tax laws to ensure they are in harmony with federal regulations, allowing our members to provide accurate and current advice.
Remote Work Tax Policies: In light of the shift toward remote work, we push for clear and permanent tax policies so our members can offer reliable counsel and manage their businesses effectively in this new era.
Exploring Alternatives to Raising Taxes: We encourage the exploration of alternatives to tax hikes, aiming to create a business environment conducive to the growth of our member firms.
Guarding Against Deceptive Tax Practices: Protecting taxpayers, especially the elderly, from scams is paramount. We strive to maintain the highest ethical standards in our profession.

The legislative priorities of MSATP are a direct extension of our mission to support and safeguard our members’ businesses, advocate for the profession, and ensure professional integrity. Through these priorities, we demonstrate our unwavering commitment to creating a supportive legislative climate that allows our member businesses to flourish while maintaining ethical standards and fostering a sense of community within the profession.

The world of accounting and taxation is complex, fraught with regulations, client management, and endless hours of work. For small or solo firm owners, this can be especially challenging. Recognizing the unique needs of Hispanic accountants and tax professionals in Maryland, the Maryland Society of Accounting and Tax Professionals (MSATP) and Latino Tax Pro have joined forces to create a thriving community of support, collaboration, and professional growth.

In the spirit of celebrating Hispanic Heritage Month, this partnership takes on an even more significant meaning. Hispanic Heritage Month runs from September 15th to October 15th, is a time to recognize and honor the rich cultural contributions, achievements, and resilience of Hispanic and Latino communities in the United States. It is a period to reflect upon the diversity and strength that these communities bring to our nation.

The collaboration between MSATP and Latino Tax Pro is a testament to the recognition of the unique challenges and opportunities Hispanic professionals face in the accounting and tax industry. By supporting and empowering Hispanic accountants and tax professionals, we honor their heritage and contribute to a more inclusive and vibrant future for the entire profession. This partnership embodies the essence of Hispanic Heritage Month, fostering unity and growth within our community.

The 1040 Course:
One of the cornerstones of this partnership is the upcoming 2-day virtual 1040 course, scheduled for November 14th and 15th. What sets this course apart is that it will be conducted entirely in Spanish, ensuring that Spanish-speaking professionals can access high-quality education in their native language.
This comprehensive course offers 16 hours of Continuing Professional Education (CPE) credits for attendees. Upon completion, participants will have gained the knowledge and skills necessary to excel in various aspects of tax preparation and financial planning.

Course Highlights:
* Form 1040 Mastery: Attendees will learn how to properly prepare, report amounts on, file, and deduct disaster losses from Form 1040, equipping them to handle even the most complex tax returns.
* Maximizing Tax Credits: The course covers strategies to help clients qualify for various tax credits, reducing their taxable income. This includes methods for saving for dependent children’s college education and understanding education-related credits and deductions.
* IRS Audit Handling: Participants will gain insights into the appropriate handling of IRS client audits, ensuring they can represent their clients effectively and ethically.
* Ethics and Compliance: Compliance with Circular 230 ethics regulations is essential in the tax profession. The course will provide guidance on maintaining ethical standards while serving clients.
* Military Special Taxation: The program also includes advice for handling tax matters unique to military personnel, expanding attendees’ expertise to serve a broader range of clients effectively.

Why This Partnership Matters:
The partnership between MSATP and Latino Tax Pro is a significant step toward building a thriving Maryland Hispanic accountant and tax professional community. It provides a platform for professionals to come together, learn from experts, and collaborate on industry challenges and opportunities.

By offering courses in Spanish and addressing the specific needs of Hispanic professionals, this partnership ensures that language is not a barrier to accessing high-quality education and resources. This inclusivity allows for a more diverse and empowered group of professionals who can better serve their clients and advance in their careers.

FOR IMMEDIATE RELEASE

PHOENIX, July 6, 2023 — Earmark, the only free, podcast-based continuing professional education provider for accountants, is thrilled to announce its first society partnership with the Maryland Society of Accounting and Tax Professionals (MSATP). Effective July 6, 2023, this strategic collaboration offers an enhanced Unlimited Subscription as a benefit to all MSATP members, adding significant value to their memberships.

