The principal point of friction between the two professions has been in the phase of federal income taxation. A broad policy was outlined on the national level, and the two joint committees in this state adopted a statement of principles relating to the practice in the field of federal income taxation

Williams, Robert J.

English

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Washington Law Review Volume 28 Number 4 Annual Meeting of the Washington State Bar Association 11-1-1953 Report of the Committee to Cooperate with Certified Public Accountants Robert J. Williams Follow this and additional works at: https://digitalcommons.law.uw.edu/wlr Recommended Citation Robert J. Williams, State Bar Journal, Report of the Committee to Cooperate with Certified Public Accountants, 28 Wash. L. Rev. & St. B.J. 273 (1953). Available at: https://digitalcommons.law.uw.edu/wlr/vol28/iss4/10 This State Bar Journal is brought to you for free and open access by the Law Reviews and Journals at UW Law Digital Commons. It has been accepted for inclusion in Washington Law Review by an authorized editor of UW Law Digital Commons. For more information, please contact cnyberg@uw.edu. RzEPORT OF THE COMMITTEE TO COOPERATE WITH CERTIFiEDPUBLIC ACCOUNTANTSBy Robert J. WilliamsThe first meeting ever held of joint committees of the WashingtonSociety of C.P.A.'s and the Washington State Bar Association was heldlast fall.On the national level, the American Bar Association and the Ameri-can Institute of Accountants have a joint committee.The principal point of friction between the two professions has beenin the phase of federal income taxation. A broad policy was outlinedon the national level, and the two joint committees in this state adopteda statement of principles relating to the practice in the field of federalincome taxation.*** I might read:"It is in the best public interest that services and assistance in Fed-eral income tax matters be rendered by lawyers and certified publicaccountants, who are trained in their fields by education and experi-ence, and for whose admission to professional standing there are re-quirements as to education, citizenship and high moral character. Theyare required to pass written examinations and are subject to rules ofprofessional ethics. Many problems connected with business requirethe skills of both lawyers and certified public accountants and there isevery reason for a close and friendly cooperation between the twoprofessions. Lawyers should encourage their clients to seek the adviceof certified public accountants whenever accounting problems arise andcertified public accountants should encourage clients to seek the adviceof lawyers whenever legal questions are presented."(1) Collaboration of Lawyers and Certified Public AccountantsDesirable."(2) Preparation of Federal Income Tax Returns. It is a properfunction of a lawyer or a certified public accountant to prepare Federalincome tax returns."When a lawyer prepares a return in which questions of accountingarise, he should advise the taxpayer to enlist the assistance of a certifiedpublic accountant."When a certified accountant prepares a return in which questions of-law arise, he should advise the taxpayer to enlist the assistance of alawyer."(3) Ascertainment of Probable Tax Effects of Transactions. In thecourse of the practice of law and in the course of the practice of ac-1953] AlNNUA'L MEETINGSTATE BAR JOURNALcounting, lawyers and certified public accountants are often askedabout the probable tax effects of transactions."The ascertainment of probable tax effects of transactions frequentlyis within the function of either a certified public accountant or alawyer. However, in many instances, problems arise which require theattention of a member of one or the other profession, or members ofboth. When such ascertainment raises uncertainties as to the interpreta-tion of law, both tax law and general law, or uncertainties as to theapplication of. law to the transaction involved, the certified public ac-countant should advise the taxpayer to enlist the services of a lawyer.When such ascertainment involves difficult questions of classifying andsummarizing the transaction in a significant manner and in terms ofmoney, or interpreting the financial results thereof, the lawyer shouldadvise the taxpayer to enlist the services of a certified public ac-countant."In many cases, therefore, the public will be best served by utilizingthe joint skills of both professions."(4) Preparation of Legal and Accounting Documents. Only a lawyermay prepare legal documents such as agreements, conveyances, trustinstruments, wills, or corporate minutes or give advice as to the legalsufficiency or effect thereof, or take the necessary steps to create,amend or dissolve a partnership, corporation, trust, or other legalentity"Only an accountant may properly advise as to the preparation offinancial statements included in reports or submitted with tax returns,or as to accounting methods and procedure."(5) Prohibiting Self-designations. An accountant should not describehimself as a "tax consultant" or "tax expert" or use any similar phrase.Lawyers, similarly, are prohibited by the canons of ethics of the Ameri-can Bar Association and the opinions relating thereto, from advertisingany special branch of law practice."(6) Representation of Taxpayers Before Treasury Department.Under Treasury Department regulations lawyers and certified publicaccountants are authorized, upon a showing of their professional status,and subject to certain limitations as defined in the Treasury rules, torepresent taxpayers in proceedings before that Department. If, in thecourse of such proceedings, questions arise involving the application oflegal principles, a lawyer should be retained, and if, in the course of[Nov.ANNUAL MEETINGsuch proceedings accounting questions arise, a certified public ac-countant should be retained."There is another section on the practice before the Tax Court of theUnited States which pretty well adopts what the tax court itself has;claims for refund and criminal tax investigations are covered, and thereis a general conclusion:"This statement of principles should be regarded as tentative andsubject to revision and amplification in the light of future experience.The principal purpose is to indicate the importance of voluntary co-operation between our professions, whose members should use theirknowledge and skills to the best advantage of the public. It is recom-mended that joint committees representing the local societies of bothprofessions be established."TmAL LAWYERS: How THEY APPEAR TO CoURTs AND LITIGANTSAn address by Judge Frank D. JamesThis is a public relations program and I am going to try to focusand slant the few remarks that I have to make to you with that back-ground in mind.Most of you will recall, when I remind you of'the fact, that thesystem of legal training as followed in most of the European countriesand I think perhaps in most of the world is that early, in his trainingperiod a law student decides or perhaps it is decided for him by hisinstructors upon their appraisal of his ability, whether or not he shouldfollow the course of training which will fit him to become a lawyer oran advocate or whatever he may be called in that particular country,or whether or not he should become a judge.I have talked to a number of judges since I have been on the benchwho are judges in various European countries, and have been quiteinterested to learn that their course of training is so different than ours,and that they never have any trial experience; that they start out whenthey have graduated from the law school to serve an apprenticeshipas a sort of clerk or an under-judge, or an assistant judge, and theywork their way up in the hierarchy of their judicial system.Now we have a better system, I think. At least it's a better systemfor our peculiar system of justice. I think it's better that our judges beselected from the ranks of our lawyers because it, at least, gives thejudge an insight into the problems of practicing law and trying cases19531

Report of the Committee to Cooperate with Certified Public Accountants

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Report of the Committee to Cooperate with Certified Public Accountants

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