Blue Light Special
When you think of: Faster than a speeding bullet, do you think of Clark Kent, aka Superman? Well, if so, you are not keeping up with tax law. The Internal Revenue Code is now faster than a speeding bullet. I am not referring to the fact that tax law changes more quickly than fashion styles. I am referring to the fact that some new tax laws are only effective for less than 100 days.
Seriously!
Code Section 1202, which has been around since 1993, provides for an exclusion of a portion of the gain from the sale of C corporation stock, meeting specific requirements, held for more than 5 years. The exclusion rate, prior to the most recent legislative change, was either 50% or 75%. Under the Small Business Jobs Act of 2010, the exclusion is 100%. Now, that is a full exclusion. In other words, the gain on the sale of the stock is completely and totally tax free. This is a wonderful benefit and all practitioners should be sure to fully review the statute in full.
However!
But, the statute is effective only for stock acquired after September 27, 2010 and before January 1, 2011. That means September 28-30, all of October, all of November, and all of December 2010 but not a day later. That is less than 100 days! The time is short.
I find it remarkable that Congress can pass a law which virtually expires before the general public knows about it. I attribute this law to the new world of social media. It used to be we obtained our news by reading a printed newspaper, a fine magazine, or a book. Now the news comes to us via Facebook, MySpace, and Twitter. And Congress knows it.
Is the day too far off when tax law will change this way? You'll look at your iphone and read the following tweet: For the next 15 hours, if you buy a new ipad, you can take 120% depreciation. But, remember, this offer is only good for the next 15 hours. 16 hours, and you are toast. Act now!
Internal Revenue Code meet the Kmart Blue Light Special!
Thursday, November 11, 2010
SSARS NO. 19 IMPLEMENTATION DATE IMMINENT
The Accounting and Review Services Committee approved SSARS 19, Compilation and Review Engagements, on December 30, 2009. This standard becomes effective in 35 days; are you ready?
SSARS No. 19 is effective for compilations and reviews of financial statements for periods ending on or after December 15, 2010—that is, for 2010 calendar year-ends and later. Following is how the statement will affect your compilation and review engagements.
What SSARS No. 19 Does
Some of the more significant provisions of SSARS No. 19 include the following:
• Allows, but does not require, accountants to explain why they’re not independent in a compilation report.
• Separates the compilation requirements from the review requirements.
• Introduces the term review evidence into the review literature. Review evidence is defined as information the accountant uses to provide a reasonable basis for obtaining limited assurance.
• Provides guidance on how the accountant obtains limited assurance when performing review procedures.
• Requires tailoring review procedures for a particular engagement based on the accountant’s knowledge of the client, understanding of the client’s industry, and awareness of the risk that the accountant may knowingly fail to modify his or her report on materially misstated financial statements.
• Discuses the concept of materiality in the context of review engagements.
• Requires a written communication, (i.e. an engagement letter) documenting the understanding with the client regarding the services to be performed.
Documentation Requirements
In addition to the engagement letter, SSARS No. 19 requires the accountant to document the following items:
• Significant, unusual matters considered by the accountant during the performance of the compilation procedures, including their resolution.
• Analytical procedures performed, for review engagements, including management’s response to the accountant’s inquiries regarding fluctuations or relationships that are inconsistent with other information or that differ from expectations by a significant amount; additional review procedures performed and the results of those procedures; significant matters covered in the accountant’s inquiry procedures; significant findings or issues or unusual matters and their disposition; and the client representation letter.
• Communications regarding fraud or illegal acts that came to the accountant’s attention while performing the compilation or review engagement.
Reporting Changes
SSARS No.19 changes the language in standard compilation and review reports and provides illustrations of both types of reports. As previously noted, an accountant may now choose to include language in the accountant’s compilation report describing the reason the accountant is not independent. This disclosure would be added to the final paragraph of the report. There is no prescribed language the accountant must use in the report. Although accountants aren’t required to include the reason(s) for independence impairment, if disclosure is made, it must include all reasons independence is impaired.
Be sure that you and your staff are familiar with the new requirements of SSARS No.19 so you will be ready when the standard is effective.
SSARS No. 19 is effective for compilations and reviews of financial statements for periods ending on or after December 15, 2010—that is, for 2010 calendar year-ends and later. Following is how the statement will affect your compilation and review engagements.
What SSARS No. 19 Does
Some of the more significant provisions of SSARS No. 19 include the following:
• Allows, but does not require, accountants to explain why they’re not independent in a compilation report.
