Tax Return Preparer Ethical Issues (Course Id 1153)

Regulatory Ethics - Regulatory Ethics for Course Id 1153

The Internal Revenue Service routinely processes more than 200 million tax returns each year, many of them prepared by tax professionals. Not surprisingly, as tax law becomes increasingly complex, taxpayers often seek for the knowledgeable assistance of attorneys, CPAs, enrolled agents and other qualified tax return preparers.

To help ensure such professionals understand their ethical responsibilities in representing their clients before the IRS and in preparing their tax returns, the IRS has published Treasury Department Circular No. 230. Circular 230 offers substantial guidance by:

• Setting forth rules relating to the authority to practice before the IRS;
• Identifying the duties and restrictions relating to practice before the IRS; and
• Prescribing sanctions for violating the regulations.

This course will examine many of those rules, duties and restrictions as well as the sanctions imposed for their violation. In that examination of applicable rules, the course will discuss the requirements imposed on tax return preparers by them and will then present real-world scenarios focusing on specific ethical issues preparers may encounter in their professional activities. The preparer will be asked to analyze the scenario, identify the ethical issue or issues presented and determine an appropriate response.

NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents - Registered Tax Return Preparers - 1153

Course Learning Objectives

• Recognize the permitted scope of tax return preparer responsibilities;
  
• Identify the best practices for tax advisers in preparing or assisting in the preparation of a submission to the Internal Revenue Service;
  
• List practitioner duties and restrictions with respect to –
  o Information to be furnished to the IRS,
  o The practice of law,
  o Dealing with taxpayer omissions, errors and noncompliance with U.S. revenue laws,
  o The requirement for preparer diligence as to accuracy,
  o Return of client records,
  o The existence of conflicts of interest, and
  o Solicitation of business; and
• List the various sanctions that may be imposed for a preparer’s failure to comply with applicable conduct rules.

Chapter 1
Registered Tax Return Preparer Responsibilities

• Recognize the scope of permitted tax return preparer responsibilities;
  
• Identify the best practices for tax advisers in preparing or assisting in the preparation of a submission to the Internal Revenue Service with respect to:
  o Client communication,
  o Establishing relevant facts,
  o Providing client advice, and
  o Practice before the IRS;
• Recognize the standards related to tax return and document preparation; and
  
• Identify the applicable standards for advising clients concerning potential penalties.

Chapter 2
Practitioner Duties and Restrictions

• Information to be furnished to the IRS,
  
• The practice of law,
  
• Dealing with taxpayer omissions, errors and noncompliance with U.S. revenue laws,
  
• The requirement for preparer diligence as to accuracy,
  
• Return of client records,
  
• The existence of conflicts of interest, and
  
• Solicitation of business.

Chapter 3
Sanctions for Regulation Violations

• Define the terms “censure,” “ suspension” and “disbarment” as they apply to tax return preparers;
  
• Identify the various sanctions that may be imposed for a preparer’s failure to comply with applicable conduct rules;
  
• Recognize how appropriate monetary sanctions are determined; and
  
• List the types of conduct considered incompetent and disreputable.

Course Learning Objectives

Introduction to Course

Chapter 1 - Tax Return Preparer Responsibilities

Chapter Learning Objectives

Introduction

Tax Return Preparer Scope of Responsibilities

Preparation of Documents

Taxpayer Representation

Best Tax Return Preparer Practices

Client Communication

Establishing Relevant Facts

Providing Client Advice

Practice Before the Internal Revenue Service

Standards Related to Work Product and Other Papers

Tax Return Standards

Pattern of Conduct a Factor in Determining Nature of Practitioner Actions

Standards Related to Documents, Affidavits and Other Papers

Standards for Advising Clients on Potential Penalties

Summary

Review Quiz

Chapter 2 - Practitioner Duties and Restrictions

Chapter Learning Objectives

Introduction

Tax Return Preparer Duties and Restrictions

Prohibition on Negotiation of Client Refund Checks

Solicitation of Business

Advertising and Solicitation Requirements

Professional Fee Information

Disclosure of Responsibility for Costs

Communication of Fee Information

Retention of Communications Containing Fee Information

Improper Associations

Solicitation Case Study

Bob Archibald’s Solicitation Activities

Unauthorized Practice of Law

Unauthorized Practice of Law Case Study

Shirley Connor’s Advice

Responding to IRS Requests for Information

Requested Material not in Practitioner’s Possession

Material Requested Concerning Alleged Practitioner Violation

Interference with an IRS Request for Information

Request for Information Case Study

Bill Whitacre and the IRS Request

Knowledge of Client Omissions

Client Omission Case Study

Audrey Wilson’s Client Omission Problem

Requirement for Accuracy

Requirement for Accuracy Case Study

Harry Barnes and the Client’s Inaccurate Answers

Return of Client Records

Nature of Client Records

Request for Return of Records Case Study

Sue Willoughby and the Non-Paying Client

Conflicting Interests

Conflict of Interest Case Study

Bob Brown’s Conflict of Interest

Answers to Hypothetical Case Studies

Bob Archibald’s Solicitation Activities

Shirley Connor’s Advising Activities

Bill Whitacre’s Actions

Audrey Wilson’s Client’s Omission

Harry Barnes’ Client’s Inaccurate Answers

Sue Willoughby and the Non-Paying Client

Bob Brown’s Conflict of Interest

Summary

Review Quiz

Chapter 3 - Sanctions for Regulation Violations

Chapter Learning Objectives

Introduction

Authorized Sanctions for Violation of Regulations

Non-Monetary Sanctions

Censure

Suspension

Disbarment

Monetary Sanctions

Amount of Monetary Penalty

Incompetence and Disreputable Conduct

Summary

 Review Quiz

Glossary