Addressing Conflicts of Interest and Errors on Tax Returns
This advanced-level course dives into the rules regarding error discovery during tax return preparation. Learn about reporting requirements and advisement in these situations.
The discovery of errors in a taxpayer’s federal return during preparation or in an administrative proceeding and addressing conflicts of interest are among the most challenging issues for a tax professional. Understanding the professional standards and rules are of paramount importance in order to avoid a violation.
- 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.
- 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.
CPAs, EAs and tax preparers.
Applicable if you are a HSCPA member in good standing.
Applicable if you are not a HSCPA member.