On June 4, 2009, the IRS announced plans for a comprehensive program aimed at tax return preparers.  According to IRS Commissioner Doug Shulman, the recommendations of the Service will “better leverage the tax return preparer community with the twin goals of increasing taxpayer compliance and ensuring uniform and high ethical standards of conduct for tax preparers.”

Recognizing that “tax return preparers help Americans with one of their biggest financial transactions each year,” Mr. Shulman announced that the IRS “must ensure that all preparers are ethical, provide good service and are qualified.”  Certainly, the need for such recommendations from the IRS is great.  A recent study by the Treasury Inspector General for Tax Administration found that 61% of tax returns completed by unlicensed paid preparers contained errors.

Moreover, the tax return preparation industry is enormous and getting bigger.  According to IRS estimates, over 80% of taxpayers either hire a tax preparer or use tax-preparation software.  And while enrolled agents, certified public accountants and licensed tax attorneys must register with the IRS and meet minimum training requirements, other, unregulated tax return preparers can work on tax returns without such safeguards.  “Right now, there is no clear national standard regulation of paid tax-return preparers,” said Mr. Shulman.

Although still in formation, the IRS reports that the potential recommendations could focus on:

• a new model for the regulation of tax return preparers
• service and outreach for return preparers
• education and training of return preparers
• enforcement related to return preparer misconduct.

The process will begin with information gathering from agents, lawyers and accountants as well as unlicensed tax preparers and software vendors.  The agency reported that it will also seek the input of consumer groups and taxpayers, and will open “a transparent and open dialogue about the issues,” according to Mr. Shulman.  “At this early and critical stage of the process, we need to hear from the broadest possible range of stakeholders.”

Fuerst Ittleman will continue to monitor this evolving effort by the IRS, both for how it will affect our clients and friends, but also to remain actively involved in developing the recommendations with the agency.

For more information, contact Fuerst Ittleman today at 305.350.5690 or contact@fuerstlaw.com.

The House Energy and Commerce Committee convened to discuss draft legislation that would broadly affect regulation of food production, importation, and manufacturing inside and outside of the U.S.  Newly confirmed FDA Commissioner Margaret Hamburg testified before the committee on The Food Safety Enhancement Act of 2009 (FSEA).

FSEA’s major initiatives are:

• Registration fees for domestic and foreign producers as well as importers
• Creation of an identification system for businesses in the food supply chain
• Risk-based frequency levels of inspection
• Increasing FDA’s subpoena power
• Two tier approach to recalls: voluntary and mandatory

Democratic Party proponents, led by Representative Dingell of Michigan, emphasized the “dire situation” of food safety and characterized the legislation as a means of recreating the FDA with new and stronger enforcement and financing tools.  Opponents largely criticized the passing of costs to consumers, regulation that does not guarantee results, and also chided the hearing on draft legislation, rather than a finalized text.  Another recurring critique was the broad discretion given to make mandatory recalls.  Some committee members took exception to the Commissioner’s admission that senior officials, not only the Commissioner, might be given the power to issue mandatory recalls.

Commissioner Hamburg unequivocally supported the legislation, saying that it would base food safety monitoring on prevention.  She also agreed with the legislation’s legal empowerment of the agency as well as its requirement that user fees be generated by the food industry.

This week has seen the publication of two reports of groundbreaking results in the field of stem cell research.

Scientists at San Diego California’s Salk Institute for Biological Studies have published a report in Nature describing the creation of induced pluripotent stem (iPS) cells.  Dr. Juan Carlos Izpisua Belmonte’s team applied gene therapy techniques to correct defective cells from patients afflicted with Fanconi anemia.  The team reports that the created iPS cells are indistinguishable from human embryonic stem cells.  Although the research has not yet been used in humans, the iPS cells create hope that such correction might be done to the diseased cells of Fanconi anemia patients. Upon correction, the cells could be reintroduced to the patient, without risk of rejection, to rid the patient of the affliction.

Chinese Scientists at the Shanghai Institute of Biochemistry and Cell Biology have created iPS cells adaptable to the human body from the tissue of pigs.  Similarly, the iPS cells resulting from the Chinese team’s procedure are identical to embryonic stem cells.  Researchers believe that these results accomplish a necessary step towards the use of pigs to generate human-compatible organs.  Some also think this research could enable human-like simulations of human diseases and thus a platform for drug and biologic testing which would be as much like a human clinical trial as possible.