• Separates the compilation requirements from the review requirements.
• Introduces the term review evidence into the review literature. Review evidence is defined as information the accountant uses to provide a reasonable basis for obtaining limited assurance.
• Provides guidance on how the accountant obtains limited assurance when performing review procedures.
• Requires tailoring review procedures for a particular engagement based on the accountant’s knowledge of the client, understanding of the client’s industry, and awareness of the risk that the accountant may knowingly fail to modify his or her report on materially misstated financial statements.
• Discuses the concept of materiality in the context of review engagements.
• Requires a written communication, (i.e. an engagement letter) documenting the understanding with the client regarding the services to be performed.
Documentation Requirements
In addition to the engagement letter, SSARS No. 19 requires the accountant to document the following items:
• Significant, unusual matters considered by the accountant during the performance of the compilation procedures, including their resolution.
• Analytical procedures performed, for review engagements, including management’s response to the accountant’s inquiries regarding fluctuations or relationships that are inconsistent with other information or that differ from expectations by a significant amount; additional review procedures performed and the results of those procedures; significant matters covered in the accountant’s inquiry procedures; significant findings or issues or unusual matters and their disposition; and the client representation letter.
• Communications regarding fraud or illegal acts that came to the accountant’s attention while performing the compilation or review engagement.
Reporting Changes
SSARS No.19 changes the language in standard compilation and review reports and provides illustrations of both types of reports. As previously noted, an accountant may now choose to include language in the accountant’s compilation report describing the reason the accountant is not independent. This disclosure would be added to the final paragraph of the report. There is no prescribed language the accountant must use in the report. Although accountants aren’t required to include the reason(s) for independence impairment, if disclosure is made, it must include all reasons independence is impaired.
Be sure that you and your staff are familiar with the new requirements of SSARS No.19 so you will be ready when the standard is effective.
Friday, November 5, 2010
MAJOR LEAGE BASEBALL—MAJOR LEAGUE BUSINESS
Did you watch the World Series? Well, neither did a lot of other people since the games garnered the smallest TV audience in World Series history. My team didn’t win but it was great fun to watch. The Giants hadn’t won the World Series since the 1950’s and the Rangers had never even been to a World Series where they didn’t have to buy a ticket to get in.
As I watched the games, I thought a professional sports franchise must be an incredible business. One unlike any business most of us have ever been associated with. I know of no other business in the world where the average annual salary of its employees was over $3 million each in 2008. And that is up from an average of $1.1 million in 1995. The New York Yankees total player payroll for 2009 was a little over $210 million for a 40 man roster. And how about the fact that even if a player only bats .190, he will still be very well paid on pay-day.
Major league team owners complain that they lose money every year. I know you’re probably saying to yourself; “But what about all those TV and merchandise revenues?” In 2009 some $660 million (according to ESPN) was sent to the 30 clubs for TV rights. In addition the clubs participate in a revenue sharing program ($433million in 2009) that redistributes revenue from high earning clubs, like the New York Yankees, and gives it to clubs in need of assistance. Revenue from merchandise and licensing only accounts for a small part of a team’s revenues. The majority of a team’s income comes from league-wide revenue sharing, TV fees, ticket sales, and stadium revenues. To me it looks like you can’t lose, so why are they complaining?
For major league sports franchises, cash is definitely King, especially around payday. So, if your team is in need of cash where do you turn? To the guys with all the money; your employees. You may be able to talk some of the more highly paid players into deferring part of their salary to the end of their contract. If that doesn’t work, you can always trade your high-paid players to another team. These players are also usually your best players, so this option assures you a losing season next year.
So let’s summarize some of the unique aspects of the business of a major league baseball franchise:
1. Each of your employees, on average, makes more than $3 million a year.
2. Your employees don’t have to perform, but they will continue to receive their pay.
3. You share revenue from TV fees and merchandise sales with your competition.
4. If you don’t earn the highest revenues, don’t worry, your competitors will give you part of theirs.
5. If you make more money than your competitors, you have to give them part of yours.
6. The best place to borrow money is from your employees.
I think it’s a very unusual business, but still it’s a great game. What do you think?
As I watched the games, I thought a professional sports franchise must be an incredible business. One unlike any business most of us have ever been associated with. I know of no other business in the world where the average annual salary of its employees was over $3 million each in 2008. And that is up from an average of $1.1 million in 1995. The New York Yankees total player payroll for 2009 was a little over $210 million for a 40 man roster. And how about the fact that even if a player only bats .190, he will still be very well paid on pay-day.
