Post Change: CalCPA Takes Stock of Changes, Looks Ahead.

• Author: Fox, Jason
• Position: Capitol Beat

CalCPA IS taking stock of the major policy changes passed this year, now that the legislative session has come to an end. With the goal of continuing to build our relationships with legislators, CalCPA will use the interim break to shift focus to our grassroots program and to CPA Day at the Capitol Jan. 17.

OTA Cleanup

After the passage of landmark legislation earlier this year, much of the Board of Equalization's duties were distributed to two new state agencies: the California Department of Tax and Fee Administration and the Office of Tax Appeals (OTA).

As with most legislation that makes a major policy change in a short time, a cleanup bill is often needed to address unintended consequences, clarify intent and other technical changes. In the case of the OTA, this type of measure was needed.

The original legislation raised concerns about whether CPAs would be able to continue to represent taxpayers in front of the newly formed OTA in the same fashion they did before the BOE. Specifically, CalCPA raised concerns related to the ability of CPAs to represent audit clients in tax matters without impairing a CPA's independence, which is guided by strict professional standards.

In response, the Legislature agreed that further amendments to the statute was needed to clarify that it was not the intent of the Legislature to create a forum that would preclude a CPA from representing taxpayers in the same fashion that they had before.

CalCPA, the governor's office and legislative leaders worked on crafting a cleanup bill that addressed this issue, as well as other technical changes. Specifically, the language strengthened key characteristics of the OTA to make clear that an appeal before the OTA is an administrative proceeding and would not in itself threaten to impair a CPA's independence. These changes further align the structure and operation of the OTA with the Legislature's overarching intent for a taxpayer to be represented by a broad spectrum of individuals, including" CPAs, at every stage of an appeal before the OTA.

The language was incorporated and passed by the Legislature as a part of several other budget cleanup bills in September.

Most significantly, this is an example of how CPAs being vigilant and responsive to legislative proposals can help shape public policy for the better.

2018 CPA Day at the Capitol

The annual CPA Day at the Capitol gives members the opportunity to meet with legislators in Sacramento. By participating, CalCPA...