PART I

Go to the website www.irs.gov, and locate IRS Treasury Department Circular 230. Answer the following questions from Treasury Department Circular No. 230. Type your answers beneath each question, in RED . Only submissions via Blackboard will ne accepted. Your grade will be based on the completeness and thoroughness of your answers. For the IRS Circular 230 cite, use, for example, Circular 230, Section 10.26 as your cite reference.

What is the title of Treasury Department Circular No. 230? (2 points)

2. Before admitting a representative to practice, the Treasury may require that the representative demonstrate the following: (3 points)

Who may practice before the IRS? Provide the Circular 230 cite and list 3. (3 points)

What must a practitioner do who identifies an error or omission on a clients return? Provide the Circular 230 cite and explain. (3 points)

Explain if and when a practitioner may rely on the work of another person. Provide the Circular 230 cite & explain. (3 points)

Explain the circumstances in which a practitioner may charge a contingent fee. Provide the Circular 230 cite & explain. (3 points)

You are a practitioner who has a dispute with your client over fees. Explain whether or not you are required to return your clients records to him/her. Provide the Circular 230 cite & explain. (3 points)

Your client asks you to deposit his/her refund in your account, take your fee, and refund the difference to him/her. Can you do this? Provide the Circular 230 cite & explain. (3 points)

What sanctions does Treasury have authority to impose on practitioners who violate the regulations? Provide the Circular 230 cite & explain. (3 points)

Provide the title to Circular 230, section 10.33, and explain what this section provides in your own words. (3 points)

Provide the title to Circular 230, section 10.37, and explain what this section provides in your own words. (3 points)

PART II

Go to the website www.aicpa.org, then select the Research tab, then Standards, then Tax Standards. Make sure you locate Statements on Standards for Tax Services (SSTS). There are currently 7 standards Answer the following questions from SSTS. Type your answers beneath each question, in RED . Your grade will be based on the completeness and thoroughness of your answers.

Read SSTS No. 1, Tax Return Positions.

Define tax return position as provided in SSTS No. 1 (3 points).

In your own words, explain points number 6 and 7 within SSTS, No. 1. (3 points)

Read SSTS No. 3, Certain Procedural Aspects of Preparing Returns. A client provides you (the tax preparer) with an EXCEL spreadsheet listing expense items and amounts. There is no additional information provided. Explain, in your own words, your responsibilities as addressed in SSTS no. 3 with respect to the information on this EXCEL spreadsheet. (3 points)

Read SSTS No. 4, Use of Estimates. A client tells you that she sold $200,000 worth of Apple Stock in 2017, but that she lost her records of her cost basis of the stock due to a fire in her home. She tells you that she reconstructed her cost basis as best as she could, and that she estimates it to be $75,000.

After considering SSTS No. 4, explain if/how you can use the $75,000 estimate of cost basis on her tax return. (3 points)

Same general fact pattern as a., but assume that your client tells you to use $74,624 as the cost basis because it will appear more precise on the tax return than $75,000, and reduce his likelihood of examination by IRS. After considering SSTS No. 4, explain if/how you can use the $74,624 estimate of cost basis on her tax return. (3 points)

Read SSTS, No. 6, Knowledge of Error. While preparing your clients 2017 tax return, you discover an error in your clients 2015 tax return that, if corrected, would cost your client an additional $25,000 in federal income tax. After considering SSTS No. 7, explain your course of action. (3 points)