Chapter four: 1975-1984.

NSPA's fourth decade was one of growth and expansion: membership increased steadily, services expanded smoothly and NSPA's legislative efforts proved significant. NSPA also took the major step of constructing its own headquarters structure. While the actual move out of Washington, DC, to Alexandria, Virginia, was only a "stones throw away," its influence on the Society was tremendous. Alexandria remains today the headquarters home of the National Society, and the city is now home to over 200 other professional and trade associations.

INTERNAL ISSUES/STATE OF THE SOCIETY

NSPA celebrated it 29th anniversary in Atlanta, Georgia, and this convention proved notable in a number of ways. Consumer activist Ralph Nader and Small Business Administration (SBA) Administrator Mitchell P. Kobelinski both gave outstanding presentations. "Nader's in particular was probably one of the best speeches in the history of NSPA," President Al Van Tieghem recalled.

NSPA's bylaws were also significantly revised during this convention. Some of the amendment changes: The Federal Taxation Committee was established as a standing committee; the Education and Professional Development Committee was restructured to provide continuity of ideas; the Society's fiscal year was changed to begin on September 1; the Public Service Committee became the Public Relations Committee; a mechanism for appointing a secretary-treasurer should the office become vacant midterm was determined; and procedures were established for the removal of a state director should such action become necessary.

In early 1975, in response to inflation and the constantly increasing expense of doing business, NSPA reluctantly approved a dues increase. Effective the following July, active member dues increased from $36 to $48 a year. Despite the increase, NSPA dues remained well below most other national and state professional societies.

President Albert R. Van Tieghem recognized the need for future planning and appointed a Long Range Planning Committee. Calling the committee "one of the most important active committees of the National Society," Van Tieghem said it would "address virtually every major facet of our national organization."

Other changes during the '70s included a revision of the qualifications for active membership, as well as a policy granting the president the authority to appoint a Nominating Committee. This committee would include one member from each NSPA administrative district who would be responsible for soliciting candidates for offices and evaluating their qualifications. That same year, the Society also modified its formula for determining convention delegate-at-large status. The new formula provided for two automatic delegates per state plus one for every 50 members or fraction thereof up to 500 members. Each state was also authorized an additional delegate for each 200 members in excess of the first 500.

The 1980s promised change and innovation for both the public accountancy profession and NSPA. Important issues of that decade included advanced computer technology; increased numbers of women in the workforce and the profession; increased government involvement in small business; higher postal rates but not necessarily greater efficiency in service or delivery; the continued energy crisis and its impact on Society activities; the proliferation of complex tax laws and regulations; inflations impact on individuals and small business; and a recognition that the relevance, importance and role of NSPA - for both members and prospective members - must be continuously monitored.

NSPA celebrated its 35th year with record attendance - more than 950 members, families and guests - at the 1980 convention, held in Vancouver, British Columbia. The program featured Assistant Commissioner (Technical) Gerald G. Portney of the IRS. Charles H. Earp of Florence, SC, was elected NSPA's 34th president. Earp called for the membership to work together toward common goals, to build "a sound foundation for the unification of our profession for the benefit of the public."

NSPA HEADQUARTERS BUILDING - A HOME OF OUR OWN 

NSPA's 35th year promised a bright future administratively, as the Society prepared to move into its new three-story headquarters building. The new offices were located at 1010 North Fairfax Street in Alexandria, VA, only minutes from the nation's capital. Plans were to occupy the building by mid-December, 1980, and hold an official dedication ceremony the following May, in conjunction with the 1981 government regulatory conference. The decision to own and construct the headquarters building was not an easy one. While the space at 1717 Pennsylvania Avenue was tight, the location was prestigious (downtown Washington, DC) - and only required a monthly rental commitment. The pride of ownership carried with it a large mortgage obligation.

However, the decision to build instead of continuing to rent promised the Society many long-range benefits. These included reduced administrative and overhead costs, which in turn would free member dues to support increased service. The move also provided NSPA with better operating efficiencies; increased floor space that allowed staff to maintain more reference materials and technical publications; and a conference room for meetings to serve the needs of an increasingly sophisticated and complex profession. "Constructing our own building reflects NSPA's steady growth," said Charles Earp. "The close proximity of Alexandria to downtown Washington will allow NSPA officers, committees and staff [continued] easy access to Congress, the IRS and other government agencies."

Making this idea a reality meant a great deal of hard work and sacrifice by many NSPA members and staff, spearheaded by a dedicated Building Committee. Chaired by Rocco J. Antonelli, the committee was composed of past and future presidents, represented by Curtis E. Brekke, Charles H. Earp, Paul S. Allen, Louis Mirman, Carl C. Perry and Minor S. Shirk; and NSPA Executive Vice President Stanley H. Stearman. The time invested by these individuals cannot be overestimated. But through their oversight and commitment, NSPA became the proud owner of a permanent, attractive and perfectly functional headquarters building.

"To me, constructing our own building is the most significant thing NSPA ever did - our most important physical accomplishment and symbol," Stearman said, reflecting back in 1995. The building took six months to complete and NSPA paid off the mortgage in 1992 - only 11 years after dedicating the structure. "The fact that we paid off the mortgage in record time also stands out as a major accomplishment to me," he noted.

The move symbolized the forward-thinking nature of NSPA, according to Stearman. "When we moved to Alexandria in 1980, there were only a few national associations located there. By 1994, there were several hundred national associations and not-for-profit organizations headquartered in Alexandria. We were ahead of our time."

Excitement about the new headquarters propelled NSPA into 1981, when the Society's Housing Dedication Committee - Rudolph Passero, W.R. Lampley, Christine Lampley and Martin Kaufman - together with many current and former officers, staff and local government representatives, braved single-digit temperatures and chilling winds on January 10, 1981, to ceremoniously bury a marble time capsule at the new headquarters building. The marble slab, weighing more than 1,700 pounds, was from Tennessee, the state where NSPA's first organizational meeting was held. It remains to this day as the centerpiece of the building's entrance, as solid a mark of permanence as any profession or organization could desire.

The time capsule is not to be opened until 2045 - the 100th anniversary of NSPA. At that time, accountants of the 21st century should gain invaluable insights into the history of both NSPA and the public accountancy profession. The contents of the capsule include a wealth of material, such as publications summarizing several annual conventions; issues of the National Public Accountant and the Washington Reporter; press releases; copies of testimony to various Congressional committees; photos; early surveys of the membership and profession; a 35-year history of NSPA; accreditation exam information; copies of the NSPA charter, constitution and bylaws; a copy of the NSPA-Small Business Administration (SBA) Technical Assistance Agreement; an artist's rendering of the NSPA headquarters building; commentaries and predictions by Society leadership; a souvenir penny - a tradition when sealing any time capsule - and more.

The three-story structure, built of hardburn brick veneer on a steel frame set on a concrete foundation, is 46[feet] wide by 90[feet] long on a 6,144 square foot lot. The ground level provides covered parking for 19 cars. The structure is imposing and elegant in its simplicity.

