R4 - M1 - Circular 230 Flashcards
What are ADS Rules
A - Authority to practice before the IRS
D - Duties and restrictions relating to practice before the IRS
S - Sanctions for violation of the regulations
Rules - Applicable to disciplinary hearings
Who has unlimited representation rights before the IRS
Attorneys, CPA’s, and EA’s
As a practioner, do you have to give the IRS the information they are requesting?
Depends on the situation but normally no. If you believe in good faith nothing is wrong, you do not have to. But if they ask for something and you don’t have it, but know who does, then you have to let the IRS know who has that info.
If the practioner knows that the client is non compliant with tax laws, what can they do?
Need to notify the client and let them know of the penalties or issues that may arise.
Do not need to notify the IRS, and do not need to drop the client until the fix the error.
What happens if a firm hires a government employee and there is a conflict of interest?
If the employee had personal responsibility and participated in particular maters, they can never represent those parties.
If the employee had official responsibility - Cannot represent for at least two years.
If the employee participated in the development of rule, they cannot appear for at least a year.
Can the practitioner charge the client whatever they want?
NO, has to be reasonable. Three exceptions:
IRS examination or audit of tax return
Claim for refund of interest or penalties
Judicial proceeding
Do you have to return client records even in a fee dispute?
Yes, have to return to the client any documentation to comply with federal tax obligations. Practioner must return any records that are attached to the return.
What are the three ways a practitioner may represent a client with conflict of interest?
Practitioner believes they can represent the client
No state or federal law prohibits the representation
Each client waives the conflict of interest and gives informed consent, must confirm the waiver in writing within 30 days after giving consent.
Communication can be communicated how?
Number of ways, radio, television, direct mail. But no fraudulent or misleading information.
