AICPA Files Suit Challenging Identity Theft Rule


The AICPA filed a lawsuit on Tuesday seeking to bar the Federal Trade Commission from applying its so-called Red Flags Rule to CPAs. The Institute says the rule, which is designed to help prevent identity theft, would “impose onerous and unnecessary requirements on AICPA members.”

 

The lawsuit, filed in U.S. District Court for the District of Columbia, alleges that the FTC is exceeding its congressionally granted powers under the Fair and Accurate Credit Transactions Act of 2003 by seeking to apply the rule to accountants engaged in the practice of public accountancy. 

 

“We do not believe that there is any reasonably foreseeable risk of identity theft when CPA clients are billed for services rendered,” AICPA President and CEO Barry Melancon said in a press release. He added, “CPAs are personally acquainted with their clients and already adhere to strict privacy requirements governing identifying information.”

 

SPONSORED REPORT

How the election may affect taxation of business income

This report summarizes recent proposals to reform the U.S. business income tax system and considers the path to enactment of any such legislation.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

Did you follow 2016’s biggest accounting news?

CPAs will remember 2016 as a year of new standards and new faces. How well did you follow the biggest accounting events? The 7 questions in this quiz will help you find out