The new building, built and owned by NSPA, "is a mark of progress and a landmark that is emblematic of NSPA's growth - a growth that is based in membership service," said Earp at the dedication. "This building represents the sacrifices of our past leaders and members. Of their valued history we should take proper note, but let us go a bit farther. This building should also serve as a beginning - as an open door to the far greater challenges that lie ahead. Our past has been a memorable past, but it is in the future that our test of greatness now lies."

May 28, 1981, was an exciting day for NSPA as more than 300 members, spouses, guests and friends attended the inspiring official dedication ceremony of the Society's new home. Making the ceremonies even more moving was the presence among the honored guests of two of NSPA's original founders, William J. Franz of Cleveland, OH, and Clarence Hook of Cincinnati, OH. Originally planned to take place at the new headquarters, the event was moved to a nearby hotel when the skies opened and rain poured down on participants. Even Mother Nature, however, could not dampen the excitement and enthusiasm of this important day for NSPA.

The dedication ceremonies were attended by high ranking and elected representatives of local government. The mayor of Alexandria was present and warmly welcomed the Society to the community. A formal proclamation from the city still hangs on a headquarters wall today.

An important element of NSPA's ability to finance, construct and quickly pay for its own building were contributions from state societies. In recognition of their invaluable support of the headquarters building project, NSPA established a Hall of States Honor Roll - still on display today - listing NSPA-affiliated state societies that contributed $1,000 or more in partnership to share construction costs. Charter members were the state societies of New Mexico, Missouri, California, Arizona, Pennsylvania, Utah, Tennessee, Texas, New York, Hawaii, Indiana, Michigan, Rhode Island, Minnesota, Maryland, Wyoming, Georgia, Florida, Louisiana and Arkansas.

LEGISLATIVE ISSUES/TAXATION

The Society took firms steps toward achieving its goals, in part by developing a new staff department of taxation, led by Phyllis Borghese, who had been the longtime director of education and professional development. The new department was to be responsible for coordinating and directing all NSPA activities relative to federal and state tax matters, working closely with the Federal Taxation Committee and providing staff support to the Board of Governors and other committees involved with any tax-related projects.

As an indication of NSPA's recognized role in federal issues, 1974-1975 NSPA President Elmer F. Heckinger was appointed to serve on the 1975 IRS Commissioner's Advisory Group, under IRS Commissioner Donald C. Alexander. The group met quarterly with IRS staff on matters of tax administration.

NSPA continued to work diligently in Washington, DC, on behalf of many members on many fronts - with the IRS, on Capitol Hill and with various Federal agencies. A notable example is the Small Business Administration (SBA). NSPA's ongoing commitment to combat discrimination against public accountants can be encapsulated in a statement to the SBA that said in part:

"NSPA adheres to the policy of fostering and advancing the public welfare and interests of public accounting as a unified profession rather than advocating for each constituent category of accountant. NSPA strives to remove what we believe to be artificial restrictions which preclude a large group of capable practitioners from engaging in their profession. NSPA does not support any action which would cause diminished standards of practice or a dilution of auditing guidelines. The selection of an accountant, be he certified, licensed or otherwise, should be prompted by a reliance upon ability to perform the work, experience in the field involved and capability to meet work deadlines with speed and efficiency."

In a statement to the Federal Trade Commission at the time, NSPA emphasized:

"Use of the word 'certified' to qualify both 'public accountant' and 'financial statement' or 'balance sheet' has led many businessmen to believe that only certified public accountants can 'certify' a financial statement. Such is not the case and is patently incorrect ... Practitioner competence, skill and acumen are unique to the individual, be he certified or uncertified."

NSPA's partnership with the SBA has proven to be a long-lasting commitment that continues today. In 1979, SBA helped NSPA make its case with the General Accounting Office. In a letter from SBA's Office of Chief Counsel for Advocacy to the Comptroller General of the U.S., SBA asked that GAO further study the issue of eligibility of public accountants, "who generally are small business persons," for most U.S. government-related auditing assignments. By 1980, the SBA Office of Advocacy had requested NSPA participation on a Task Force on Small Business and Economic Stability, organized to help small firms across the country with financial problems arising from credit restraints.

NSPA found it necessary to call for hearings and ask for clarification on S1401, a bill to license tax return preparers, before voicing support of the bill. It was introduced by Sen. Abraham Ribicoff (D-CT) and was aimed at exempting attorneys, certified public accountants, licensed public accountants and enrolled agents from licensing requirements, including exams.

Taxation legislation has remained of prime interest to NSPA. In 1975 the Society registered its objection in testimony before the IRS to proposed regulations that would have changed procedures in handling invalid or questionable withholding exemption certificates.

In early 1976, NSPA applied pressure and succeeded in seeing pension plan requirements changed. This resulted in a Department of Labor decision to exempt private pension plans with fewer than 100 participants from submitting annual audited financial reports. NSPA held that striking a fair and equitable balance between employer benefit plan security and additional cost and paperwork was a fragile process. The Society also supported "set terms" for the IRS Commissioner, supporting a bill introduced by Sen. Joseph Montoya (D-NM) to that effect to insulate the IRS from outside political pressures.

At the same time, the Society filed comments with the SBA, calling a proposal to limit audits of federal financial assistance programs to CPAs and to those PAs licensed to practice on or before Dec. 31, 1970, discriminatory and a "drastic and unwarranted departure from the [SBA] established definition of qualifications for independent public accountants." That issue seemed to echo from the past and reflected NSPA's longtime efforts to convince the General Accounting Office to give public accountants equal access to the opportunity to audit federal assistance programs.

Several bills were before the House that year concerning tax reform. One such bill introduced by Rep. John T. Myers (R-IN) was to create a nonpartisan Commission on Tax Revision to completely review the nation's tax laws and make recommendations for change. NSPA strongly recommended change in a reform bill concerning the identification of negligence among tax return preparers. "While NSPA believes that legislation is needed to curb abuses in the tax preparation field, the tax return preparer should not have this burden placed upon him, but rather it should be on the shoulders of the IRS to show negligence," NSPA said at the time.

Prior to the 1977 tax season, NSPA was prepared to educate tax preparers on the Tax Reform Act of 1976. The Society also distributed information on the tax law to 500 editors around the country, to help spread the word among the taxpaying public.

Evidence of a cordial working relationship between NSPA and the IRS continued as the IRS Tax Forms Committee invited NSPA member comments on 1977 tax forms. Such comments were considered invaluable, since practitioner views were based on personal experience with the forms. But a cordial relationship didn't prevent the Society from protesting the IRS' policy of assessing penalties for signature infractions - a protest that resulted in the IRS terminating that policy.

National affairs took a slightly different turn in 1977 when the Federal Trade Commission announced plans to investigate the accounting profession by looking into the activities of state accountancy boards and private accounting associations to determine if these entities restricted the competitive behavior of accountants or restrained entry into the profession of accounting. NSPA cooperated fully with the investigation and kept members fully informed through its publications of actions resulting from the investigation.

In related issues, NSPA Past President Rudolph J. Passero testified before a Senate Subcommittee on Reports, Accounting and Management for a staff study on "The Accounting Establishment." Hearings were held to determine if the federal government should have a role in establishing accounting standards used in reporting financial and other information to the public. "NSPA was founded in the belief that accountancy legislation should provide licensing and regulation for all practitioners who offer accounting and related services to the public," Passero testified.

