Treasury Department Circular 230

Question 1

List the components of the Internal Revenue Service best practices as outlined in Circular 230.

Answer 1

• Communicate clearly with client.
• Establish facts.
• Relate applicable law.
• Advise client regarding consequences.

Question 2

What is Circular 230?

Answer 2

The Department of Treasury’s rules of practice that cover CPAs and others who practice before the Internal Revenue Service

Question 3

List the general requirements of Internal Revenue Service (IRS) practitioners as highlighted in Circular 230.

Answer 3

• Furnishing requested information promptly
• Exercising due diligence
• Not unreasonably delaying IRS matters
• Not providing assistance in practicing to persons disbarred or suspended by IRS

Question 4

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

Answer 4

• Unconscionable

- Contingent (with some exceptions)