Major league team owners complain that they lose money every year. I know you’re probably saying to yourself; “But what about all those TV and merchandise revenues?” In 2009 some $660 million (according to ESPN) was sent to the 30 clubs for TV rights. In addition the clubs participate in a revenue sharing program ($433million in 2009) that redistributes revenue from high earning clubs, like the New York Yankees, and gives it to clubs in need of assistance. Revenue from merchandise and licensing only accounts for a small part of a team’s revenues. The majority of a team’s income comes from league-wide revenue sharing, TV fees, ticket sales, and stadium revenues. To me it looks like you can’t lose, so why are they complaining?
For major league sports franchises, cash is definitely King, especially around payday. So, if your team is in need of cash where do you turn? To the guys with all the money; your employees. You may be able to talk some of the more highly paid players into deferring part of their salary to the end of their contract. If that doesn’t work, you can always trade your high-paid players to another team. These players are also usually your best players, so this option assures you a losing season next year.
So let’s summarize some of the unique aspects of the business of a major league baseball franchise:
1. Each of your employees, on average, makes more than $3 million a year.
2. Your employees don’t have to perform, but they will continue to receive their pay.
3. You share revenue from TV fees and merchandise sales with your competition.
4. If you don’t earn the highest revenues, don’t worry, your competitors will give you part of theirs.
5. If you make more money than your competitors, you have to give them part of yours.
6. The best place to borrow money is from your employees.
I think it’s a very unusual business, but still it’s a great game. What do you think?
Thursday, October 21, 2010
WEBINARS
Webinars are rapidly becoming one of the most popular types of CPE. However, some people may be confused about the difference between a webinar, a webcast, and a web conference. The confusion stems from the fact that the terms are often used interchangeably, but, while they are similar, each has its own unique attributes.
Defining the Terms
The term webinar is short for Web-based seminar. A webinar can be a presentation, lecture, workshop or seminar that is transmitted over the Internet. According to Wikipedia, “it is typically a one-way communication from the speaker to the participants with limited audience interaction. A webinar can be collaborative, however, and include polling questions, and questions and answer sessions to allow full participation between the audience and the presenter.” The presenter usually speaks over a standard telephone line while describing information being presented onscreen. The audience can respond over their own telephones or by using the Internet.
A webcast, according to Wikipedia, “is a media file distributed over the Internet using streaming media technology to distribute a single content source to many simultaneous listeners or viewers. A webcast may be distributed live or on-demand. Essentially, webcasting is ‘broadcasting’ over the Internet. The term webcasting usually refers to non-interactive linear streams of events.”
A web conference is used to conduct live meetings, training, or presentations via the Internet. In a web conference, each participant sits at their own computer and is connected to other participants via the Internet. With a web conference the presenter controls what participants see on their computer monitors by sharing their desktop. The presenter can also pass control of the screen to another attendee during the presentation without giving up control of the presentation.
Comparing the Differences
Webinars vs. Webcasts – One big differences between webinars and webcasts is that webinars are always live presentations; webcasts can be delivered live or on demand. Another difference is that, webinars are interactive; whereas web casts are non-interactive.
Webinars vs. Web Conferences – The difference between webinars and web conferences is that webinars allow only limited audience participation; whereas web conferences allow substantial audience participation.
Conclusion
Webinars are rapidly becoming the learning delivery method of choice because they are economical, easy to produce, and convenient for the participant. You can attend a webinar at home in your pajamas or at the office on your lunch hour. There is no travel, meal, or hotel expenses associated with a webinar. You don’t have to leave home to participate and best of all you don’t have to take an exam in order to receive CPE credit for the presentation. With a webinar you can easily build learning and CPE into your busy schedule; all you need is a high-speed Internet connection and a telephone.
If you are interested in learning more about webinars and the topics that are currently available, check out the Webinar Learning Network on Checkpoint Learning at: https://checkpointlearning.thomsonreuters.com/CPEBrands/WebinarLearningNetwork
Defining the Terms
The term webinar is short for Web-based seminar. A webinar can be a presentation, lecture, workshop or seminar that is transmitted over the Internet. According to Wikipedia, “it is typically a one-way communication from the speaker to the participants with limited audience interaction. A webinar can be collaborative, however, and include polling questions, and questions and answer sessions to allow full participation between the audience and the presenter.” The presenter usually speaks over a standard telephone line while describing information being presented onscreen. The audience can respond over their own telephones or by using the Internet.
