2025 ISSUE 4 OFFICIAL PUBLICATION OF THE NEBRASKA SOCIETY OF CPAS PRESIDENT’S MESSAGE BUILDING THE FUTURE OF THE PROFESSION: FORWARD TOGETHER 2025-2026 Officers & Board Members Elected
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BOARD OF DIRECTORS JONI SUNDQUIST NESCPA PRESIDENT & EXECUTIVE DIRECTOR joni@nescpa.org KELLY EBERT VICE PRESIDENT kelly@nescpa.org MICHELLE LYONS STAFF ACCOUNTANT & OFFICE MANAGER michelle@nescpa.org LORI VODICKA MEMBERSHIP & CPE ASSISTANT lori@nescpa.org OFFICERS BOARD MEMBERS NESCPA STAFF JODI M. ECKHOUT CHAIRMAN Woods & Durham Chartered Holdrege JUSTIN M. HOPE CHAIRMAN-ELECT Eide Bailly LLP Elkhorn HEATHER E. BARR SECRETARY Endicott Clay Products Co. Endicott GRANT H. BUCKLEY TREASURER Buckley & Sitzman LLP Lincoln DERRICK J. BLUM DIRECTOR Iron Horse CPAs & Advisors PC Norfolk LAUREN E. BOND DIRECTOR Deloitte & Touche LLP Omaha LAURIE ANN J. BUHLKE DIRECTOR Contryman Associates PC Grand Island NICOLE L. COOPER DIRECTOR Project Harmony Omaha MARK F. DUREN DIRECTOR Lutz Omaha LORRAINE A. EGGER AICPA ELECTED REPRESENTATIVE CyncHealth La Vista RICHARD D. GIFFORD WEST NEBRASKA CHAPTER PRESIDENT Richard D. Gifford, CPA Scottsbluff BRIAN M. KLINTWORTH IMMEDIATE PAST CHAIRMAN HBE LLP Lincoln KELLY A. MANN AICPA AT-LARGE REPRESENTATIVE AuditMiner Gretna JILL R. TRUCKE DIRECTOR University of Nebraska-Lincoln Lincoln Tax and accounting manager wanted immediately for Omaha CPA firm. Knowledge of tax, accounting, and auditing concepts required. Send resume to Berger, Elliott & Pritchard, CPAs, L.L.C., 1301 S. 75th Street, Suite 200 or email to info@bepcpa.com. BETTER TAX SEASON BETTER FIRM BETTER PLACE TO WORK TAX AND ACCOUNTING MANAGER 4 Nebraska CPA
1700 Farnam Street, Suite 1500 Omaha, NE 68102 www.bairdholm.com BH BairdHolm attorneys at law llp HANNAH FISCHER FREY, J.D., LL.M. 402.636.8345 hfrey@bairdholm.com JESSE D. SITZ, J.D. 402.636.8250 jsitz@bairdholm.com PARTNERS YOU CAN COUNT ON Business succession and exit planning Tax planning in mergers, acquisitions, and reorganizations Partnership taxation structuring and compliance Tax credits, tax incentives, and alternative financing Section 1031 exchanges Wealth transfer planning, including estate and gift taxation Nonprofit exemption applications and compliance Audit response and representation before the IRS, state, and local authorities
30 21 C O N T E N T S 12 ©2025 Nebraska Society of Certified Public Accountants | The newsLINK Group LLC. All rights reserved. The Nebraska CPA is published six times each year by The newsLINK Group LLC for the Nebraska Society of Certified Public Accountants and is the official publication for this society. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the Nebraska Society of Certified Public Accountants, its board of directors, or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. Nebraska CPA is a collective work and as such some articles are submitted by authors who are independent of the Nebraska Society of Certified Public Accountants. While the Nebraska CPA encourages a first-print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. ISSUE 4, 2025 EDITORIAL: The Nebraska Society of CPAs seeks to reflect news and relevant information to Nebraska and other news and information of direct interest to members of the Nebraska Society of CPAs. Statement of fact and opinion are made on the responsibility of the authors alone and do not represent the opinion or endorsement of the Nebraska Society of CPAs. Articles may be reproduced with written permission only. ADVERTISEMENTS: The publication of advertisements does not necessarily represent endorsement of those products or services by the Nebraska Society of CPAs. The editor reserves the right to refuse any advertisement. SUBSCRIPTION: Subscription to the magazine, a bi-monthly publication, is included in membership fees to the Nebraska Society of CPAs. PRESIDENT’S MESSAGE 8 Building the Future of the Profession: Forward Together 2025-2026 Officers & Board Members Elected By Joni Sundquist, Nebraska Society of CPAs 10 2025-2026 Nebraska Society of CPAs Board of Directors 11 CPA Firm Regional Leadership Network STATE BOARD REPORT 12 A New Era of CPE Reporting for Nebraska CPAs By Heather Myers, Nebraska Board of Public Accountancy 14 Nebraska’s Alternative Pathway to CPA Licensure STATE TAX BRIEFING 16 The Impact of LB 644 on Existing Incentive Contracts—and What To Do Next By Nick Niemann & Matt Ottemann, McGrath North Law Firm 19 2025 NESCPA Course Calendar 21 Cybersecurity & Data Privacy Two Sides of the Same Coin By Robert L. Kardell, FBI (Ret.), JD, MBA, CPA, CISSP, GSEC, CFE, CFF, Baird Holm LLP, Omaha COUNSELOR’S CORNER 25 Nebraska’s New Paid Sick Time Law Explained By Katie Runge, Koley Jessen, Omaha 27 Aligning Values, Wealth & Impact Q&A With Susan Koesters, Senior VP, at D.A. Davidson By Omaha Community Foundation 29 Finish the Year Strong Help Clients Maximize 2025 Tax Savings With NEST 529 By Union Bank & Trust 30 7 Key Factors of Practice Value By Accounting Practice Sales TRANSFORMATION TRENDS 32 When CPAs Are Asked to Hide Their Credentials Ownership, Regulation & Public Trust By Donny C. Shimamoto, CPA, CITP, CGMA, Inspiration Architect, Center for Accounting Transformation 34 Building a FutureReady Workplace Attracting, Engaging & Retaining Younger Talent By Alexandria A. Romero, CPA, MPAcc, Galasso Learning Solutions 37 Welcome New Society Members 38 2025 NESCPA Advertiser Index ON THE COVER: Outgoing and incoming members of the NESCPA Board of Directors take a selfie at the August Board Retreat.
