1.1 Circular 230

Question 1

Rules Governing Authority to Practice

Answer 1

Practice before the IRS includes presenting to the IRS or any of its officers or employees all matters relating to a clients rights, privileges, or liabilities

Question 2

Practice before the IRS

Answer 2

Any individual who for compensation prepares or assists with the preparation of all or substantially all of a tax return or claim for a refund must have a preparer tax ID number and subject to the related duties and restrictions and subject to violations of these regulations

Question 3

Authorized to Practice

Answer 3

Qualified (CPA, attorney,EA) and authorized

Question 4

Rules for Conduct

Answer 4

No conflicts of interest allowed unless disclosed fully (30 days written) - Qualified - Due Diligence - Information promptly submitted - no unconscionable fee - prompt return of client info on request - advertising and solicitation allowed

Question 5

Best Practices for Tax Advisors

Answer 5

Highest quality representation - clear communication - advising - acting fairly and with integrity

Question 6

Written Tax Advice

Answer 6

Base the advice on reasonable assumptions

Question 7

Sanctions for Violations

Answer 7

Violations of Circular 230 - suspension, disbarment, etc.

No inappropriate conduct, dishonesty or breach of trust