In response to an NSPA suggestion, the IRS issued "Guidelines on District Liaison Committees." An NSPA resolution called for a mandate that such committees be composed of people from the public, the accounting profession, legal profession and the IRS. NSPA input was the basis for the IRS guidelines, which included such a mandate.

In yet another victory for NSPA, the IRS announced in April 1978 that it would not impose penalties on income tax return preparers who failed to compute and report additions to taxes imposed under IRC [section]6654 and 6655. NSPA also realized victory in its efforts to have the IRS drop penalties against income tax return preparers for failing to file forms 2210 and 2220. Although NSPA said the move was "necessary and welcome," the Society noted that "a more serious problem still remains ... the issuance of preparer penalties for negligence under Section 6694 of the IR Code of 1954, as amended by Section 1203 of the Tax Reform Act of 1976," an issue that NSPA diligently continued to pursue into the 1980s on behalf of its members.

Responding to 1978 proposed changes in Circular 230, NSPA commended the Treasury Department for proposing "such extensive and realistic revision to the rules of practice" relating to advertising and solicitation. NSPA's ethical rules on this issue were among the sources cited by the Treasury Department in drawing up its guidelines. NSPA's Elmer Heckinger, chair of the Federal Taxation Committee, called the move progressive and commended the IRS commissioner for having a "realistic appreciation of the role of the professional tax practitioner."

NSPA continued to experience success in legislative and national issues as the 1970s rolled to an end. In 1979, the Farmers Home Administration (FmHA) signed an agreement that affirmed the mutual desire of FmHA and NSPA to cooperate in establishing policies and procedures that complemented each other, including NSPA's commitment to providing voluntary technical and management assistance to FmHA applicants, borrowers and/or grantees. The U.S. Department of Agriculture (USDA) also agreed to let "state licensed public accountants" perform audits for its National School Lunch Program, Special Milk Program for Children, School Breakfast Program and Nonfood Assistance Program. NSPA called this "a most welcome departure from standard GAO policy language, which limits audits for federally funded programs to those licensed public accountants who were licensed [before] December 31, 1970."

In February 1979, the Society experienced an exciting milestone when the Small Business Paperwork Reduction and Penalty Equalization Amendments Act was introduced in the U.S. House of Representatives by Rep. John Duncan (R-TN), William Whitehurst (R-VA) and Edward Madigan (R-IL). This was the first time in NSPA history that a bill the Society drafted and sponsored was introduced in Congress!

This historic legislation amended the IRS Code of 1954 by reducing the cost and paperwork on small businesses of issuing W-2 forms to employees terminated before the end of the calendar year and by eliminating statutorily the penalty on preparers for failure to compute and file Forms 2210 and 2220. "Most importantly," said NSPA, "the bill establishes an objective criteria for negligence by a tax return preparer against which the IRS must evaluate a proposed negligence penalty prior to its issuance."

NSPA testified to a Senate Committee on Small Business at the end of 1979, enhancing its ongoing commitment to public accountancy practice as a small business. While NSPA supported the mission of the SBA, it asked for substantial reform of the agency, based on extensive survey responses from the NSPA membership about its perceptions of the SBA.

In December 1979, NSPA provided testimony to the House Subcommittee on Federal Regulatory Reform. NSPA's John H. Fitch, Jr., Director of Governmental Affairs, made an eloquent case for the needs of small businesses such as public accountancy practices. He provided testimony that strongly supported two-tier regulatory flexibility for small businesses, a federal sunset law for regulatory agencies, judicial review of regulatory impact statements or analysis, minimizing paperwork, using performance rather than design standards where appropriate, and competition impact statements. "It has long been our contention that 'Joe's Machine Shop' and General Motors cannot be treated in the same manner by regulatory agencies."

NSPA continued to influence legislative issues in the 1980s, beginning with a study by NSPA requested by Sen. Gaylord Nelson (D-WI). Survey results clearly pointed to the fact that there were, indeed, a number of unnecessary and duplicative W-2 forms in place that increased the paperwork burden on small businesses. As a result, Nelson introduced legislation aimed at eliminating such W-2 forms.

Revenue ruling requests and Form 3115 became important issues in late 1980. As a result of NSPA input, the IRS issued guidelines to clarify tax return preparer penalties that November. At the end of the year, NSPA also protested the license cutoff date in the Federal Assistance Reform Act of 1980.

When the IRS issued new procedures in 1981 to curb filing of false W-4 forms, NSPA kept members up-to-date and presented testimony at IRS hearings on the matter. When the IRS proposed new debt-equity regulations, NSPA educated members on the issue. The Society also urged the Senate to end accountant discrimination by stepping in to remedy the situation where participation in audits of federal assistance programs was limited to CPAs or public accountants licensed on or before December 31, 1970.

In 1981 NSPA was successful in persuading the IRS to award certificates to enrolled agents, as recognition of their competence to represent clients before the Service.

One issue that earned strong support from NSPA was the Taxpayers Bill of Rights in 1981, with the Society presenting a strong statement to the Senate Subcommittee on IRS Oversight. The bill amended the Internal Revenue Code of 1954 to provide greater protection for the rights of taxpayers and put taxpayers on more even footing with the IRS. NSPA said it was pleased the bill had been submitted. One important provision eliminated the requirement that employers send W-2 forms to employees within 30 days of termination, rather than before January 31 of the next calendar year. NSPA's 1979 survey had shown that such requirements created a paperwork burden on businesses, especially on small businesses, and cost employers more than $293 million every year. NSPA was concerned, though, about removing the requirement that individual taxpayers make declarations of estimated taxes, since the estimated tax voucher often serves as a cover document for identifying the remittance of estimated tax payments.

As computers became more prevalent throughout American society, NSPA looked into their impact on the preparation of tax returns. NSPA met with the IRS to discuss the issue in mid-1982 and maintained an ongoing "brief" on this growing area of concern. The Society also expressed concern over a 1982 proposal to move the Director of Practice from the Department of the Treasury's General Counsel to the IRS.

Good news came in early 1983. NSPA testimony to the IRS was the direct cause of the Treasury Department withdrawing proposed regulations which would have required individuals to deposit estimated tax payments through the Federal Tax Deposit system, instead of sending them to an IRS Service Center. NSPA "vigorously opposed the proposed regulations because they would overly complicate estimated tax compliance procedures for taxpayers."

The supportive relationship between NSPA and the SBA was demonstrated once again that spring. NSPA Director of Government Affairs William H. Sager was invited to the White House for President Reagan's signing ceremony for the 1983 Report to Congress on the State of Small Business.

Sager joined NSPA in January 1982 and experienced a real baptism of fire. He left his previous position as Deputy Director of the Executive Office for U.S. Trustees in the Department of Justice on a Friday and reported to work at NSPA the next morning - a Saturday. In his subsequent 13 years of service to NSPA, he has demonstrated that dedication again and again. He is yet another NSPA staff member who has become a longtime and productive fixture of the Society. His dedication was warmly acknowledged during NSPA's fifth decade when a scholarship fund was established in honor of his parents, Louis and Fannie Sager, by the NSPA Scholarship Foundation. Sager retired from NSPA on March 31, 1995. He was replaced by Leslie S. Shapiro, who had just retired as Director of Practice of the Internal Revenue Service.

