Tax Ethics And Best Practices

Learning Objectives

• To recognize the major sources of malpractice claims in a tax practice
• To identify the primary benefits of client engagement letters
• To construct engagement letters using best practices to limit malpractice risk
• To develop best practices surrounding client acceptance and monitoring
• To recognize the key components of data security and privacy plans for your firm

Course Description

In this online Ethics CPE webinar, we will discuss sources and standards of tax ethics and best practices to ensure compliance and avoid penalties. In reviewing the requirements of Circular 230, the AICPA Statements on Standards for Tax Services and the AICPA Code of Professional Conduct, we will touch on common practice issues including: what standards must be met to take a position on a tax return, when you can omit an answer to a question on a tax return, when you must verify information provided by a taxpayer or third party, the use of estimates, correcting errors and omissions on returns, responsibilities when faced with a conflict of interest, and the form and content of advice provided to taxpayers. We will also discuss the necessity of establishing data security plans, requirements for providing tax return documents to third parties, and requirements related to the retention of client records and other documents.

This online Ethics CPE webinar covers following key topics:

1. Introduction and discussion of general ethics principles

2. Sources of Rules and Standards Related to Tax Ethics including discussion of the following sections:

• §10.21 Knowledge of client’s omission
• §10.22 Diligence as to accuracy
• §10.27 Fees
• §10.28 Return of client’s records
• §10.29 Conflicting interests
• §10.30 Solicitation
• §10.33 Best Practices for Tax Advisors
• §10.34 Standards with respect to tax returns and documents, affidavits and other papers
• §10.35 Competence
• §10.36 Procedures to ensure compliance
• §10.37 Requirements for written advice

3. Other Rules of Conduct applicable to tax professionals

• Statements on Standards for Tax Services (SSTSs)
• Review SSTS #1 through # 7 with key ethical issues highlighted
• Briefly discuss AICPA project to review and update SSTSs

4. To discuss the six principles and key sections applicable to tax practice and state Board Rules and Regulations. 

• Responsibilities
• Serve the public interest
• Integrity
• Objectivity and Independence
• Due care
• Scope and nature of services

5. Risk Mitigation

• The importance of engagement letters
• Client acceptance and monitoring
• Data security and privacy

6. Frequently Asked Questions

Overview

• General Ethical Principles

  4 mins
• Return of Client Records

  22 mins
• Procedures to ensure compliance

  40 mins
• AICPA statements on Standards for Tax Services

  55 mins
• Knowledge of error : Return Preparation and Administrative Proceedings

  73 mins
• The Use of Engagement Letters to Mitigate Risk

  94 mins