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
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