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 Lansing Office Increases CPA Presence: MACPA Legislative Priorities Plentiful By John D. Lindley, senior director, MACPA Government Relations & Regulatory Affairs School district audit reform, business structure, and licensure of tax preparers are three key issues on the legislative radar for MACPA leaders and government relations staff.
Regulation/Licensure of Commercial Tax Preparers MACPA is closely tracking efforts to 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. MACPA recently 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. Furthermore, it would likely cause greater public confusion regarding the different professional designations, licenses and associated standards. Actual legislation proposing a new licensed occupation has yet to be 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 the issue through taxpayer education. Efforts include working with members of the State Legislature. In addition, the MACPA launched a partnership with the Association of Latino Professionals in Finance and Accounting to develop a pilot public awareness campaign based on the decisions a taxpayer makes in hiring a tax-preparer. Public School Audit Reform As the Legislature continues to examine means to reform government and provide more transparency in taxpayer resource allocation, two initiatives have been “floated” related to school district expenditures, ultimately affecting audit and other services. Senate Bill 500, introduced by state Sen. Buzz Thomas (D-Detroit), would require school districts to enter “contracts for services” into the competitive bidding process. The current version of the legislation includes all services and would therefore affect audit services. The MACPA opposes the requirement for competitive bidding on audit services. Such a mandate would result in increased audit fees (not decreased as the proposed legislation is intended) and it would jeopardize audit quality. MACPA representatives met with Sen. Thomas to discuss the issue and it is expected that a new version of the bill, which will exempt audit services, should be introduced this month. Additionally, state Rep. Kim Meltzer (R-Clinton Twp.) introduced House Bill 5083, which would require disclosure of virtually all school district expenses on a web site, similar to requirements already in place for intermediate school districts. Tapping into the expertise of members, the MACPA continues to monitor action on these initiatives and stands ready to advocate the profession’s position on school district audit reform. Business Structure On May 31, 2007, the Michigan Court of Appeals held in Miller v Allstate 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 that 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 limit choices available to CPA firms and their clients in forming a business unit. MACPA legal counsel and staff are working with representatives from other organizations to determine the potential effects and, if necessary, discussing legislative solutions. Other Top Priorities Besides monitoring these current legislative initiatives, the pursuit of CPA license mobility legislation in partnership with the State Board of Accountancy and the Department of Labor & Economic Growth is a top priority this year. In addition, the MACPA will continue working with the Department of Treasury and the State Legislature on the implementation of the newly enacted Michigan Business Tax (see related story). If you have any questions on these or other legislative matters, the MACPA Government Relations & Regulatory Affairs Department is available at legislation@michcpa.org or 248.267.3710. |
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| PO Box 5068 Troy, MI 48007-5068 Phone: 248.267.3700 Fax: 248.267.3737 E-mail: macpa@michcpa.org | |
