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Taxation: Circular 230 best practices for tax advisors

What are the suggested best practices for tax advisors?

Can the IRS penalize practitioners under Circular 230? If so, in what ways? Explain.

Solution Preview

Circular 230 was revised in September 2007 and the expansion of IRS authority was not well received by the licensed professionals who practice before the IRS. On the other hand, past abuses prompted the tightening of procedures, and that isn't all bad.

What are the suggested best practices for tax advisors?

Section 10.33 of the new Circular 230 lists what the IRS has determined to be best practices as follows:

"(a) Best practices. Tax advisors should provide clients with the highest quality representation concerning Federal tax issues by adhering to best practices in providing advice and in preparing or assisting in the preparation of a submission to the Internal Revenue Service. In addition to compliance with the standards of practice provided elsewhere in this part, best practices include the ...

Solution Summary

The 487 word solution paraphrases information directly from Circular 230 to explain the power and September 2007 expansion of Circular 230.

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