Question

Discuss the legal and ethical aspects of accurately reporting income on tax returns using Circular 230 as published by the Department of Treasury. Discuss one item in Section B on Duties and Restrictions and the consequences to tax preparers if they fail to adhere to the guidelines as provided by the Department of Treasury.

Answer 1

If they d fail to follow the regulation oi vooloded any standards.... (b) Authority to censure, Anthasity to Suspend os disbar disquellsfy The Secretary of The Secretary of tren susry or delegate treasury o delegate after notice of after due notice hearing ... Can Suspad and opportunity of or disbar Mom the Practice before hearing may dis Internal revemen Sauce quality any apprediser se: if they fails for voolation of to comply regul rules applicable to appraisers. atsons on this part (Standards 10.51) Any appraises disqualified the appraises is barred from Presenting to IRS.

Corcollar - 230. refers to Treasury Department circular No 1230. If establishes rules and governing those who practice before IRS. Required Actions by the Preparers in brief. → Disclosure with sufficient document → Grue Copy to client → Return recesds to clients availed to prepare). 4 Sogo all tax return Due didigence and best practice. Legal aspects :- It may cause to giving tax advise must follow cintain procedural rules written tax advise must not be based on un red sonable relyon representations of the clients of others. It must Consider the relevent facts and law. OPR More broaddy Protect the prospect Practs soners they follow the standards and regulations.

ETHICAL ASPECTS - istori ● Protecting Public in misleading representation Woll Public treasury the - Improves efficiency, and knowledge. I Pard tax preparers need to understand and educate themselves