TEC initiatives.

• Author: Purcell, Thomas, J., III
• Position: DC Currents

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

Since the last cut-off date for this column (Sept. 1, 2002; see "TEC Initiatives," TTA, November 2002, p. 732), the TEC met once (Oct. 29-30, 2002) and exercised its review function on several projects. TEC actions taken after Dec. 15, 2002 will be reported in a future column. The October meeting also marked the passage of the TEC chair responsibilities from Pam Pecarich to Bob Zarzar.

Sarbanes-Oxley

As reported in the May 2002 column, the TEC established the Scope of Services Task Force (chaired by Ron Katch) to monitor developments on proposed restrictions on members' ability to provide tax services to audit clients. The Task Force submitted its report, in which it concluded there is no inherent impediment to independence in the provision of traditional tax services to audit clients, to the TEC at the October 2002 meeting. At that meeting, the TEC established the Sarbanes-Oxley Task Force to review and provide responses to the proposed SEC rules implementing legislation. Those proposed rules are being studied and responses are being prepared at this writing.

Tax Division Administrative Issues

At the October meeting, the TEC also approved a strategic planning process for the Tax Section. Drawing from members of the Tax Division, the Strategic Planning Task Force (with Phase I chaired by Steve Corrick) met and developed proposed revisions to the mission statement and identified strategic goals to be considered by the TEC at its January 2003 meeting. Phase II (to be chaired by Tom Purcell) will develop strategies and tactics to meet and implement the goals once the TEC approves them. Comments from the membership about the mission, goals, strategies and tactics will be solicited during spring 2003 and considered prior to TEC approval of the final plan (anticipated at the June 2003 meeting).

Self-Governance Activities

In October, the TEC approved an exposure draft, Interpretation No. 1-2, "Tax Planning," of Statement on...