Treasury Circular 230

Question 0

Client tax records

Answer 0

3 yrs following the last date of return period 12 month beginning on 1 July of each year

Question 1

Best practices for tax advisors

Answer 1

Terms of engagement communicate
Establishing the facts and arriving at a conclusion supported by law
Advising the client about imp of conclusions ie penalty
Making sure that members , associates, and emplyees follow the procedures

Question 2

The tax Practioner discovers an error or omission in prior period records

Answer 2

Advice the client of such error

And consequences of non rectification

Question 3

Client refund

Answer 3

May not endorse or negotiate refund check penalty

Question 4

Confidential client information

Answer 4

Consent to the release of information
Computer processing
Peer review
Administrative order court order

Question 5

CPA documentation after preparation of return

Answer 5

Tax payers name
Identification no
Copy of the tax return

Question 6

Penalty for understatement of taxpayer liability

Preparer

Answer 6

$1000. Or 50 %of the income the preparer received for tax preparation services greater off
1 understates
2 knowledge or reasonable basis to come to conclusion
3 disclosure of position not made
4 position lacks reasonable basis

But reasonable basis for understatement exist good faith
Penalty will not apply

Question 7

CPA requirement of supporting documentation

Answer 7

Not required but
1 suspect about the accuracy of the information provided
2 must make reasonable enquires of information provided appears incorrect or incomplete