Tax practice demands more than technical calculations; it requires sound judgment under Circular 230, the AICPA Code, and the 2024 SSTS revisions. This course shows how to recognize and manage conflicts of interest (possible, potential, actual), obtain and document informed consents, and decide when withdrawal is required. You'll learn what to do when client errors or omissions surface, how SSTS 1.2 and Circular 230 §§10.21/10.22 shape your duties, and how to protect clients (and yourself) with engagement letters, scope clarity, and careful documentation.We'll translate due-diligence principles into daily practice; what you may rely on, when to probe, how to mitigate §6694 exposure, and how to organize files to preserve work product. The program also covers controversy representation (2848 vs 8821), WISP/data-security expectations, and practical checklists that elevate quality review and reduce malpractice risk.
Learning Objectives
• Evaluate scenarios to determine permissibility, required safeguards, and obtain necessary consents in compliance with professional standards.
• Analyze responsibilities when identifying errors or omissions and take appropriate actions to advise, document, or address the situation.
• Develop a workflow for due diligence that includes documentation, reliance thresholds, and proper agreements to mitigate risks and ensure compliance.
Major Topics
• 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
• Due diligence requirements under Treasury guidance, including supervisory responsibilities
• Due diligence requirements under professional standards
• Increased expectations for inquiry and analysis
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• Meeting increased expectations: informing clients and defensive measures for practitioners
• Due diligence for preparer advice responsibilities
