EA Ethics: Enrolled Agent Ethical Standards: Practices and Procedures (Course Id 1586)

The Internal Revenue Service routinely processes more than 240 million tax returns each year, many of them prepared by tax professionals. Not surprisingly, as tax law becomes increasingly complex, taxpayers often seek the knowledgeable assistance of enrolled agents and other professionals in their preparation. 

To help ensure enrolled agents and other professionals understand their ethical responsibilities in representing their clients before the IRS and in preparing tax returns, the IRS has published Treasury Department Circular 230. Circular 230 offers substantial guidance by:

• Setting forth rules relating to the authority to practice before the IRS; and
• Identifying the duties and restrictions relating to such practice.

This course will examine the principal rules, duties and restrictions applicable to enrolled agents in their professional activities. 

NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents - 1586

Course Learning Objectives

• Recognize the permitted scope of enrolled agent responsibilities in their practice before the Internal Revenue Service;
  
• Identify the best practices for preparing or assisting in the preparation of a submission to the Internal Revenue Service; and
  
• List the duties and restrictions applicable to enrolled agents with respect to -
  o Information to be furnished to the IRS,
  o Dealing with taxpayer omissions, errors and noncompliance with U.S. revenue laws,
  o The requirement for preparer diligence,
  o Return of client records,
  o The existence of conflicts of interest, and
  o Solicitation of business.

Chapter 1
Practice Before the Internal Revenue Service

• Define "practice before the Internal Revenue Service”;
  
• Recognize the general scope of permitted enrolled agent practice responsibilities;
  
• List the categories of individuals permitted to practice before the IRS; and
  
• Identify the extent of practice privileges

Chapter 2
Enrolled Agent Requirements

• Recognize the specific duties and restrictions imposed on an enrolled agent’s practice before the IRS;
  
• Describe the enrolled agent renewal cycle;
  
• List the continuing education requirements applicable to enrolled agents; and
  
• Understand the Internal Revenue Service PTIN requirements.

Chapter 3
Sanctionable Acts & Sanctions

• List the types of conduct considered disreputable;
  
• Describe the monetary and non-monetary sanctions that may be imposed by the Office of Professional Responsibility on an enrolled agent for engaging in sanctionable acts;
  
• Identify the defining characteristics of a frivolous submission; and
  
• Recognize the badges of fraud.

Course Learning Objectives

Introduction to Course

Chapter 1 - Practice Before the Internal Revenue Service

Chapter Learning Objectives

Introduction

Professional Practice

Role of the Enrolled Agent

Individuals who may Practice

Professionals with Unlimited Practice Rights

Practice by Certified Public Accountants

Practice by Attorneys

Practice by Enrolled Agents

Individuals with Limited Practice Rights

Enrolled Actuaries

Enrolled Retirement Plan Agents

Registered Tax Return Preparers

Representation Based on Taxpayer Relationship

Summary

Chapter Review

Chapter 2 - Enrolled Agent Requirements

Chapter Learning Objectives

Introduction

Enrolled Agent Duties and Restrictions

Responding to IRS Requests for Information

Privileged Records or Information

Requested Material not in Enrolled Agent’s Possession

Material Requested Concerning Alleged Enrolled Agent Violation

Interference with an IRS Request for Information

Knowledge of Client Omissions

Former IRS Employees and Disbarred or Suspended Persons

General Rules on Practice by Former Government Employees

Solicitation of Business

Advertising and Solicitation Requirements

Logo Use

Professional Fee Information

Disclosure of Responsibility for Costs

Communication of Fee Information

Retention of Communications Containing Fee Information

Improper Associations

Due Diligence Requirements

Conflicting Interests

Prohibition on Negotiation of Client Refund Checks

Written Advice

Continuing Education

CPE Course Requirements

Types of Qualifying Programs

Meeting Circular 230 §10.9 Criteria

Tax Shelters

Economic Substance Doctrine

Term and Renewal of Enrolled Agent Status

Renewal Cycles

Prompt Disposition of Matters before the IRS

Return of Client Records

Nature of Client Records

PTIN Requirements

Obtaining a New PTIN

Renewing a PTIN

Enrolled Agent Supervisory Responsibilities

Identification of Supervisor

Requirement to Supervise

Tax Adviser Best Practices

Procedures to Ensure Best Practices Used

Summary

Chapter Review

Chapter 3 - Sanctionable Acts & Sanctions

Chapter Learning Objectives

Introduction

Disreputable Conduct

Sanctions Imposed by the Office of Professional Responsibility

Non-Monetary Sanctions

Censure

Suspension

Disbarment

Monetary Sanctions

Amount of Monetary Penalty

Frivolous Submissions

Fraudulent Transactions

Badges of Fraud

Income

Expenses or Deductions

Books and Records

Allocations of Income

Conduct of Taxpayer

Methods of Concealment

Summary

Chapter Review

Glossary