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BUILDING THE FUTURE OF THE PROFESSION: FORWARD TOGETHER THE NEBRASKA SOCIETY OF CPAS IS EXCITED TO ANNOUNCE the new officers and directors who will lead our organization into the 2025-2026 fiscal year. These leaders were elected during the Society’s Annual Meeting and Board of Directors Meeting on Nov. 5, 2025, which were held in conjunction with the annual Fall Conference at Mahoney State Park’s scenic Riverview Lodge in Ashland, Neb. This year’s conference theme, “Building the Future of the Profession: Forward Together,” captures the spirit of the Society’s leadership. Since its founding in 1928, the Nebraska Society has thrived because of CPAs who are willing to step forward to give their time, expertise, and energy. Today, that same spirit of volunteerism and collaboration continues to shape the Society’s direction and strengthen the profession. “The success of our Society and our profession depend on members stepping forward to lead,” said Society Past Chairman and Nominating Committee Chairman Kelly Martinson of Lutz in Omaha, Neb. “These new officers and directors reflect the best of our profession—people from across the state who are willing to volunteer their time, knowledge, and leadership to help move the profession forward.” Immediate Past Chairman Brian Klintworth of HBE LLP in Lincoln, Neb., reflected on his service to the Society. “This past year has shown me how powerful it is when our members come together. Whether we were addressing legislative challenges or finding new ways to connect, I’ve seen firsthand the difference that strong collaboration can make. I encourage every CPA to find a way to get involved—you won’t regret it.” “Our theme this year, ‘Building the Future of the Profession: Forward Together,’ says it all,” said Society Chairman Jodi Eckhout of Woods & Durham Chartered in Holdrege, Neb. “The Society is strongest when we come together as a community of professionals—advocating for the profession at the Nebraska Capitol and beyond, supporting one another, and preparing the next generation of CPAs. I’m honored to lead these efforts.” “We have a bright future ahead,” added Society Chairman-Elect Justin Hope of Eide Bailly LLP in Elkhorn, Neb. “I’m excited to take on the role of chairman-elect and to work side-by-side with Jodi and my fellow board members to ensure the profession remains strong, relevant, and forward-looking.” “Congratulations to the newly elected leadership for the year ahead,” Martinson added, “and thank you to those continuing their service on the Society Board of Directors.” 2025-2026 OFFICERS & BOARD MEMBERS CHAIRMAN Jodi M. Eckhout, CPA, of Miller, Neb., is a shareholder with Woods & Durham Chartered in Holdrege, Neb. A native of Lewiston, Neb., she graduated with distinction from Nebraska Wesleyan University with a Bachelor of Science in Accounting and earned a Master of Accounting from Montana State University. Eckhout began her career in Helena, Mont., serving PRESIDENT’S MESSAGE 2025-2026 OFFICERS & BOARD MEMBERS ELECTED BY JONI SUNDQUIST, NEBRASKA SOCIETY OF CPAs 8 Nebraska CPA
clients in Montana for seven years before returning to Nebraska in 2015. She worked at McDermott & Miller and KSO CPAs in Kearney, Neb., before joining Woods & Durham. Today, she specializes in small business and individual taxation, with an emphasis on agricultural enterprises. Eckhout is a graduate of the AICPA Leadership Academy and serves on the AICPA Individual and Self-Employed Tax Technical Resource Panel. She has been active locally, volunteering as treasurer of the Helena (Mont.) Area Habitat for Humanity, on the Kearney Area Children’s Museum Board and Finance Committee, as president of the Council of Catholic Women at St. John Capistran in Amherst, Neb., and currently as chairman of the Amherst PTO. Eckhout has served on the Society’s Taxation Committee for eight years, presently as vice chairman. She also has been involved with the Women in Accounting Committee, the PTET Working Group, and the Accounting Recruitment Campaign Task Force. She and her husband, Evan, have a daughter, Ember, and two sons, Barrett and Lane. CHAIRMAN-ELECT Justin M. Hope, CPA, FHFMA, is a partner at Eide Bailly LLP in Elkhorn, Neb. He graduated from Midland University in Fremont, Neb., with a Bachelor of Science in Business Administration, with an emphasis in accounting and economics. With more than two decades of experience serving nonprofit and healthcare organizations, Hope is recognized as a Fellow of the Healthcare Financial Management Association (FHFMA). He currently serves as certification co-chair for the Nebraska Chapter of HFMA. In addition, he volunteers as treasurer of Omaha Rodeo Inc. Hope is a graduate of the Nebraska Society’s Leadership Academy and has served on the Society’s Not-For-Profit Committee for 16 years. He and his wife, Meghan, have two daughters, Margaret and Elizabeth. SECRETARY Heather E. Barr, CPA, of Liberty, Neb., has been the controller at Endicott Clay Products Co. in Endicott, Neb., since 2017. She earned a Master of Professional Accountancy from the University of Nebraska-Lincoln in 2007. Barr began her career in public accounting at Kennedy and Coe LLC (now Pinion) in Salina, Kan. She also held accounting positions at Saint Francis Community Services in Salina, The Salina Country Club, and the Choctaw Nation of Oklahoma prior to making the move to Endicott. She is presently chairman of the Nebraska Society of CPAs’ Business & Industry Committee and is a graduate of the Nebraska Society’s Leadership Academy. She and her husband Lee, a farmer, have three children, Brooklyn, Logan, and Landon. TREASURER Grant H. Buckley, CPA, is a partner and fourth-generation accounting professional with Buckley & Sitzman LLP in Lincoln, Neb. He joined the firm in 2013 after spending three years with Deloitte & Touche LLP. Buckley graduated with highest distinction from the University of Nebraska-Lincoln, earning a Bachelor of Science in Business Administration in accounting, with minors in finance and sociology. He also received a Master of Professional Accountancy, with highest distinction, from UNL. Buckley is