Editorial Staff

Publisher/Editor-in-Chief
Colleen Katz

Managing Editor
Elizabeth Uva

Senior Editors
Katharine W. Coveleski
Laura Fischer
Peter D. Fleming
Michael Hayes
Robert Tie
Cynthia Waller Vallario
Stanley Zarowin

Assistant Editors
Sarah Cobb,Vincent Nolan

Contributing Editors
Anita Dennis, Lesli S. Laffie
Joan Mancuso, Barbara J. Shildneck

Production Director
Peter M. Tuohy 

Art Director
Jeryl A. Costello

Production Manager
Gene Cioffi

Senior Manager—
Production Services—
Publishing Technology
Robert DiCorcia

Production Editor
D. Hillel Lofaso

Senior Production Associates
Valrie Mason, Ingrid Medina

Art Assistant
Patricia L. Arrington

Associate Publisher
Thomas R. Greve

Advertising Team Manager
Karin DeMarco

Advertising Representatives
Gwenn M. Paness
Joseph Torres 

Advertising Coordinator
John Weinberg

Editorial Offices
201-938-3292
e-mail: joaed@aicpa.org

Advertising Office
212-993-0524

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Highlights

INSTITUTE TAKES STAND ON TAX SHELTER BILL PROVISIONS
The AICPA asked members who participate in the key person program to talk to their U.S. senators about certain provisions in S 2498, the Tax Shelter Transparency Act, on which, at press time, the Senate was poised to act. The AICPA strongly supports Congress’s goal of curbing tax shelters that abuse our tax system.

However, the Institute expressed its concern to the Senate Finance Committee that the bill would overreach its target, resulting in a statute so broad, vague and punitive it would have a burdensome effect on normal transactions.

Because the bill elevates the reporting standard for both taxpayers and tax preparers on all return items to the very highest (the “more likely than not”) standard now imposed only on tax shelter items, the AICPA said, it would affect all returns filed. In short, the proposed legislation would subject both taxpayer and tax preparer to penalties for any position reported on a business or personal return unless (a) the return specifically disclosed the position (for example, highlighted it as a potentially questionable transaction) or (b) both taxpayer and preparer reasonably believed the return position was “more likely than not” the correct position.

The AICPA recommended that Congress amend the Senate bill to retain, for tax return preparers, the present “realistic possibility of success” standard for nontax-shelter transactions and said it supported the language that raised the preparer standard on “disclosed positions” to “reasonable basis” from the present “not frivolous.”

AICPA NAMES TOP PUBLIC AFFAIRS OFFICER
The Institute appointed James A. O’Malley as senior vice-president of public affairs, effective September 9, replacing John E. Hunnicutt, who will retire October 31 after an 11-year career with the AICPA. Reporting to President and CEO Barry C. Melancon, O’Malley will head the Institute’s Washington, D.C., office, directing activities in key areas such as congressional/political affairs, regulatory matters, public relations and communications, state society relations, academic and career development, minority initiatives and women and family issues.

Prior to joining the Institute, O’Malley headed the creative and advertising practice at the public relations firm Burson-Marsteller, where his responsibilities included oversight and management of business-to-business and corporate reputation advertising and integrated communications, as well as handling multinational clients. O’Malley also was CEO of Burson-Marsteller Australia and held senior posts in government affairs and communications at several organizations.

Editorial Advisers

Kenneth D. Askelson, James Bean, Robert C. Beheler, Phyllis Bernstein, John C. Boma, Jacob R. Brandzel, Steven J. Brown, Jolene C. Brucks, Thomas F. Burrage, Linda Burt, J. Gregory Bushong, R. Patrick Cargill, Benson J. Chapman, Susan M. Comeau, Rosemarie T. Dunn, Thomas Emmerling, Elizabeth Fender, Penny A. Flugger, Barton C. Francis, Robert J. Freeman, John S. Gibbons, Alan Glazer, Randi K. Grant, Patrick T. Hanratty, James E. Hunton, Frank J. Kopczynski, Jeffrey B. Kraut, Dennis B. Kremer, William F. Laurie, Alan Levin, John Lewison, Joseph P. Liotta, Mano Mahadeva, Benjamin F. Mathews, Patrick Michael McDonough, Anita Meola, Debra Mitchell, Roger H. Molvar, Brenda Morris, Bea L. Nahon, Lyne P. Noella, Edward T. Odmark, Stanley Person, Mary P. Ricciardello, Mark L. Richardson, Wesley Riemer, Marshall B. Romney, David Satava, Peggy Scott, Carolyn Sechler, Gary Shamis, Ivan J. Sotomayor, Alan Steiger, Paul C. Sullivan, Keith Tobias, Gary R. Trugman, Robert Willens, Jon Arthur Wise, Mark A. Yahoudy