What is Conflicts of interest (Circular 230)?
In short
A practitioner may not represent a client before the Internal Revenue Service if there is a conflict of interest, unless they reasonably believe they can represent each client competently and diligently, the representation isn't prohibited by law, and each affected client gives informed written consent.
Key takeaways
- A conflict exists if clients are directly adverse or the practitioner's responsibilities materially limit the representation.
- Written consents should be obtained within 30 days and kept for 36 months after the representation ends.
- Consent must be available to the agency on request.
Where it's tested
REG: Circular 230 & Practitioner Ethics — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A CPA discovers that a client's previously filed return contains a material error. Under Circular 230, what must the CPA do?