A webcast, according to Wikipedia, “is a media file distributed over the Internet using streaming media technology to distribute a single content source to many simultaneous listeners or viewers. A webcast may be distributed live or on-demand. Essentially, webcasting is ‘broadcasting’ over the Internet. The term webcasting usually refers to non-interactive linear streams of events.”
A web conference is used to conduct live meetings, training, or presentations via the Internet. In a web conference, each participant sits at their own computer and is connected to other participants via the Internet. With a web conference the presenter controls what participants see on their computer monitors by sharing their desktop. The presenter can also pass control of the screen to another attendee during the presentation without giving up control of the presentation.
Comparing the Differences
Webinars vs. Webcasts – One big differences between webinars and webcasts is that webinars are always live presentations; webcasts can be delivered live or on demand. Another difference is that, webinars are interactive; whereas web casts are non-interactive.
Webinars vs. Web Conferences – The difference between webinars and web conferences is that webinars allow only limited audience participation; whereas web conferences allow substantial audience participation.
Conclusion
Webinars are rapidly becoming the learning delivery method of choice because they are economical, easy to produce, and convenient for the participant. You can attend a webinar at home in your pajamas or at the office on your lunch hour. There is no travel, meal, or hotel expenses associated with a webinar. You don’t have to leave home to participate and best of all you don’t have to take an exam in order to receive CPE credit for the presentation. With a webinar you can easily build learning and CPE into your busy schedule; all you need is a high-speed Internet connection and a telephone.
If you are interested in learning more about webinars and the topics that are currently available, check out the Webinar Learning Network on Checkpoint Learning at: https://checkpointlearning.thomsonreuters.com/CPEBrands/WebinarLearningNetwork
Wednesday, October 6, 2010
PTIN BEGINS & COMPETENCY IS COMING
Earlier this year the IRS announced their new tax preparer initiative (see my blog “Sign Me Up Boys” of May 6) that will require all paid tax preparers to obtain a Preparer Tax Identification Number (PTIN). Unenrolled tax preparers will also be required to pass a competency exam and take mandatory continuing professional education courses.
On September 28, the IRS launched the PTIN registration system component of its tax payer initiative program and provided further clarification of the unenrolled tax payer program. Here are some of the more significant items you should know.
New PTIN Requirements
1. All compensated tax return preparers or those assisting in preparing the return must obtain a PTIN.
2. All federal tax return preparers–even those who already have a PTIN–will need to register in the new system by December 31, 2010.
3. At least initially, non-signing preparers will not have to be disclosed on each return.
4. An employee of a business who prepares the business tax return as part of their job responsibilities will not be required to sign the return as a paid preparer or register and obtain a PTIN.
5. All paid tax return preparers are required to obtain a PTIN. This includes those who only prepare payroll or other non-1040 tax returns.
6. You must be at least 18 years of age to obtain a PTIN.
7. Individuals who prepare tax returns as a VITA volunteer are not required to have a PTIN.
Competency Testing
1. Those who pass the competency test will be called “registered tax return preparers.”
2. The test will only be available in English, initially.
3. The test will be open book. Certain resources will be permitted and provided by the testing center.
4. The passing percentage for the test still hasn’t been determined. You may take the test an unlimited number of times, but the fee will apply each time you take the course.
5. If you don’t pass the test by December 31, 2013, your PTIN will be deactivated and you can no longer prepare tax returns for compensation.
6. Testing is expected to begin by midyear 2011.
7. To take the test, you must physically go to the testing site.
Other Credentials
1. Accredited Council of Accountancy for Taxation (ACAT) credential holders must obtain a PTIN and pass the competency exam unless they are a CPA, attorney or enrolled agent.
2. Registered or Licensed Public Accountants (LPAs) that have the same rights and privileges as a certified public accountant will not be required to pass the competency exam or satisfy the CPE requirements. However, if they do not have the same rights and privileges as a certified public accountant, they will be required to pass the competency exam and satisfy the CPE requirements. (Check with your state regulator.)
For information on training to prepare you to pass the unenrolled tax preparers exam, go to the following website:
http://www.gearup.com/cart/BrowseByTopic.aspx?Code=10-s250
Is creating this fourth class of individuals who are approved to prepare federal tax returns good for taxpayers or the accounting profession? What do you think?
On September 28, the IRS launched the PTIN registration system component of its tax payer initiative program and provided further clarification of the unenrolled tax payer program. Here are some of the more significant items you should know.
