Judges: SHARYN L. SMITH
Agency: Department of Business and Professional Regulation
Latest Update: Dec. 10, 1981
Summary: Respondent's certified public accountant license revoked until he proves compliance with continuing education because practiced accounting while his license was inactive.
81-1226.PDFSTATE OF FLORIDA
DIVISION OF ADMINISTRATIVE HEARINGS
DEPARTMENT OF PROFESSIONAL ) REGULATION, BOARD OF ACCOUNTANCY, )
)
Petitioner, )
)
vs. ) CASE NO. 81-1226
)
JOHN M. FAVRET, )
)
Respondent. )
)
RECOMMENDED ORDER
Pursuant to notice, the Division of Administrative Hearings, by its duly designated Hearing Officer, Sharyn L. Smith, held a formal hearing in this case on September 11, 1981, in Coral Gables, Florida. The following appearances were entered:
APPEARANCES
For Petitioner: Joseph W. Lawrence, II, Esquire
Department of Professional Regulation
130 North Monroe Street Tallahassee, Florida 32301
For Respondent: No appearance.
The issue for determination at the hearing was whether disciplinary action should be taken against the Respondent for his alleged use of his license to practice public accounting while the license was inactive due to his failure to complete continuing education requirements imposed by law.
INTRODUCTION
By Administrative Complaint dated March 26, 1981, Respondent John M. Favret was charged with violating Chapter 473, Florida Statutes. Specifically, it was alleged that & Respondent is guilty of using or attempting to use a public accounting license which had been placed on inactive status in violation of Sections 473.322(1 )(f ) and 473.323(1 )(a ) Florida Statutes, and practicing public accounting with an inactive license in violation of Section 473.323(1 )(i
) Florida Statutes.
At the hearing, Petitioner presented the testimony of the Respondent through his deposition and Joe Butler, an employee of Price, Waterhouse and Company, C.P.A., who was qualified as an expert in tax preparation and advisory services. Petitioner's Exhibits 1 and 2 were admitted into evidence.
The Respondent failed to appear at the hearing and did not contact either the Hearing Officer or opposing counsel prior to the hearing to request a continuance. Subsequent to the hearing, the Respondent was given leave by the Hearing Officer to respond in writing to the charges in the Administrative Complaint. On November 2, 1981, the Respondent answered the charges in the Administrative Complaint by asserting that he met the continuing education requirements and had not used or attempted to use his certificate since receiving on July 9, 1980, notice of its Inactive status. Respondent's letter of November 2, 1981, is hereby admitted into evidence as Hearing Officer's Exhibit 1.
A Proposed Recommended Order was submitted by the Petitioner. Proposed Findings of Fact not included herein were not supported by competent substantial evidence or were deemed unnecessary or immaterial to the issues involved.
FINDINGS OF FACT
At all times material to this proceeding, Respondent Favret held public accounting license number 0001424 with the State of Florida.
Respondent's license to practice public accounting reverted to inactive status by operation of law on January 1, 1980, due to his failure to demonstrate to the Department of Professional Regulation and the Board of Accountancy compliance with the continuing education requirements imposed on licensed public accountants pursuant to Section 473.312, Florida Statutes, and Chapter 21A-33, Florida Administrative Code.
The Respondent was aware that his license reverted to inactive status on January 1, 1980, due to his failure to meet professional continuing education requirements. Respondent chose not to comply with the continuing education requirements because he did not wish to maintain an active license and did not feel that formal continuing education was of benefit to him.
Between January 1, 1980, and August, 1981, Respondent continued to perform tax advisory services for approximately twenty-five (25 ) clients. His services included the preparation of personal federal income tax returns and all necessary supporting tax schedules.
Respondent explained the tax services he provided as including the accumulation of raw data brought in by a client in categories, summarizing the information and then preparing the necessary tax forms.
Although the Respondent signed all the tax forms as the preparer, he ceased using the professional designation, "C.P.A." when he received formal notice of the inactive status of his license.
To prepare the income tax returns for his clients, knowledge of the present tax laws and regulations, tax accounting and arithmetic were utilized by the Respondent in the tax advisory and preparation services for which he received compensation.
The preparation of personal income tax returns involves the use of accounting skills which includes the ability to make a determination of what items need to be recognized and included7 the reasonableness of the items, the proper categorization of the items and whether to apply certain accounting functions such as allocation to the items. 1/
CONCLUSIONS OF LAW
The Division of Administrative Hearings has jurisdiction over the parties and subject matter of this proceeding.
Section 473.322(1 )(f ) , Florida Statutes (1979 ) , prohibits a person from knowingly using or attempting to use "... a public accounting license which has been placed on inactive status." Pursuant to Section 473.323(1
)(i ) , Florida Statutes (1979 ) , practicing on an inactive license constitutes grounds for disciplinary action.
The practice of "public accounting" is defined at Section 473.302(4 )(a
), Florida Statutes (1979 ), as:
Offering to perform or perform-
ing for the public one or more types
of services involving the use of account- ing skills ..., by a certified public accountant. (Emphasis supplied. )
A "certified public accountant" is a person who holds a license to practice public accounting in this state under the authority of Chapter 473, Florida Statutes (1979 ). See Section 473.302(3 ) , Florida Statutes (1979 )
The undisputed evidence demonstrates that Respondent Favret is a certified public accountant who has held an inactive license from January, 1980, through at least August, 1981. During that period he knowingly performed tax advisory and preparation services which involves use of accounting skills while holding an inactive license and, therefore, practiced public accounting. As such, Respondent has violated Section 473.323(1 )(i ) , Florida Statutes (1979
) and Section 473.323(1 )(a ) Florida Statutes (1979 ) , through operation of Section 473.322(1 )(f ) , Florida Statutes (1979 ).
Therefore, it is recommended:
That the Board of Accountancy issue a Final Order revoking the license of Respondent to practice public accounting subject to reinstatement when the Respondent demonstrates that he has complied with the professional continuing education requirements of Chapter 21A-33, Florida Administrative Code.
Additionally, 32 hours of continuing education course work shall be required for each year the Respondent's license remains inactive beyond January, 1980.
DONE AND ORDERED this 10th day of December, 1981, in Tallahassee, Florida.
SHARYN L. SMITH, Hearing Officer Division of Administrative Hearings 2009 Apalachee Parkway
Tallahassee, Florida 32301
(904 ) 488-9675
Filed with the Clerk of the Division of Administrative Hearings this 10th day of December, 1981.
ENDNOTE
1/ Compare Section 473.322(1 )(c ) , Florida Statutes (1979 ), and Rule 21A- 34.01(2 ) , Florida Administrative Code, which authorizes the preparation of tax returns by persons other than certified public accountants.
COPIES FURNISHED:
Joseph W. Lawrence, II, Esquire Deputy General Counsel Department of Professional
Regulation
130 North Monroe Street Tallahassee, Florida 32301
John M. Favret
2260 Keystone Boulevard
Island 1
North Miami, Florida 33181
Docket for Case No: 81-001226
Orders for Case No: 81-001226
| Issue Date |
Document |
Summary |
|
Dec. 10, 1981 |
Recommended Order
|
Respondent's certified public accountant license revoked until he proves compliance with continuing education because practiced accounting while his license was inactive.
|
