CPAs who prepare tax returns and represent taxpayers before the IRS and Florida state tax authorities are subject to a variety of rules that regulate their professional conduct. In addition to observing the rules of practice established by the Florida Board of Accountancy, Florida CPAs must also follow rules of conduct imposed by the American Institute of CPAs (AICPA). The AICPA's General Standards and Statements on Standards for Tax Services (SSTS) establish ethical standards for CPAs when practicing before any taxing authority—state, local, or federal. Treasury Circular 230 governs practice before the IRS for any "authorized federal tax practitioner," a class limited to attorneys, CPAs, enrolled agents, and enrolled actuaries.

An overriding lesson to be learned in this training program is how these three sets of ethical guidance interact and fit together to provide a strong ethical framework for the CPA's practice of preparing tax returns and providing tax advice in the state of Florida.

This program examines each guidance document for the purpose of explaining the document to the participant and how each relates to the other. For example, guidance in one document, such as Circular 230, may be incorporated by reference in another document that requires compliance with "all federal and state regulations" because Circular 230 is a "federal regulation."

While State rules are the foundation upon which all other rules must rest, not all rules addressing ethical tax practice are addressed in the rules of the Florida Board of Accountancy. Where a rule appears in the SSTS or in Circular 230, this course will examine it to determine its application as an ethical standard.

Use of Materials

Audio or DVD
The user should begin by watching the DVD segment or listening to the audio CD for the chapter before reading the text. The user may wish to make notes of the most important concepts and any terms that are new. Next, the user should review the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. It may be helpful to highlight important material and/or to make additional notes. Next, the user should complete the study questions at the end of the chapter and review the answers. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished watching the DVD or listening to the audio CDs and reading the text and working through the study questions, s/he may wish to review her/his notes and any sections of the text or DVD or audio CDs that were difficult. When the user is ready, s/he should complete the quizzer. Reviewing notes periodically will increase retention of the material.

Online
The user should begin by watching the streamed video segment, if any, or listening to the streamed audio segment, if any, for the chapter before reading the text. The user may wish to make notes of the most important concepts and any terms that are new. Next, the user should review the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. After the user has studied each chapter, s/he should click on the link at the left to complete the interactive study questions. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished watching the streamed video, if any, or listening to the streamed audio, if any, and reading the text and working through the study questions, s/he may wish to review her/his notes and any sections of the text or video/audio, if any, that were difficult. When the user is ready, s/he should click on the link to the left to complete the quizzer. The user's CPE certificate will be provided immediately upon successful completion of the quizzer.

Software
The user should begin by reviewing the learning objectives at the beginning of the chapter and read the chapter. The user should work through each of the examples. As the user studies each chapter, s/he should complete the interactive study questions that appear in the lower panel of the screen. If the user answers a study question incorrectly, s/he should review the section of the text that is indicated at the end of the explanation to the study question to assure comprehension of the material. The user should review the learning objectives once more to consider achievement of the objectives. After the user has finished reading the text and working through the study questions, s/he may wish to review her/his notes and any sections of the text that were difficult. When the user is ready, s/he should click on the link at the far left to complete the quizzer. The user should email her/his quizzer statistics using the quizzer submission link in the software and the user's CPE certificate will be mailed to her/him.

Chapter 1 considers the rules of the Florida Board of Accountancy and disciplinary actions.

Chapter 2 provides in-depth coverage of Treasury Department regulation of tax matters.

Chapter 3 focuses on the AICPA ethical standards.

Chapter 4 presents several case studies that address the issues of: the meaning of "preparer" for purposes of IRC §6694; the preparer's duty to maintain confidentiality; preparer due diligence and negligence; the duty to return client records; and misconduct.

Appendix A contains the Florida Statutes governing the practice of accountancy and the rules of the Florida Board of Accountancy.

Appendix B contains Treasury Department Circular 230.

Appendix C contains IRS Form 2848, Power of Attorney and Declaration of Representative, Instructions for Form 2848, Form 8275, Disclosure Statement, Instructions for Form 8275, Form 8275-R, Regulation Disclosure Statement, Instructions for Form 8275-R, Form 8886, Reportable Transaction Disclosure Statement, and Instructions for Form 8886.

Appendix D contains the AICPA's adopted Statements on Standards for Tax Services.

Throughout this program, the user will find explanations and discussions regarding some of the issues that often face practitioners. In order to enhance the user's comprehension of the material and highlight important practical considerations, this publication includes the following designations:

A Biskalert is intended to warn the practitioner of a particular situation that may require action or other consideration by the taxpayer or the practitioner on behalf of the taxpayer.

A Biskpoint presents analysis or commentary that attempts to explain or clarify statutory or regulatory authority or decisions by the judiciary.

A Bisktip provides practical advice that may be used to help improve client service or service to the practitioner's organization.

• Identify the source of authority for the rules of the Florida Board of Accountancy

• Explain how the General Provisions regarding unprofessional conduct apply to accountants, and to an accountant's tax practice

• Interpret and apply the rules of the Florida Board of Accountancy

• Know the sources of authority for Treasury Department regulation of tax practitioners

• Know what a federally authorized tax practitioner can and cannot do with respect to tax practice issues, such as return of clients' records, contingent fees, supervision of assistants, tax return positions, etc.

• Understand sanctions and penalties the IRS can bring to bear on a noncompliant practitioner

• Be able to identify relationships between Circular 230, the Internal Revenue Code, applicable Florida statutes, rules of the Florida Board of Accountancy, and AICPA Statements on Standards for Tax Services

• Know who and what is subject to the AICPA Ethical Standards and their Interpretations

• Know the ethical guidance that is provided by the AICPA Statements on Standards for Tax Services

• Know how the AICPA Ethical Standards relate to the rules of the Florida Board of Accountancy and Circular 230

• Be prepared to apply the AICPA Ethical Standards in tax practice

• Be able to determine who is a tax return preparer under IRC §6694

• Be familiar with the tax return preparer's duty to maintain a client's confidentiality

• Have a basic understanding of a tax return preparer's "due diligence" and "negligence"

• Be familiar with some recent administrative actions of the Florida Board of Accountancy regarding CPA misconduct for theft and fraudulent acts