Describe tax professional responsibilities in providing tax advice and Identify taxpayer and tax professional penalties. Tax professionals are expected to abide by several statutes, rules, and codes of conduct. According to SSTS No. 7, when providing taxpayers advice, tax professionals need to use judgment that reflects professional competence and serves the taxpayers needs. They need to ensure that the standards under SSTS No. 1 (tax return position) are met for all the advice rendered. The tax professional isnt obligated to communicate with the tax payer when following events affect the advice previously given, except when carrying out plans associated with the advices provided or when the tax professional is obligated to do so according to a specific agreement. The IRS can impose criminal and civil penalties to both taxpayers and tax professional in order to encourage tax compliance. Civil penalties are common and come in forms of monetary penalties imposed on taxpayers and tax professionals that violate tax statutes without reasonable cause. Criminal penalties are less common and are imposed only after normal due process. Criminal penalties are commonly charged in tax evasion cases. Penalties tend to be much higher than civil penalties, and can result in a prison sentence. However, taxpayers wont be subject to underpayment penalty if there is substantial authority that supports the tax return position. Tax practitioners also wont be subject to penalty for recommending the tax position if theres substantial authority that supports the position.