CSEA LEGISLATIVE ADVOCACY

Intuit Responds to Concerns over its TurboTax Ad Campaign

 

Last week the national tax community expressed universal unhappiness over Intuit’s TurboTax “Break Up with Your Tax Pro” ad campaign, which many people and organizations found to be a harmful representation of the profession. After meeting with leadership from NAEA, AICPA, and NATP, Intuit has said it will discontinue the ad campaign. The phase out will likely take some time, so while you may continue to see some ads, rest assured the campaign will be ending.

 

This is a clear example of the power of professional organizations. The combined voices of national and state organizations, representing different facets of the tax professional community, all speaking in unison, were heard.

 

This is why organizations like CSEA, NAEA, AICPA, CalCPA, and NATP exist – to be the voice of our members, yes, but we champion for everyone in the community when we speak, whether they financially support the organization or not.

 

This moment is the best expression of the purpose of professional organizations and CSEA is proud to have stood in this space for nearly 50 years.

 

I believe we all should be members of multiple professional organizations. Be a member of as many organizations as you can afford. The tax community needs all of them, because when the state and federal legislatures, tax agencies, and even major industry partners need to hear messages on matters that impact the profession, having your voice represented by multiple reputable organizations is what moves the needle. But these nonprofit organizations can only exist if we financially support them, so I encourage you to become a member of the organizations of your choice.

 

Together, we all stand up to protect the tax professional community.

 

Sincerely,

Theresa Gordon, EA

President

California Society of Enrolled Agents



The following is a recap of the legislative activity of CSEA for the past 6 six years. Our history goes back decades. Based on our experience, recognition, and relationships with the state tax agencies and legislators, we are called upon for advice more and more.

2023

SB 454 Caballero – California Conformity

CSEA supports California Conformity as it generally reduces the burden on California taxpayers. The Secure Act 2.0 brought many changes to retirement planning. After our Stern/Mulak visit with Senator Caballero in January 2023, she solicited CSEA’s input on which specific items we felt would be appropriate to include in 2023 legislation. Understanding the legislative climate relative to budget, CSEA proposed the following sections be included:

  • Section 108 which provides indexing for inflation to the catch-up limit.
  • Section 109 which provides a higher pre-tax catch-up contribution to retirement accounts for ages 60-63.
  • Section 117 provides conformity with federal contribution limits for simple plans.

Senator Cabellero included those items in SB 454.

AB 1863 Irwin

Assemblymember Irwin, Chairwoman of the Assembly Revenue & Taxation Committee, introduced a bill regarding increasing taxpayer use of the CA Earned Income Tax Credit (AB 1863). CSEA provided valuable insight regarding the CA EITC and some of the impediments in the program and requested amendments to the bill, which resulted in changes to the bill.

Additionally, the Chairwoman’s office sought CSEA’s insight for an informational hearing on the CA EITC bill.

2022

The legislature reached out specifically to CSEA regarding AB 1249 and SB 1246. These two bills pertain to fire victim settlement income exclusion. The legislature sought CSEA’s insight regarding outreach as the FTB attempts to implement the bills!

2021

Conformity In The State Budget

During Stern/Mulak Advocacy Week CSEA advocated for additional PPP conformity through spring of 2021. This advocacy was successful, and the issue was addressed in the state budget (SB 154)!

Tax On Services

CSEA opposes tax on services. CSEA provided legislators with several arguments against any proposed tax on services.

2020

California’s Individual Health Care Mandate

CSEA sought to have a waiver of the penalty in year one of the implementation of California’s Individual Health Care Mandate. CSEA provided guidance on how such a penalty waiver could be implemented and held meetings with legislators’ offices to discuss the same. The state felt that the outreach taking place was sufficient to ensure taxpayer awareness.

Dynamex Decision/ AB 5 Implementation

CSEA highlighted the potential problems with implementation of AB 5 and its effect on employers.

2019

Wayfair Decision Implementation

CSEA Highlighted the priorities for implementation of the Wayfair Decision which would make it easier for taxpayers to comply.

