PCAOB proposed rules would impact tax services.

• Position: Breaking News

At an open meeting on Dec. 14, the Public Company Accounting Oversight Board proposed ethics and independence rules concerning independence, tax services and contingent fees. Specifically, the rules would restrict the ability of accountants to provide certain tax services to audit clients.

If approved, the rules would prohibit:

* Offering tax services to audit clients on a contingent fee basis.

* Providing any tax services to corporate officers who are "in a reporting oversight role of an audit client."

* Marketing tax strategies that involve "an aggressive interpretation of applicable tax laws and regulations," or result in a tax avoidance maneuver that is a "listed or confidential" transaction under Treasury regulations.

Routine tax return preparation and compliance, and general tax planning and advice would still be permitted under the proposed rules.

The...