Monday, November 14, 2022
On December 16 I will be doing a two-hour ethics seminar on income tax ethics. If you are in need of ethics hours to help satisfy your CPE/CLE requirements, this will be a good opportunity for you to gain two hours of credit.
The seminar will consist of two 50-minute sessions. During the first session I will focus on several specific client situations that can raise ethical issues. For example, what if a client fails to inform the tax preparer of relevant information that impacts the return? What is the responsibility of the preparer to ask questions? How should an engagement letter be used and worded? What is required “due diligence” of Circular 230?
Another situation might involve the deferral of self-employment tax as a result of the CARES Act. This legislation presents unique ethical problems for practitioners. Again, the issue is often the information that the practitioner has from the client and IRS notices. On the legislative front, recent changes to penalty-free withdrawals from retirement plans have created confusion among clients and tax preparers. I will discuss several ethical scenarios these changes create for practitioners.
Another issue that creates ethical concerns for practitioners involves the carryover of suspended losses, capital losses, qualified business losses and net operating losses. Sometimes these issues arise when a preparer inherits a client from another preparer. In those situations, what ethical responsibilities does the new preparer have? What are the rules involving correspondence with the IRS?
During the second session I will address ethical issues involving other carryover issues such as charitable contributions and I.R.C. §179 carryovers. There are also numerous credits that can carryover and create various ethical issues for tax preparers. Also, debt forgiveness from prior years can present difficult ethical issues. I will also address ethical issues associated with S corporation or partnership basis and education credits.
To conclude the seminar, I will go over a suggested client questionnaire and go back to the scenarios that have been discussed and evaluate appropriate practitioner approaches as related to Circular 230.
The seminar will be live at Washburn Law School and will also be simulcast over the web. You may learn more about the ethics seminar and register here: https://www.washburnlaw.edu/employers/cle/taxethics.html