Circular 230 Flashcards
1
Q
List the components of the Internal Revenue Service best practices as outlined in Circular 230.
A
- Communicate clearly with client
- Establish facts
- Relate applicable law
- Advise client regarding consequences
2
Q
List the types of covered opinions outlined in Circular 230.
A
- Tax avoidance transactions
- Transactions with principal purpose of avoiding tax
- Four categories of transactions with significant purpose of avoiding tax.
3
Q
Identify the elements of an impermissible fee as described in Circular 230.
A
- Unconscionable
* (With some exceptions) Contingent
4
Q
List the general requirements of Internal Revenue Service (IRS) practitioners as highlighted in Circular 230.
A
- Furnishing requested information promptly
- Exercising due diligence
- Not unreasonably delaying IRS matters.
- Not providing assistance in practicing to persons disbarred or suspended by IRS
5
Q
What is Circular 230?
A
The Department of Treasury’s rules of practice that cover CPAs and others who practice before the Internal Revenue Service.