Duties and Restrictions Flashcards
What must tax practitioners provide to the IRS or Office of Professional Responsibility?
Records or information requested, unless it is privileged or the request is illegal. Practitioners must act in good faith when determining privilege.
What is required for practitioners regarding competence?
They must have the necessary knowledge and skills to handle tax matters and can improve competence by consulting experts or studying relevant laws.
Under what circumstances can practitioners charge contingent fees?
They cannot charge fees based on the outcome of an IRS audit, except in specific cases like examinations of original or amended returns, penalty-related claims, or court proceedings.
What is the confidentiality privilege for tax practitioners?
Confidentiality rules apply to communications between a taxpayer and a federally authorized tax practitioner, similar to attorney-client privilege, but not in criminal cases, tax shelter advice, or return preparation.
What is the duty of practitioners regarding client omissions?
Practitioners can rely on client-provided information but must investigate if it seems incorrect or inconsistent and inform clients of errors and consequences.
What are the advertising requirements for tax practitioners?
Advertising must be truthful and not misleading, and practitioners cannot imply certification or employment by the IRS. Copies of advertising materials must be kept for three years.
What is required for diligence as to accuracy?
Practitioners must ensure accuracy in all tax returns, documents, and communications related to IRS matters, relying on others’ work only if reasonably supervised and checked.
What must practitioners do regarding conflicts of interest?
They must avoid conflicts unless they believe they can represent all clients fairly, it is not illegal, and clients consent in writing within 30 days of discovering the conflict.
Can practitioners endorse or cash a client’s refund check?
No, but they can deposit the check into the client’s account if authorized in writing.
What is the rule for practitioners acting as notaries?
Practitioners who are notaries cannot notarize documents related to IRS matters they are involved in.
What is the expectation for prompt disposition of IRS matters?
Practitioners must not delay resolving IRS matters without a valid reason.
What are the requirements for written tax advice?
It must be based on accurate facts, laws, and reasonable assumptions, without relying on misleading information or ignoring possible audits.
What can non-lawyers not do in relation to the practice of law?
Non-lawyers cannot perform tasks considered legal practice.
What is the restriction regarding assistance to disbarred or suspended persons?
Practitioners cannot work with individuals disbarred or suspended from practicing before the IRS on related matters.
What must practitioners do with client records?
They must promptly return client records needed to meet tax obligations, even during fee disputes, but can retain copies.