a board member and treasurer for the Community Action Partnership of Lancaster and Saunders Counties and also has served on the University of Nebraska-Lincoln School of Accountancy Junior Advisory Board. His wife, Kelsey, is a dentist and together they have two daughters, Libby and Claire. NEW DIRECTOR Mark F. Duren, CPA, is a business consultant and former managing shareholder of Lutz in Omaha, Neb. He began his career in 1985, joined Lutz in 1992, and has been a member of the Nebraska Society of CPAs for 37 years. As managing shareholder from 2015 to May 2025 and a longtime member of the firm’s board of directors, Duren plays a pivotal role in shaping Lutz’s strategic direction. Under his leadership, the firm doubled its workforce, grew into Nebraska’s largest accounting and business solutions provider, and consistently ranked among the nation’s Top 100 firms and “Best Places to Work.” Today, Duren continues to support the firm’s leadership and business development efforts while mentoring the next generation. He serves on the Greater Omaha Chamber Board of Directors, the Legislative Committee for the Associated General Contractors (AGC) – Nebraska Chapter, and as honorary chairman of Skutt Catholic High School. This year, he was named to Forbes’ inaugural Best-in-State CPAs list. He and his wife, Johna, live in Bennington, Neb. Outside the office, he enjoys boating, hunting, working out, and spending time with their four children and growing families. Photos of all members of the Nebraska Society of CPAs Board of Directors may be found on page 10. THANK YOU! We also extend our sincere gratitude to the following individuals whose terms on the Society Board of Directors have come to an end: Kelly J. Martinson, CPA, and Shari A. Munro, CPA. Martinson has served two terms on the Society Board; she was secretary from 2018-2020 and chairman of the board in 2023-2024. She also has been a part of the Society’s CPA Exam Task Force and the Women in Accounting Committee since its inception in 2022. Munro has served on the Society Board for four terms, was secretary of the board from 2014-2015, treasurer from 2015-2019, chairman in 2019-2020, and AICPA elected representative from 2022-2025. She was instrumental in establishing the Women in Accounting Summit, serving as chairman of the committee, and was most recently part of the CPA Licensure Task Force. In 2024, she received the Society’s Distinguished Service to the Profession Award. Guided by the vision of past leaders, today’s dedicated leaders now carry the torch—looking ahead with confidence and moving the profession forward, together. Joni Sundquist is president and executive director of the Nebraska Society of CPAs. You may contact her at (402) 476-8482 or joni@nescpa.org. 9 nescpa.org
NEBRASKA SOCIETY OF CPAS CHAIRMAN Jodi M. Eckhout Woods & Durham Chartered Holdrege CHAIRMAN-ELECT Justin M. Hope Eide Bailly LLP Elkhorn SECRETARY Heather E. Barr Endicott Clay Products Co. Endicott TREASURER Grant H. Buckley Buckley & Sitzman LLP Lincoln IMMEDIATE PAST CHAIRMAN Brian M. Klintworth HBE LLP Lincoln AICPA ELECTED REPRESENTATIVE Lorraine A. Egger CyncHealth La Vista AICPA AT-LARGE REPRESENTATIVE Kelly A. Mann AuditMiner Gretna DIRECTOR Derrick J. Blum Iron Horse CPAs & Advisors PC Norfolk DIRECTOR Lauren E. Bond Deloitte & Touche LLP Omaha DIRECTOR Laurie Ann J. Buhlke Contryman Associates PC Grand Island DIRECTOR Nicole L. Cooper Project Harmony Omaha DIRECTOR Mark F. Duren Lutz Omaha DIRECTOR Jill R. Trucke University of Nebraska-Lincoln Lincoln WEST NEBRASKA CHAPTER PRESIDENT Richard D. Gifford Richard D. Gifford, CPA Scottsbluff BOARD OF DIRECTORS 2025-2026 10 Nebraska CPA
Are you looking for insights into some of your most challenging issues or simply seeking to develop more meaningful connections with other firm leaders? The CPA Firm Regional Leadership Network is your solution. This multistate virtual network offers facilitated discussions for leaders from similar-sized CPA firms, providing a forum for you to explore trends impacting your firm and to learn from the experiences of your peers. More Information: Joni Sundquist President/Executive Director, Nebraska Society of CPAs joni@nescpa.org | 402.476.8482 Who it’s for: • CPA firms with between 2-20 staff. • Enrollment in the program is limited to one participant, ideally at a leadership level, per firm and the subscription belongs to the firm. Benefits: • Provides a confidential, yet open forum for leaders across the Midwest to discuss what’s working and what isn’t. • Topics will be driven by cohort participants prior to each meeting. Examples include: - What’s keeping you up at night? - Leadership, firm management, operational challenges - Client management - Technology - Private equity and succession planning - Other trends and emerging hot topics • Serves as an avenue for leaders to learn from one another and develop long-term regional relationships. • Online community to connect with your fellow cohort participants. • NEW: Optional 1.5 day in-person program with all network participants in Minneapolis to include speaker-led facilitated sessions and networking opportunities. Participants would be responsible for their hotel, travel, and a nominal fee. How it works: • Participants will be assigned to a virtual cohort which includes up to 15 leaders from firms across all participating states (IA, IL, IN, KS, MI, MN, MO, NE, ND, SD, WY). • Participants will remain in the same cohort throughout the year and in subsequent years with the goal of establishing long-term valued relationships. • Quarterly meetings will be facilitated by a CPA State Society representative and will last 120 minutes, with one hour dedicated to content and one hour to open forum discussion. • Discussion shared during cohort meetings will be considered confidential to encourage open dialogue. • The subscription year begins in early May followed by quarterly meetings for the balance of the subscription year as determined by the group. New cohorts will participate in a meet and greet launch meeting in February 2026. Fee: • The fee is $1,000 per firm per year and is non-refundable. • The fee allows for one representative per firm.
