Circular 230

Question 1

A practitioner is presumed to have exercised _____ _____ when they rely on the work product of another person if the practitioner used reasonable care with respect to such reliance

Answer 1

due diligence

Question 2

Facts about Circular 230

Answer 2

no practitioner may unreasonably delay any matter before the IRS

a practitioner may not act as a notary public for their clients on any tax matter

a practitioner may not charge an unconscionable fee in connection with any matter before the IRS

a practitioner may not endorse or otherwise negotiate any refund check issued to a client (but they can hold on to the check if a client is out of town)

Question 3

When is a contingent fee allowable?

Answer 3

under these 3 circumstances:

IRS examination of, or challenge to, an original tax return

claim solely for a refund of interest and/or penalties

a judicial proceeding arising under the IRC

Question 4

T/F: a practitioner must always return any and all client records

Answer 4

true; the practitioner can retain copies of the records and does not have to turn over their workpapers

if state law allows the practitioner to retain records in the case of a fee dispute, the must allow the client reasonable access to review and copy any records that are necessary for the client to comply with their federal tax obligations

Question 5

A practitioner and solicitation

Answer 5

a practitioner may not use any form of public communication or private solicitation containing a false, fraudulent, or coercive statement or claim, or a misleading or deceptive statement or claim

Question 6

Practitioners publishing a written fee schedule must honor those fees for the _____ period following the last date that the fees were published

Answer 6

30-day

Question 7

Copies of communication must be retained by the practitioner for a period of at least _____ from the date of the last transmission or use

Answer 7

36 months

Question 8

Generally, a practitioner who signs the tax return may __________ upon info furnished by the client. However, the practitioner cannot ignore implications of such info or contradictory info known to the practitioner, and must make _____ if the info furnished by the client appears to be _____ or _____

Answer 8

rely in good faith without verification

reasonable inquiries

questionable / incomplete