Accounting profession supports new law prohibiting states from taxing nonresident partners' retirement income.

A bill supported by the AICPA and others within the accounting profession was signed into law last month by President Bush. The new law prohibits states from taxing the retirement income of partners who are not residents of that state.

"The new law ensures that states' tax rules for retirees are uniform, whether the retiree was an employee or a partner," Tom Ochsenschlager, AICPA Vice President--Taxation, said. "It guarantees equity."

Ochsenschlager said enactment of the bill is important to...