Earmark’s Unlimited Subscription includes unlimited free CPE courses each week, an ad-free experience in the app, and the ability to opt out of sponsor messages during registration for sponsored courses. Designed for professionals from small firms, the subscription aligns seamlessly with Earmark’s and MSATP’s shared vision of high-quality, affordable, and accessible education.

As a NASBA-approved CPE sponsor and IRS-approved CE provider, Earmark boasts hundreds of course offerings spanning accounting, tax, technology, fraud detection, personal development, practice management, and more. MSATP’s professionals, including CPAs, CMAs, and EAs, can now conveniently satisfy all or most of their continuing education needs by listening to podcasts. One anticipated standout is the Federal Tax Updates podcast exclusive to Earmark, providing biweekly federal tax news and analysis.

MSATP members can unlock their Unlimited Subscription simply by registering for Earmark using the same email linked to their MSATP account. Should they encounter any issues, assistance is readily available at support@earmarkcpe.com.

“This partnership marks a significant milestone in our mission to provide every accounting and tax professional worldwide with high-quality, cost-effective, and effortless CPE. We’re excited to collaborate with one of the world’s most innovative professional organizations to make this vision a reality,” said Blake Oliver, CPA, founder and CEO of Earmark.

Giavante Hawkins, Executive Director of MSATP, added, “Our partnership with Earmark underscores our commitment to empowering our members with accessible and affordable professional education. This is a great opportunity for our members to expand their knowledge base, meet their CPE requirements, and ultimately, provide better services to their clients.”

Our partnership with Earmark underscores our commitment to empowering our members with accessible and affordable professional education. This is a great opportunity for our members to expand their knowledge base, meet their CPE requirements, and ultimately, provide better services to their clients. – Giavante Hawkins, Executive Director of MSATP

About Earmark: Earmark is a leading podcast-based continuing professional education provider for accounting and tax professionals. The company offers both free and paid CPE courses on various topics. Earmark CPE is registered with the Internal Revenue Service as a CE provider and the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education. State Boards of Accountancy have the final authority on accepting individual courses for CPE credit. For more information, visit https://www.earmarkcpe.com.

The Maryland Society of Accounting and Tax Professionals (MSATP) proudly announces the election and appointment of its new board members, whose tenure will commence on July 1, 2023. The recent elections reflect the Society’s commitment to leadership excellence and dedication to serving Maryland’s accounting and tax professionals.

Meet the New Board
Donya Oneto has been elected as the new President of the MSATP. With her vast experience in accounting and strong leadership skills, she is poised to lead the Society in achieving its goals and objectives. Her innovative thinking and dedication to excellence will undoubtedly steer the Society to new heights.

Ellen Silverstein will be serving as the First Vice President. She brings a wealth of knowledge and expertise to the role. Her appointment promises to strengthen the Society’s core values and ensure steady growth.

Hannah Coyle has been chosen as the Second Vice President. Coyle’s expertise and commitment to the profession’s development will be a great asset in her new role.

Jonathan Riviln will be taking on the role of Secretary. His organizational acumen and meticulous attention to detail will serve to bolster the Society’s operations and documentation processes.

Ann F. Elliott has been elected to the important position of Treasurer. Her financial prowess and ethical standards make her the perfect fit to oversee the Society’s financial matters.

Barbara Smith will assume the role of Immediate Past President. Her continued involvement ensures that the board will benefit from her experience and insights as they chart the future direction of the Society.

Introducing the Delegates
In addition to the executive positions, five delegates have been elected: Sean Coggins, Matthew Eddleman, Michael Kohler, Michael McIlhargey, and Nicole Moore.
Although new to the board, Nicole Moore has been an active volunteer on many committees. Her first term as a board delegate is eagerly anticipated, as her previous involvement has demonstrated her commitment and contribution to the Society’s mission.

Christine Giovetti will be serving as the Board of Trustees Delegate. Her expertise and dedication to the profession make her a valuable addition to the MSATP governance structure.

Looking to the Future
These new board members will play a pivotal role in supporting and advancing the objectives of the Maryland Society of Accounting and Tax Professionals. With their combined expertise and dedication, the Society looks forward to an era of innovation, growth, and excellence in service to Maryland’s accounting and tax professionals.

MSATP congratulates the new board members and expresses gratitude to the outgoing board for their dedicated service.