Addressing Conflicts of Interest and Errors on Tax Returns 2024

Overview

This course will cover an advanced-level review of rules regarding error discovery during tax return preparation. Learn reporting requirements and advisement in these situations. The discovery of errors in a taxpayer’s Federal return during preparation or an administrative proceeding and addressing conflicts of interest are among the most challenging issues for tax professionals. Understanding the professional standards and rules is paramount to avoid a violation. Companion Course: Due Diligence Requirements: Circular 230 and Other Standards 2024

Highlights

Overview of the rules about discovering an error in a return either when rendering future preparation services or during representation in an administrative proceeding
Discussion of the duty to 'advise' clients concerning potential taxpayer penalties associated with discovering an error or omission
Discussion of the Circular 230 requirements when a conflict of interest exists in a client engagement
Circular 230 and the IRS Office of Professional Responsibility oversight and disciplinary authority

Prerequisites

Tax practitioners with 2 years experience and a working knowledge of the AICPA Statements on Standards for Tax Services and IRS Circular 230.

Designed For

CPAs, EAs and tax preparers.

Objectives

Recognize the various regulatory and professional requirements associated with discovering errors and conflict of interest issues that confront the tax practitioner
Identify critical areas to be addressed in advising on discovering an error, including required communications with the taxpayer and related engagement matters
Recognize the need to document the advice given when an error is discovered and the possible consequences
Recognize the need to monitor potential conflicts of interest and the steps necessary to determine if continued representation is feasible when an actual conflict exists
Determine the required documentation when a conflict of interest exists