Question

Both the SSTS and Circular 230 have been posted on Blackboard for your use in answering the following questions.

Answer the following questions using the SSTS’s or Circular 230.   For each question cite the Standard or page number and section number of Circular 230 for which your answer is based upon. (Member means tax preparer.)

(Disregard the page number)

______ 21.    A member may omit answering a question on a tax return if reasonable grounds exist for omitting the answer to a question applicable to the taxpayer.

SSTS: ___________________________________________

______ 22. A member should not omit an answer to a question because it might prove disadvantageous to the taxpayer.

SSTS: ___________________________________________

______ 23.   If reasonable grounds do not exist for omission of an answer to an applicable question, a taxpayer is not required to provide on the return an explanation of the reason for the omission.

SSTS: ___________________________________________

______ 24. A member shall make a reasonable effort to obtain from the taxpayer that the taxpayers has maintained books and records or substantiating documentation to support reported deduction or tax treatments of items on a tax return.   SSTS: ___________________________________________

______ 25. A member can use estimates if fire, computer failure, or natural disaster has destroyed the taxpayer’s records.

SSTS: ___________________________________________

______ 26. A practitioner may endorse or otherwise negotiate any check issued to a client if the client has authorized the practitioner to do so.

230: ___________________________________________

______ 27. Tax advisors should provide clients with the highest quality representation concerning Federal tax issues by adhering to best practices in providing advice and in preparing or assisting in preparation of a submission to the Internal Revenue Service.

230: ___________________________________________

______ 28. An enrolled agent has the same ability to practice before the Internal Revenue Service as does an attorney or CPA.

       230: ___________________________________________

______ 29. Practice before the Internal Revenue Service include preparing documents, filing documents, corresponding and communicating with the Internal Revenue Service and representing a client at conferences, hearings, and meetings.

230: ___________________________________________

______ 30. Enrolled Agents, enrolled retirement plan agents, and registered tax return preparers must renew their status with the Internal Revenue Service to maintain eligibility to practice before the IRS.

230: ___________________________________________

______ 31. A CPA may be denied to practice before the IRS if he or she has not filed their own individual income tax returns.

230: ___________________________________________

______ 32. An employee of the Mississippi Department of Revenue may not practice before the Internal Revenue Service if such employment may disclose facts or information applicable to Federal tax matters.

230: ___________________________________________

______ 33. In order to practice before the Internal Revenue Service, an individual must be twenty-one years old.

230: ___________________________________________

______ 34. An individual must pass a written examination administered by the Internal Revenue Service in order to receive status as an enrolled agent.

230: ___________________________________________

______ 35. An enrolled agent must complete a minimum of 72 hours of continuing education credit during an enrollment cycle with a minimum of 16 during each enrollment year.

230: ___________________________________________

______ 36. An enrolled agent must complete two hours of ethics or professional credit each enrollment year.

230: ___________________________________________

______ 37. A practitioner who, having been retained by a client with respect to a matter administered by the Internal Revenue Service, knows that the client has not complied with the revenue laws of the United States or has made an error in or omission from any return, document, affidavit, or other paper which the client submitted or executed under the revenue laws of the United States, must advise the client promptly of such noncompliance, error, or omission.

230: ___________________________________________

______ 38. A practitioner should always exercise due diligence in determining the correctness or oral or written representations made by the practitioner to the Department of the Treasury.

230: ___________________________________________

______ 39. A practitioner should not publish the availability of a written schedule of fees and disseminate since it may be considered to be advertising.

230: ___________________________________________

______ 40. A practitioner should refrain from any type of advertising.

230: ___________________________________________

______ 47. A practitioner may not use or disclose any return information without the consent of the taxpayer in any situation.

230: ___________________________________________

______ 48. A practitioner may advise a client to submit a document, affidavit, or other paper to the IRS if it contains information that demonstrates an intentional disregard of a rule or regulation unless it, in conjunction with other documentation, in good faith, challenges the rule or regulation.

230: ___________________________________________

______ 49.   A practitioner must possess the necessary competence to engage in practice before the Internal Revenue Service.

230: ___________________________________________

______ 50.   A practitioner may not represent two separate clients if the representation of one will adversely affect the position of the other.

230: ___________________________________________

Answer 1

Following are the answers for above questions citewise -

21.    A member may omit answering a question on a tax return if reasonable grounds exist for omitting the answer to a question applicable to the taxpayer.

