An advanced-level review of rules regarding error discovery during tax return preparation. Learn reporting requirements and advisement in these situations.
The discovery of errors in a taxpayer’s Federal return during preparation, or in an administrative proceeding, as well as addressing conflicts of interest, are among the most challenging issues for tax professionals. Understanding the professional standards and rules are of paramount importance in order to avoid a violation.
- Recognize the various regulatory and professional requirements associated with discovery of errors and with conflict of interest issues that confront the tax practitioner.
- Identify critical areas to be addressed in advising on discovery of an error, including required communications with the taxpayer and related engagement matters.
- Recognize the need to document advice given when an error is discovered and the possible consequences documentation.
- Recognize the need to monitor potential conflicts of interest and the steps necessary to determine if continued representation is feasible when an actual conflict exists.
- Determine the required documentation when a conflict of interest exists.
Level of Difficulty:
- Overview of the rules pertaining to the discovery of an error in a return either when rendering future preparation services or during representation in an administrative proceeding.
- Discussion of the duty to ‘advise’ clients with regard to potential taxpayer penalties associated with the discovery of an error or omission.
- Discussion of the Circular 230 requirements when a conflict of interest exists in an client engagement.
- Circular 230 and the IRS Office of Professional Responsibility oversight and disciplinary authority.
Tax practitioners with 2 years experience and a working knowledge of the AICPA Statements on Standards for Tax Services and IRS Circular 230.
CPAs, EAs and tax preparers.