Both IRS and AICPA have published guidance on ethical tax practice. Every CPA studied the subject of “ethics” generally and specificly to the attest function in order to pass the exam. That same emphasis should be put on ethics in tax practice. More malpractice cases are filed, and more judgments rendered for plaintiffs, on federal tax issues than on financial reporting.
Ant CPA, EA, or Attorney who gives tax advice on Federal tax matters or prepares Federal tax returns of any kind.
- Apply reasonable ethical standards to tax return preparation and tax advice.
- Recognize and be able to explain the support required for tax return positions. Reconcile AICPA and IRS guidance on common ethical issues
- Know how to write a tax opinion defending a return position
- Understand the meaning of “due diligence” as that term is applied to Federal income tax compliance
- AICPA General Standards.
- AICPA Statements on Standards for Tax Services.
- Treasury Circular 230
- IRC Section 6694 and “Reasonable Cause”
- Reliance Standards: Beyond “Reasonable Basis”
- Case Studies and Examples of “Due Diligence’”