New rules for accountants, effective Sunday, catch some CPAs by surprise

Syracus.com reported that about one-third of New York's 60,000 certified public accounts may miss Sunday's deadline to register with the state.

As part of new accounting profession regulatory reforms signed into law in January, all CPAs must register with the state Education Department and take classes each year to keep up to date.

"It's the CPA's ethical responsibility to see that they get registered," said David Moynihan, president of the state Society of Certified Public Accountants and a partner in Testone, Marshall & Discenza, a Syracuse accounting firm.

Under the state's existing law, only CPAs who do audit work must register. The new law expands the requirement to all CPAs who provide accounting, management, tax and financial advisory services. It represents the first major overhaul of the law since 1897, Moynihan said.
Read a Q&A on the changes for accountants in New York state here.

"There wasn't even a national income tax in 1897," he said. "All the other avenues CPAs have gotten into have been unregulated."

Moynihan said many CPAs are unaware of the change because they are retired or no longer living in New York state. Even retired CPAs who provide their services for free to nonprofits must register, he said.

As part of the new law, CPAs must take up to 40 hours of continuing professional education annually. Read more here.

This is an important change for nonprofits to acknowledge, especially as they explore audit services. Have additional comments? Post them here.