ASPA Legislative Committee November 3, 2005 Report
Walter F. Dudley, ABA, ATA, EA, ECS, Legislative Chairman 

                 Arizona Society of Practicing Accountants Legislative Mission Statement

·        To preserve and protect the right of all accountants to practice their profession.

·        To promote public knowledge and understanding of accounting professionals.

·        To provide a process for members to understand from Legislators and others current State and National issues important to members and to enter into dialogues regarding them, thereby influencing decisions relative to the issues. 

Members of the legislative committee continue meeting with other stakeholders and stakeholder organizations to plan for the next years’ legislative session.  Likely upcoming state legislative issues include changes to sales and use tax law, conforming Arizona net operating loss rules with the IRS NOL rules, reducing the disparity between business and personal real property assessment ratios, and accountancy board access to tax returns prepared by licensee’s. 

Our campaign treasurer program continues providing us with good legislative contacts.  We continue having requests for campaign treasurers.   

A subcommittee has been established to redesign our legislative candidate survey in preparation for the upcoming legislative campaign.  This survey is utilized by our political action committee to educate legislative candidates and garner their opinions regarding matters of interest to our society.  Our political action committee has been evaluating requests for campaign contributions. 

In September I participated in the National Association of State Boards of Accountancy Center for the Public Trust inaugural Washington DC conference.  Participants include William McDonough, Chair of the Public Company Accounting Oversight Board, Congressman Michael Conaway, and New Mexico Governor Bill Richardson.  During that trip I met with National Federation of Independent Business lobbyists to discuss alliances at a National level.  Additionally I met with staff of Senator Jon Kyl, Congressman John Shadegg, Congressman JD Hayworth, as well as with House Ways and Means Oversight Subcommittee staff.  This subcommittee is charged with dealing with taxation and IRS matters.  These meetings included discussion regarding tax preparer registration legislation. 

Michelle Bolton, NFIB-AZ director will be attending our November 16, 2005, legislative meeting to discuss matters of mutual interest.  This winter Jeff Hill and I will be attending another gathering of state legislators. 

If you are interested in participating in the legislative arena please contact me at (602) 248 0797.

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Tax Preparer Registration Bill

On Wednesday, July 20, 2005 NSA  Right to Practice Chair Bob Cross of Colorado, will be testifying on behalf of NSA at the House Ways and Means hearing on Senate Bill S832, Tax Preparer Registration. 

This legislation, first introduced in the US Senate, will regulate individuals (except Enrolled Agents, CPAs, and attorneys currently regulated under Circular 230) who prepare, for a fee, federal tax returns, documents and other submissions.  The bill has passed the Senate and is being heard by the house. 

If enacted, the bill would require the Treasury to develop and administer an eligibility examination for individuals who prepare federal tax returns.  The bill would require renewal of eligibility every three years.  The Treasury would have one year from date of enactment to issue regulations to administer this provision. 

NSA will be testifying in support of the registration bill, but only if the following improvements are made:

1) that ACAT credential holders need not take the proposed tax preparer entrance exam

2) that those licensed PAs, LPs, and other descriptor titles used by various accountancy boards not be required to take the tax preparer entrance exam

3) that preparers already registered by their State (CA and OR) not be required to take the tax preparer entrance exam

NSA will also suggest the following improvements to the bill:

1. that the $500 preparer penalty (formerly $50)  not be funneled directly back to the IRS

2. that Registered Federal Tax Return Preparer be the name provided to those that become registered

3. that the one year time frame to develop and implement the structure be lengthened

4. that the use of the EA title be clarified so that no jurisdiction (State) can prevent an EA from using their credential

5. that the taxation portion of the ACAT ABA exam be recognized as an acceptable tax preparer entrance exam

For further information on this bill you can contact Walter Dudley, ASPA Legislative Chair, wfdudley@mindspring.com or 602-248-0797.