RSS Feed
New York - NY Law Likely To Rattle Many CPAs |
|
| |
Text Size
|
Thousands of certified public accountants will need more credentials because of the New York Accountancy Reform Law, signed by Gov. David A. Paterson on Jan. 27. It goes into effect on July 26.
The overhaul in New York underscores continuing concern by the Internal Revenue Service over tax preparer standards around the country. The IRS will hold a public forum later this month as it considers new ways to regulate the profession.
Requirements under the New York law are "probably not as widely known as we would like," says David J. Moynihan, president of the New York State Society of CPAs, and a partner at accounting firm Testone, Marshall & Discenza, LLP in Syracuse, New York.
NYSSCPA is working with the American Institute of Certified Public Accountants to educate tax professionals in New York and beyond about the changes. Out-of-state CPAs who do work in the state will be affected in some cases.
The Madoff scandal propelled the accounting overhaul through the New York legislature, accomplishing change that NYSSCPA had championed unsuccessfully for years.
"Bernie Madoff did in one massive fraud what we couldn't do in ten years," says Moynihan.
The overhaul brings the level of regulation in New York in alignment with that in many other states, according to NYSSCPA.
Under the new law, many New York CPAs working for companies, nonprofits, government agencies and universities will come under state regulation for the first time. If they fail to register with the State Education Department's Office of the Professions, they could be listed as inactive and risk investigation by the state and possible charges of unprofessional conduct.
Until now, New York has operated under rules that essentially defined public accountancy as doing audit work. The old law dates to 1947, when many of the services CPAs now provide weren't regulated by the state simply because they didn't exist.
Now, those who perform accounting, management and financial advisory services, and tax and professional services rendered to one's employers are included as CPAs. Many of these people currently take a uniform licensing exam that's given all over the country.
More of today's headlines
“New York - The Chevy Camaro LT2 Coupe is perhaps the most popular sports car of 2010. It is often purchased by balding men in their forties who are entering their...”
New York - Is It Permissible To Buy a New Car During The 3 Weeks?
New York - Fewer Drivers Hit the Roads
Total16
Read Comments (16) — Post Yours »
1
Jul 20, 2009 at 04:46 PM Anonymous Says:
This is long overdue. Around tax time in BP an WB, almost every storefront is advertising tax advice, mostly from part time accountants working part time a few weeks a year doing tax returns. Some are competent but many know very little and can create big problems for their clients. They should become certified or the state should shut them down immediately.
2
Jul 20, 2009 at 05:26 PM Anonymous Says:
“ This is long overdue. Around tax time in BP an WB, almost every storefront is advertising tax advice, mostly from part time accountants working part time a few weeks a year doing tax returns. Some are competent but many know very little and can create big problems for their clients. They should become certified or the state should shut them down immediately. ”
I agree, shut them down immediately. [they don't even know how to speak english].
3
Jul 20, 2009 at 05:03 PM Anonymous Says:
More regulation and more regulation - thank you Demorats. Just continue stifle us!
4
Jul 20, 2009 at 06:58 PM Anonymous Says:
“ This is long overdue. Around tax time in BP an WB, almost every storefront is advertising tax advice, mostly from part time accountants working part time a few weeks a year doing tax returns. Some are competent but many know very little and can create big problems for their clients. They should become certified or the state should shut them down immediately. ”
just wait until you pay twice as much to do your taxes
5
Jul 20, 2009 at 07:52 PM Anonymous Says:
“ just wait until you pay twice as much to do your taxes ”
Actually, I do my own taxes with turbotax and a little help from my son, a REAL accountant.
6
Jul 20, 2009 at 09:20 PM Anonymous Says:
“ I agree, shut them down immediately. [they don't even know how to speak english]. ”
Since when dos knowing English have to do with being a good accounted you just need to know the rules a be a smart person.
7
Jul 20, 2009 at 08:57 PM Anonymous Says:
The entire tax system should be thrown out & replaced with some form of federal sales tax.
