TEC initiatives.

• Author: Purcell, III, Thomas J.
• Position: AICPA Tax Executive Committee

As a senior technical committee of the AICPA, the Tax Executive Committee (TEC) is authorized to speak for the Institute on tax matters, and is also designated by governing Council as a standard-setting body. However, numerous other committees, technical resource panels (TRPs) and task forces initiate and develop proposed solutions to policy issues and technical and tax administration problems, for consideration and approval by the TEC. They also initiate proposals for valuable products and services for members in tax practice.

Since the last cut-off date for this column (Sept. 1, 2004; see TTA, November 2004, p. 710), the TEC met once (Nov. 1, 2004) and exercised its review function on several projects. TEC actions taken after Dec. 1,2004 will be reported in a future column.

Administrative Issues

The TEC continues to implement and monitor progress on the Tax Section's Strategic Plan. The original strategic plan is available at www.aicpa.org/ download/tax/tax_section_strat.pdf.

Self-Governance Activities

The TEC continues to promote a better understanding of the Statements on Standards on Tax Services (SSTSs); see www.aicpa.org/download/tax/ SSTSfinal.pdf for SSTSs. Six breakout sessions on the SSTSs were conducted by the Tax Division at the 2004 IRS Nationwide Tax Forums (co-sponsored by the AICPA). The TEC continues to reach out to state CPA societies, by holding SSTS sessions at their conferences.

The Tax Practice Quality Control Task Force (chaired by Joe Scutellaro) has proposed an interpretation of SSTS No. 3, "Certain Procedural Aspects of Preparing Returns." The interpretation would indicate, in general, that a member should have a quality control system for his or her tax practice. The TEC provided comments to the task force on Nov. 1, 2004; several TEC members are assisting in modifying the current draft.

The TEC has provided extensive comments to the AICPA's Consulting Services Executive Committee on proposed Statement on Standards for Valuation Services No. 1. This Statement would create binding ethical responsibilities for CPAs performing certain valuation engagements. The comments addressed the overlap of valuation engagements with tax engagements. At press time, the statement has not been approved for exposure to AICPA members.

Technical Activities

General: On Nov. 29, 2004, the TEC responded to a request by the IRS Oversight Board to comment on its administrative priorities. The comments, prepared by the IRS Practice and...