Minnesota approved a bill on Monday night to create additional pathways to CPA licensure, and it awaits the signature of Gov. Tim Walz.

As part of an omnibus bill, Senate File 3045, it creates two new pathways to CPA licensure: a bachelor’s degree plus two years of experience, or a master’s degree plus one year of experience. The new pathways will be effective Jan. 1, 2026. 

The bill sunsets the current 150-hour credit rule after June 30, 2030, and establishes automatic mobility and practice privileges one day following the bill’s ratification. All candidates must still pass all parts of the CPA exam.

Jill Clardy/stock.adobe.com

“It’s a step forward in the right direction,” said Geno Fragnito, government relations director at the Minnesota Society of CPAs. “It allows some flexibility to hopefully bring in people who are on the fence about whether they could afford the extra year of education and whether the accounting profession fit into their long-term goals because of that.”

Generally, the governor has 14 days to act on the presented bill. Otherwise, without any action, the bill becomes law. Minnesota is one of more than a dozen states that have already passed changes to licensure requirements in an ongoing effort to address the profession’s talent shortage.

(Read more: “New ways to CPA”)

Minnesota was the first state to propose licensing changes in December 2022. 

“Initial strong opposition eventually turned into support as more professionals, state societies, universities, government entities and businesses rallied behind broadening pathways to CPA licensure with the first state, Ohio, passing its law in January,” said an MNCPA blog post.

“There were a lot of people — chairs ahead of me and other people on the board and at the Minnesota society — that have done a ton of work on this and really deserve a lot of credit for all of the conversations they had and the testifying they did,” said MNCPA chair Eric O’Link. “We’re very appreciative of our legislative sponsors and everybody who helped make it a reality.”

No more paper checks; death and tax debt; the perfect time to onboard software; and other highlights from our favorite tax bloggers.

Truths and consequences

• Wolters Kluwer (https://www.wolterskluwer.com/en/solutions/tax-accounting-us/industry-news): The snowflake in the blizzard: President Trump has signed an executive order effectively eliminating the U.S. government’s long-standing practice of issuing paper checks — including refunds — to eliminate inefficiencies, reduce costs and enhance payment security. Key provisions of the order and what it could mean to the profession.
• Institute on Taxation and Economic Policy (https://itep.org/category/blog/): The House tax plan, by the numbers.
• The Wandering Tax Pro (http://wanderingtaxpro.blogspot.com/) And the good, bad and ugly about that big, beautiful bill.
• Taxpayer Advocate Service (https://www.taxpayeradvocate.irs.gov/taxnews-information/blogs-nta/): How a “commonsense” proposal in Sec. 903 of the draft TAS Act would simplify estimated tax payments with evenly spaced due dates.
• Taxnotes (https://www.taxnotes.com/procedurally-taxing): IRC provisions governing consolidated returns are grounded in the identification of an “affiliated group of corporations” (or an “affiliated group”) for which a consolidated return may be made. A few foundational matters and fact patterns to spot an affiliated group. 
• Current Federal Tax Developments (https://www.currentfederaltaxdevelopments.com/): A U.S. appeals court recently addressed a critical issue for estate tax practitioners: the deductibility of transfers mandated by a prenuptial agreement as “claims against the estate.”
• Withum (https://www.withum.com/resources/): When companies face new tariffs or increases to existing ones (who doesn’t, these days?), mechanisms that can be implemented are bonded warehouses, the Customs Reconciliation Program or setting up a foreign trade zone. Plusses and minuses of each, including tax considerations.
• Dean Dorton (https://deandorton.com/insights/): How tariffs factor into inventory accounting for income tax purposes, as well as pitfalls that can trigger unfavorable tax consequences.

