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14 Tax Domain AFTR 3 - Regulations Governing Practice |
| Regulations Governing Practice |
| The practitioner must use reasonable effort to identify and ascertain the facts, which may relate to future events if a transaction is prospective, and to determine which facts are relevant. Therefore, a practitioner must never base an opinion on any unreasonable factual assumptions (including assumption as to future events). This means that a practitioner cannot base an opinion on any unreasonable factual representations, statements or findings or of the taxpayers or any other person. As a matter of fact, it would be unreasonable for a practitioner to rely on a projection, financial forecast or appraisal if the practitioner knows or should know that it is incorrect or incomplete or was prepared by a person lacking skills or qualifications. |
| Any practitioner who has principal authority and responsibility for overseeing a firm's practice of providing advice concerning federal tax issues must take reasonable steps to ensure that the firm has adequate procedures in effect for all members, associates, and employees. Any such practitioner will be subject to discipline for failing to comply with the requirements if the practitioner knows or should know that one or more individuals that don't comply with the code and the practitioner fails to take prompt action to correct the noncompliance. |
| The Secretary of the Treasury, or delegate, after notice and an opportunity for a proceeding, may censure, suspend, or disbar any practitioner from practice before the Internal Revenue Service if the practitioner is shown to be incompetent or disreputable or fails to comply with any regulation under the prohibited conduct standards or with intent to defraud. The Secretary may also censure, suspend, or disbar any practitioner from practice before the Internal Revenue Service if the practitioner willfully and knowingly misleads or threatens a client or prospective client. |
| Incompetence or disreputable conduct for which a practitioner may be sanctioned includes contemptuous conduct in connection with the practice before the Internal Revenue Service, including the use of abusive language or making false accusations or statements, knowing them to be false. This would also include failing to sign a tax return prepared by the practitioner when the practitioner's signature is required by the federal tax laws. Additionally, willfully disclosing or otherwise using a tax return or tax return information in a manner not authorized by the Internal Revenue Service would also be considered disreputable conduct. It is also considered disreputable conduct if the practitioner is knowingly giving false or misleading information to the Department of the Treasury or any officer or employee thereof, or to any tribunal authorized to pass upon federal tax matters. |
| A complaint is sufficient to just fairly inform the respondent of the charges brought so that the respondent is able to prepare a defense. |
| To maintain active enrollment to practice before the Internal Revenue Service, each individual is required to have the enrollment renewed. The effective date of renewal is the first day of the fourth month following the close of the period for renewal. Consequently, if you don't receive notification from the Director of the Office of Professional Responsibility of the renewal requirement, the individual is required to renew regardless. |
| To qualify for continuing tax education credit for an enrolled agent, a course of learning must be a qualifying program designed to enhance professional knowledge in federal taxation or federal taxation related matters. The course must also be a qualifying program consistent with the Internal Revenue Code and effective tax administration and be sponsored by a qualifying tax education sponsor. |
| A practitioner may not take acknowledgments, administer oaths, certify papers, or perform official acts as a notary public with respect to any matter administered by the Internal Revenue Service. In addition, a practitioner shall not represent a client before the Internal Revenue Service if the representation involves a conflict of interest. A conflict of interest exists if the representation of one client will be directly adverse to another client. |
| Copyright © 2014 [Hera's Income Tax School]. All Annual Filing Season Program rights reserved. |
| Revised: 12/14/14 |
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