This course provides a comprehensive overview of two critical aspects of tax practice: the professional standards that govern the provision of tax advice and the legal privileges that protect certain taxpayer communications. Participants will explore the statutory, regulatory, and professional requirements imposed on CPAs when advising clients, including how to effectively communicate tax positions and comply with applicable standards. In addition, the course examines the scope and limitations of confidentiality privileges available to CPAs, including protections under Internal Revenue Code Section 7525, the work product doctrine, and the Kovel doctrine. Through this combined focus, tax professionals will gain a deeper understanding of both their ethical responsibilities and the legal considerations that impact their client relationships.
Learning Objectives
• Recognize the key professional standards and regulatory requirements for providing tax advice to clients.
• Identify the scope, limitations, and practical application of confidentiality privileges available to CPAs and other non-attorney tax professionals.
• Determine best practices for balancing professional standards with privilege considerations when advising clients and documenting communications.
Major Topics
• Overview of the various types of advice tax professionals provide clients
• The preparer penalties
• The duty to advise clients with regard to potential taxpayer penalties
• The primary AICPA rules with regard to advising and communicating tax advice
• Circular 230 and the IRS Office of Professional Responsibility oversight and disciplinary authority
• The Federally Authorized Tax Practitioner (FATPs)
• Understanding the attorney-client privilege
• The Section 7525 Statutory Privilege and Limitations
• The Work-Product Doctrine and Privilege and Limitations
• Kovel Engagements and Limitations
