November 2007 Presidents Exchange

Presidents Exchange Report

11/9 – 11/10/2007 

• SB1219
  • NAEA’s Government Relations person used the word eminent when discussing this legislation.
  • NAEA is discussing how we can or should handle the potential influx of enrolled preparers.
    • We need to have an avenue to embrace the “EP’s” and encourage them to step up to the plate and become EA’s.
    • If we don’t, they may join other organizations.
    • The other organizations may not encourage them to become EA’s.
    • “EP’s” that become associated with us, may become a great referral source for EA’s.
    • It is an opportunity for us to nurture “EP’s” to become EA’s.
    • NAEA is planning ahead for this potential growth, resources need to be allocated.
    • Some of the options being discussed are as follows:
      • Market ourselves to the other 230’s, ie is the AICPA representing you well?
      • If we allow EP membership, it will possibly require us to change our name, bylaws, corporate structure etc.
      • We could become the home to practitioners who are unrestricted to represent, i.e. EA’s, CPA’s, and attorneys, not EP’s
      • NAEA could strongly support state to allow affiliate membership of EP’s, but keep NAEA pure.
    • NAEA’s board will continue to discuss the issue.
    • OSSEA’s strategic plan may need to be updated in preparation of EP’s.
• An Affiliate Counsel has been elected by Affiliate Presidents.
  • They will act somewhat in the capacity of a membership committee.
  • They will kind of be NAEA’s strike force.
  • They will be an advisory group.
• Other state’s conventions.
  • There was a strong consensus that representation should always be part of convention education.
  • New York’s convention featured a mach trial.
  • One year could be audit, next year appeals, next collections, next tax court etc.
• NAEA Board Meeting
  • State Legislative Counsel.
    • Dean Hyle
    • CPA boards of Accountancy are working toward mobility.
      • About 40 states are currently involved in this.
      • This would allow CPA’s to practice across state lines.
    • Streamline Sales Tax may fall apart due to all of the little exemptions that have had to be granted for target states to buy in.
    • Maryland is contemplating sales tax to tax prep.
    • States that impose tax prep regulation appear to be doing it for revenue generation as opposed to public protection.
  • Federal Legislative Counsel.
    • Jeff Trinka
    • When we speak with congressmen or their representatives, we offer better ideas, we don’t just criticize.
    • There is a sense that IRS will hold back from enforcing the “more likely than not” position, because they do not think that congress is done with that legislation yet.
    • There is a movement to kill RAL’s, but it probably will not happen this tax season.
  • NAEA will begin imposing a late dues penalty on members paying dues late.
    • Late dues pose an undue burden on NAEA staff and recourses.
    • The board initially suggested a late fee of $10.
      • There was significant public comment from members in attendance.
      • The members suggested a higher late fee.
      • The Board responded by raising the late fee to $20.
    • The late fee will be called an administrative fee.
  • If you  have not attended an NAEA board meeting I would suggest that you do so.
    • The board does take seriously membership comment.
    • In my experience, membership has always been able to voice their concerns in an organized fashion at board meetings.

Respectfully Submitted,

Richard R. Rhodes, EA

OSSEA President