A NEW ERA OF CPE REPORTING FOR NEBRASKA CPAS BY HEATHER MYERS, NEBRASKA BOARD OF PUBLIC ACCOUNTANCY STATE BOARD REPORT 12 Nebraska CPA
CPE REPORTING AT A GLANCE Reporting Cycles Odd Birth Years: Report 2024-2025 CPE by Jan. 31, 2026 (old system) Even Birth Years: Report 2025-2026 CPE in Certemy starting Dec. 1, 2026 Requirements 80 total hours every two years 4 hours in Ethics Retain certificates for 5 years How to Report Upload a single spreadsheet or PDF in Certemy Use the NBPA template or your firm’s/Society’s CPE tracker Submit once per reporting period (Dec. 1-Jan. 30) Helpful Links NBPA CPE Template and Resources: www.nbpa.ne.gov Certemy Login: https://nbpa.certemy.com/entry/login THE NEBRASKA BOARD OF PUBLIC ACCOUNTANCY (NBPA) is rolling out a new, simplified way for CPAs to report their Continuing Professional Education (CPE). Beginning with the 2026 reporting period, CPE reporting will move to the State Board’s Certemy licensing platform—bringing a long-awaited improvement to how Nebraska CPAs track and submit their hours. WHY THE CHANGE For years, licensees have asked for a simpler way to report CPE, and the State Board listened. The new system allows CPAs to upload a single spreadsheet or PDF summary instead of entering each course one at a time. It’s faster, cleaner, and more in line with how firms already manage CPE internally. WHO REPORTS WHEN The transition to Certemy will happen in two phases: Even birth-year CPAs will report their 2025-2026 CPE in Certemy beginning Dec. 1, 2026. Odd birth-year CPAs will report their 2024-2025 CPE one last time in the current online tool (due Jan. 31, 2026) and then move to Certemy for their next reporting cycle. HOW IT WORKS Under the new process, CPAs will upload one spreadsheet summarizing their CPE for the two-year period. You may use: The NBPA Excel CPE Reporting Template, available on the State Board’s website A report from the Nebraska Society of CPAs online CPE tracker A report exported from your firm’s internal CPE tracking software Any format that clearly lists course titles, sponsors, dates, and hours will be accepted. The reporting window will remain the same—Dec. 1 through Jan. 30—and all 80 hours (including four hours in ethics) must be complete before submission. FOR FIRM ADMINISTRATORS Firm administrators play an important role in helping their teams stay compliant. However, due to system design, CPE uploads must be completed by each individual licensee within their own Certemy account. Administrators will continue using the current tool for odd birth-year CPAs until the 2027 transition. RECORD RETENTION & REMINDERS As always, licensees should keep documentation for at least five years in case of audit. The State Board will send reminder emails and postcards when the reporting period opens, and the Certemy form will be automatically assigned to each account. WHAT YOU CAN DO NOW Start tracking your CPE for 2025-2026 using the sample spreadsheet on the NBPA website. When the new reporting period opens, log in to Certemy, upload your file, and you’re done. It’s that simple. The State Board appreciates the patience and cooperation of Nebraska CPAs during this transition and looks forward to a smoother, more efficient reporting experience for everyone. For questions or assistance, visit www.nbpa.ne.gov or contact Heather Myers, business manager/CPE and peer review coordinator at the Nebraska Board of Public Accountancy, at heather.myers@nebraska.gov. 13 nescpa.org
NEBRASKA’S ALTERNATIVE PATHWAY TO CPA LICENSURE WHAT IS NESCPA RECOMMENDING? The Nebraska Society of CPAs (NESCPA) is recommending legislation to create an additional pathway to licensure that allows CPA candidates to become licensed upon completion of: A bachelor’s degree with a concentration in accounting, Two years of qualifying work experience under the supervision of a licensed CPA, and Passage of the Uniform CPA Exam. HOW DOES THE NEW PATHWAY DIFFER FROM THE CURRENT PATHWAY? Current Nebraska law requires candidates to complete 150 semester hours of education and have a bachelor’s or higher degree; two years of experience in public accounting or three years in government, industry, or academia; and passage of the CPA Exam. The bachelor’s+2 pathway would provide an alternative: a bachelor’s degree in accounting, two years of work experience (in public accounting, business, industry, or academia), and passage of the CPA Exam. For those choosing to obtain a master’s degree or a bachelor’s degree plus 30 additional credit hours, only one year of experience would be required (in public accounting, government, industry, or academia). WHY IS NESCPA SUPPORTING THIS PATHWAY? Nebraska—like the rest of the country—faces a shortage of CPAs in the workforce. The additional expense and time required for the 150-hour rule has discouraged many qualified students. The new pathway: Expands the pipeline of future CPAs, Reduces financial barriers, and Maintains professional rigor while helping sustain Nebraska’s accounting workforce. DOES THE ADDITIONAL PATHWAY LOWER THE STANDARDS TO BECOME A CPA? No. All candidates—no matter which pathway they choose—must: Complete the same accounting coursework, Pass the rigorous Uniform CPA Exam, and Demonstrate competence through supervised experience. This pathway simply removes the cost and time barrier of the additional 30 academic credit hours and replaces it with practical on-the-job experience. 14 Nebraska CPA
ARE OTHER STATES CONSIDERING SIMILAR PATHWAYS? Yes. More than 30 states are reviewing or adopting alternative pathways, including the bachelor’s+2 model. Nebraska’s proposal aligns with national trends while reflecting our state’s needs. WHAT IS THE AICPA & NASBA POSITION? Both organizations have advanced changes to the Uniform Accountancy Act (UAA), which provides a model framework for alternative licensure pathways. Nebraska’s legislation is designed to remain consistent with national standards. HOW DOES THE BACHELOR’S+2 PATHWAY IMPACT PRACTICE MOBILITY? Practice privilege mobility is an important consideration for CPAs, and NESCPA is committed to ensuring that any changes to licensure requirements align with national standards. Under current state law, a CPA who has passed the CPA Exam and is duly licensed in another state enjoys “automatic mobility” in Nebraska. That is, they may perform services in Nebraska as a CPA without notice to the Nebraska Board of Public Accountancy. As a condition of this practice privilege mobility, the CPA is subject to the jurisdiction and disciplinary authority of the State Board. The Uniform Accountancy Act includes an automatic mobility framework for all states that incorporates guardrails requiring CPAs who are licensed in other states and practicing in Nebraska to have the same education and experience