The Michigan Legislature and the Executive Branch are keeping the MACPA Board of Directors, Legislative Advisory Group and Government Relations Department extremely busy – certainly realizing the benefit of the MACPA’s new government relations satellite office just blocks from the Capitol.

In addition to MACPA’s two top legislative priorities – efforts to eliminate the Use Tax expansion to select services (see related article and Chair’s Message) and the pursuit of CPA license mobility legislation – the MACPA continues to ensure your voice is heard clearly regarding other matters effecting the profession.

Business Structure Reform
In Miller v Allstate, decided May 31, 2007, the Michigan Court of Appeals held that if a corporation can be formed under the Professional Service Corporation Act, it may not form under the Business Corporation Act. The court interpreted "professional service" in section 2(c) of the Professional Service Corporation Act, MCL 450.222(c), as a nonexclusive list and concluded a corporation must form as a professional service corporation if it is providing a personal service to the public that requires a license.

This court decision may have an effect on the choices available to CPA firms and their clients in forming a business unit. Further, this could have a serious effect on the applicability of professional liability insurance in the case of a pending action.

Legislation (House Bills 5356, 5357 and 5358) was introduced October 24, 2007 to retroactively address this situation through amendments to the Business Corporation Act, Professional Service Corporation Act and Limited Liability Company Act. The MACPA Legislative Advisory Group and Executive Committee endorsed this legislation, and the MACPA is communicating with legislators and their staff members to ensure quick passage.

Regulation/Licensure of Commercial Tax Preparers
Two separate efforts underway would develop a regulatory or licensing structure for commercial tax preparers in Michigan as a means to deter criminals from improperly or fraudulently preparing tax returns. Earlier this year, MACPA met with representatives from the Independent Accountants Association of Michigan (IAAM) to communicate the MACPA’s position that any further certification and/or licensure of tax preparers would not solve the inherent problem, and would likely cause greater public confusion regarding the different professional designations, licenses and associated standards.

To date, no legislation proposing a new licensed occupation has been introduced; however, the MACPA is monitoring this daily and has effectively communicated the profession’s opposition.

The greatest tool for consumer protection is knowledge, and the MACPA is committed to addressing this issue through taxpayer education. The Association is working with members of the Legislature and in partnership with the Association of Latino Professionals in Finance and Accounting on a pilot public awareness campaign based on the decision a taxpayer makes in hiring a tax-preparer. The MACPA also has created a new Taxpayer Awareness Task Force and is in the process of developing a public awareness campaign to help taxpayers avoid unscrupulous tax preparers.

If you have any questions on these or other legislative matters, contact the MACPA Government Relations & Regulatory Affairs Department by e-mail, legislation@michcpa.org, or phone 248.267.3710.
 

Top