TEC initiatives.

• Author: Purcell, III, Thomas J.
• Position: 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 (March 7, 2004; see TTA, May 2005, p. 297), the TEC met once (June 16-17, 2005) and exercised its review function on several projects. TEC actions taken after June 15, 2005 will be reported in a future column.

Administrative Issues

The TEC continues to monitor progress on the Tax Section's Strategic Plan. The original strategic plan can be found online at www.aicpa.org/download/tax/tax_section_strat.pdf.

Self-Governance Activities

The Tax Practice Quality Control Task Force (chaired by Joe Scutellaro) presented proposed Statement on Standards for Tax Services No. 9, "Quality Control," at the Spring Tax Division Meeting in San Francisco, June 15-16, 2005. The TEC continues to monitor this project and is coordinating with other groups within the AICPA, including the Private Companies Practice Section, before deciding whether to expose this statement for public comment. The TEC will consider this issue at its August 2005 meeting.

On June 6, 2005, in a letter jointly authored by the TEC and the Professional Ethics Executive Committee, the AICPA commended IRS Commissioner Mark W. Everson on his recent Congressional testimony, in which he indicated that taxpayers should be informed whenever a tax preparer out-sources return preparation overseas; see www.cpa2biz.com/ResourceCenters/Tax/Tax+Practice /Outsourcing+Tax+Return.htm.

New AICPA ethical standards, effective July 1, 2005, apply to all independent contractors used by a CPA firm. They require AICPA members to inform clients (preferably in writing), prior to sharing confidential client information with third parties, that such parties may provide client services.

Technical Activities

General: At the June 2005 meeting in San Francisco, the TEC met with members of the California State Society of CPAs' taxation committee, to provide outreach and improve communication.

The speakers at the June meeting included Mark Everson...