Happenings at February Board of Directors' meeting.

• Position: News update - Professional Ethics Executive Committee - Internal Revenue Service- Office of Professional Responsibility

Following are some of the more significant actions and events that took place at the AICPA Board of Directors' meeting Feb. 5-6:

* The Internal Revenue Service--Office of Professional Responsibility was approved as a governmental agency for purposes of the AICPA's automatic sanctioning policy. This recommendation to the board from the Professional Ethics Executive Committee was made after PEEC had reviewed the enforcement policies and practices of the IRS-OPR and concluded that the office qualified under the Institute's automatic sanctioning criteria; the Tax Executive Committee also reviewed the matter and concurred.

* Membership requirements for the new Employee Benefit Plan Audit Quality Center were approved. The Center, which will be launched this spring, will emphasize firm management and internal controls.

* Regarding state legislative and regulatory activity, board members heard a forecast of 2004 activity, including a dozen states expect accounting reform legislation or regulations and nearly as many states expect to introduce Uniform Accountancy Act provisions. Additionally, more than 15 states are expected to consider proposals related to a tax on professional services. In his general briefing, President and CEO Barry Melancon reported on the AICPA's updated advocacy paper on this issue which was made available to state...