Tax Practitioners

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Most people who prepare tax returns and represent taxpayers before the IRS are professional, honest and provide excellent service to their clients, unfortunately there are some who do not maintain ethical standards and follow the law. The IRS Office of Professional Responsibility (OPR) is responsible for setting, communicating and enforcing standards of competence, integrity and conduct among tax practitioners - specifically attorneys, CPAs, enrolled agents and others who represent taxpayers before the IRS. Treasury Department Circular No. 230 contains the rules and regulations governing attorneys, CPAs, enrolled agents, enrolled actuaries and appraisers who represent taxpayers before the IRS. "The Treasury and IRS also separately issued proposed regulations regarding written advice concerning tax-exempt bonds that are similar to the standards for written advice in the final regulations". "www. Irs.gov". The proposed standards take into account the special characteristics of the market for tax-exempt bonds while ensuring that professionals who provide advice concerning tax-exempt bonds adhere to standards of practice that are comparable to the standards applicable to other tax professionals. Until the proposed regulations are finalized, practitioners who provide advice concerning tax-exempt bonds will be subject to certain minimum standards.

"In general, there are four broad categories of misconduct which may be subject to disciplinary action by OPR: 1) misconduct while representing a taxpayer; 2) misconduct related to the practitioner's own return; 3) giving a false opinion, recklessly, or through gross incompetence, or 4) misconduct not directly involving IRS representation".

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The AICPA's Statements on Standards for Tax Services (SSTSs) are enforceable tax practice standards for members of the AICPA. The SSTSs apply to all members regardless of the jurisdictions in which they practice and the types of taxes with respect to which they are providing services. The original SSTSs, adopted in 2000, were revised in 2009, effective January 1, 2010. http://www.aicpa.org/Research/Standards/Tax/Pages."

According to Journalofaccountancy.com" The level of authority needed to recommend a tax return position or prepare or sign a tax return; The effort required to answer all questions on a return; The extent to which information furnished by the taxpayer or a third party can be relied upon without verification; The use of the taxpayer's estimates in preparing a tax return; The ability to recommend a tax return position that departs from a position determined in an administrative proceeding or court decision with respect to a prior year's return of the taxpayer; The action to be taken upon becoming aware of an error in a return previously filed