Member Advantage #110 - December 20, 2006

This information was originally sent via fax and is provided exclusively to NCACPA members as a member service. For more information, please contact Jim Ahler at (919) 469-1040.

William S. Lee Tax Credits: The 2006 General Assembly passed legislation that created a new tax credit program called Article 3J Credits. The 3J Credits replace the William S. Lee credits, which are effectively repealed for business activities that occur on or after January 1, 2007. Taxpayers have the option to claim the William S. Lee credits in 2007, but must submit a notarized document entitled “Sunset Extension for Article 3A Tax Credits (William S. Lee Tax Credits)” no later than 12/31/06. Information is available on the North Carolina Department of Commerce’s website: www.nccommerce.com/finance/incentives/tax. Members may contact David Spatley, Manager, Commerce Financial Center, at (919) 715-2064.

2006 Tax Law Changes: The North Carolina Department of Revenue has posted a summary of the changes made to NC tax laws by the General Assembly in the short session of 2006. Members may access the summary at www.dornc.com/practitioner/lawchanges.html.

Gramm-Leach-Bliley Act Amended: The 110^th Congress approved an amendment to the law which required professionals handling confidential client information to annually mail their clients information about the steps being taken to protect their financial privacy. The amendment was sought because CPAs operate in an environment where confidentiality is required by state boards of accountancy as well the IRS. The inclusion of CPAs was an unnecessary duplication. Congress agreed, and CPAs are exempt from the annual requirement.

North Carolina State Board of CPA Examiners: The State Board’s website has been upgraded to include the following:

1. On-line firm registration renewal/peer review compliance is now available online at www.nccpaboard.gov. A letter explaining the online firm registration renewal/peer review compliance process was mailed to CPA firms in mid-November.

2. Licensees and firms may now notify the State Board of address changes through the board’s website. Look for the “Address Update” link at the top of the menu on the board’s home page.

3. Licensees may now obtain the number of “CPE carry-forward hours” from the State Board’s website. To obtain the number of hours being carried forward, go to the “Licensee Search” section of the website. For more information, contact the board’s Licensing Section.

Governmental A&A: The GAO announced that most of the new Yellow Book Standards will
be published in late January 2007. Sections involving quality assurance and peer review will be re-exposed for comment.

Seasons Greetings: The NCACPA staff would like to thank our members for their involvement in the association this past year. We wish you the happiest holiday season and a wonderful new year! We look forward to serving your needs going forward.