Behavioral Ethics: Practice before the IRS (Course Id 1265)

Behavioral Ethics - Behavioral Ethics for Course Id 1265

The Internal Revenue Service routinely processes more than 240 million tax returns each year, many of them prepared by tax professionals. Not surprisingly, as tax law becomes increasingly complex, taxpayers often seek the assistance of knowledgeable professionals to represent them with respect to tax and other matters before the IRS. However, the ability to represent a client before the IRS is, with certain exceptions, extremely limited. 

This course addresses the nature of practice before the IRS, identifies those permitted to engage in such practice and examines the power of attorney under which a taxpayer authorizes representation before the IRS. 

Please Note: This is a general ethics course for anyone who represents taxpayers on matters before the IRS and devotes more than 80% of its content to federal tax matters. This is NOT an IRS EA or Return Preparer approved ethics course.

NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents - 1265

Course Learning Objectives

• Define “practice before the Internal Revenue Service”;
• Recognize the general scope of permitted enrolled agent practice responsibilities;
• Identify the extent of practice privileges possessed by individuals permitted to practice before the IRS;
• Describe the nature and function of a tax power of attorney and identify the acts that may be performed for a client under it; and
• Understand how to withdraw from and revoke an existing tax power of attorney.

Chapter 1
IRS Practice

• Define “practice before the Internal Revenue Service”;
• Recognize the general scope of permitted enrolled agent practice responsibilities;
• List the categories of individuals permitted to practice before the IRS; and
• Identify the extent of practice privileges possessed by individuals permitted to practice before the IRS.

Chapter 2
Representing a Client before the IRS

• Describe the nature and function of a power of attorney;
• Discuss when a power of attorney is required and when it is not required with respect to matters before the IRS;
• Identify the acts that may be performed for a client under a power of attorney;
• Explain how to complete the necessary IRS form to name a power of attorney and where to file it; and
• Understand how to revoke an existing power of attorney.

Course Learning Objectives

Introduction to the Course

Chapter 1 - IRS Practice

Chapter Learning Objectives

Introduction

Professional Practice

Who is Permitted to Practice before the IRS

Professionals with Limited Practice Rights

Enrolled Actuaries

Enrolled Retirement Plan Agents

Registered Tax Return Preparers

Professionals with Unlimited Practice Rights

Other Representation

Representation Based on Taxpayer Relationship

Who may not Practice before the IRS

Loss of Eligibility

Failing to Meet Renewal Requirements

Enrolled Agent Renewal Cycles

Requesting Inactive Retirement Status

Suspension and Disbarment

Incompetence and Disreputable Conduct

Summary

Chapter Review

Chapter 2 - Representing a Client before the IRS

Chapter Learning Objectives

Introduction

Power of Attorney

Acts Performed Under a Power of Attorney

Substituting or Delegating Authority

Agent Authorizing IRS to Disclose Returns to Others

When a Power of Attorney is Required

Non-IRS Power of Attorney

Perfecting a Power of Attorney

Processing a Non-IRS Power of Attorney

Common Reasons for IRS Rejection of a Power of Attorney

Signatures and/or Signature Dates Missing

Lack of Specificity as to Authorized Acts

When the Matter isn’t a Tax Matter

Civil Penalties

Filing and Updating a Power of Attorney

Retention/Revocation of Prior Power(s) of Attorney

Revocation of Power of Attorney/Withdrawal of Representative

Preparing IRS Form 2848

Taxpayer Information – Line 1

The Individual Client

Clients Filing 1040 Schedule C

Clients Filing a Joint Return

Corporate, Partnership or Association Clients

Corporate Clients Filing Consolidated Tax Returns

Exempt Organization Clients

Trust Clients

Representing a Decedent

Estate Clients

When the Matter is a Gift

Employee Plan Clients

Representative – Line 2

Multiple Representatives

Centralized Authorization File (CAF) Number

Preparer Tax Identification Number (PTIN)

Students in Low Income Taxpayer Clinics (LITCs) and Student Tax Clinic Program (STCP)

Acts Authorized – Line 3

Specific Use Not Recorded on Centralized Authorization File – Line 4

Additional Acts Authorized – Line 5a

Specific Acts not Authorized – Line 5b

Retention/Revocation of Prior Power(s) of Attorney – Line 6

Taxpayer’s Signature – Line 7

Declaration of Representative – Part II

Summary

Chapter Review

Appendix

Glossary