As 1983 moved to a close, NSPA took on the Tax Equity and Fiscal Responsibility Act (TEFRA) of 1982. President Louis Mirman told a Senate IRS Oversight subcommittee that TEFRA created additional reporting and compliance burdens on small businesses as well as confusion about new tax laws.

The Society was pleased to endorse HR 1540 that summer, because it provided that enrolled agents and CPAs could represent taxpayers in the Small Tax Case Division of the U.S. Tax Court in cases involving $5,000 or less, without having to pass the Tax Court examination. The bill would "eliminate present restrictions against representation of taxpayers by enrolled agents and CPAs where a relatively small amount of money was at issue," providing an informal environment for such cases.

The Society did, however, file a "vigorous" protest against HR 1510 - the Uniform Single Financial Audit Act of 1983 - introduced by Sen. David Durenberger (R-MN). NSPA protested its definition of "public accountant" as it would have made the arbitrary, discriminatory GAO policy statutory. As noted earlier, that policy disenfranchised public accountants licensed after December 31, 1970, from performing federal financial assistance audits.

By the spring of 1984, NSPA was visible on Capitol Hill once again, testifying vigorously against the Single Audit Act of 1984, the latest version of language restricting audits of federal programs to CPAs and public accountants licensed on or before December 31, 1970. NSPA's position was, once again, that the offending language be changed to include "all certified public accountants or public accountants who are licensed or registered by a regulatory authority of a state."

In mid-1984, the Society demonstrated its ongoing commitment to support the right to practice of public accountants. At that time, NSPA's Board of Governors voted to endorse legislation dealing primarily with tax preparer penalties - similar to 1979 legislation to define the term "negligent" - and launched efforts to have the issue introduced in Congress. That effort was closely followed by testimony to Treasury on tax reform.

NSPA AND THE SBA

NSPA's relationship with the Small Business Administration continued to improve, and in 1976 both signed an historic document that brought the resources of these two groups together - their first Technical Assistance Agreement. This agreement, renewed several times over the years and still in place for the 50th anniversary of NSPA, has helped small businesses enhance their credibility and financial strength over the years. Perhaps as a result of this agreement, many NSPA members have been participants in the White House Conferences on Small Business. This program, launched in 1980 and held every five years, provides local, regional and national input to federal administration officials on small business needs, interests, issues and concerns.

The NSPA-SBA Technical Assistance Agreement called for NSPA members to volunteer to provide management counseling and other assistance to small businesses, as requested by the SBA. Assistance offered by NSPA members has included participating in workshops, volunteering as speakers and providing one-on-one counseling to small businesses that otherwise could not afford professional accounting and financial counsel. Part of the SBA's Private Sector Initiative Program, the agreement is a cooperative outreach designed to enhance SBA management assistance to the small business community, reduce the staggering number of small business failures and help such businesses thrive.

Said SBA Administrator Mitchell P. Kobelinski at the time of the original signing: "Since our small agency is faced with the task of assisting America's more than 9.8 million small businesses, we are especially delighted whenever a group of qualified professionals such as NSPA volunteers to assist us in our efforts."

The historic NSPA/SBA Technical Assistance Agreement was renewed in mid-1982 at a signing ceremony held during the Fifth NSPA Conference on Government Regulation. That was followed by the NSPA Missouri affiliate, the Independent Accountants Society of Missouri, forging an exemplary model for implementing the agreement at the state level in 1983.

In 1984, SBA Administrator James C. Sanders said in a letter to NSPA President Hugo A. Tomchak: "We would like to join President Reagan in extending our sincere appreciation for [NSPA's] excellent work. NSPA has been effective in the development and implementation of the Technical Assistance Agreement with the SBA. [Your members'] ideas and suggestions have provided invaluable guidance to our SBA field offices as we improve our programs to increase the managerial competence of new and existing business owners and managers. The professionalism and dedication of volunteers such as your members is exemplary. We are grateful not only for the expertise and experience your association has brought to the program, but also for the high standards you set ... With help like yours, we can achieve effective results. Particular commendation goes to your Executive Staff for working so closely with our Management Assistance personnel. To all of you, our sincere thanks for your enthusiasm and continuing support. We look forward to a long and productive relationship with you and your organization."

A discussion of the SBA would not be complete without a mention of NSPA member M. Michael Cardenas, appointed as head of the SBA in 1981. His appreciation of the difficulties of the profession and the rigors of small business greatly assisted him in his position within the SBA.

POLITICAL ACTIVISM - THE NSPA-PAC

Recognizing the benefits of NSPA involvement on Capitol Hill, the Society wrapped up the 1970s by establishing the NSPA-Political Action Committee (PAC). "Candidates receiving NSPA-PAC money will be those who favor and support the policies and positions of NSPA on accounting, tax and small business issues in legislation and regulations," said NSPA. The NSPA-PAC was and has remained a bipartisan entity. "To ensure that individuals receiving NSPA-PAC funds are deserving, the officers of the NSPA-PAC have appointed ... a representative from each district (and ultimately from each state) to provide the NSPA-PAC with information on candidates or a particular congressional seat to form the basis of the NSPA-PAC campaign contribution."

By as early as April 1980, the NSPA-PAC was in a position to contribute to 11 political campaigns for Congressional office. Decisions were based on committee assignments, voting records and responsiveness to NSPA positions on issues concerning small business, tax practitioners and independent accountants in public practice.

NSPA's PAC has done more than raise money for candidates, though. In 1984, the PAC formed coalitions with other bipartisan organizations to increase voter registration. Calling voting a "basic responsibility of citizenship" and "the easiest way to get involved in the governmental process," chairman John J. Gardiner outlined ways that government affects everyone's daily lives.

Later the same year, the PAC released guidelines and operating procedures for contributing to candidates, to let members know who the Society supported and why.

GATAP

One of the many areas in which NSPA had a lasting impact in its fourth decade was in developing guidelines for professionals in tax accounting - the Standards of Generally Accepted Tax Accounting Principles (GATAP). The standards were proposed at the 1983 Annual Convention in Anaheim, CA, in a presentation by their author, Donald Cordano, of Joliet, IL. "GATAP made good sense at the time they were developed and make good sense today, because taxes are still here and reporting on taxes is still here and an essential element of many NSPA members' businesses," said NSPA's Legal Counsel William Sager.

GATAP was the first such statement of comprehensive standards that NSPA ever published. It was aimed at providing relief from existing accounting guidelines that were not cost-effective for small, closely held businesses. Its principles were based on the Internal Revenue Code and regulations. NSPA President Hugo Tomchak called the move to develop and release this project "probably the most important single decision in the 39-year history of NSPA ... a bold, imaginative effort that will prove helpful to thousands of practitioners, the banking community and the small business clients they serve."

