TEC initiatives.

• Author: Purcell, Thomas J., III
• 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 propose solutions to policy issues, technical and tax administration problems, for consideration and approval by the TEC. They also initiate proposals for products and services for members in tax practice.

Since the last cut-off date for this column (June 15, 2004, see TTA, August 2004, p. 515), the TEC met once (Aug. 2-3, 2004) and exercised its review function on several projects. TEC actions taken after Sept. 1, 2004 will be reported in a future column.

Administrative Issues

The TEC continues to monitor the Tax Section's strategic plan; for the original plan, see www.aicpa.org/download/ tax/tax_section_strat.pdf. In August 2004, the Tax Section Strategic Plan Implementation Task Force met to discuss performance metrics, timelines and delegation of responsibility for completing the strategic plan's action plan components. It also addressed the results of having scanned the environment to determine whether to modify the plan, deriding that it should not change it for emerging external environmental trends. At its August 2004 meeting, the TEC considered the task force's recommendations and modified several outcome measures. With the start of the new committee year in October 2004, Bob Zarzar, as immediate past TEC chair, will lead this task force.

Self-Governance Activities

Since the June 2004 meeting, the Statements on Standards for Tax Services (SSTS) Quality Control Task Force (chaired by Joe Scutellaro) has revised its preliminary report on SSTS Proposed Interpretation No. 3-1, "Tax Practice Quality Control," based on the TEC's feedback. The TEC will consider the revision at its November 2004 meeting, when it will decide whether to issue the interpretation for public comment.

Technical Activities

General: On June 28, 2004, Bob Zarzar, then TEC chair, responded by letter to a request made by Nina Olson, National Taxpayer Advocate, to identify serious problems encountered by taxpayers. The letter identified as most troublesome (1) compliance with Forms 1099-DIV, Dividends and Distributions; (2) fiscal-year flexibility for small businesses; and (3) the complexity in applying phaseout methods and definitions. It also offered possible...