Section 1: 10–20%R1
Ethics and Responsibilities in Tax Practice
Exam insight
Circular 230, the SSTS, and the confidence thresholds for preparer positions show up on nearly every REG form. The exam rewards you for matching a fact pattern to the exact standard, substantial authority, more likely than not, or reasonable basis, and for knowing when contingent fees and disclosure are allowed.
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What AICPA wants you to know
- 1Identify who is governed by Treasury Circular 230 and the duties it imposes
- 2Apply the diligence, conflict-of-interest, and contingent-fee rules of Circular 230
- 3List the sanctions the IRS Office of Professional Responsibility may impose
- 4Apply the SSTS standards for taking and disclosing a return position
- 5Match each confidence level (more likely than not, substantial authority, reasonable basis) to the disclosure required
- 6Distinguish legal tax avoidance from criminal tax evasion