Ethics and Practice Procedures Flashcards
7 cards from real IRS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Ethics and Practice Procedures flashcards as text
A practitioner who receives a subpoena for client records during a grand jury investigation should first:
Answer: Consult with the client and consider asserting applicable privileges
The practitioner must consult with the client and evaluate applicable privileges (e.g., attorney-client or Kovel arrangement) before producing records.
Under Circular 230, a practitioner must keep copies of written advice for how long after the date the advice is rendered?
Answer: 3 years
Circular 230 §10.37 requires practitioners to retain copies of written advice and the documents on which it is based for at least three years.
Which of the following would constitute 'disreputable conduct' under Circular 230 §10.51?
Answer: Willfully assisting a client in evading federal tax
Willfully assisting, counseling, or encouraging tax evasion is explicitly listed as disreputable conduct under Circular 230 §10.51(a)(4).
A practitioner may NOT use the title 'enrolled agent' in an advertisement unless:
Answer: The practitioner is currently enrolled to practice before the IRS
Only practitioners who are currently enrolled to practice before the IRS may use the 'enrolled agent' designation; using it after enrollment lapses is prohibited.
Under best practices outlined in Circular 230 §10.33, a practitioner should communicate with the client regarding:
Answer: The terms and scope of the engagement, relevant facts, and applicable law
Best practices require clear communication about the scope of the engagement, relevant facts, and applicable law so the client can make informed decisions.
A practitioner who knowingly gives false or misleading information to the IRS in connection with a tax matter is subject to:
Answer: Disciplinary action under Circular 230 and possible criminal prosecution
Providing false or misleading information to the IRS violates Circular 230 §10.51 and may also constitute a criminal offense under 18 U.S.C. §1001.
When must a practitioner provide a written disclosure for a 'covered opinion' under Circular 230?
Answer: When the written advice concerns a listed transaction or a principal purpose transaction
Circular 230 §10.37 requires specific disclosures when written advice addresses listed transactions or tax avoidance transactions where tax benefits are a principal purpose.