The committee finalized details to coordinate and implement GATAP at the end of 1984, with several affiliated organizations already having adopted its guidelines.

STATE ACTIVITIES

In early 1975, NSPA alerted members to a public accountants' dying-class law being passed in Arkansas. The law was contrary to NSPA legislative policy, providing only for the initial registration of public accountants under "grandfather" provisions, with very limited PA representation on the state board.

NSPA's President Elmer Heckinger stressed the need for state licensing and also provided insight into the purpose of NSPA's ongoing commitment to state legislative activity. He said, "Legislation is a key element in any state society's overall program and service to its members. Changes are taking place in the country, and we must be prepared to modify our thinking as necessary to meet the changing times and needs of the members of NSPA. More reliance on state licensing of accountants is being encountered in federal requirements and proposed legislation. We must activate our efforts to meet these challenges and to anticipate the renewal of opposition to our very existence as accountants which we face from within and without our profession ... The trend is toward reasonable regulation of a broader range of practitioners who are serving the public."

But then, in 1975, the Texas Court of Civil Appeals reversed the Fulcher case, acknowledging that "accounting is a highly skilled and technical profession that affects the public welfare, and which the state, in the exercise of its police power, may regulate," but saying that denying unlicensed practitioners the "accountant" title is a proper and fair exercise of state power and not in violation of constitutional guarantees. The court found that the legislature was fully justified in concluding that "the public use of the term 'accountant' is a holding out to the public that the person using that term holds a live permit to practice public accounting." Thus, the state could prohibit an unlicensed accountant who practices public accounting from presenting him- or herself as an accountant, although the same decision did not prohibit an unlicensed accountant from practicing accountancy or doing accounting work.

On the plus side, in 1976 New York amended its public health law to read that "all financial statements or financial information required by law or regulation to be submitted by a nursing home or facility providing health-related service shall be certified in their entirety by an independent certified public accountant or independent public accountant." The New York Society of Independent Accountants, incorporated in 1977, became an NSPA affiliate that year. This action afforded it the opportunity to provide more meaningful state member services in legislation, information, public relations, education and other areas.

A milestone in state legislative policy occurred in 1978 when NSPA's National Council of Delegates overwhelmingly ratified uniform practice guidelines for its members, a vital move in ongoing efforts to enhance professionalism in the public accountancy field. The document, entitled "Guidelines for the Preparation of Financial Statements and the Rendering of Accounting Services in Regulated and Unregulated States," was developed by the State Legislation Committee and adopted at the 1978 convention.

In an action that affected thousands of current and potential NSPA members, the NSPA Board of Governors took an important vote in late 1978 to adopt major changes in requirements for active membership, as recommended by the Long Range Planning Committee. The move involved declaring special situation status for any state with a dying-class accountancy statute in effect for 10 or more years. Applicants from special situation states could meet the requirements for active membership by having at least three years of experience in public practice and maintaining an office for rendering accounting, tax or related services.

The new guidelines meant that such applicants no longer needed to be licensed as public accountants to hold active NSPA membership, and automatically transferred a dying-class state to special situation status after an accountancy law had been in effect for 10 years. NSPA-affiliated state organizations still could apply to the NSPA Board for special situation status at any time before the automatic 10-year conversion. The Nebraska Association of Public Accountants officially requested and received special situation status at the same time, leaving eight states that were affected immediately by the 10-year limit; 20 other states held special situation status by virtue of past Board action.

In January 1980, NSPA representatives met with more than 100 accountants in Puerto Rico to discuss the need for a strong local association and the possibility of affiliation with NSPA. The result was the formation of an association in Puerto Rico, which became an NSPA affiliate.

Two officers of the Norwegian Accountants Association visited NSPA headquarters in mid-1981. Later that same year, Executive Vice President Stanley H. Stearman participated in a panel presentation at the U.S. Treasury Department for members of the Board of the Swedish Approved Accountants Association, who were in Washington, DC, to begin a 16-day tour of the U.S. Stearman highlighted services such as NSPA's extensive public relations activities on behalf of the profession, developing the enrollment program and related services.

In mid-1983, NSPA urged members and state societies to resist unjustified state board action against accountants. This action resulted from several instances in which state boards threatened to initiate injunctions against unlicensed NSPA members for using the legend "Member, National Society of Public Accountants" on their stationery.

In 1983, Louisiana accountants agreed on compilation report language, after a joint meeting of the Louisiana Board of Certified Public Accountants and Louisiana Society of CPAs and the legislative committee of the Accountants Association of Louisiana. The result of that meeting and agreement was language that permitted unlicensed Louisiana accountants to issue a specific compilation transmittal.

As 1983 ended, state issues took on a disturbing cast as NSPA's Washington Reporter observed that court decisions had expanded liability of accountants who perform audits and attest to the accuracy of their work. "Recent court decisions in New Jersey and Wisconsin ruled that the absence of privity of contract alone should not bar negligence actions against accountants by third parties who rely on the accountants' reports," NSPA warned.

NSPA was successful the following year in convincing the New York legislature to shelve several pending bills. One in particular was introduced as a consumer protection bill to regulate preparers of income tax returns, which would have prohibited preparers from using the term "accountant" in any advertising unless a CPA or PA was present during all hours of business at each tax preparing location. The New York Society of Independent Accountants argued successfully that the bill would have prohibited hundreds of reputable - but unlicensed - practitioners from using "accountant" in permissible ads promoting their tax return services.

At about the same time, the Georgia Association of Public Accountants issued a statement on compilation and review to its State Board of Accountancy, endorsing and embracing an NSPA policy statement on the issue adopted at the NSPA 37th Annual Convention in 1982. In Michigan, the state Attorney General issued an opinion that authorized enrolled agents to incorporate their practices under the Michigan Professional Service Corporation Act.

In 1984, Robert Grille, NSPA first vice president; Louis Mirman, NSPA past president; Samuel A. Braunstein; Lewis A. Marsh; Charles R. Ward, Sr.; and Ralph Amernick, ASV president and NSPA's Virginia state director and chair of the State Regulation and Oversight Committee filed a class action suit on behalf of the members of the Accountants Society of Virginia. The suit claimed that the board violated ASV members' civil rights under the First, Fifth and Fourteenth Amendments to the U.S. Constitution because non-CPAs in Virginia were directly and adversely affected and regulated by provisions of board regulations, such as use of the terms "certify," "opinion" and "review." The court ruled, however, that these terms could, in fact, be regulated by the state board because it was professional language used in the performance of accounting functions, rather than language that is an expression of ideas. This case represented a hard loss for both NSPA and ASV.

The fourth decade of NSPA wrapped up with several interesting regulatory issues. Three members of NSPA and the state affiliate Texas Association of Public Accountants (TAPA) - Thomas O. Harrell, Jr., immediate past governor of NSPA's District VIII; Ernest J. Opella and Rosa S. Valdez - filed a lawsuit against the Texas State Board of Public Accountancy contending that the Texas Public Accountancy Act of 1979 was unconstitutional, pursuant to rights created and guaranteed to the citizens of Texas. They argued that the state legislature enacted legislation depriving them of the right to pursue their lawful occupation without due process of law. The action leading to the suit were laws passed that included the generic terms "accountant" and "auditor" (and derivations of these terms) in the statutory definition of the "practice of public accountancy." The state board threatened to prosecute plaintiffs and other TAPA members for truthfully holding themselves out as "accountants" and describing their services as "accounting services."

