The Association for Main Street
Accountants and Tax Professionals.

MTAP Protects Your Right to Practice
MTAP Protects Your Right to Practice
Michigan Bill Could Have Stripped Your Compilation Privileges
 
By Jon A. Hayes, MTAP Executive Director
 
February 4, 2016 -- On a day when one state association celebrated “EA Day” at the Michigan Capital, the Michigan Tax and Accounting Professionals quietly worked to preserve the rights of non-CPAs to prepare compilation reports for corporate tax returns and other important client needs.
 
While the EA society celebrated, MTAP was tracking and monitoring House Bill 5192, which was introduced late in December to address CPA concerns over non-licensed practitioners using language in engagement letters that infer they are licensed CPAs. The bill raised legitimate concerns that passage could make it illegal for non-CPA accountants and tax practitioners to prepare required compilations for federal corporate tax returns. It seemed to also prevent anyone other than a CPA from providing compilations when requested by a client.
 
Since the bill’s introduction, MTAP has analyzed it, noted concerns that proposed language could result in restriction of trade, and began a dialogue with the Michigan Institute of CPAs, the bill sponsor, and members of the committee who would consider moving it to the Michigan House of Representatives for a vote. As a result of our discussions, we learned that the bill is part of a national initiative by the American Institute of CPAs designed to stop a growing trend by people in the “greenhouse gas emissions” industry, mainly engineering firms, from producing government-required compilation reports that indicate they have “attested” to the information contained in said report.
 
HB 5192 doesn’t seek to make compilation an exclusive function of the licensed class, rather it seeks to clarify that “attestation” is an exclusive function of a licensed CPA. The MiCPA reached out to MTAP with various supporting documents showing that the bill was written specifically to avoid inferring compilation would be an exclusive CPA function. John Lindley, MiCPA’s chief legislative expert, told MTAP the distinction was made to insure MTAP members could continue to provide compilations.
 
He did this because MiCPA values the relationship developed over the years with MTAP – a relationship MTAP has worked hard to nurture as we preserve the rights of non-licensed practitioners.
 
MTAP continues to monitor HB 5192 to insure no changes are made that could restrict non-CPAs’ rights to perform compilations.
 
If providing compilation reports are vital to your business, ask yourself this important question:
 

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MTAP P.O. Box 398 Bath, MI 48808-0398