CPA Information
Rev. Proc. 2016-33, section 1.01 (3)
(3) The term “certified public accountant” (“CPA”) means a certified public accountant who–
(a) With respect to a CPEO applicant, is independent of the CPEO applicant (as prescribed by the American Institute of Certified Public Accountants’ Professional Standards, Code of Professional Conduct, and its interpretations and rulings);
(b) Is not currently under suspension or disbarment from practice before the IRS;
(c) Is duly qualified to practice in any state; and
(d) Files with the IRS a written declaration that he or she is currently qualified as a CPA and an authorization, in accordance with the requirements of § 601.503(a), to represent the CPEO applicant before the IRS.
§301.7705-1T (b)(4)
(4) Certified public accountant (CPA) means a certified public accountant who—
(i) With respect to a CPEO applicant or CPEO, is independent of the CPEO applicant or CPEO (as prescribed by the American Institute of Certified Public Accountants’ Professional Standards, Code of Professional Conduct, and its interpretations and rulings);
(ii) Is not currently under suspension or disbarment from practice before the IRS;
(iii) Is duly qualified to practice in any state;
(iv) Files with the IRS a written declaration that he or she is currently qualified as a CPA and authorized to represent the CPEO applicant or CPEO before the IRS; and
(v) Meets such other requirements as the Commissioner may prescribe in further guidance.
Preamble to Final and Temporary Regulations, section 3(c)
…In accordance with section 7705(c)(3)(A), the temporary regulations require the opinion regarding a CPEO’s financial statements to be provided by a CPA who is independent of the CPEO. For this purpose, the temporary regulations require a CPA to be independent as prescribed by the American Institute of Certified Public Accountants’ Professional Standards, Code of Professional Conduct, and its interpretations and rulings…
See also Notice 2016-49, § V
V. DEFINITION OF CERTIFIED PUBLIC ACCOUNTANT
In accordance with section 7705(c)(3)(A), the temporary regulations require the opinion regarding a CPEO’s financial statements to be provided by a CPA who is independent of the CPEO. For this purpose, §301.7705-1T(b)(4) and section 1.01 of Rev. Proc. 2016-33 require a CPA to be independent as prescribed by the AICPA’s Professional Standards, Code of Professional Conduct, and its interpretations and rulings. Additionally, §301.7705-1T(b)(4) and section 1.01 of Rev. Proc. 2016-33 provide that, among other requirements, the CPA must file with the IRS a written declaration that he or she is currently qualified as a CPA and authorized to represent the CPEO applicant or CPEO before the IRS. A similar written declaration must accompany the quarterly submission of the examination level attestation of a CPA that the CPEO applicant’s or CPEO’s assertion that it has withheld and made deposits of all federal employment taxes for which the CPEO applicant or CPEO is liable for the quarter, as required by §301.7705-2T(f), is fairly stated in all material respects. See Rev. Proc. 2016-33, §2.06(2).
Treasury and IRS have received comments raising a concern that the requirement that a CPA be authorized to represent the CPEO or CPEO applicant before the IRS could conflict with CPA independence requirements of the AICPA. To ensure that the CPA may be “independent” within the meaning of the AICPA guidelines, Treasury and IRS anticipate revising the definition of “certified public accountant,” as set forth in §301.7705-1T(b)(4) and section 1.01(3) of Rev. Proc. 2016-33, to omit the requirement that the CPA file with the IRS a written authorization to represent the CPEO applicant or CPEO before the IRS. Accordingly, the revised definition of “certified public accountant,” to be provided in the final regulations, will refer to a CPA who—
(i)With respect to a CPEO applicant or CPEO, is independent of the CPEO applicant or CPEO (as prescribed by the American Institute of Certified Public Accountants’ Professional Standards, Code of Professional Conduct, and its interpretations and rulings);
(ii) Is not currently under suspension or disbarment from practice before the IRS;
(iii) duly qualified to practice as a CPA in any state;
(iv) Files with the IRS a written declaration that he or she is currently qualified as a CPA; and
(v) Meets such other requirements as the Commissioner may prescribe in further guidance.
Furthermore, section 2.06(2) of Rev. Proc. 2016-33 will be revised to require that the written declaration accompanying the quarterly examination level attestation state only that the CPA is currently qualified as a CPA.