This column reviews the advent of Schedule UTP, considers the applicable ethical rules, and offers some best practice tips for practitioners.
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AICPA standards
Tax Return Processes: The Intersection of Due Diligence and Quality Control
This column explores the interrelationship of ethical and practical considerations that start before client data come into the office and continue after the return is filed.
An Overview of Tax Practice Issues That Arise Under Statement on Standards in Personal Financial Planning Services
This column discusses some of the issues that might arise for tax practitioners in light of Statement on Standards in Personal Financial Planning Services.
Voluntary Tax Practice Reviews
This column provides an overview of the various provisions and resources that should be consulted if a tax professional is considering a review of his or her tax practice systems and procedures.
AICPA’s Revised Confidentiality Rule, Sec. 7216, and the Tax Professional
Practitioners are encouraged to determine whether they comply with both Sec. 7216 and revised AICPA client confidentiality rules.
Practitioners’ Responsibilities in Complying With Records Requests
When responding to records requests, the tax practitioner must be cognizant of, and adhere to, the collective body of applicable professional standards and law.
Practical Approaches to Common Conflicts of Interest
This column highlights some common conflicts of interest encountered by CPA tax practitioners and offers some practical means of properly addressing the consequential ethical issues.
State Tax Tribunals: Is Taxpayer Representation by CPAs a Potential Independence Problem?
This item addresses whether a CPA representing a client in state tax tribunal has impaired his or her independence under the AICPA Code of Professional Conduct.
A New Road Map for CPAs’ Professional Conduct When Providing PFP Services
The PFP Executive Committee issued a statement to provide guidance to members and help them uphold the highest levels of integrity, professionalism, objectivity, and competence.
An Overview of AICPA and IRS Rules of Practice
This column refreshes practitioners on the AICPA and IRS rules of practice, provides a list of resources for questions and answers, and details the relationship and similarities between the AICPA and IRS ethics standards related to tax practice.
CPAs and Comfort Letters: The New Chocolate
For years, CPAs have been asked by third parties for verification, confirmation, certification, corroboration, authentication, or substantiation of their clients’ financial information. Negative connotations have often been associated with these requests.
Advising Clients Regarding Erroneous Tax Return Positions: Part II
This article discusses what tax practitioners must do if their client fails to heed their advice whan an error is found on a tax return and what to do when the error is attributable to the tax practitioner’s own advice.
Advising Clients Regarding Erroneous Tax Return Positions: Part I
This article examines the two somewhat different versions of the rule on advising clients regarding erroneous tax return positions—one applied by the AICPA and the other by the IRS.
The Proposed Statement on Standards in Personal Financial Planning: What Does It Mean for You?
To adapt to this rapidly evolving area of practice, the AICPA released this spring an exposure draft of the Proposed Statement on Standards in Personal Financial Planning Practice.
Establishing an Ethical Culture in a Tax Practice
This column offers practical suggestions for ways a professional firm can communicate, reinforce, and monitor its code of conduct in tax practice.
Circular 230, Section 10.21, and SSTS No. 6: Standards Relating to Taxpayer Errors and Omissions
Circular 230 SSTS No. 6 impose standards of conduct on CPAs who discover an error or omission in a prior-year tax return.
Interpretations of SSTS No.1, Tax Return Positions
Recently issued revised and updated interpretations of the AICPA’s SSTS No.1, Tax Return Positions, provide guidance to practitioners on tax reporting standards when recommending return positions or preparing or signing returns.
Due Diligence Update
This column discusses the tax professional’s due-diligence obligations under SSTS No. 3 and Circular 230.
Ethical Considerations in Reporting Use Taxes on State Income Tax Returns
As more states allow residents to report a liability for state use taxes on their individual income tax returns, practitioners will have to explain to clients their obligations in reporting use tax liability and address the professional standards for reporting use tax on a state income tax return.
2010–2011 Revisions to Circular 230
This article focuses primarily on the Circular 230 tax preparer penalties and other sanctions as well as the regulations governing practice before the IRS that were revised by T.D. 9527.
employee benefits & pensions
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
