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
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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.
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3
Q

Identify the elements of an impermissible fee as described in Circular 230.

A
  • Unconscionable

* (With some exceptions) Contingent

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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
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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.

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