View the reports here:
http://www.nature.com/nature/journal/vaop/ncurrent/pdf/nature08129.pdf

http://jmcb.oxfordjournals.org/cgi/content/abstract/mjp003

On January 12, 2009, the Interagency Working Group on Import Safety published draft guidance for industry entitled “Good Importer Practices.” The working group is comprised of the U. S. Departments of Health and Human Services (Food and Drug Administration), Agriculture, Commerce, Homeland Security, and Transportation and the U.S. Consumer Product Safety Commission, the U.S. Environmental Protection Agency, and the Office of the U.S. Trade Representative.

The Working Group organized the guidance into four broad “guiding principles”:

- establishing a product safety management program;
- knowing the product and applicable U.S. requirements;
- verifying product and firm compliance (throughout supply chain and life cycle); and
- taking corrective and preventive action (when necessary).

These principles give importers a roadmap they can follow to ensure that the products they import, and the processes they use to import those products, comply with myriad U.S. statutes and regulations. While the document is not a “how to” guide – with steps that match up to specific code citations – the guidance is an indispensible tool for management, which they can use to make sure that they are asking the right questions, and establishing the right programs and processes, for regulatory compliance.

The draft guidance encourages importers to focus on the life cycle of an imported product; for example, from growing and harvesting, to processing, packing, transporting, and distributing. At each step, importers should consider how to implement controls to help decrease the risk that the product could cause harm to people, animals, or the environment. In doing so, importers will help ensure overall regulatory compliance.

The guidance is also important for third-parties in the import process, such as consolidators, shippers, brokers and distributors. In the current regulatory environment, in which the government is focusing on everyone’s role in the security and safety of imports (and penalizing those who break the rules), even these third-parties should have processes in place to make sure that the importers with whom they work are complying with government rules and regulations.

Following this guidance laid out by the government is essential for all U.S. importers. If you don’t follow the roadmap, you may soon be lost.

The complete “Draft Guidance for Industry Good Importer Practices” can be found here.

Let Fuerst Ittleman help you with your roadmap for regulatory compliance. Our attorneys have years of experience in designing programs, policies and procedures to help importers stay on the right path and avoid problems with regulators. Contact us at 305-350-5690 or contact@fuerstlaw.com.

FHI Briefing on Import Prototype Proposal: Accreditation of Global Compliance Verification Services

“The prototype proposed by FHI in June 2005 consists of a voluntary Third Party
Verification and/or Self Certification in the United States. The purpose of this pilot
program is similar to that used in the medical device industry to: (1) provide exporters of
food into the U.S. a proactive review process that could yield more rapid admissibility
decisions at the time of entry; and (2) enable FDA to use its scientific and regulatory
review resources for high-risk food products, while maintaining confidence in the review
by third parties of low-to-medium risk foods as well as certain high risk foods. The
prototype contemplated a program for all food manufacturers. The initial prototype was
formulated as a proposal for implementation as to bottled water.”

To read the full notice in PDF format please click here.

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Mitchell S. Fuerst, Esq., and Andrew S. Ittleman, Esq., C.A.M.S. will speak at the International Money Transmitters Convention on November 15–16, 2007 at the Bahia Mar Beach Resort, 801 Seabreeze Blvd., Fort Lauderdale, FL

Link : http://www.nmta.us/portal/page.php?47

Additional information:

The panel : Ask the Experts: Money Transmitters and Money Laundering Prosecutions for The Defense:
- George Brown, Merle, Brown & Nakamura P.C.
- Sam Rosenthal, Curtis, Mallet-Prevost, Colt & Mosle LLP
- Mitchell Fuerst, Fuerst Ittleman
- Andrew Ittleman, Fuerst Ittleman

The IMTC is being organized by the National Money Transmitters Association www.nmta.us in cooperation with the Florida International Bankers Association (FIBA). Anyone who has an interest in the money transfer industry will benefit and is invited to attend, including not only transmitters and their employees, but also agents, bankers, credit unions, micro-finance institutions, professional service providers, folks from all related MSB industries, and government officials.

Fuerst Ittleman brings together specialists in the fields of regulatory compliance (FDA, customs, USDA, EPA and international trade law), tax and tax litigation, anti-money laundering business compliance and litigation, corporate commercial transactions and complex civil and white collar litigation related to these areas.

The firm is located in Miami and represents both domestic and foreign clients before the governmental and international agencies that regulate and influence international commerce and in the Federal and State courts that adjudicate these matters.