A similar issue was active in Tennessee in late 1984, where the Tennessee State Board of Accountancy received an opinion from the attorney general that upheld the Tennessee Accountancy Act of 1980, which prohibited unlicensed people from using the title "accountant." This disregarded a 1964 appellate court decision, in which it was suggested that requiring a license to practice the ordinary occupation of bookkeeper and/or accountant would infringe upon the rights of contract unduly in what is a purely private concern, while offering no perceptible relation to the public welfare.

Clearly, regulatory issues would require constant vigilance throughout this decade if non-licensees wished to protect their right to practice, to call oneself an "accountant" and to advertise one's "accounting services."

RELATIONS WITH COLLEAGUES

In 1976, an alliance between the National Society of Public Accountants and the National Association of Enrolled Agents (NAEA) resulted in an NSPA/NAEA Task Force, created to evaluate the IRS enrollment examination and practice program.

NSPA also formed a liaison with the National Federation of Independent Business (NFIB), in January 1977. The two organizations shared a common interest in taxation, government regulations, paperwork burden and other matters that impact directly on the small business community. An NFIB survey found inflation and tax reform were major issues for NFIB members; thus, the alliance was appropriate for both organizations.

In 1984, NSPA submitted comments to AICPA on an exposure draft of a joint AICPA/NASBA proposed model public accountancy bill. This was the result of a joint effort to draft a single bill that would have replaced model bills sponsored by each group and meld the best features of each version. NSPA President Hugo A. Tomchak expressed "vigorous objection" to provisions extending the audit function to include reports on compilations and reviews, which would have stopped unlicensed accountants from providing any type of report or transmittal on a compilation or review. The AICPA/NASBA version is now called the Uniform Accountancy Act. NSPA, to guarantee that its voice would be heard, responded with its own Model Accountancy Law.

In mid-year, NSPA participated in a series of Financial Accounting Standards Board (FASB) meetings, representing small accounting firms serving small business clients. NSPA participants provided meeting attendees with a written statement supporting the concept of tax-basis financial statements, and provided copies of the final Standards of Generally Accepted Tax Accounting Principles - the first public release of that project.

PUBLICATIONS/PUBLIC INFORMATION

???eful consideration, NSPA refined its 15-year-old program of distributing radio spot announcements to 400 to 500 radio stations to educate consumers on the dangers of dealing with fly-by-night tax advisers. In early 1975, the Society took a more sophisticated approach, mailing recorded spots - narrated by popular broadcaster Willard Scott - to 1,500 AM and FM radio stations in the top 100 radio-listening markets. Called one of NSPA's most ambitious projects by Myron D. Schreibman, then-chairman of the Public Relations Committee, the spots also were available on request to NSPA members for dissemination in their local markets.

NSPA made a point of taking to the air, with Elmer Heckinger and Stanley Stearman broadcasting the NSPA story in conjunction with the Council of Better Business Bureaus. The goals were to educate consumers about income tax issues, the role of professional tax practitioners, the right to represent and the difference between professional and commercial preparers.

At the same time, NSPA launched a new public relations program through an alliance between the Public Relations Committee and the Committee on Relations with Financial Institutions. "Mini-yearbooks," or listings of NSPA members in each state, were developed and made available to state societies to mail directly to banks in their states. Designed to make the banking community more aware of NSPA and its individual members, the program was launched successfully in Alabama and Iowa, with Florida, Idaho, Nebraska and New Hampshire also among the first participants.

In response to an increasing number of requests from business schools and colleges throughout the country to address accounting students and faculty, NSPA launched an informal speakers bureau. Alfred F. Yaude, District IV Governor and chairman of the Relations with Colleges Committee, was instrumental in that activity.

In 1979, NSPA distributed a synopsis of the Revenue Act of 1978 to 500 weekly newspapers with readerships of 10,000 or more each, focusing on key changes affecting average taxpayers.

By 1983, NSPA's public relations activities included an annual "Tax Perspective" column, made available to daily and weekly newspapers across the country. The column was a series of informative questions and answers about taxes, written for the client. NSPA provided state societies with camera-ready reprints and blank mastheads for members to use locally.

EDUCATION

Continuing to take the lead in providing practical, needed educational services, NSPA launched its National Accounting Forum in 1976. This two-day program offered 16 continuing professional education credit hours.

In 1978, NSPA inaugurated its first Governmental Regulation Conference, jointly sponsored by the National Affairs, State Legislation and Federal Taxation Committees. Limitations on accountants' qualifications for federal programs, federal investigations and regulation of the profession, tax laws and regulations, tax preparer penalties, pending NSPA tax legislative proposals, and tax simplification and administration were all included on the agenda. This highly successful program boasted the presence of the powerful Sen. Sam Ervin as keynote speaker. The program has evolved into one of NSPA's most valued programs. It is now known as the National Issues Conference.

In 1982, NSPA continued to honor its commitment to professional development and education by launching a new self-study course in intermediate accounting review. This course proved to be an ideal study aid for the Accreditation Council's Examination in Accountancy.

Cognizant of new technology, NSPA started a new National Accountants Computer Conference. The program featured experts in the burgeoning computer industry and explained how types of systems worked, what they would do and how to purchase them for an accounting practice.

Reflecting the Society's commitment to provide outstanding educational opportunities in practice-growth fields, NSPA held its first National Estate Tax Conference. This was in mid-1983 and the program was held in Pittsburgh, PA. It included a specially selected group of nationally known experts in estate taxation and offered an understanding of the accountant's role in estate planning and administration. The program remains a flagship among NSPA's professional education offerings today. Each year, nationally recognized estate planning authority and NSPA member Doug Moy, of Oregon, coordinates a top-rated program and outstanding panel of speakers.

NSPA has touched thousands of professionals - members and non-members alike - over the years through its professional education self-study courses and seminars. According to Past President Albert Van Tieghem, the Education Committee and the Accreditation Council made the greatest contributions to NSPA both during his administration and in the years since. "Education must be affordable and at the grassroots level. We should strive to always encourage our members to reach to higher levels, challenge them to become more knowledgeable and proficient," he said in NSPA's 50th year.

According to 1983-1984 President Hugo A. Tomchak, his years serving on the Education Committee (chairman for five consecutive years) provided him with his greatest sense of personal accomplishment in NSPA. "Basically, at that time, the committee was its chairman and its staff director," he recalled. "Together, we started and maintained the National Tax Institute and the Accounting Forum. Both were extremely successful and money-makers as well." That committee also made the greatest contribution to NSPA members, according to Tomchak. "The committee gives the whole organization the opportunity for all members to improve themselves and achieve whatever they can," he said. "Without continuing education, we're back to the green eyeshades and elbow garters!"

