This course presents a review of recent changes to Circular 230 and its role in governing the professional conduct of the Enrolled Agent and Tax Return Preparer. Selected sections of Circular 230 are reviewed and discussed in terms of their impact on the daily practice activities of tax professionals.

A series of case studies are presented in which the tax practitioner can witness the provisions of the highlighted sections of the circular being put into action, with a discussion of the consequences resulting from the actions of the tax practitioners concerned. The role of the Office of Professional Responsibility and its power to enforce Circular 230 is brought to the forefront by a review of several cases in which disciplinary action was taken.

After completing this course, students will be able to:

• identify the four different types of sanctions that may be imposed on practitioners for violating the regulations set out in Circular 230
• recognize the limits in the scope of practice imposed on annual filing season program certificate holders compared to enrolled Circular 230 practitioners
• identify the types of actions by a tax practitioner that would fall under the heading of "incompetence and disreputable conduct" as defined in Circular 230 Section 10.51
• identify the general meaning of the term "unreasonable position" in relation to tax returns as described in Circular 230 Section 10.34
• identify the purpose of Form 8867 and recognize cases in which it must be used when preparing an individual tax return
• identify the nature of the questions that a preparer must ask when interviewing a client for a claim that requires Form 8867 and recognize the actions that must be taken in response to the answers provided by the client

Tax Year: 2022

EAs and other tax professionals