Bush signs law prohibiting states from taxing nonresident partners' retirement income.

• Position: National

An AICPA-supported bill prohibiting states from taxing the retirement income of legally defined firm partners who are not residents of that state has been signed into law by President Bush.

Enactment of the bill is important to many CPAs who are, or were, partners of CPA firms or consulting firms, said Tom Ochsenschlager, AICPA vice president, taxation. "On behalf of our members, we thank the Congress and President for moving expeditiously to correct this unintended consequence of the tax law when it was...