2015-2016 Federal Tax Update: Due Diligence and Ethics Issues (Currently Unavailable)

Author: Stuart P Sobel

In this course, Stuart discusses due diligence and other ethical issues affecting tax preparation and representation of clients before the Internal Revenue Service.

Publication Date: October 2015

Designed For
All tax practitioners in public and private practice who need to identify and apply the basics and recent changes in the tax law and procedures.

Topics Covered

• Due diligence
• Competence
• Use of tax information
• New clients with previous preparers
• IRS enforcement and the E-File Program
• Impact of the Taxpayer Bill of Rights
• Tax planning issues
• Use of tax information
• Disclosure
• Complaints against preparers

Learning Objectives

• Identify recent changes in tax practice enforcement by the IRS
• Apply new guidelines regarding competence of tax practitioners
• Exercise enhanced due diligence in the preparation of tax returns
• Identify the primary reason for concern regarding due diligence on the part of U.S. government
• Recognize the IRS concerns about closing the current tax gap in the U.S. and what accurately represents the scope of the tax gap
• Identify the right to a fair and just tax system under the Taxpayer Bill of Rights
• Describe which violations of due diligence requirements apply to penalties under IRC §6694(a)
• Recognize how to correct a valuation misstatement on property
• Identify why the IRS has developed and sent an increased number of several letters from the Return Preparer's Office (RPO) to tax practitioners
• Determine how to confirm clients have health insurance with or without documentation
• Identify which code sections address accuracy-related penalties
• Determine which activities would most likely be deemed a hobby rather than a legitimate business endeavor under IRS business criteria
• Identify potential issues and how to deal with unqualified executors of estates
• Identify significant consequences of specifically violating the competence standard under Circular 230
• Differentiate the AICPA competence standard from the competence standard spelled out in Circular 230
• Determine when you should refer to Treasury Regulation 301-7216-(3)(c)(1)
• Differentiate actions which would represent the most serious violations
• Identify basis for conviction for filing a false return under IRC §7206
• Recognize when you would use §10.37 of Circular 230
• Recognize fraud case situations where a request for denial would be deemed reasonable
• Identify which situations apply to standards for written advice
• Recognize designation requirements required to be a practicing licensed tax professional
• Identify when you would consult guidelines and a summary of the regulations and rules of conduct for tax practitioners
• Recognize existing law and how a CPA should regard his/her role as a tax practitioner
• Differentiate the rules under the Taxpayer Bill of Rights and how it applies in your practice
• Identify when Circular 230, §10.22 applies to a tax preparer
• Recognize the significant required attribute of the CPA as referenced in the AICPA Code of Professional Conduct and what is required of tax practitioners by the IRS
• Identify what percentage of all claims represent erroneous EIC claims
• Recognize the maximum penalty of compliance failure
• Identify code sections applied to reckless conduct on the part of a tax preparer
• Differentiate potential tax penalties under the IRC and which would represent a substantial understatement of taxes
• Recognize in regards to valuation and misstatement who could be subject to severe tax penalties depending on the category of misstatement
• Identify scenarios where the most reasonable and permissible course of action when exercising due dilligence
• Identify when to utilize IRC §6695-2(d)
• Recognize the features common to both Circular 230, §10.35 and the AICPA Code of Professional Conduct
• Identify when to supply requested documentation on the behalf of your clients to a third party
• Recognize which form a taxpayer would file for a legitimate complaint against a tax preparer
• Recognize the fine for an individual taxpayer if convicted of the willful attempt to evade taxes
• Identify the definition of written advice and what needs to be specifically excluded
• Identify which code section requires a tax practitioner to respond promptly to a request by the IRS for information regarding any matter under Circular 230
• Recognize when a tax practitioner must take into account possible conflicts of interest when representing a new client

Level
Update

Instructional Method
Self-Study

NASBA Field of Study
Regulatory Ethics (3 hours), Taxes (3 hours)

Program Prerequisites
A basic understanding of tax preparation.

Advance Preparation
None