Possible Effects of PCAOB Proposed Tax Rules

Source: CPA Practice Management Forum

Several prominent practitioners have offered some thoughts on what the proposed rules will mean to CPA firms. (for a summary of the proposed rules go to http://www.ohioscpa.com/article.asp?article=2859-1.) 

Several firms believe the rules would help them by providing opportunities to do work denied to the Big Four. One frequently mentioned service is tax return preparation for executives of public companies. Some CPAs are concerned, however, that the cascading effect could affect private companies and preclude them from doing tax work for their audit clients. Tax preparation for the executive of a major company may appear to affect the CPA firm’s independence and might reasonably be prohibited for that reason. But the executives of closely held companies are better served if the same CPAs represent their companies. 

For the complete article, see CPA Practice Management Forum (CCH Incorporated), February 2005, p. 6.