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 the TEC's 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 (Dec. 15, 2002; see Purcell, "TEC Initiatives," TTA, February 2003, p. 106), the TEC met once (Jan. 22-23, 2003) in San Antonio, and exercised its review function on several projects. As is the TEC's custom, local state society members (Texas) were invited to participate. TEC actions taken after March 1, 2003 will be reported in a future column.

Administrative Issues

Sarbanes-Oxley. At its October 2002 meeting, the TEC established the Sarbanes-Oxley Task Force (chaired by Bob Peterson) to review and provide responses to the December 2002 proposed SEC rules implementing the Sarbanes-Oxley Act of 2002. The task force met several times and submitted its comments to the AICPA leadership in January 2003.Those comments, which focused on audit firms' ability to provide tax services to audit clients, became part of the official AICPA response. The final rules, issued on Jan. 23, 2003, reflected some of the Task Force's suggestions. In particular, the document acknowledges the difference between legitimate and abusive tax planning and includes the definition proposed by the TEC to characterize tax shelter transactions. The TEC continues to discuss the appropriate role of the SEC in regulating tax shelter transactions involving audit firms and their clients.

Strategic planning. At the same meeting, the TEC approved a strategic planning process for the Tax Section, known as the Strategic Planning Task Force Phase I (chaired by Steve Corrick). When the TEC met in January 2003, it considered and approved the task force's proposals. Phase II of the planning process (chaired by Tom Purcell), will develop strategies and tactics to meet and implement the goals once they are approved by the TEC. During the spring 2003 meeting, the TEC will solicit comments from the membership about the mission, goals, strategies and tactics, and will consider them before approving the final plan (anticipated...