New PTIN Requirements
1. All compensated tax return preparers or those assisting in preparing the return must obtain a PTIN.
2. All federal tax return preparers–even those who already have a PTIN–will need to register in the new system by December 31, 2010.
3. At least initially, non-signing preparers will not have to be disclosed on each return.
4. An employee of a business who prepares the business tax return as part of their job responsibilities will not be required to sign the return as a paid preparer or register and obtain a PTIN.
5. All paid tax return preparers are required to obtain a PTIN. This includes those who only prepare payroll or other non-1040 tax returns.
6. You must be at least 18 years of age to obtain a PTIN.
7. Individuals who prepare tax returns as a VITA volunteer are not required to have a PTIN.
Competency Testing
1. Those who pass the competency test will be called “registered tax return preparers.”
2. The test will only be available in English, initially.
3. The test will be open book. Certain resources will be permitted and provided by the testing center.
4. The passing percentage for the test still hasn’t been determined. You may take the test an unlimited number of times, but the fee will apply each time you take the course.
5. If you don’t pass the test by December 31, 2013, your PTIN will be deactivated and you can no longer prepare tax returns for compensation.
6. Testing is expected to begin by midyear 2011.
7. To take the test, you must physically go to the testing site.
Other Credentials
1. Accredited Council of Accountancy for Taxation (ACAT) credential holders must obtain a PTIN and pass the competency exam unless they are a CPA, attorney or enrolled agent.
2. Registered or Licensed Public Accountants (LPAs) that have the same rights and privileges as a certified public accountant will not be required to pass the competency exam or satisfy the CPE requirements. However, if they do not have the same rights and privileges as a certified public accountant, they will be required to pass the competency exam and satisfy the CPE requirements. (Check with your state regulator.)
For information on training to prepare you to pass the unenrolled tax preparers exam, go to the following website:
http://www.gearup.com/cart/BrowseByTopic.aspx?Code=10-s250
Is creating this fourth class of individuals who are approved to prepare federal tax returns good for taxpayers or the accounting profession? What do you think?
Thursday, September 30, 2010
A BLUE-RIBBON PANEL
Toward the end of 2009 the Financial Accounting Foundation (FAF) in cooperation with the AICPA and the National Association of State Boards of Accountancy formed a blue-ribbon panel to address how accounting standards in the United States can best meet the needs of users of private company financial statements. The formation of this panel represents the latest in a series of developments related to the “big GAAP/little GAAP” debate. (See my blog of May 14th.)
There are over 22 million private companies in the U.S. but there are only about 17,000 publicly traded companies so it would appear that addressing the accounting and financial reporting needs of this very large group should certainly be a priority of the FAF. Rick Anderson, chairman and CEO of Moss Adams LLP and a member of the FAF Board of Trustees, was appointed chairman of the panel. The panel is expected to provide recommendations on the future of accounting standard-setting for private companies, including whether there is a need for separate, stand-alone accounting standards for those companies.
The panel evaluated five possible approaches. They rejected two of the five approaches and then expanded their evaluation of the remaining three. The panel rejected the current approach to setting generally accepted accounting principles related to private companies. They do not believe that the current method is meeting user needs in a cost-effective manner. They also rejected adoption of the current International Financial Reporting Standards for Small and Medium sized Entities, IFRS for SMEs.
The three remaining models that the panel is evaluating are as follows:
1. U.S. GAAP with exclusions and enhancements for private companies.
2. Basic U.S. GAAP with public company add-ons, and
3. Separate, stand-alone standards for private companies based on current U.S. GAAP.
The panel is also exploring whether to recommend a board separate from the FASB to oversee private company standards. Barry Melancon, CEO of the AICPA, and one of the panel members, believes that they should.
Before making its final recommendations the panel sought input from the public about how accounting standards can best meet the needs of users of private company financial statements. The comment period just ended on September 15, 2010. The panel is expected to make its final recommendations by the end of the year.
The issue of big GAAP vs. little GAAP has been debated for decades. So, the likelihood that the recommendations of the panel will be adopted in the near term is probably very small. However this is an issue that I believe needs to be addressed. What do you think?
There are over 22 million private companies in the U.S. but there are only about 17,000 publicly traded companies so it would appear that addressing the accounting and financial reporting needs of this very large group should certainly be a priority of the FAF. Rick Anderson, chairman and CEO of Moss Adams LLP and a member of the FAF Board of Trustees, was appointed chairman of the panel. The panel is expected to provide recommendations on the future of accounting standard-setting for private companies, including whether there is a need for separate, stand-alone accounting standards for those companies.