requirements as Nebraska CPAs. NESCPA’s proposed legislation includes these guardrails. WHEN WILL THE NEW PATHWAY BE AVAILABLE TO CANDIDATES? The NESCPA Board of Directors voted to support legislation introducing this pathway, following recommendations made by the joint NESCPA/Nebraska Board of Public Accountancy Task Force. The availability of the bachelor’s+2 pathway will depend on the legislative process. NESCPA is actively working to advance this initiative in the 2026 legislative session, which begins in January. WHAT STEPS SHOULD CANDIDATES TAKE IF THEY’RE INTERESTED IN THE BACHELOR’S+2 PATHWAY? Students and educators should stay informed by following NESCPA communications for updates on the legislative process and the proposed implementation of the bachelor’s+2 pathway. In the meantime, focusing on completing a bachelor’s degree with a concentration in accounting and gaining relevant professional experience will be beneficial. HOW CAN I STAY INFORMED ABOUT THE PROGRESS OF THIS INITIATIVE? NESCPA will keep members informed as this legislative initiative moves forward. Updates will be shared through emails and our website. As we approach the introduction of legislation, we will provide additional resources, opportunities for engagement, and ways for members to become involved in advocacy efforts. Visit www.nescpa.org/news/updates/hot-topics regularly and ensure you’re subscribed to NESCPA communications to receive the latest updates. 15 nescpa.org
WHAT IF A STATE GOVERNMENT DID WHAT NO PRIVATE company could legally do—refuse to honor a binding contract after you had fully performed your obligations? That is exactly what Nebraska has now positioned itself to do under LB 644, a new law that adds a new, retroactive, unilateral condition to existing tax incentive contracts between the state and hundreds of Nebraska employers. STATE TAX BRIEFING THE IMPACT OF LB 644 ON EXISTING INCENTIVE CONTRACTS—AND WHAT TO DO NEXT BY NICK NIEMANN & MATT OTTEMANN, MCGRATH NORTH LAW FIRM These incentive contracts—such as under the Nebraska Advantage Act and the Imagine Nebraska Act—promise that if companies invest and/or create jobs, at designated levels, the state will provide very specific, well-defined tax credits, exemptions, and refunds. Many Nebraska employers have already met those commitments or are in the process of meeting these requirements in reliance on the incentives. Yet under LB 644, the Nebraska Department 16 Nebraska CPA
of Revenue now plans to withhold those earned benefits from companies that the state has decided are a “foreign adversarial company,” even though those restrictions were never part of the original contracts. The implications we are hearing from companies and those who work in economic development are far reaching: Business leaders and investors now face uncertainty about whether Nebraska will respect its commitments on incentives, as well as other matters. State tax advisors must now address how to protect clients’ rights in their tax incentive filings. Communities and employees may bear an unexpected cost, depending on the impact to Nebraska’s national reputation as a state that retroactively changes the rules of engagement. LB 644’S IMPACT ON NEBRASKA INCENTIVES LB 644 was enacted during the 2025 legislative session. The new law includes several acts designed to protect Nebraska from foreign adversaries—the Foreign Adversary and Terrorist Agent Registration Act and the Crush Transnational Repression in Nebraska Act among them. In addition, buried within the bill is a lesser-known provision— Section 31 (now codified at Neb. Rev. Stat. § 77-3,114)—which declares that any “foreign adversarial company” is ineligible to receive benefits under any incentive program of the state of Nebraska. The Department of Revenue has identified 31 incentive programs to which this applies. The statute’s definition of a “foreign adversarial company” is extraordinarily broad. It can include a company that: Has a subsidiary organized in any of six listed countries, or Has any ownership interest held by one of those governments. The six countries are China, Cuba, North Korea, Russia, Iran, and Venezuela. Together, these companies represent more than 20% of the world’s GDP (with the vast majority coming from China). Under that definition, a company could be deemed a “foreign adversarial company” merely for having, for example, a Chinese subsidiary—or even because one of those governments, such as through a sovereign investment fund, acquires a single share of its stock. Crucially, LB 644 contains no grandfather clause for existing incentive contracts. On its face, the law would impose a brand-new condition on companies that already have binding agreements with the state of Nebraska. THE STATE’S FIRST RETROACTIVE CHANGE TO INCENTIVE CONTRACTS The Nebraska Department of Revenue has indicated—both in its initial guidance and in recent discussions—that it intends to apply LB 644 to existing projects, even where the company already has an incentive contract with the state. Those contracts, of course, do not contain the new LB 644 restrictions. This marks the first time that we are aware of where Nebraska has attempted to impose a substantive, adverse, retroactive change to an existing project incentive contract. A company could now have fully performed—invested capital, created jobs, met payroll commitments—and yet be denied its incentive benefits because the state has decided to apply new rules after the fact. The Department of Revenue has told us that such companies would have to go to court to obtain the incentives they were already promised and had already earned. SOME OF THE LEGAL PROBLEMS WITH THE STATE’S ACTION The state’s intended approach raises serious contractual and constitutional issues, some of which may include the following: 1. Contract Violation. Nebraska’s Supreme Court has confirmed that incentive agreements are binding contracts between the company and the state. See Farmland Foods, Inc. v. State of Nebraska, 273 Neb. 262 (2007). A unilateral refusal by the state to honor those contracts by imposing new terms certainly appears to be in contradiction to the express terms of the agreement and would seemingly constitute a breach under ordinary contract law principles. 2. Constitutional Impairment of Contracts. The framers of both the U.S. and Nebraska Constitutions anticipated this very danger. The Contracts Clause—found in U.S. Const. Art. I, § 10 and Neb. Const. Art. I, § 16—expressly prohibits states from enacting any law that “impairs the obligation of contracts.” Courts have previously applied this protection to tax incentive contracts. See e.g., Reserve Mining Co. v. State, 310 N.W.2d 487 (Minn. 1981) (which finds a contract exists even without an express provision in the statute, since the company, by investing or adding jobs, is accepting the offer made by the state to perform under its incentive statute). Our firm analyzed this contract impairment principle in depth nearly four decades ago in Nebraska’s Tax-Based Business Incentives: A Constitutional Review, 21 Creighton L. Rev. 439 (Rohde/Niemann,1987-88). As the principal designers and drafters of Nebraska’s main incentive statutes since 1987, we specifically included the contract-requirement language in the statutes to prevent exactly this type of retroactive change. By imposing new LB 644 restrictions not contained in the original agreements, the state would impair vested contractual rights, effectively stripping away the incentives that companies have earned while the companies continue to perform their side of the deal. 17 nescpa.org
