By Jay Heflin - 08/24/10 09:07 PM EDT
The IRS has proposed rules on preparers that include mandatory registration, application of enforceable ethical standards, competency testing and continuing education.
The AICPA contends the new requirements will cost smaller firms at least $390 million during the first year of implementation.
"Economic theory argues that these costs will be passed on to taxpayers and/or absorbed by the CPA firm; either way, the economy suffers," wrote Alan Einhorn, chairman of AICPA's tax executive committee, to IRS Commissioner Doug Shulman.
The AICPA questions whether the IRS has adequately examined the costs that the new rules would impose on firms and taxpayers and has urged its members to contact the IRS to express opposition to the proposal.