Sean Keenan 2006-2007 MACPA Chair of the Board

Looking ahead into the New Year, I see several issues playing a significant role in our profession.

Perhaps getting the lion’s share of our attention in Michigan, replacement of our state’s Single Business Tax has reached a pivotal point. Plaguing businesses, CPAs and politicians for some time, the SBT’s December 2006 expiration date brought with it a firestorm of replacement proposals. An article in this issue of Leaders’ Edge offers insight into the Governor’s proposal; an overview of other proposals appeared in the November issue.

The MACPA Government Relations staff, in conjunction with our State and Local Tax Task Force and its sub-committee on Business Tax Restructuring chaired by Sam Hodges, will continue to follow the debate, offer unbiased analysis on all replacement proposals and provide advice as to the potential effects that a restructured business tax model might have on the Michigan economy.

Mobility is another issue at the forefront. In our dynamic marketplace, geographic boundaries have been erased, making it vital to both the business sector and to the profession, for CPAs to have the ability to work efficiently across state lines. It is an issue of importance to all CPAs, whether in business and industry or in public accounting.

The issue can be compared to a driver’s license. Think about taking a trip to Florida. Imagine if, before you hop in the car and drive your way through several states, you are required to fill out a mound of paperwork and submit it to each state’s Department of Motor Vehicles (along with a different fee for each, of course).

That’s essentially how CPAs currently must approach interstate practice, i.e. complying with a multitude of different requirements from state to state. The situation creates an artificial barrier to interstate practice, and hampers our ability to efficiently serve our clients.

The National Association of State Boards of Accountancy (NASBA) and the AICPA are promoting simplification. In fact, they’ve released a proposal for exposure. The MACPA Board is studying the issue, and I encourage all CPAs to learn more about it. Our upcoming Members Advisory Council Meeting (May 9) will include a forum on mobility. We’d love to have your feedback, so please plan to attend and participate in the discussion.

Briefly, there are two other important initiatives to keep in mind as we start the year. One is helping to build the future of our profession by attracting and retaining bright young people. The Michigan Accountancy Foundation Fifth Year/Graduate Scholarship is a key element – and many of you have supported this effort generously. The scholarship application deadline is January 31. Please reach out to eligible college students in your midst and encourage their application for the scholarship.

Finally, January is the time of year when many Americans are thinking about getting their financial “houses” in order. I urge you to get involved in financial literacy efforts in some way. You’ll be hearing more about the AICPA’s Feed the Pig campaign – perhaps that’s where you might get involved. Or maybe you can participate in our Tax Assistance Program. Whatever avenue you choose, reaching out in your community does make a difference!

I extend my best wishes for a happy, healthy and prosperous New Year!

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