The American Institute of Certified Public Accountants is asking the Federal Trade Commission to exempt accountants and accounting firms from the “Red Flag” rules intended to combat identity theft.
Just as the FTC extended the compliance deadline for the rule to Nov. 1, AICPA President Barry Melancon sent a letter to the FTC asking for certified public accountants and accounting firms in general to be exempt from the rule. FTC postponed the rule because of confusion over how it applies to smaller companies and those with a low risk of identity theft—especially those that aren’t directly in the credit business but may be caught in the definition because they bill their customers and carry accounts receivable.