SSTS: Paragraph 4 of SSTS No. 2, page no 8

22. A member should not omit an answer to a question because it might prove disadvantageous to the taxpayer.

SSTS: Paragraph 5 of SSTS No. 2, page no 8

23.   If reasonable grounds do not exist for omission of an answer to an applicable question, a taxpayer is not required to provide on the return an explanation of the reason for the omission.

SSTS: Paragraph 7 of SSTS No. 2, page no 8

24. A member shall make a reasonable effort to obtain from the taxpayer that the taxpayers has maintained books and records or substantiating documentation to support reported deduction or tax treatments of items on a tax return.  

SSTS: Paragraph 3 of SSTS No. 3, page no 9

25. A member can use estimates if fire, computer failure, or natural disaster has destroyed the taxpayer’s records.

SSTS: Paragraph 7 of SSTS No. 4, page no 11

26. A practitioner may not endorse or otherwise negotiate any check issued to a client if the client has authorized the practitioner to do so.

230: Paragraph 1 subpart B - § 10.31, page no 24

27. Tax advisors should provide clients with the highest quality representation concerning Federal tax issues by adhering to best practices in providing advice and in preparing or assisting in preparation of a submission to the Internal Revenue Service.

230: Paragraph 1 subpart B - § 10.33, page no 24

28. An enrolled agent has the same ability to practice before the Internal Revenue Service as does an attorney or CPA.

       230: Paragraph 1 subpart A - § 10.6, page no 10

29. Practice before the Internal Revenue Service include preparing documents, filing documents, corresponding and communicating with the Internal Revenue Service and representing a client at conferences, hearings, and meetings.

230: Paragraph 1 subpart B - § 10.26, page no 22

30. Enrolled Agents, enrolled retirement plan agents, and registered tax return preparers must renew their status with the Internal Revenue Service to maintain eligibility to practice before the IRS.

230: Paragraph 1 subpart A - § 10.6, page no 11

31. A CPA may be denied to practice before the IRS if he or she has not filed their own individual income tax returns.

230: Paragraph 1 subpart A - § 10.8, page no 17

32. An employee of the Mississippi Department of Revenue may not practice before the Internal Revenue Service if such employment may disclose facts or information applicable to Federal tax matters.

230: Paragraph 1 subpart A - § 10.3, page no 8

33. In order to practice before the Internal Revenue Service, an individual must be eighteen years old.

230: Paragraph 1 subpart A - § 10.4, page no 8

34. An individual must pass a written examination administered by the Internal Revenue Service in order to receive status as an enrolled agent.

230: Paragraph 1 subpart A - § 10.4, page no 8

35. An enrolled agent must complete a minimum of 72 hours of continuing education credit during an enrollment cycle with a minimum of 16 during each enrollment year.

230: Paragraph 1 subpart A - § 10.6, page no 12

36. An enrolled agent must complete two hours of ethics or professional credit each enrollment year.

230: Paragraph 1 subpart A - § 10.6, page no 12

37. A practitioner who, having been retained by a client with respect to a matter administered by the Internal Revenue Service, knows that the client has not complied with the revenue laws of the United States or has made an error in or omission from any return, document, affidavit, or other paper which the client submitted or executed under the revenue laws of the United States, must advise the client promptly of such noncompliance, error, or omission.

230: Paragraph 1 subpart B - § 10.21, page no 19

38. A practitioner should always exercise due diligence in determining the correctness or oral or written representations made by the practitioner to the Department of the Treasury.

230: Paragraph 1 subpart B - § 10.22, page no 19

39. A practitioner should not publish the availability of a written schedule of fees and disseminate since it may be considered to be advertising.

230: Paragraph 1 subpart B - § 10.30, page no 23

40. A practitioner should refrain from any type of advertising.

230: Paragraph 1 subpart B - § 10.30, page no 23

47. A practitioner may not use or disclose any return information without the consent of the taxpayer in any situation.

230: Paragraph 1 subpart B - § 10.27, page no 22

48. A practitioner may advise a client to submit a document, affidavit, or other paper to the IRS if it contains information that demonstrates an intentional disregard of a rule or regulation unless it, in conjunction with other documentation, in good faith, challenges the rule or regulation.

230: Paragraph 1 subpart B - § 10.34, page no 25

49.   A practitioner must possess the necessary competence to engage in practice before the Internal Revenue Service.

230: Paragraph 1 subpart B - § 10.35, page no 25

50.   A practitioner may not represent two separate clients if the representation of one will adversely affect the position of the other.

230: Paragraph 1 subpart B - § 10.29, page no 22