April 12, 2010

Molly K. Donnelly

CC:PA:LPD:PR (Reg- 131028-09)

Courier’s Desk
Internal Revenue Service
1111 Constitution Avenue, NW
Washington, D.C.20044

Dear Ms. Donnelly:

The Virginia Society of Certified Public Accountants (VSCPA) welcomes the opportunity to comment on Internal Revenue Service (IRS) Regulation 301.7216-2T, Permissible disclosures or uses without consent of the taxpayer (temporary).

We submit the following comments on behalf of the 9,000 members of the VSCPA and ask the IRS to consider further revisions to the regulations to permit members to continue to provide high quality services to their clients.

Guidance regarding lists for solicitation of tax return business is addressed in paragraph (n) of Regulation 301.7216-2T and provides that a list containing solely the names, addresses, e-mail addresses, phone numbers, entity classification and income tax return form number may be utilized for the purpose of providing tax information, general business or economic information, analysis for educational purposes, or soliciting additional tax preparation services.

In the practice of public accounting, especially as it concerns those CPA firms that provide services to self-employed individuals and small businesses, it is typical for the CPA firm to provide an array of tax and accounting services to such clients.

We recommend expanding the provisions of paragraph (n) to include the solicitation of additional accounting services consistent with applicable legal and ethical responsibilities. For example, to assist self-employed individuals and small businesses in filing timely and accurate income tax returns, a CPA firm frequently provides assistance with bookkeeping, the preparation of payroll and information returns, and the preparation of various regulatory and local tax returns.

We also recommend additional clarification to assist our members in distinguishing between “providing general information for educational purposes” and solicitation of “any service or product other than tax return preparation services.” For example, a CPA firm’s quarterly newsletter might include an article on the benefits of accurate financial accounting for purposes of good business practices and accurate reporting. Would such an article be considered general educational information or a business solicitation for the firm’s accounting and bookkeeping department?

Accordingly, we recommend revising the specific wording of paragraph (n) as follows (additional wording in italics):

This list may be used by the compiler solely to contact the taxpayers on the list for the purpose of providing tax information and general business or economic information or analysis for educational purposes, or soliciting additional accounting and tax preparation services. The list may not be used to solicit any service or product other than accounting and tax return preparation services.

Thank you again for the opportunity to provide comments on this very important issue. If you have any questions or concerns, please contact me or VSCPA Government Affairs Director Emily Walker at ewalker@vscpa.com or (804) 612-9428.
 
Sincerely,

 
James K. Walker, CPA
Chair, Virginia Society of CPAs

cc: Virginia Board of Accountancy
 American Institute of CPAs
 State CPA Societies

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