To the Swift 

• Taxjar (https://www.taxjar.com/resources/blog): Starting a new biz is likely a time-sucking thrill-a-minute for clients. Take one thing off their to-do list with this sales tax compliance checklist.
• TaxProf Blog (http://taxprof.typepad.com/taxprof_blog/): Taylor Swift’s hard-earned reputation as a savvy music mogul inspires other creative spirits to be “fearless” in their artistic endeavors. But a taxpayer’s financial ability to live out their wildest dreams may depend on their chosen medium.
• The Sales Tax People (https://sales.tax/expert-articles/): The latest that e-commerce clients need to know about marketplace facilitator laws. 
• Sovos (https://sovos.com/blog/): While we’re on the subject, what is sales tax, anyway? A step-by-step look.
• Trout CPA (https://www.troutcpa.com/blog): What to remind them about the FICA Tip Credit.
• The National Association of Tax Professionals (https://blog.natptax.com/): This week’s “You Make the Call” looks at Leo, owner of a small HVAC business who recently hosted a summer kick-off barbecue at his shop for his five technicians (he also participated). No customers or other management staff attended. Leo provided sodas, juice, burgers and brats. Is the cost of the food and beverages fully deductible or subject to the 50% limit?
• Boyum & Barenscheer (https://www.myboyum.com/blog/): Two financial planning tools to help manufacturer clients weather uncertainty.
• Yeo & Yeo (https://www.yeoandyeo.com/resources): Never mind the soul. What happens to debt, including tax debt, when someone dies?

Making connections

• Vertex (https://www.vertexinc.com/resources/resource-library/filter/field_asset_type/blog?page=0): Companies seek a lot of benefits from a “connected commerce” strategy. But the pace of change in retail is intense, and tax leaders need to keep an eye on how many shifts can affect compliance. 
• Mauled Again (https://mauledagain.blogspot.com/): Are tax pros sufficiently social to lower their risk of dementia? 
• CLA (https://www.claconnect.com/en/resources?pageNum=0): After three filing seasons with Schedules K-2 and K-3, patterns and pain points have emerged. Introduced to improve the reporting of international tax info, these schedules have had far-reaching impacts even for real estate and private equity partnerships with little or no foreign activity.
• TaxProCenter (https://accountants.intuit.com/taxprocenter/): Once firms invest in a new tax engine, onboarding and data conversion go on the back burner as firms deal with extended returns. This seemingly logical and unavoidable shift sets the stage for potential mayhem come January. Five reasons extension season is a great time for onboarding.
• The Rosenberg Associates (https://rosenbergassoc.com/blog/): Favorite headline of the week: “To PE, or Not to PE, Is That the Question?”

Compliance professionals at top 10 firm Grant Thornton will now be making use of the newly-enhanced CompliAI platform, which has gone from a largely spreadsheet-driven classic automation solution to one infused with generative AI from end to end to streamline and enhance service delivery. 

The platform uses advanced AI capabilities, including GenAI Assistants and a GPT Model Series to automate key tasks such as risk and control rationalization, question and procedure generation, and document request list creation. For example, it will suggest questions for the professional to ask, and based on the answers, generate additional followup questions and tasks. The software also features a suite of tools, including dashboards, task management, in-app commenting, notifications, a methodology document library, and a centralized file repository. This is so professionals can conduct tasks in minutes that would have traditionally taken days or weeks. 

Mike Kempe, chief information officer of Grant Thornton Advisors, noted that beyond efficiencies, another major intention with this solution was to create a more consistent experience for their clients. Different professionals approach things in different ways, both in and out of the accounting world, and so the client experience can vary widely depending on who is working on an engagement at a given time. It is hoped that this new platform can smooth out some of that variation so clients can get a better idea of what to expect. 

“We’re providing a better service to our client and a much more consistent one as well because we’re no longer relying on the quality of individuals, we’re relying on AI… In the past, the issue was that if I was providing a service I would do it one way, and [if] John was providing the service, he would do it a different way, so clients would get inconsistent quality. With this, we increase the quality, and it’s going to be much more consistent,” he said. 

Paradoxically, though, he believes this will actually serve to create a more, not less, personalized experience for clients. By using AI to get through the routine processes that the accountant would ordinarily be doing themselves, they have more time and energy for close collaboration with the specific client and so can take on a more strategic role in compliance engagements. 

“Our professionals right now [are focused] on how to use AI and on building that relationship with the client and making this a much more personalized service than we have had in the past,” he said. 

The newly-enhanced CompliAI platform is just one more step in GT’s wider AI ambitions. Kempe said they plan to replicate this approach across many more service sectors. The firm has a roadmap for at least five more AI-based solutions released over the next year and a half as part of its vision to incorporate the technology throughout its numerous practice areas. When pressed on the particulars he declined to be too specific, but said people can expect many different solutions. 

“There’s a lot of productivity solutions that we’re building at the moment, and we’re working with our partners and some startups as well [to roll it our internally.] There’s a couple more AI solutions in the audit space as well as in the tax space that we’re currently working on… But suffice to say, we’re investing heavily. We’re on a very significant roadmap to put AI into everything we do. That’s our mission,” he said.