Questions On Ethics And Ethics

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Angela Kopec 02/26/2017 Ethics Paper In tax practice, the ethics environment in which professionals operate is complex. The Treasury Circular 230 governs federal tax practice standards. However, a multitude of standards and ethics rules also apply to a member’s tax practice including the AICPA’s Statements on Standards for Tax Services (SSTSs). The Circular 230 and the SSTSs contain similar content but are different content in some aspects. The lack of cross reference between the Circular 230 and the SSTSs could lead members to believe that one standard is only relevant to CPAs. Therefore, this paper will explore the similarities and differences between the SSTSs and the Circular 230 and where the Circular 230 should directly reference…show more content…
The language in terms of due diligence is subject to different interpretations and this is where the first Statement on Standards for Tax Services plays a significant role in minimizing language ambiguity. Therefore, section 10.22 of Circular 230 should directly reference the first statement of Standards for Tax Services to enhance the efficiency of a CPA’s compliance with such standards. The next statement I will go into detail about is the sixth Statement on Standards for Tax Services. This statement is in regards to the knowledge of error in return preparation. “A member should inform the taxpayer promptly upon becoming aware of an error in a previously filed return, an error in a return that is the subject of an administrative proceeding, or a taxpayer’s failure to file a required return. A member also should advise the taxpayer of the potential consequences of the error and
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