Section 1: 10–20%R1
Ethics and Responsibilities in Tax Practice
Exam insight
Circular 230, the SSTS, and the confidence thresholds for preparer positions come up throughout REG. The exam rewards you for matching a fact pattern to the exact standard, substantial authority, more likely than not, or reasonable basis, and for knowing when contingent fees and disclosure are allowed.
What AICPA wants you to know
- 1Identify who is governed by Treasury Circular 230 and the duties it imposes
- 2Apply the diligence, conflict-of-interest, and contingent-fee rules of Circular 230
- 3List the sanctions the IRS Office of Professional Responsibility may impose
- 4Apply the SSTS standards for taking and disclosing a return position
- 5Match each confidence level (more likely than not, substantial authority, reasonable basis) to the disclosure required
- 6Distinguish legal tax avoidance from criminal tax evasion
Patterns in this topic
The exam re-skins the same archetypes. Recognize these here, then drill them in the Pattern Lab.
The Practitioner RulesMatch the conduct to its rulebook: Circular 230 for practice before the IRS, the SSTS for AICPA members, and sections 6694 and 6695 for preparer dollars.The Procedure ClockAssessment runs 3, 6, or unlimited; collection runs 10 from assessment; and only the Tax Court lets you fight before you pay.
Exam tip
Study smarter: before you expand each card, cover the screen and try to recall what the concept means from its title alone. Retrieving it from memory builds the recall the exam actually tests, and it beats re-reading.