3. Other Constitutional Defects. LB 644 may also be running afoul of the Foreign Commerce Clause and the Federal Preemption Doctrine, among other federal standards. The state risks intruding into areas reserved for federal authority over foreign relations and trade. A SHARP BREAK FROM NEBRASKA’S HISTORICAL PRACTICE In prior updates to its main incentive programs, Nebraska grandfathered existing projects—a practice that honored legal, business, and fairness obligations. LB 644 rejects that long-standing precedent. For the first time that we are aware of, Nebraska appears willing to disregard its own contracts and force companies into litigation to obtain what they have already earned. This abrupt reversal could discourage future investment at precisely the time when the state needs to continue to strongly compete for growth and stability. WHAT COMPANIES & ADVISORS SHOULD DO NOW The Nebraska Department of Revenue has stated it will soon add a “Yes/No” question to all incentive claims and incentive filings, asking whether the company constitutes a “foreign adversarial company.” To protect their rights, we are recommending that every company with an existing Nebraska incentive contract should do the following: 1. Attach a Legal Defense Positioning Statement. Regardless of how you presently answer the “Yes/No” question, we are working with companies and their CPAs on the specific written statement that should be attached to their incentive claims and filings, outlining the company’s specific facts and corporate structure, expressing the presence of a binding contract, and invoking the contractual legal and constitutional defenses discussed above. This will help avoid a waiver situation by preserving your legal and constitutional rights and help prevent the state from successfully contending that the company implicitly accepted this new condition (as well as other new conditions that may be enacted later). This is the time to make it clear you believe you have a binding contract and that no new or future unilateral, retroactive change will be accepted. 2. Monitor Ownership and Structure. Review corporate ownership and subsidiary relationships to minimize exposure to the “foreign adversarial” definition— while balancing business, legal, and global operational considerations. 3. Preserve What’s Needed for Your Legal Defense. We are guiding companies as to what project decision and performance records they should maintain and develop to be prepared to best defend if your incentives are denied. THE BIGGER PICTURE There are a variety of ways to express the bigger picture on this. At a minimum, LB 644 sends an unfortunate message to the national and local business communities and to the national site selection community that they cannot rely on the commitment Nebraska has made in its job and investment incentives. The ripple effect is yet to be seen. Nick Niemann and Matt Ottemann are partners with McGrath North Law Firm. As state and local tax and incentives attorneys, they collaborate with CPAs to help clients and companies evaluate, defend, and resolve tax matters and obtain various business expansion incentives. See their websites at www.NebraskaStateTax.com and www.NebraskaIncentives.com for more information. For a copy of their full publications, The Anatomy of Resolving State Tax Matters or their Nebraska Business Expansion Decision Guide, please visit their websites or contact them at (402) 341-3070 or at nniemann@mcgrathnorth.com or mottemann@mcgrathnorth.com. CLASSIFIED AD Join Woods & Durham as a Senior Accountant We’re looking for an experienced accountant (5+ years in public accounting) who thrives on helping clients succeed. If you are a CPA, CPA candidate, or Enrolled Agent and have a passion for highlevel tax planning, small business consulting, and financial statement preparation, this senior accountant role is for you. At Woods & Durham, you’ll receive a competitive compensation package with excellent benefits, be part of a supportive team, and have the chance to grow your career in a respected, community-focused firm. Openings available in Holdrege, Neb.; Beloit, Kan.; Clay Center, Kan.; and Salina, Kan. For a detailed job description, visit nescpa.org/job-postings or contact Todd Shanks at (785) 825-5494 or tshanks@woodsanddurham.com. 18 Nebraska CPA
DATE TYPE EVENT TITLE VENDOR LOCATION CPE/ ETHICS HOURS NOVEMBER 10 BM CFO Series: Preparing for Trouble The Knowledge Institute Online 8 11 AA Fraud in Single Audits Surgent Online 4 13 AA Yellow Book: Staying Compliant With Government Auditing Standards AICPA Online 8 14 NESCPA Demo Day - Client Portals & Document Management Nebraska Society of CPAs Online 0 17-20 MA AHI Staff Training: Management & Leadership Essentials Training (Level 4) AHI Associates Online 24 17 TX IRS Tax Examinations & Hot Issues Surgent Online 4 17 BM CFO Series: Doing the Right Things Right The Knowledge Institute Online 8/2 18 ST Excel Essentials for Staff Accountants K2 Enterprises Online 8 18 PD The Mindful CPA AHI Associates Online 2 18 TX Critical Issues Involving Taxation of Construction Contractors Surgent Online 4 19 PD Women’s Leadership Series: Reconciling Worth - Moving Beyond the Wound of Self Sacrifice Virginia Society of CPAs Online 1 19 ST Excel Tips, Tricks & Techniques for Accountants K2 Enterprises Online 8 19 MA AHI Advanced Management & Leadership Essentials (Level 5 Mini Course) AHI Associates Online 2 19 AA Small Business Accounting, Audit & Attest Update Surgent Online 4 19 TX Surgent’s Individual Tax Planning Ideas Surgent Online 4 19 TX Real Estate Taxation: Critical Considerations Surgent Online 4 20 ST Advanced Excel K2 Enterprises Online 8 24 TX S Corporation Taxation: Advanced Issues Surgent Online 4 24 TX A Complete Tax Guide to Exit Planning Surgent Online 2 25 TX Top Business Tax Planning Strategies Surgent Online 2 19 TX Guide to Payroll Taxes & 1099 Issues Surgent Online 4 DECEMBER 1 TX Preparing Individual Tax Returns for New Staff & Paraprofessionals Surgent Online 8 1 ET AI-Driven Ethics & Data Analytics: A Roadmap for Accountants Surgent Online 4/4 1 TX Surgent’s Individual Income Tax Update Surgent Online 4 3 ST K2’s Excel Conference K2 Enterprises Online 8 8-9 TX Two-Day Federal Tax Update - Individual & Business The Tax U Mahoney State Park Kiewit Lodge, Ashland 16 8-11 MA AHI Staff Training: Advanced Management & Leadership Essentials (Level 5) AHI Associates Online 16 9 ST Excel Essentials for Staff Accountants K2 Enterprises Online 8 10 TX Nebraska Sales Tax & Incentives: Insights From the Department of Revenue Nebraska Society of CPAs Online 4 10 IT Technology for CPAs - Don’t Get Left Behind K2 Enterprises Online 8 11 TX This Year’s Best Income Tax, Estate Tax & Financial Planning Ideas Surgent Online 8 12 TX Tax Forms Boot Camp: LLCs, Partnerships & S Corporations Surgent Online 8 2025 NESCPA COURSE CALENDAR 19 nescpa.org
