PART II: Ethics, Professional Responsibilities, and Federal Tax Procedures (Area I)

In this section

• Chapter 3: Ethics and Responsibilities in Tax Practice
  • Treasury Department Circular 230
    Explore key ethical obligations, due diligence requirements, and sanctions under Treasury Department Circular 230, the cornerstone regulation governing tax practitioners’ conduct before the IRS.
  • Duties and Restrictions for Tax Practitioners
    Explore core ethical obligations, mandatory return-signing protocols, confidentiality requirements, and avoidance of conflicts of interest for tax practitioners. Learn about Circular 230, real-world scenarios, and best practices to uphold professional integrity.
  • Identification of a “Tax Return Preparer” and Related Penalties
    Comprehensive exploration of the legal definition of tax return preparers, their responsibilities, potential penalties, and notable exceptions.
  • AICPA Statements on Standards for Tax Services (SSTS)
    Discover the scope, rationale, and practical application of the AICPA Statements on Standards for Tax Services (SSTS) and learn how they guide tax practitioners' ethical and compliance responsibilities.
  • Maintaining Integrity, Objectivity, and Independence
    Learn essential principles of ethical conduct, unwavering integrity, unbiased objectivity, and the importance of independence when preparing tax returns and communicating with tax authorities.
• Chapter 4: Licensing and Disciplinary Systems
  • State Boards of Accountancy: Authority and Responsibilities
    Discover the vital role of state boards in overseeing CPA licensing, enforcement, and disciplinary measures to safeguard public interest and uphold professional standards.
  • Investigations, Sanctions, and Grounds for Disciplinary Action
    Learn how State Boards of Accountancy investigate alleged CPA misconduct, the disciplinary processes that follow, and the range of potential sanctions for violations of professional standards.
  • Common Violations and Typical Remedies
    Explore the most frequent violations committed by CPAs and other tax professionals and learn about the disciplinary actions and remedies enforced by State Boards of Accountancy and other regulatory bodies. Understand how to avoid these pitfalls and maintain professional integrity.
• Chapter 5: Federal Tax Procedures
  • IRS Audit and Appeals Process
    Learn how the IRS initiates audits, how to handle information requests, and how to navigate the Appeals process to resolve tax disputes effectively.
  • Substantiation and Disclosure Requirements
    Discover essential substantiation and disclosure obligations for federal tax procedures, including recordkeeping best practices, documentation standards, specialized forms, and strategies to avoid underreporting penalties.
  • Statute of Limitations and Filing Deadlines
    Learn the intricacies of the tax statute of limitations, key filing deadlines, and exceptions for fraud or nonfiling to ensure accurate and timely compliance.
  • Civil and Criminal Penalties Imposed on Taxpayers
    Discover key distinctions among negligence, fraud, and accuracy-related penalties—plus insights on potential criminal charges—for a comprehensive understanding of civil and criminal tax penalties.
  • Authoritative Hierarchy: Code, Regulations, Rulings
    Explore the ranking of federal tax authorities and how to research them effectively, from the Internal Revenue Code to Treasury regulations and IRS rulings.
• Chapter 6: Legal Duties and Responsibilities
  • Common Law Duties to Clients and Third Parties
    Explore negligence, gross negligence, foreseeability, and privity issues in tax engagements, highlighting CPA responsibilities under common law.
  • Privileged Communications, Confidentiality, and Privacy Acts
    In-depth exploration of attorney-client privilege vs. CPA-client confidentiality, legal frameworks, and Privacy Acts affecting tax practice and client data protection.
  • Malpractice and Breach of Contract in Tax Engagements
    Explore the essentials of CPA malpractice and breach of contract within tax engagements, including common exposures, damage claims, and crucial risk mitigation strategies.