ETHICS

In 1975, NSPA's Board of Governors voted to adopt a revised version of the NSPA Code of Ethics and Rules of Professional Conduct, after the Ethics & Grievances Committee, led by Chairman and Past President Guy Balser, conducted a section-by-section analysis and evaluation of the code. The primary change was the deletion of a rule dealing with competitive bidding. This conformed with federal antitrust positions on competitive bidding bans.

In a 1978 landmark move, NSPA became the first national accounting organization to approve advertising for its members under the Code of Ethics and Rules of Professional Conduct. This followed the U.S. Supreme Court decision (Bates v. Arizona) that approved truthful advertising in newspapers by attorneys. This revision represented an important gesture of support for small practitioners seeking to expand their practices.

As noted earlier, the respect given NSPA's Code of Ethics was demonstrated when it was included in the 1966 revision to Treasury Department's Circular 230. NSPA leadership testified that the proposed revisions concerning advertising and solicitation for attorneys, CPAs and EAs conformed with the Society's Code of Ethics and that "these amendments will provide the public with the necessary factual information to enable the user of tax representation services to select a practitioner on the basis of a realistic evaluation of all pertinent factors."

As of mid-1979, NSPA ethics allowed members to use direct solicitation of prospective clients, as a result of pressure from the U.S. Justice Department. The move was in line with action taken by AICPA, under similar pressure, after a member referendum.

AWARDS

NSPA presented a new award in 1976 - the NSPA Man of the Year. The award honored a person outside NSPA who made an important contribution to the profession and best helped the general public understand the role of the accountant in public practice.

The first recipient was IRS Commissioner Donald C. Alexander. The 1977 recipient was Anthony S. Stasio, U.S. Small Business Administration Deputy Assistant Administrator for Advocacy and a former NSPA member, citing his "keen awareness and understanding of small business and the important role that public accountants play in the small business community." Rep. John J. Duncan (R-TN) received the 1979 award in recognition of his "sincere dedication to the creation and administration of fair tax laws in this country," exemplified by sponsoring and supporting HR 2381 in the House of Representatives.

MEMBERSHIP

By 1979, NSPA membership had passed the 17,000 mark with a renewal rate of 93%. This was due in large part to NSPA's commitment to providing practical services. These included discounts on professional publications, outstanding educational offerings, informative publications, valuable public relations tools and much more.

The National Council of Delegates amended NSPA's qualifications for active membership at the 1979 National Convention. A BA or BS degree in accounting and two years of experience in public practice, or accreditation in accountancy with two years' experience, became the minimum membership qualification. This reduced the number of years of experience required to achieve "active status," but balanced that with the educational and examination criteria.

INSURANCE

NSPA's Insurance Committee continued to be active throughout the Society's fourth decade. By 1983, Executive Vice President Stearman could describe the insurance administrators - Forrest T. Jones & Co., Kansas City, MO - as "first rate." NSPA and Forrest T. Jones Insurance Co. were able to provide major medical, hospital helper, cancer protection, disability income, office overhead, accidental death, term life, prime time life and ordinary life coverage to members and their spouses and families.

PERSONAL NOTES

Long-time NSPA member Myron Schreibman died in late 1977. District VI Governor from 1974 until his death from cancer, Schreibman was considered by many to be the 'compleat' NSPA member. Schreibman was dedicated to NSPA and its public relations programs. In recognition of his devotion and in his memory, the Society created a special annual award, presented to the state society judged to have the best public relations programs of the year. As "a continuing tribute to Myron, whose dedication was unquestionable and whose professionalism was beyond compare," NSPA member James G.R. Smith of Galveston, TX, donated an engraved gavel to NSPA. "[The gavel should be] an inspiration to all," he said at the time.

The mid-1981 death of President Charles H. Earp was another sad loss to the Society in its fourth decade. An active member of the Society for 18 years, Earp was instrumental in achieving passage of the South Carolina regulatory accountancy law in 1969. NSPA moved into its own building under his 1980-1981 presidency. Said member William F. Shelton of North Carolina:" ... no one stood taller in service to his Society. No one had a greater ability to bring friends to his side. He inspired a personal loyalty and devotion by his simple integrity and deep simplicity. No one loved his profession more than he did." In his honor, during the 1981 Annual Convention, NSPA appropriated $2,000 to establish an annual Charles H. Earp Memorial Scholarship Award, to be presented by the NSPA Scholarship Foundation.

RELATED ARTICLE: ELMER F. HECKINGER

Elmer F. Heckinger was elected NSPA's president at the Society's 29th Annual Convention, held in Honolulu. He pledged that he would place emphasis during his administration on "gaining recognition for our profession and our Society from the business community and the general public." In addition to his duties as NSPA president, Heckinger was also appointed in early 1975 to serve on the IRS Commissioner's Advisory Group. Interestingly, he had served as Director of the Income Tax Division for Iowa's Department of Revenue for two years and as audit supervisor for four years prior to entering public practice.

It was during Heckinger's term that NSPA took a strong position supporting a single system of reporting wage data (eliminating quarterly wage reporting) and utilizing the Form W-2 as the reporting vehicle to both the IRS and the Social Security Administration.

Heckinger's interests and abilities in the accounting profession are diverse - with solid experience in taxation, accounting and education. Well-known throughout his career has been his desire that all professional accountants be as current as possible. With his outstanding ability to teach, he served for many years on NSPA's seminar speaker team.

RELATED ARTICLE: ALBERT R. VAN TIEGHEM

The emphasis of Albert R. Van Tieghem's administration could be summed up in one word - education! Continuing professional education and development, according to Van Tieghem, were vital to the professional. He was among the first group of accountants to achieve accredited status from the Accreditation Council.

As might be expected, NSPA's educational programs were very well received. The 1975 Regional Professional Development Seminars were considered a "huge success," as was the 2nd annual Coaching Schools for the IRS Enrollment Examination. In addition, the Society scheduled a new educational venture - the National Accounting Forum. In response to growing questions regarding membership qualifications in the Society, Van Tieghem appointed a committee to study the entire issue of NSPA membership in-depth.

Van Tieghem was vocal on many national issues affecting NSPA, frequently writing to Congressional committees - he encouraged members to do likewise. He fostered in others a desire for knowledge - within the accounting and tax profession and on issues affecting the profession. Knowledge was his way to prepare for the future, and he appointed the Society's first Long Range Planning Committee. He encouraged the involvement of the membership at large in the planning process of the Society.

RELATED ARTICLE: W.R. LAMPLEY, JR.

W.R. "Bob" Lampley, Jr. of Memphis, TN, was elected NSPA president at the Atlanta, GA, convention.

One of the most immediate concerns was how to educate Society members on the Tax Reform Act of 1976, in time for the 1977 tax season. A wide assortment of materials and programs was successfully developed.

It was in January of 1977 that NSPA formed an alliance with the National Federation of Independent Businesses. Lampley felt the alliance was appropriate, as both organizations shared common concerns in taxation, government regulation, paperwork burdens and other issues impacting the small business community.

Lampley later served on the National Society's Housing Dedication Committee and was present for the official burying of the marble time capsule at the new headquarters building. He personally contributed many of the items that remain buried today.

