Sean Keenan 2006-2007 MACPA Chair of the Board

As a youngster, I remember hearing the adage, “You don’t know what you don’t know” and thinking, “I know more than you think I know.” Thankfully, wisdom and experience do come with age, and now I realize there is always more to learn.

That message was brought home at last week’s MACPA Members Advisory Forum when I had the opportunity to deepen my understanding of several key issues affecting our profession. I want to call attention to a few concerns I think are important enough for every CPA – including you – to have on their radar.

One of the hottest topics under discussion is the replacement for the Single Business Tax. This issue is critical to us as business owners or managers, and in our professional roles as we serve our clients or corporate employers. The MACPA leadership has emphasized the vital role CPAs play as the “honest broker” in providing objective information on technical issues, practical implementation challenges and potential unintended consequences. An example of this is our recent white paper on taxes on services, which is available on the web site.

While the MACPA hasn’t taken a “position” on any of the tax proposals, we have been outspoken about the negative impact of one very narrow element in the version of the Michigan Business Tax currently under debate. Earlier this week, we issued a statement opposing the unbalanced tax treatment of partnerships. It’s an issue we believe to be an “error” or “oversight.” A talented and dedicated subcommittee of our State and Local Tax Task Force has served, and will continue to serve, as a “go-to” source for state government leaders as various options are debated.

Mobility is another issue that should be on your radar, as lack of mobility adversely affects our clients and all of us. Constraints on interstate practice hinder our ability to be responsive to the changing business environment. The AICPA, NASBA and many state societies have rekindled efforts to remove burdensome state regulations to allow CPAs to more efficiently practice outside their home states.

Moving forward on the mobility problem will be a top agenda item at the upcoming AICPA Spring Council meeting. If you have questions or concerns about mobility, please feel free to contact an MACPA Executive Committee member who will be attending the Council meeting later this month.

Another topic of utmost interest is the patentability of tax strategies. While tax strategy patents negatively impinge on taxpayers, professional tax advisers and the public interest, it may not be possible to restrict the patent office from issuing the patents. We learned from AICPA President and CEO Barry Melancon at the Members Advisory Forum that it is feasible to pressure Congress to pass legislation granting taxpayers and tax practitioners immunity from patent infringement liability. Essentially this would render the tax strategy patents unenforceable – similar to the way the medical profession approached patents on medical procedures years ago.

Following on the heels of the Spring Council meeting, the MACPA Executive Committee along with our Legislative Advisory Group will meet with numerous lawmakers in Washington, D.C. for face-to-face talks about tax strategy patents and other initiatives. We’ll be visiting Sen. Debbie Stabenow and Congressman Mike Rogers, among others.

I urge you to join me in learning more about “what we don’t know we don’t know.” Several articles in this issue of Leaders’ Edge can help you get started:

• State Tax Debate Heads into Extra Innings
• Forces Shaping the Profession: The Four Ps
• State’s Woes, Interstate Practice Dominate Members Advisory Forum

Best regards,

SK

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