Washington Matters

The Texas Society of CPAs held its Advocacy Day and Midyear Board and Members Meeting in Austin the last week in January. In addition to visiting with our legislators to remind them of the importance of continuing the Texas State Board of Public Accountancy and CPA licensure in Texas, we got to hear from Mark Peterson, AICPA executive vice president – advocacy, about what we might expect to see coming out of Washington, D.C.

With the major parties splitting control of the House, Senate and the presidency, the likelihood of anything big happening (think Affordable Care Act, Dodd Frank Act or Tax Cuts and Jobs Act that happened when one party controlled all three) is small. But the split leadership does have implications on what we can expect to see or not see in the coming couple of years.

  • Democratic control of the House means changes to SOX 404(b) requirements, such as changing the metrics for companies exempt from compliance, are less likely to occur.
  • PCAOB will continue to push to make disciplinary proceedings public even though such disclosure could negatively impact due process for affected firms.
  • There will be continued interest in anti-money laundering legislation, which sounds fine, except that innocent CPAs may get caught in the crossfire if the legislation is not written well.
  • Expect to see a push to make arbitration agreements unenforceable. Whether this is good or bad depends on your perspective, but no matter what your perspective is, businesses, not just CPAs, will be very interested in this issue.
  • Immigration is clearly a hot-button issue and questions about how many people with special skills, including backgrounds in artificial intelligence, data analytics and other skills highly sought after by audit and accounting firms, should be allowed to come to the U.S. under special visa programs will likely get caught up in any movement, or lack thereof, on the issue.
  • Finally, CPAs wondering what services they can and should provide to legal Marijuana businesses in states where the law has changed might see some movement. Bills have been filed to amend the federal controlled substances act to state that if you comply with state law, you are not in violation of federal law.

Like TXCPA in Austin, AICPA works hard on your behalf in Washington, but nothing can replace the personal touch of a constituent talking to their legislator. If you are interested in any of these issues, contact your representative and senators and let them know how you feel.

 

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