DATE TYPE EVENT TITLE VENDOR LOCATION CPE/ ETHICS HOURS 12 NESCPA Demo Day - CAS Solutions Nebraska Society of CPAs Online 0 15 AA Governmental Accounting & Auditing Update Nebraska Society of CPAs NESCPA Office, Lincoln 8 15 TX Fiduciary Income Tax Returns - Form 1041 Workshop With Filled-In Forms Surgent Online 8 15 BM CFO Series: Doing the Right Things Right The Knowledge Institute Online 8/2 16 AA The New 2024 Yellow Book - Government Auditing Standards Nebraska Society of CPAs NESCPA Office, Lincoln 8 16 ST Microsoft 365/Office 365 - All the Things You Need to Know K2 Enterprises Online 8 16 AA Accounting Data Analytics AHI Associates Online 2 16 AA AI for Accountants - Practical Applications AHI Associates Online 2 17 ST Next Generation Excel Reporting K2 Enterprises Online 8 17 AA Current Issues in Accounting & Auditing: An Annual Update Surgent Online 4 17 TX Maximizing Your Social Security Benefits Surgent Online 4 17 TX Surgent’s S Corporation, Partnership & LLC Tax Update Surgent Online 4 17 AA Preparation, Compilation & Review Engagements: Update & Review AICPA Online 4 18 TX Federal Tax Update for Business & Individual Van Der Aa Tax Ed Courtyard By Marriott, Lincoln 8 18 ST Accountant’s Guide to QuickBooks Online K2 Enterprises Online 8 18 ET Ethical Considerations for CPAs Surgent Online 4/4 18 HR Employer’s Handbook: Health Care, Retirement & Fringe Benefit Tax Issues Surgent Online 4 18 AA Annual FASB Update & Review Surgent Online 4 19 TX Federal Tax Update for Business & Individual Van Der Aa Tax Ed SpringHill Suites by Marriott, Grand Island 8 19 AA Financial Statement Disclosures: A Guide for Small & Medium-Sized Businesses Surgent Online 4 19 TX Securing a Comfortable Retirement Surgent Online 4 19 AI Unlocking AI: Fundamentals & Generative AI for Accountants Surgent Online 4 22 BM CFO Series: Minding the GAAP The Knowledge Institute Online 8 29 ST Excel PivotTables for Accountants K2 Enterprises Online 8 30 AI Artificial Intelligence For Accounting & Financial Professionals K2 Enterprises Online 4 30 ET Ethics & Technology K2 Enterprises Online 4/4 JANUARY 5-8 AA AHI Staff Training: Basic Staff Training (Level 1) AHI Associates Online 24 5-6 TX Federal Tax Update With Ron Roberson TaxSpeaker Online 16 7 MA AHI Advanced Management & Leadership Essentials (Level 5 Mini Course) AHI Associates Online 2 8 TX Getting Ready for Busy Season: Key Changes Every Tax Practitioner Should Know Surgent Online 4 8 TX How to Effectively Represent Clients Under IRS Audit Surgent Online 2 12 BM CFO Series: Minding the GAAP The Knowledge Institute Online 8 13 AA Accounting Data Analytics AHI Associates Online 2 13 AA AI for Accountants - Practical Applications AHI Associates Online 2 14 PD The Mindful CPA AHI Associates Online 2 19 BM CFO Series: Leading & Reporting The Knowledge Institute Online 8 FEBRUARY 9 BM CFO Series: Leading and Reporting The Knowledge Institute Online 8 20 Nebraska CPA
CYBERSECURITY & DATA PRIVACY TWO SIDES OF THE SAME COIN BY ROBERT L. KARDELL, FBI (RET.), JD, MBA, CPA, CISSP, GSEC, CFE, CFF, BAIRD HOLM LLP, OMAHA NEBRASKA RECENTLY PASSED THE NEBRASKA DATA Privacy Act (Privacy Act).1 The Privacy Act establishes new requirements for businesses to safeguard the personal information of Nebraska residents. The Privacy Act also grants individuals greater rights to access, control, and request the deletion of their data, aiming to enhance transparency of the use of personal data by businesses. While the Privacy Act is new, the Financial Data Protection and Consumer Notification of Data Security Breach Act of 2006 (as amended in 2018) (in particular, Neb. Rev. Stat. § 87-808, hereinafter referred to as the Security Act) requires Nebraska businesses to institute data security controls commensurate with the sensitivity of the information. The statute in part states: To protect personal information from unauthorized access, acquisition, destruction, use, modification, or disclosure, an individual or a commercial entity that conducts business in Nebraska and owns, licenses, or maintains computerized data that includes personal information about a resident of Nebraska shall implement and maintain reasonable security procedures and practices that are appropriate to the nature and sensitivity of the personal information owned, licensed, or maintained and the nature and size of, and the resources available to, the business and its operations, including safeguards that protect the personal information when the individual or commercial entity disposes of the personal information.2 Based on the plain language of the statute, the Security Act requires businesses to identify information it collects, categorize the information according to its sensitivity, and take appropriate measures to protect the data. The security measures must be appropriate to the sensitivity of the information, but the law does not require absolute security. The security can be tailored to the nature and size of the organization and limited to the resources available to the organization. Thus, smaller organizations with fewer resources or small nonprofit organizations may not have many resources, and therefore are not required to adopt expensive monitoring tools. 21 nescpa.org
