On January 30, 2018, Arizona State Senate Majority Leader Kimberly Yee (R) introduced SB 1443, which would modify CPA firm registration and certified public accountant designation requirements with the Arizona Board of Accountancy. The bill caught NAEA’s eye because it would strike through an existing enrolled agent safe harbor established under Arizona Revised Statutes Title 32, Professions and Occupations, Chapter 6, Certified Public Accountants, Article 3, Regulation of Certified Public Accountants, 32-174, Subsection B: “An individual enrolled to practice before the Internal Revenue Service and recognized as an enrolled agent may use the abbreviation “E.A.”.”

NAEA Associate Director of Government Relations Justin Edwards reached out to AICPA’s State Regulation and Legislation team to obtain clarification on the proposed strikethrough. NAEA reminded AICPA that the PATH Act (and the Enrolled Agents Credential Act) allows for all enrolled agents in good standing to hold forth their EA credential in all 50 states. AICPA passed our concerns on to the Arizona Society of Certified Public Accountants (ASCPA).

Justin also contacted Senator Yee’s office to obtain further clarification on SB 1443 in light of the PATH Act and a scheduled February 12 Arizona Senate Commerce and Public Safety Committee hearing held to consider SB 1443. AICPA subsequently received confirmation from ASCPA’s President and CEO that ASCPA did not see that the proposed changes would adversely impact enrolled agents.

Shortly after this confirmation, NAEA received a letter from the Executive Director of the Arizona State Board of Accountancy providing NAEA and AzSEA members with assurance that the proposed changes in SB 1443 would not have any adverse impact on enrolled agents.

NAEA’s Government Relations team thanked AICPA, ASCPA and the Arizona State Board of Accountancy for working with NAEA and AzSEA to provide clarity on Senator Yee’s proposed revisions to A.R.S. Sec. 32-747 under SB 1443, and for providing assurance to NAEA and AzSEA members that EAs may continue to hold themselves forth as enrolled agents in the State of Arizona.

February 14, 2018

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