The American Institute of CPAs praised a new law that will prevent states from taxing the retirement income of non-resident partners last week.
Separately, the institute also released a proposed statement on quality control standards.
The bill, which was signed by President Bush on Aug. 3, clarifies the intent of a 1996 law that prohibited states from taxing nonresident employees' retirement income. The new law will be retroactive to that date and was of heightened importance to CPAs who have worked as partners of accounting and consulting firms.
"The new law ensures that states' tax rules for retirees are uniform, whether the retiree was an employee or a partner," said vice president of taxation Tom Ochsenschlager, in a statement. "It guarantees equity.
Separately, the American Institute of CPAs has released a proposed statement on quality control standards.
Comments on the exposure draft are due by Sept. 30.
The document will replace the existing guidance establishing the standards for a CPA firm's responsibilities for its accounting and auditing practice quality controls -- describing elements of quality control and other matters essential to the effective design, implementation, and maintenance of the system. The statement defines a number of terms used by the Auditing Standards Board and also explicitly breaks down how it differs from existing statements on quality control and international standards.
The full proposed statement is available at www.aicpa.org/members/div/auditstd/A_Firms_System_of_Quality_Control.html.
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