8
Jul 20, 2009 at 09:51 PM Tax payer Says:
“ Since when dos knowing English have to do with being a good accounted you just need to know the rules a be a smart person. ”
Stupid.... I could see you never paid a cent of taxes.
9
Jul 20, 2009 at 10:36 PM CPA Says:
“ Stupid.... I could see you never paid a cent of taxes. ”
As an accounting student I see Being a good Accountant doesn't mean he has to be good in English, of course its a help and you won't get your license until you are taking some courses in speech and collage writing, I still don't see it a problem for the accounting work. You could be a good Accountant and not know your English well.
10
Jul 20, 2009 at 11:03 PM Anonymous Says:
“ Since when dos knowing English have to do with being a good accounted you just need to know the rules a be a smart person. ”
Since you are living in the U.S. and paying taxes under a 46,000 page IRS code written in the English language.
11
Jul 21, 2009 at 07:00 AM Anonymous Says:
“ Since you are living in the U.S. and paying taxes under a 46,000 page IRS code written in the English language. ”
Writing english will not help you understand the code. Reading on the other hand may, but that is not given since the code is hardly written in plain english.
Besides, how many of those 46,000 pages do you think deal with basic personal and corporate returns that are being done by stroefront preparers who just have to know how to draop a few numbers into a program and answer a few questions?
The law impacts a great many practitioners in industry and not in public practice who were exempt from paying the state licsence fees and taking CPE to maintain their certification since they were not practicing as public accountants. There is nothing that is going to stop a non-cpa frompreparing returns. How many of H&R Block's preparers are accountants, let alone CPA's? Almost none and as far as I can tell, the new will not impact those preparers.
12
Jul 21, 2009 at 07:36 AM NumberOneCPA Says:
Interesting story. Ever wonder how many guys out there are claiming to be certified accountants? There is a website where one's credentials can be verified
13
Jul 21, 2009 at 09:21 AM TAXREBBE Says:
Since tax preparation now falls under the regulation of a licensed profession shouldn't it be illegal for non-licensed persons (from Chico's travel service to H&R Block) to offer this service without being a licensed CPA?
14
Jul 21, 2009 at 09:43 AM YW CPA Says:
There is a lot of people in the frum community that are victims of fraud due to the simple fact that there out there people who claim that they are accountants but NOT CPA. People are naive and believe them that there is such a think. It is a felony in NYS to practice public accounting without a proper license and any person who is selling himself as an accountant without having a valid CPA license is a felon, period. I sometimes get phone calls from very naive people and I would give an hour free consultation, when it comes to explaining my fees they flip out and they start comparing me to some competitors who practice without license. Because I am trying to be a nice guy, instead of being rude I will explain them nicely not to compare me with someone who is a felon, every time he sells himself as a public accountant he commits a felony the usual reply would be "do I need a CPA". I think I don't have to elaborate anymore anyone who has brains will get my point I'll leave it for you now to elaborate on that.
15
Jul 21, 2009 at 11:02 AM NumberOneCPA Says:
“ Since tax preparation now falls under the regulation of a licensed profession shouldn't it be illegal for non-licensed persons (from Chico's travel service to H&R Block) to offer this service without being a licensed CPA? ”
I am not aware of any IRS regulation requiring that CPAs complete tax returns. Enrolled Agents who are not CPAs can represent clients before the IRS. This seems to be evolving into a new or additional form of licensing in order that the IRS can maintain controls over tax preparation. Question is that this appears to be regulating paid preparers. If I sit at my kitichen table preparing my own return, will I have to obtain a minimal level of certification/licensing/regualtion? I hope that the IRS does not move in that direction.
16
Jul 21, 2009 at 01:51 PM CCCP-A Says:
This is idiocy of the first degree. Impersonating an accountant is not a felony, sorry to disappoint. Anyone can practice as an Enrolled Agent, or CMA or without any formal education whatsoever. This is just another money grab by the elites at the NYSSCPA who want to increase their own revenue lost to better performing un-licensed accountants. There is precisely ZERO that a CPA can do that a non-CPA cannot do just as effectively, except of course, append his name with the letters "C-P-A". Select your financial professional by examining his clients, not his CPE credits.