2018

CSEA provided insight and offered its assistance in promoting compliance in these areas:

  • Abandoned Entity Dissolution
  • Voluntary Disclosure Program Fix
  • Roll Out Of New Tax Agencies

Advocacy

CSEA advocates for the rights of Enrolled Agents and taxpayers before all state and legislative and regulatory agencies. While the Society’s advocacy efforts are aimed at legislation and regulation that protect the rights of EAs to practice in California, we advocate for efficient and effective tax administration as well. We maintain strong, strategic relationships with the agencies that make decisions impacting Enrolled Agents and the tax industry such as:


  • Internal Revenue Service  (IRS)
  • Franchise Tax Board (FTB)
  • California Department of Tax & Fee Administration (CDTFA)
  • Board of Equalization (BOE)
  • Employment Development Department (EDD)
  • California Board of Accountancy (CBA)
  • California Tax Education Council (CTEC)

We have cultivated an effective presence in the State Capitol through:

  • Grassroots Lobbying
  • Annual Stern/Mulak Advocacy "Week"
  • STALM - State Tax Agency Liaison Meeting (annual)
  • FTB Taxpayer Bill of Rights (TBOR) Hearing

Want to know more about our advocacy efforts and successes?  
   Check out the video by Jennifer Tannehill, our lobbyist from Aaron Read & Associates, on the Legislative Action Fund page of this website!

Your contributions to the Legislative Action Fund (LAF) help support all legislative activities. 

Legislative Platform - Position Statements 

Our Legislative Platform is established by Board-approved position statements that address a myriad of tax administration issues.  These issues provide the guidance for your Legislative Affairs Committee to apply as they review all newly introduced legislation, determine its relevancy, and assign a level of action to take, if any.  Levels of action include Support, Oppose, Neutral/No Action, or Watch.  The current approved position statements are as follows:

  1. The California Society of Enrolled Agents, consistent with the Mission Statement of the Society, will strive to protect and enhance the interests of those Enrolled Agents engaged in providing fundamental and professional tax basis accounting services.

  2. The California Society of Enrolled Agents supports legislation and regulation that promotes fair and effective tax policy which reduces taxpayer burden and opposes legislation or regulation which would inhibit or limit fair and effective tax policy and increase taxpayer burden.

  3. The California Society of Enrolled Agents opposes conformity to tax reforms that would limit the ability to claim personal itemized deductions, deduction for alimony paid, or any similar proposal that would place an additional tax burden on many California taxpayers.

  4. The California Society of Enrolled Agents believes that California law and California Tax & Enforcement agencies ought to conform to federal law as it relates to payroll tax and the definition of employee vs. independent contractor status.

  5. The California Society of Enrolled Agents supports and encourages the protections of taxpayer rights per the Taxpayer’s Bill of Rights , as it was intended by California law, and maintaining those same protections even upon the disbanding or dissolution of new tax administration agencies, provided that all of the privileges and rights afforded to all practitioners governed by Treasury Department Circular 230 remain in effect.

  6. The California Society of Enrolled Agents supports the concept of consolidated collection of California tax liabilities.

  7. The California Society of Enrolled Agents supports amnesty for California taxpayers to come in to compliance with any California Code and opposes any inconsistent policies among California tax and regulatory agencies that restrict or confound taxpayers’ ability to become compliant.

  8. The California Society of Enrolled Agents supports legislation or regulation intended to combat identity theft, data breaches, cyber-crime, and other scams against taxpayers, tax preparers, and government agencies, provided that such regulation does not inhibit Enrolled Agents from effectively representing taxpayers.

  9. The California Society of Enrolled Agents supports legislation or regulation which enhances the ability of professional associations to serve the interests of their members and opposes legislation and regulation which would inhibit or limit their abilities to serve the interests of their members.

  10. The California Society of Enrolled Agents opposes sales/use taxes on personal services.

  11. The California Society of Enrolled Agents opposes personal income tax withholding on independent contractors.

  12. The California Society of Enrolled Agents opposes tax agencies collecting any information other than tax information

  13. The California Society of Enrolled Agents opposes any retroactive tax increases.

(Revised by the Board of Directors January 9, 2022).