Avoiding the Perils and Pitfalls of Fee Predicaments
Feature Article

Avoiding the Perils and Pitfalls of Fee Predicaments

Rules on fees can be found in numerous sections of Circular 230i as well as the Internal Revenue Code (IRC) and various other regulations, so it is no surprise that the tangle of rules is full of inherent... Jennifer MacMillan, EA

Caught ‘Tween the Devil and the Deep Blue Sea
Feature Article

Caught ‘Tween the Devil and the Deep Blue Sea

“The devil and the deep blue sea…” The idiom harkens back to an era when wooden sailing vessels had a seam below the deck called the devil, which needed to be caulked regularly. Tasked with the job of sealing the devil, some unl... Jennifer MacMillan, EA

The Two Biggest Conflicts of Interest Overlooked by Tax Professionals
Feature Article

The Two Biggest Conflicts of Interest Overlooked by Tax Professionals

Election years always serve as a reminder to avoid conflicts of interest. They also serve as a reminder that it is often easier to identify someone else’s conflict of interest than one... Amber Gray-Fenner, EA, USTCP

Ethical Dilemmas
Editor's Message

Ethical Dilemmas

In the ever-evolving landscape of tax law and practice, staying abreast of ethical standards is not just a professional obligation but a cornerstone of maintaining integrity and trust within our industry. Welcome to the Ethics issue, where we delve into the intricate rea... Tynisa (Ty) Gaines, EA (She/Her)

Disagreeing Digitally: Ten Tips for Keeping the Peace Online
Practice Builder

Disagreeing Digitally: Ten Tips for Keeping the Peace Online

As we power through tax season, a lot of us are spending more time online, whether to discuss tax matters with colleagues or just distracting ourselves from our work. With increased stress and an ever-changing tax cod... Josh Youngblood, EA

Deadline Postponement Regulation Found Invalid
Tax Court

Deadline Postponement Regulation Found Invalid

Section 7508A was added to the Internal Revenue Code (IRC) in 1997. Section 7508A(a) authorizes the Internal Revenue Service (IRS) to postpone certain tax actions for up to one year for a taxpayer affected by a §165(i)(5)(... Thomas Gorczynski, EA, USTCP

The Advertising and Solicitation Restrictions in Circular 230
Feature Article

The Advertising and Solicitation Restrictions in Circular 230

One of the last press releases from the Office of Professional Responsibility (OPR) announced a disciplinary settlement with an enrolled agent (EA) for violations ... Karen L. Hawkins

Ethical Concerns in Using Tax Planning Software
Practice Builder

Ethical Concerns in Using Tax Planning Software

What Are My Ethical Responsibilities When I Use Software to Produce a Tax Plan? In the world of taxes, there are many ethical issues that can come into play. One area that involves judgment and expertise is when it come... Dominique Molina

Be Careful of What You Post Online
Tax News Briefs

Be Careful of What You Post Online

When married couples file a joint tax return, they are both liable for any tax due on the return. A spouse may seek relief from joint and several liability under the procedures established in Internal Revenue Code (IRC) §6015(b) if:i A) A joint r... TheTaxBook

The Practitioner’s Duty to Help Business Owners with Recordkeeping
Feature Article

The Practitioner’s Duty to Help Business Owners with Recordkeeping

As the nation’s tax experts, enrolled agents (EAs) crucially influence taxpayers’ financial well-being and compliance with tax laws and regulations. A critical aspect of this role includes confirmin... Jeremy Wells, EA, CPA

NAEA Ethics and Professional Conduct Committee – How Can We Help You?
Feature Article

NAEA Ethics and Professional Conduct Committee – How Can We Help You?

We wish we were writing this article more from a theoretical perspective than a practical one (i.e., few or no complaints about National Association of Enrolled Agents (NAEA) members). Sadly, over the past year, we have seen a m... The National Association of Enrolled Agents (NAEA) Ethics and Professional Conduct Committee

Your Ethics Footprint
Feature Article

Your Ethics Footprint

A footprint leaves an impression. You can visualize your footprint on a sandy beach or the snow. At times, your footprint is not easy to see. Sometimes, you do not even realize you left your footprint as you do your walking in life. Over the years, we have h... Ruth Ann Michnay, EA, CPA, USTCP

Defending Against an OPR Investigation and Beyond
Feature Article

Defending Against an OPR Investigation and Beyond

I was able to observe first-hand for six years the mystery that constitutes the investigation and prosecution of a disciplinary case under Circular 230. And I must admit, I was a lot smarter about the process at the end of my tenure than at its begin... Karen L. Hawkins

