Question

Provide a short answer (3-4 lines) for the following hypothetical situations. To recieve full points, your response must include: (1) an answer to the question (e.g., yes, no, etc.); (2) a SHORT explanation for your answer; and (3) the applicable citation under Circular 230 (e.g., "sec. 10.32" or "S10.32"). You can "cut & paste and summarize" from Circular 230.

Answer 1

Answer 5. Yes

the IRS Office of Professional Responsibility (OPR) has determined that suspension or disbarment from practice before the IRS based on discipline under Circular 230, Regulations Governing Practice Before the Internal Revenue Service (31 C.F.R. Part 10), may not include a restriction on return preparation for compensation or access to the PTINs needed to provide return preparation.

Answer 6. Yes

Circular 230 prohibits a practitioner from charging an unconscionable fee in the preparation of a tax return or other engagement relating to a taxpayer’s rights, privileges, or liabilities under the Code or its regulations (Circular 230, §10.27(a))

Answer 7.

Section 10.21 of Circular 230 requires a practitioner who knows that the client has made an error in, or omission from, any return, affidavit, or other document submitted under the revenue laws of the United States to advise the client promptly of the error or omission. As a practitioner, the CPA also must advise the client of the potential consequences of the error or omission.