RELATED ARTICLE: PAUL S. ALLEN

Paul S. Allen, of Westfield, MA, was elected NSPA's president in San Francisco. At his first Board of Governors meeting as president, NSPA made a significant change to its Code of Ethics and Rules of Professional Conduct, permitting advertising within certain guidelines by the membership. NSPA was the first accounting organization to take steps to conform to a recent U.S. Supreme Court decision on this issue.

Allen placed a great deal of emphasis on membership promotion and service. During his term, NSPA broke several records in the number of new members added in specific months. Allen noted that this landmark achievement reflects the hard work and dedication of NSPA members, as well as a heightened awareness among non-members of the importance of NSPA membership. The end result? By year end, over 2,500 new NSPA members - an all-time record.

The issue of tax return preparer negligence as defined by IRS heated up when the public was informed that returns prepared by professionals would have a greater chance of being audited. Allen was quick to contact the Commission to review the articles in question and requested, "should you find these articles inaccurate, misleading and not reflective of IRS policy, [NSPA] feels you, as Commissioner, should point out these inaccuracies to the publication and public in general, through the use of the press."

RELATED ARTICLE: MINOR S. SHIRK

Minor S. Shirk of Chandler, AZ, assumed additional professional responsibilities even before he was elected NSPA president. While first vice president, Shirk was appointed by Secretary of the Treasury W. Michael Blumenthal to the Treasury Small Business Advisory Committee. The committee's objective was to provide information and advice to the Secretary on economic issues affecting the small business community.

In January 1979, NSPA held its first Joint Conference on Governmental Regulation. This important conference reviewed issues of both legislative and governmental concern. Over 250 members were in attendance at this very successful program.

During Shirk's term, NSPA and the Farmers Home Administration signed an agreement to cooperate in the establishment of their respective policies and procedures, to complement each other's activities and for NSPA to provide voluntary technical and management assistance to FmHA applicants, borrowers and/or granters.

RELATED ARTICLE: CURTIS E. BREKKE

NSPA's 34th Convention was held in Washington, DC, and Curtis E. Brekke of Devil's Lake, ND, was elected president. Brekke has the honor of holding Public Accountant License #1 in North Dakota. In November 1979, Brekke was appointed by IRS Commissioner Jerome Kurtz to serve on the Commissioner's Advisory Group.

Brekke was also a strong proponent of continuing professional education, and NSPA experienced a significant expansion of the Society's total educational efforts during his term, including more educational materials and programs that could be utilized by state societies and chapters as well as by individual members.

Brekke was also frequently in touch with the decision-makers in Washington, D.C. For example, he sent copies of an important article from the National Public Accountant on the future of the voluntary self assessment tax system to each Senator and Representative. He also defined NSPA's understanding of small business in letters to Congress and 2,000 delegates to the White House Conference on Small Business. He noted, "Much of the Small Business Administration and Congressional attention is given to the medium to large businesses, and the struggling small businesses that really need the assistance are being neglected."

RELATED ARTICLE: CHARLES H. EARP

Charles H. Earp of Florence, SC, was elected NSPA's 34th president. He called upon the members to work together, noting that a major goal of the Society should be to "lay a strong foundation for the unification of our profession for the benefit of the public." In many respects, Earp could be called a visionary. For example, he also suggested mandatory continuing professional education as a qualification for membership in NSPA. This goal was achieved in 1992.

It was during Earp's term in office that NSPA finally realized one of its greatest dreams - to be located in a building it could call its own. Said Earp proudly, "The construction of our own building reflects NSPA's steady growth. But this building should also serve as a beginning. Our past has been a memorable past. But it is our future that our test of greatness now lies."

Earp was warmly respected by his colleagues. Said one, "No one has stood taller in service to his Society. He inspired personal loyalty and devotion by his simple integrity. No one loved the profession more than he did."

RELATED ARTICLE: CARL C. PERRY

Elected president at NSPA's 36th Annual Convention, Carl C. Perry stressed throughout his term the need for NSPA members to unite and be a team. He repeated frequently "that simple yet powerful word - unity!"

Shortly after his election, Perry wrote to the members of the U.S. Senate and House Committees on Agriculture, urging their intervention on behalf of independent public accountants regarding a USDA discriminatory rule. Due to a heavy barrage of adverse comments, the USDA quickly issued an indefinite suspension of the ruling.

Perry renewed the NSPA/SBA Technical Assistance Agreement, utilizing the Society's 5th Annual Conference on Governmental Regulation for the signing's forum. The signing was witnessed by an audience of 200 NSPA members and several members of Congress.

Carl Perry sought open communication and honest discussions. He noted that ahead lay opportunities and challenges and he believed that progress would result if all facets of the Society could work together.

RELATED ARTICLE: LOUIS MIRMAN

Louis Mirman of Virginia Beach, VA, was elected at NSPA's 37th Annual Convention, held in Hollywood, FL. Mirman had also previously served as the Society's Secretary-Treasurer. Additionally, he had been particularly active on the Federal Taxation Committee.

Mirman is perhaps best known as NSPA member's legislative advocate. He could often be found in Washington, DC, providing testimony before Congressional Subcommittees and the Internal Revenue Service. He testified before the IRS concerning proposed regulations that would require individuals to deposit estimated income tax payments through the Federal Tax Deposit instead of by forwarding to an IRS Center; the Treasury withdrew the proposed regulations. He also testified before the Senate Committee on Small Business on a wide range of legislative measures required to meet small business needs. He also sent a letter to Congress, strongly stating NSPA's opposition to any legislation that would exempt professionals from the Federal Trade Commission's jurisdiction. Mirman's letter appeared in the Congressional Record.

RELATED ARTICLE: HUGO A. TOMCHAK

Hugo A. Tomchak, elected in Anaheim, CA, served as NSPA's 1983-84 president. He called the NSPA PAC a top priority, stating, "We need to be involved in what goes on in Washington and to do so - we need a PAC!" He became a charter member of the new NSPA PAC club - the Capital Club.

Legislation also continued to be an important issue for Tomchak, as NSPA closely followed legislation that would allow enrolled agents and CPAs to represent taxpayers before the Small Tax Case Division of the U.S. Tax Court.

Tomchak also responded quickly to the AICPA on the exposure draft of the joint AICPA/NASBA proposed model accountancy bill, noting that there seemed to be little of comfort in the bill to public accountants - except CPAs. He was particularly concerned with the bill's outright prohibition on any form of language conventionally used by licensees. He wrote that it seemed so overbroad as to infringe upon an individual's constitutional privileges.

During Tomchak's presidency, the NSPA Board of Governors adopted the Standards of Generally Accepted Tax Accounting Principles (GATAP), the first such statement of comprehensive standards ever published by the Society.

RELATED ARTICLE: APPRECIATION

T.I. Sullivan, one of the original 33 accountants who founded NSPA in 1945, was honored by his three sons on the occasion of his 88th birthday, with the endowment of the T.I. Sullivan Chair of Accountancy at the University of Tulsa. The $1.2 million endowment came through the generosity of his sons Richard, Travis and T.I., Jr., all of whom earned accounting degrees from the University of Tulsa.