The data must be secured throughout its lifecycle. The Security Act even requires that information must be disposed of in a manner that will protect the information. Accordingly, the disposal of any hardware will require that sensitive information is wiped before disposal. The failure to maintain security of data at the end of its lifecycle is best exemplified with a recent settlement between the Office of the Comptroller of the Currency (OCC) and Morgan Stanley.3 After Morgan Stanley sold some outdated equipment, a purchaser of some of the equipment notified Morgan Stanley that the information on the equipment had not been wiped and was still accessible. After an investigation by the OCC, Morgan Stanley settled the action for $60 million. The requirements of the statute, though, have not been tested in court, because the attorney general has not brought an action against a business to enforce the statute. One final note on the Security Act, the first sentence of the Security Act requires businesses to protect data from “unauthorized access, acquisition, destruction, use, modification, or disclosure.” This language is substantially different from the notification provisions of Neb. Rev. Stat. § 87-802, which require notice to the “unauthorized acquisition of unencrypted computerized data.” This language is notably much narrower than the language of the protection provisions of the data security requirements. Thus, the failure to maintain security provisions will not necessarily result in a notification. PRIVACY VS. SECURITY The Privacy Act aims to protect the privacy of information and is focused on the rights of the individual to control the use and access of personal data. The Security Act, however, aims to proscribe the security measures necessary to protect such information. The Security Act focuses on specific technical controls, policies, and procedures to maintain security through access controls, configuration of networks and systems, maintenance, monitoring, and media protection. While the acts are separate, they are really two sides of the same coin. Both are focused on maintaining privacy of the data— one through privacy protections, the other through security requirements. Privacy Act Security Act Governs collection of data Ensures confidentiality of data Controls use and sharing of data Controls access to data Gives individuals right to obtain data Protects security of data Gives individuals right to request deletion Maintains integrity of data Promotes transparency through notices and disclosures Promotes safeguarding of data through security measures Requires data classification Requires data encryption and secure storage Mandates consents, notices, and policies Requires authorization, multifactor authentication, and passwords Sample Regulations and Laws HIPAA Privacy Rule HIPAA Security Rule GDPR NIST Cybersecurity Framework 22 Nebraska CPA
There is also a succinct summary of the differences in Federal Reserve Interagency Guidelines4 as the distinction applies to financial institutions: Distinction Between the Security Guidelines and the Privacy Rule The requirements of the Security Guidelines and the interagency regulations regarding financial privacy (Privacy Rule) both relate to the confidentiality of customer information. However, they differ in the following key respects: » The Security Guidelines address safeguarding the confidentiality and security of customer information and ensuring the proper disposal of customer information. They are directed toward preventing or responding to foreseeable threats to, or unauthorized access or use of, that information. » The Privacy Rule limits a financial institution’s disclosure of nonpublic personal information to unaffiliated third parties, such as by selling the information to unaffiliated third parties. Subject to certain exceptions, the Privacy Rule prohibits disclosure of a consumer’s nonpublic personal information to a nonaffiliated third party unless certain notice requirements are met and the consumer does not elect to prevent, or “opt out of,” the disclosure. SECURITY CONTROLS & APPLICATION OF NEBRASKA LAW As mentioned, the more sensitive the information, the more security controls should be in place to protect that information. For example, information that includes Social Security numbers, financial information, account balances, and information on children, siblings, spouses, etc. should be protected with more security and controls such as multifactor authentication (MFA), virtual private networks, firewalls, auditing and monitoring software, and so forth. The process of identifying and categorizing information for security protections closely parallels the identification, classification, and data-mapping requirements found in data privacy laws. Both privacy and security require a thorough understanding of all data being collected, saved, used, maintained, and shared or transferred. All data, wherever it may be stored, must be categorized for sensitivity so that proper security controls can be implemented. At each stage of a file’s digital life cycle, owners of digital data should pause for a complete understanding of the sensitivity of the data to ensure proper controls are identified and implemented. A digital life cycle can include several disparate stages, which may include collection, maintenance, use, archiving, and destruction of data. DATA COLLECTION When data is initially collected, an assessment should be completed as to the sensitivity of the information and the method used to collect such data. A few simple assessment questions may be appropriate: 1. Does the information include any types of data defined as personally identifiable information (PII) under Neb. Rev. Stat. § 87-802, e.g., Social Security numbers, financial account numbers, driver’s license numbers, government identification numbers, or electronic code, routing number, etc.? 2. Does the method of collection require encryption in transit and password protection, or is the system protected behind a firewall or virtual private network (VPN)? 3. Who is the information being collected from? Does the data provider own the data or provide information on behalf of someone else? Does the data provider have the right to provide the necessary information or consent? 4. Is the data being verified when provided? 5. Is the data collection process protected with identity verification? DATA MAINTENANCE & USE 1. Where is the data being stored, locally or on a cloud-based platform? 2. What does the contract or agreement with the storage provider include in terms of cybersecurity procedures, notification procedures, and indemnification provisions? 3. Does the platform store the information in an encrypted state? What type of encryption is used, such as cryptographic keys and algorithms used, and who manages the process? 4. Who is allowed to access the data, change or modify the data, and delete the data? 5. What back-up procedures are in place? Have the backup procedures been tested? DATA ARCHIVING 1. When is data moved to an archive, or to the archive state? 2. Is the archived data encrypted? And what types of encryption algorithms are used? 3. Who has access to the archived data? 4. How is the data maintained and/or regularly tested for readability and integrity? 5. Is access to the archived data monitored and how long are logs kept? 23 nescpa.org
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