In recognition of the fraudulent activities and bankruptcies of Arthur Anderson and Enron in 2001, Certified Public Accountants (CPAs) will be held individually and severally culpable to the IRS and FTB for errors, penalties and late fees regarding the filing of financial reports and returns on behalf of individuals, partnerships and corporations.
No longer will the individual be held financially responsible and economically penalized for the accounting, filing and reporting errors of his or her CPA.