§10.33 – Best Practices • Clearly communicate with clients and IRS • Establish relevant facts, evaluate reasonableness of assumptions or representations, apply relevant legal authorities in arriving at a conclusion supported by the law and the facts • Advise the client re potential penalties • Act fairly and with integrity in dealings with the IRS. Your reputation counts
§10.34 – Practitioner Standards • Must advise client of potential penalties re – Positions on returns you prepared or positions where you rendered advice – Any documents submitted to the IRS
§10.34 – Practitioner Standards • Must advise client of opportunities to avoid penalties through disclosure and the requirements for an adequate disclosure • May rely in good faith, without verification, upon information furnished by the client • Must make reasonable inquiries if information received or assumptions appear incorrect or incomplete
§10.37 – Written Advice • Practitioner may not give written or electronic advice based on unreasonable legal or factual assumptions or representations • May not give advice that takes into account – The possibility of an audit, – Whether the issue will be raised on auditor Whether, if raised on audit, the issue would be resolved through settlement
§10.50 – OPR Sanctions • Censure, • Suspension, or • Disbarment from practice before the IRS. • Additionally, OPR may impose a monetary penalty not to exceed the gross income derived or to be derived from the conduct giving rise to the penalty.