Professional responsibilities in a tax practice

A major Internal Revenue Service (IRS) goal is to achieve a high level of voluntary compliance with the tax laws. To reach this goal, tax practitioners must accept responsibility to assist the IRS. The Treasury Department's position to hold practitioners responsible for tax services resulting i...

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Bibliographic Details
Published in:The National public accountant (1957) 1990-06, Vol.35 (6), p.24
Main Authors: Leauby, Bruce A, Bailey, Larry P
Format: Article
Language:English
Subjects:
Accountants
Disclosure
Laws, regulations and rules
Practice
Professional responsibilities
Tax accounting
Tax preparation
Tax returns
Tax services
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Summary:A major Internal Revenue Service (IRS) goal is to achieve a high level of voluntary compliance with the tax laws. To reach this goal, tax practitioners must accept responsibility to assist the IRS. The Treasury Department's position to hold practitioners responsible for tax services resulting in substantial underpayments fuels the controversy over whether the practitioner should be viewed as a client advocate or as an extension of the IRS to enforce the tax system. Since the tax practitioner certainly has an obligation to both, tax return positions should not be recommended that are designed to circumvent selection criteria that have been established by the IRS. Practitioners should also carefully consider whether they should sign a return when all questions have not been answered. When estimates are used in tax returns, those that are nonroutine should not be presented in a manner that would suggest a degree of precision that is unwarranted. Any tax advice given should satisfy the criteria established by the AICPA's Statements on Responsibilities in Tax Practice. The practitioner must stay abreast of any changes in the tax laws that would make the tax advice given inappropriate.
ISSN:0027-9978