Month: April 2022

Evaluating a Tax Preparer: Understanding Reasonable Tax Positions

One of the many benefits of working with a tax professional is the guidance they provide in developing tax return positions that substantiate why certain income qualifies for tax-exemption or why you are eligible for a certain tax deduction. When tax professionals prepare a tax return, they are typically aiming for the return to be …

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Ethical Considerations for Tax Professionals: Standards and Penalties for Tax Positions

When tax professionals prepare a tax return, they are typically aiming for the return to be correct “beyond a reasonable doubt.” However, this is hardly a black-and-white matter. In the eyes of tax law, the reality is that almost nothing can be dubbed “always correct” or “always incorrect.” Rather, tax professionals must learn to navigate …

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Evaluating a Tax Preparer: Determining a Fair Fee

As news headlines proclaim stories of tax fraud, taxpayers may wonder how they can trust that their tax preparer is abiding by ethical practices. Fortunately, the Treasury Department provides a resource that regulates practice before the IRS for certified public accountants (CPAs), attorneys, and enrolled agents. Known as Circular 230, this publication contains the guidance …

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Ethical Considerations for Tax Professionals: Determining Fees

Every tax professional needs to be conscious of how to manage their practice ethically. An important resource in this matter is Circular 230, a publication that regulates practice before the IRS for attorneys, CPAs, and enrolled agents. Even if these professionals have other ethical obligations as defined by their governing body or rules of conduct, …

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