Peggy Haw Jury 2005-2006 MACPA Chair of the Board

Interstate practice has been a very hot topic lately.

California’s longtime statute that allowed for incidental practice by out-of-state CPAs was repealed January 1, 2006. A new “practice permit” requirement was designed to protect the public by providing the California Board of Accountancy (CBA) with more control and disciplinary muscle over out-of-state practitioners. Essentially, the CBA imposed full licensure and registration – a costly and time-consuming process – for all services.

An outcry from the CPA community within the state of California and around the country cited numerous problems with California’s new law: its complexity, breadth of reach, inadvertent interference in existing long-term client relationships, interference with interstate commerce and its deviation from the UAA’s intent of substantial equivalency.

As a result of the profession’s intense advocacy efforts, the California Board of Accountancy agreed to ease the cumbersome practice privilege requirements at its meeting just a couple of weeks ago.

The MACPA will continue to monitor the practice privilege issue in California, and will keep you abreast of any news
or changes.

While navigating state accountancy statutes and regulations is a complex task – and especially cumbersome for smaller firms and sole practitioners – complying with regulations has always been part of our business.

That’s why our advocacy role is so important.

Moving from what’s happening on the West Coast to our nation’s Capitol, MACPA’s Legislative Advisory Group met with Sen. Debbie Stabenow and other members of the Michigan Congressional Delegation in Washington, D.C. last week to talk about a wide range of legislative issues. After discussions with our members, Sen. Stabenow expressed support for CPAs’ relief from the requirements of the Gramm-Leach-Bliley Act. A member of the Senate Committee on Banking, she took a leadership role and prepared a written statement to the Committee.

Looking within our state’s border, one of the top stories in this issue of Leaders’ Edge explains how the new accountancy laws provide more incentive for tracking down and prosecuting copycat CPAs who provide dishonest, negligent or fraudulent services.

As you know, the MACPA has played a key role in this
new Accountancy Reform legislation. But, our job there
is not yet finished as we continue to be involved in the rulemaking process.

Another hot issue is a new requirement for Detroit’s non-resident taxpayers. The City says those who allocate less than 100 percent of their income to services performed in the City must provide documentation with their tax returns. Read the full story to find out how MACPA worked to clarify the new requirements.

The MACPA is committed to assisting members and serving as a resource regarding important issues right here at home, and those thousands of miles away – ensuring the integrity of the CPA designation is protected while the profession’s top priority of public protection is upheld.

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