Ethical Issues to Consider in Recent Tax News
Tax News Briefs

Ethical Issues to Consider in Recent Tax News

More Options to Correct Returns Electronically The Internal Revenue Service (IRS) has announced that more forms can now be amended electronically. These include people filing corrections to the Form 1040-N... TheTaxBook

Ethical Considerations with Cryptocurrency Tax Preparation
Tax Tech

Ethical Considerations with Cryptocurrency Tax Preparation

Cryptocurrency taxation is an area that is here to stay, even though many tax professionals may wish otherwise. A March 2022 NBC News survey shows that more than 20 percent of American adults have interacted with cryptocurrency.i Some professionals... Matt Metras, EA

Your Top Ethics Questions Answered
Feature Article

Your Top Ethics Questions Answered

Q: Contract law often looks to lack of choice when considering unconscionability. Do you think an unconscionable fee can occur when a client has a choice to not engage or disengage?... Karen L. Hawkins

Consider Twice, Act Once!
Ethics

Consider Twice, Act Once!

Every member of the National Association of Enrolled Agents (NAEA) is charged with upholding our Code of Ethics and Rules of Professional Conduct in addition to complying with the ru... Elizabeth Ann “Betsey” Buckingham, EA

From Hero to Zero in 60 Seconds or Less
Feature Article

From Hero to Zero in 60 Seconds or Less

The following is a collection of anecdotes from members of the National Association of Enrolled Agents' (NAEA Ethics and Professional Conduct (EP&C) Committee. Names have been changed to preserve the confidentiality of our complainants and respondents. So...

Ethics in Publishing: Cite Your Sources
Expert Notes

Ethics in Publishing: Cite Your Sources

“… citation, the actual process of choosing which papers to cite when writing papers, has largely escaped scrutiny. Like it or not, citations are the currency of success in science.”i Discover magazine noted th... Christine Kuglin, EA

Due Diligence: How Do You Do It and How Much Is Enough?
Feature Article

Due Diligence: How Do You Do It and How Much Is Enough?

When I was director of the Office of Professional Responsibility, one of the most frequent questions I received from tax professionals around the country was: "How do I know when I have done enough due diligence?" The ultimate answer: “It depends,” sho... Karen L. Hawkins

A Primer on Significant Sections of Circular 230 for the New Practitioner
Feature Article

A Primer on Significant Sections of Circular 230 for the New Practitioner

Circular 230 imposes certain duties and restrictions upon all practitioners.i It also delineates 18 nonexclusive acts of incompetence and disreputable conduct for which a practitioner may be disciplined. If ... Karen L. Hawkins

Can You Work 15-Hour Days and Be Ethical?
Editor's Message

Can You Work 15-Hour Days and Be Ethical?

Enrolled agents, and the tax community as a whole, work too much during tax season, and it puts taxpayers at a disadvantage. I know you may not want to hear this because it is contrary to your business model of jamming eight to 15 tax returns per day into your schedule, six to ...

Tax Practice Management and Ethics
Feature Article

Tax Practice Management and Ethics

Managing a tax practice is tricky. I frequently meet clients who defend their tax choices and dicey positions because they feel it is correct. The disdain for tax agencies, particularly the IRS, becomes transparent in their conversations. To them, I am the governm... Thomas J. Williams, EA

Adapting Accounting Ethics to New Technology
Tax Tech

Adapting Accounting Ethics to New Technology

The International Ethics Standards Board for Accountants (IESBA) recently restructured and revised its Code of Ethics for Professional Accountants. While the IESBA Code is not specifically geared toward management accounting and finance professionals, it d... Daniel Butcher

Common Ethical Issues in a Tax Practice
Feature Article

Common Ethical Issues in a Tax Practice

The nature of tax practice presents a number of unique ethical issues. Tax practice requires compliance with multiple ethical frameworks. This creates ambiguities and raises complex questions. Courts have even questioned whether certain regulatory... Ryan Dean

Tax Preparer Ethics in the Modern World
Feature Article

Tax Preparer Ethics in the Modern World

After the Civil War in 1884, Congress enacted a law known as the “Horse Act,” which allowed citizens to make claims against the Treasury Department for the value of horses confiscated for use by the troops. The Treasury soon discovered that people were making cl... Anita Robinson, EA