The panel evaluated five possible approaches. They rejected two of the five approaches and then expanded their evaluation of the remaining three. The panel rejected the current approach to setting generally accepted accounting principles related to private companies. They do not believe that the current method is meeting user needs in a cost-effective manner. They also rejected adoption of the current International Financial Reporting Standards for Small and Medium sized Entities, IFRS for SMEs.
The three remaining models that the panel is evaluating are as follows:
1. U.S. GAAP with exclusions and enhancements for private companies.
2. Basic U.S. GAAP with public company add-ons, and
3. Separate, stand-alone standards for private companies based on current U.S. GAAP.
The panel is also exploring whether to recommend a board separate from the FASB to oversee private company standards. Barry Melancon, CEO of the AICPA, and one of the panel members, believes that they should.
Before making its final recommendations the panel sought input from the public about how accounting standards can best meet the needs of users of private company financial statements. The comment period just ended on September 15, 2010. The panel is expected to make its final recommendations by the end of the year.
The issue of big GAAP vs. little GAAP has been debated for decades. So, the likelihood that the recommendations of the panel will be adopted in the near term is probably very small. However this is an issue that I believe needs to be addressed. What do you think?
Wednesday, September 29, 2010
Plain Speaking and Tax Law
NOTE: This blog was written by Abe Carnow.
As you know, President Obama on September 27 signed the Small Business tax law, H.R. 5297. Right on the heels of his signature, the following news item appeared on BNA Daily Tax Real Time, on September 28, in the afternoon.
Senate Passes Amended Version of ‘Plain Writing’ Bill Affecting IRS Rules
The Senate passed legislation by unanimous consent late on September 27th that would require government agencies such as the Internal Revenue Service to draft all public documents in “plain writing.” The Plain Writing Act of 2010 (H.R. 946) would require IRS to provide tax forms in plain writing and would require federal agencies to draft documents explaining how to comply with federal guidelines in plain writing. House lawmakers passed the bill by a vote of 386-33 on March 17th and will need to vote again to send the amended bill to the president. The text of the bill is:
In the Senate of the United States, September 27, 2010.
Resolved, That the bill from the House of Representatives (H.R. 946) entitled ‘‘An Act to enhance citizen access to Government information and services by establishing that Government documents issued to the public must be written clearly, and for other purposes.’’, do pass with the following:
AMENDMENTS:
1. On page 2, line 17, strike relevant to and insert necessary for
3. On page 3, strike lines 5 through 9 and insert the following:
PLAIN WRITING—The term ‘‘plain writing’’ means writing that is clear, concise, well-organized, and follows other best practices appropriate to the subject or field and intended audience.
This idea is a fine one. But, I have a suggestion for Congress.
How about writing the tax law using plain writing, meaning writing that is clear, concise, well-organized, and follows other best practices appropriate to the subject or field and intended audience? What do you think?
As you know, President Obama on September 27 signed the Small Business tax law, H.R. 5297. Right on the heels of his signature, the following news item appeared on BNA Daily Tax Real Time, on September 28, in the afternoon.
Senate Passes Amended Version of ‘Plain Writing’ Bill Affecting IRS Rules
The Senate passed legislation by unanimous consent late on September 27th that would require government agencies such as the Internal Revenue Service to draft all public documents in “plain writing.” The Plain Writing Act of 2010 (H.R. 946) would require IRS to provide tax forms in plain writing and would require federal agencies to draft documents explaining how to comply with federal guidelines in plain writing. House lawmakers passed the bill by a vote of 386-33 on March 17th and will need to vote again to send the amended bill to the president. The text of the bill is:
In the Senate of the United States, September 27, 2010.
Resolved, That the bill from the House of Representatives (H.R. 946) entitled ‘‘An Act to enhance citizen access to Government information and services by establishing that Government documents issued to the public must be written clearly, and for other purposes.’’, do pass with the following:
AMENDMENTS:
1. On page 2, line 17, strike relevant to and insert necessary for
3. On page 3, strike lines 5 through 9 and insert the following:
PLAIN WRITING—The term ‘‘plain writing’’ means writing that is clear, concise, well-organized, and follows other best practices appropriate to the subject or field and intended audience.
This idea is a fine one. But, I have a suggestion for Congress.
How about writing the tax law using plain writing, meaning writing that is clear, concise, well-organized, and follows other best practices appropriate to the subject or field and intended audience? What do you think?
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