Circular 230

A practioner who knows of a clients noncompliance with federal tax laws or error or omission on a tax return or other document must:

Notify the client orally or in writing, advise the client of the consequences

a practitioner must exercise due diligence in:

preparing, approving, and filing tax returns and other documents related to the IRS and determine the correctness of oral and written representations made by the practitioner to the clients or the treasury department

no practioner may unreasonably. ____ any matter before the IRS

delay

true or false: a practioner cannot accept help or assist any person who is under disbarment or suspended from practice before the IRS

true

if a government employee personally and substantially participated in a particular matter, that individual can _____ represent or assist those parties

never

if a government employee had “ ______ “ for a particular matter he or she _____ those parties for _____

official responsibility, cannot represent, two years

If a government employee participated in the development of a rule, he or she ______ appear before the IRS regarding that rule for _____

cannot, one year

a practitioner may ___ as a __ public for his or her clients on any tax matter

not act, notary

a practitioner cannot charge an ____ in connection with matters before the IRS

unfair fee

a contingent fee is allowed in the three situations before the IRS:

irs examination of an original tax return, claim for a refund of interest and/or penalties, a judicial proceeding

A practioner owes the client a duty o confidentiality EXCEPT when:

Peer review

if state law allows a practitioner to retain client records in case of a fee dispute:

the practitioner must still return any records that must be attached to the returns , any additional records may be retained but the practitioner must give client reasonable access to review and copy the records, if necessary for client to comply with federal tax obligations

a practitioner may not represent a client before the IRS if it involves a conflict of interest unless:

practitioner believes he can competently represent each of the clients, no state or federal law prohibits the representation, each client waives the conflict of interest and gives informed consent within 30 days of waiver

True or false: you many not advertise that you can guarantee to eliminate or reduce taxes

true

copies of fee information communication must be retained for ____

36 months

a practioner may not ____ or ____ any refund check issue to a client

endorse, negotiate

A practitioner many not willfully or recklessly sign a tax return or advise a client to take a tax position they know or should know:

lacks reasonable basis or is an unreasonable position, is a wilful attempt to understate tax liability, recklessly or intentionally disregards the tax rules and regulations

Irma procedures to ensure compliance with circular 230

good internal controls must be in place and followed, must show good faith attempts to comply

Secretary of the treasury may publicly reprimand, suspend, or disbar any practitioner from practice before the IRS if practitioner:

is shown to be incompetent, fails to comply with regulations in circular 230, willfully and knowingly misleads or threatens a client or prospective client with intent to defraud

a practitoiiner disbarred or suspended may petition for reinstatement before the IRS after the expiration of ____ following suspension or disbarment

five years

reinstatement will not be granted unless:

the irs is satisfied that the petitioner is not likely to engage in conduct contrary to the regulations in circular 230 and granting reinstatement. Would not be contrary to the public interest