Conflict of Interest
Tax Court

Conflict of Interest

Clark J. Gebman and Rebecca Gebman v. Commissioner T.C. Memo. 2017-184) Even if we never practice in the U.S. Tax Court, as taxpayer representatives we must always be aware of our ethical duties. This is especially true when representing a husband and wife who previously filed a ... Sherrill Trovato, EA, USTCP

Ethical Due Diligence – Self Cancelling Terms
Feature Article

Ethical Due Diligence – Self Cancelling Terms

Due diligence. Two little words with oversized implications for tax professionals. In most cases, under the due diligence guidelines set forth in Circular 230, tax professionals can rely on the representations of their clients without having to verify the accuracy or veracity of those rep... Dave Du Val, EA

Cryptocurrency Tax Preparation: Ethics Nightmare
Feature Article

Cryptocurrency Tax Preparation: Ethics Nightmare

"Who makes more money: the general practitioner doctor or the specialist spine surgeon?" Consultants love to ask that question, as part of recommending that tax professionals specialize our services. And, yes, we must admit: the question is a valid one. Specialists often do enjoy str... Andy Frye, EA; Joshua Azran, CPA

OPR Radar (for how long?)
Feature Article

OPR Radar (for how long?)

You have been a licensed tax professional representing your clients before IRS for many years. On a current controversial complex case, unknown to you, the IRS agent you have been working with files a “Report of Suspected Practitioner Misconduct” with the Office of Professional Responsibilit... Ruth Ann Michnay, EA, CPA, USTCP

Feature Article

Action Required, Addressing the Complexity of Tax Practice Rules

Historically, Circular 230 has embodied the regulation of tax practice before the IRS, including the ethical standards that tax practitioners must follow. Originally, 31 USC Sec. 330, which originated in the Horse Act of 1884, granted the secretary of the Treasury the authority to regulate agents representing claimants before the Treasury Department. Treasury used circulars to provide guidance to these agents. In 1921, these circulars were co... Marshall J. Heap, EA

Feature Article

Due Diligence: It’s Not Just About EITC Anymore!

Due Diligence IT'S NOT ABOUT EITC ANYMORE By Kathy Morgan, EA, USTCP How many of you are starting to feel like we work for the IRS, “pre-auditing” clients for them? As grEAt tax professionals, the rock that we stand on has always been and will always be our integrity. However, just how much must we scrutinize our clients’ information to meet our obligations to the IRS, our clients’ well-b... Kathy Morgan, EA, USTCP

Feature Article

Is Merely Following Circular 230 Good Enough

Is Merely Following Circular 230 Good Enough? David J. Silverman, EA, In the years since the Of fice of Professional Responsibility began requiring enrolled agents to complete annually two credits of continuing education in ethics or professional conduct, not one seminar I have attended on these topics has gone beyond what is stated in Circular 230. Some tax practitioners might seek com... David J. Silverman, EA

Feature Article

Ethics Rules, Penalties, and the Tax Preparers Engagement Letter

Perhaps one of the most important, but also one of the most overlooked, parts of the 1040 U.S. Individual Income Tax Return is the section near the bottom of the second page that states: “Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct and accurately list all amounts and sources of income I received duri... Anthony Santullo, EA

Feature Article

Excess Depreciation Claimed, An Ethical Dilemma

I MET JUSTIN FUNDALINSKI of Jim Saulnier & Associates while volunteering time for the betterment of the Financial Planning Association. He asked a question that gave me pause. Tax questions that cause me to pause are the spice of life. His question was about a fascinating situation he encountered regarding depreciation and disposition of residential rental real estate. So down the rabbit hole I went, thoroughly reviewing t... John R. Dundon II, EA

Feature Article

A Preparer Penalty Can Ruin Your Day

This issue of the EA Journal is all about ethics. Preparer penalties are often about a lack of ethics or a lack of due diligence. Here is one of the most comprehensive definitions of due diligence I have ever heard, given by my friend, fellow NAEA member, and NTPI Fellow, Conrad Mangapit, EA: Definition of Due Diligence – Part I A duty that paid tax professionals must perform to the best of their abilities in order... Kathy Morgan, EA

Feature Article

Walking the Tight Rope

NINE STEPS TO MAKE YOUR MARKETING EFFORTS FROM RUNNING AFOUL OF CIRCULAR 230 Marketing your business is a critical skill to develop for bringing in customers and preventing violations of the tricky regulations surrounding how we represent ourselves before the public. Frequently, there are posts on social media groups about how best to market our businesses, yet few responses ever mention the legalities. Most areas of Circular 230 ha... Crystal Stranger, EA