AICPA Supports Bill to Clarify State Tax Treatment of Nonqualified Deferred Comp

January 4, 2006

The Honorable Chris Cannon

Chairman, Subcommittee on Commercial and Administrative Law

Committee on the Judiciary

2138 RayburnHouseOfficeBuilding

Washington, DC20515




Dear Mr. Chairman:




The American Institute of Certified Public Accountants thanks you for the opportunity to submit a written statement for the hearing record on H.R. 4019 relating to the State Taxation of Non-Resident Retirement Income.




In 1996, we supported Public Law 104-95 based on the extreme difficulty of administering a system that would consistently, fairly, and efficiently allocate retirement income based on the state in which it was earned. Our original concerns about administrative burden are no less true today for partners than they were ten years ago. And from a tax policy perspective, equity would dictate the consistent treatment of employees and partners. For these reasons, we support H.R. 4019 as it would implement the original intent of the public law.




The AICPA is the national, professional organization of certified public accountants comprised of more than 350,000 members. Our members advise clients on federal, state, and international tax matters, and prepare income and other tax returns for millions of Americans. They provide services to individuals, not-for-profit organizations, large and medium-sized businesses, as well as America’s small businesses. It is from this broad base of experience that we offer our comments.




Again, we appreciate the opportunity to make our views known. We would be pleased to discuss these important concerns with you at any time. If you have any questions, please contact me at; or Edward S. Karl, AICPA Director, at, if we can assist you in any way.








Thomas J. Purcell, III

Chair, Tax Executive Committee


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