Chapter 1, Problem 45DQ

Ethics are a key quality for any accounting practitioner. Tax professionals face a unique set of ethical duties as they cannot physically see many elements of a tax return. Analyze the ethical duties of a tax professional. Critique the authoritative professional sources that govern tax practitioners’ responsibilities, including the purpose behind these responsibilities?

The Code of Conduct in use at a well-known national tax preparation firm says that if you are contacted by law enforcement; a governmental agency such as the IRS, SEC, or FBI; or the media about “actual or suspected improper or illegal activity of any kind by you or anyone connected with the Company, you must immediately report the contact to your manager (unless that would be inappropriate under the circumstances) and the Legal Department.…” Is this Code of Conduct provision ethical?

Assuming that you were a tax consultant of a certain company, discuss the specific provisions of the TRAIN LAW which you can use in tax planning. Apply your knowledge in tax saving strategies.

Individual tax filing requirements and circumstances can change, so it is important to be familiar with the research tools available to you as a tax practitioner. In this discussion, you will consider research resources available for tax preparers and how they can be used in the field. What are the available commercial and noncommercial tax resources that you could utilize as a tax practitioner? Refer to Section 2-2A through 2-2C (specifically, exhibit 2-7) in your textbook for options. Which commercial resource do you think is the most beneficial to a tax practitioner? (Note that you will not be able to access the commercial resources but can find their features on their website.) Which noncommercial resource do you think is the most beneficial to a tax practitioner? How might you use the tax research process (refer to Section 2-3 in your textbook) for utilizing tax resources in preparing individual tax returns. (Think about ways you could use this process to support you in…

The AICPA has issued standards for CPAs in tax practice, called Statements on Standards for Tax Services (SSTS). Download the Statement on Standards for Tax Services No. 1-7Links to an external site.. What does the SSTS say about a CPA relying on information supplied by the client (see SSTS #3)? Are estimates ever permitted to be used in preparing a tax return (see SSTS #4)?

CPAs act as, among other things, paid tax return preparers for their clients. What does SSTS No. 1 have to say, or what does it imply, as to who has the final responsibility for the contents of a tax return, the CPA or the client?

The firm converts certain type of transactions in which the tax implication is favorable to the firm. What element in the SAVANT Framework was used in this scenario? (type your answer in small letters)

Choose the answer that fails to explain how high ethical standards protect a tax preparer. Providing a quality product that helps them increase client retention. Minimizing the risk of being subject to preparer penalties. Showing integrity in the return preparation process. Eliminating the need for preparer due diligence notes.

According to the PCAOB, which of the following tax services would impair independence? A. Tax consulting B. Providing a tax opinion where the opinion is not considered an aggressive position or listed transaction by the IRS C. Tax returns prepared by BDO Spain for the controller's dependent children living in Spain while attending school abroad D. Tax consulting for the CFO of an IPO candidate completed before the start of the professional engagement period for the audit of the financial statements to be included in the IPO registration