Federal f7Tax f7Research, f711th Page f71-1
f7Edition
AN INTRODUCTION TO TAX PRACTICE AND ETHICS
CHAPTER f71
DISCUSSION f7QUESTIONS
1-1. In f7the f7United f7States, f7the f7tax f7system f7is f7an f7outgrowth f7of f7the f7following f7five
f7disciplines: f7law, f7accounting, f7economics, f7political f7science, f7and f7sociology. f7The
f7environment f7for f7the f7tax f7system f7is f7provided f7by f7the f7principles f7of f7economics,
f7sociology, f7and f7political f7science, f7while f7the f7legal f7and f7accounting f7fields f7are
f7responsible f7for f7the f7system's f7interpretation f7and f7application.
Each f7of f7these f7disciplines f7affects f7this f7country's f7tax f7system f7in f7a f7unique f7way.
f7Economists f7address f7such f7issues f7as f7how f7proposed f7tax f7legislation f7will f7affect f7the
f7rate f7of f7inflation f7or f7economic f7growth. f7Measurement f7of f7the f7social f7equity f7of f7a
f7tax, f7and f7determining f7whether f7a f7tax f7system f7discriminates f7against f7certain
f7taxpayers, f7are f7issues f7that f7are f7examined f7by f7sociologists f7and f7political f7scientists.
f7Finally, f7attorneys f7are f7responsible f7for f7the f7inter- f7pretation f7of f7the f7taxation
f7statutes, f7and f7accountants f7ensure f7that f7these f7same f7statutes f7are f7applied
f7consistently.
Page f74
1-2. The f7other f7major f7categories f7of f7tax f7practice f7in f7addition f7to f7tax f7research f7are:
tax f7compliance
tax f7planning
tax
litigation f7Page f75
f7
1-3. Tax f7compliance f7consists f7of f7gathering f7pertinent f7information, f7evaluating f7and
f7classifying f7that f7information, f7and f7filing f7any f7necessary f7tax f7returns. f7Compliance
f7also f7includes f7other f7functions f7necessary f7to f7satisfy f7governmental f7requirements,
f7such f7as f7representing f7a f7client f7during f7an f7IRS f7audit.
Page f75
1-4. Most f7of f7the f7tax f7compliance f7work f7is f7performed f7by f7commercial f7tax f7preparers,
f7enrolled f7agents, f7attorneys, f7and f7CPAs. f7Noncomplex f7individual, f7partnership, f7and
f7corporate f7tax f7returns f7often f7are f7completed f7by f7commercial f7tax f7preparers. f7The
f7preparation f7of f7more f7complex f7returns f7usually f7is f7performed f7by f7enrolled f7agents,
f7attorneys, f7and f7CPAs. f7The f7latter f7groups f7also f7provide f7tax f7planning f7services f7and
f7represent f7their f7clients f7before f7the f7IRS.
An f7enrolled f7agent f7is f7one f7who f7is f7admitted f7to f7practice f7before f7the f7IRS f7by
f7passing f7a f7special f7IRS-administered f7examination, f7or f7who f7has f7worked f7for f7the
f7IRS f7for f7five f7years, f7and f7is f7issued f7a f7permit f7to f7represent f7clients f7before f7the f7IRS.
f7CPAs f7and f7attorneys f7are f7not f7required f7to f7take f7this f7examination f7and f7are
f7automatically f7admitted f7to f7practice f7before f7the f7IRS f7if f7they f7are f7in f7good f7standing
f7with f7the f7appropriate f7professional f7licensing f7board.
,Federal f7Tax f7Research, f711th Page f71-2
f7Edition
Page f75 f7and f7Circular f7230
1-5. Tax f7planning f7is f7the f7process f7of f7arranging f7one's f7financial f7affairs f7to f7minimize f7any
f7tax f7liability. f7Much f7of f7modern f7tax f7practice f7centers f7around f7this f7process, f7and f7the
f7resulting f7outcome f7is f7tax f7avoidance. f7There f7is f7nothing f7illegal f7or f7immoral f7in f7the
f7avoidance f7of f7taxa- f7tion, f7as f7long f7as f7the f7taxpayer f7remains f7within f7legal f7bounds.
f7In f7contrast, f7tax f7evasion f7constitutes f7the f7illegal f7nonpayment f7of f7a f7tax f7and f7cannot
f7be f7condoned. f7Activities f7of f7this f7sort f7clearly f7violate f7existing f7legal f7constraints f7and
f7fall f7outside f7of f7the f7domain f7of f7the f7professional f7tax f7practitioner.
Page f76
1-6. In f7an f7open f7tax f7planning f7situation, f7the f7transaction f7is f7not f7yet f7complete, f7therefore,
f7the f7tax f7practitioner f7maintains f7some f7degree f7of f7control f7over f7the f7potential f7tax
f7liability, f7and f7the f7transaction f7may f7be f7modified f7to f7achieve f7a f7more f7favorable f7tax
f7treatment. f7In f7a f7closed f7transaction f7however, f7all f7of f7the f7pertinent f7actions f7have
f7been f7completed, f7and f7tax f7planning f7activities f7may f7be f7limited f7to f7the f7presentation
f7of f7the f7situation f7to f7the f7government f7in f7the f7most f7legally f7advantageous f7manner
f7possible.
Page f76
1-7. Tax f7litigation f7is f7the f7process f7of f7settling f7a f7dispute f7with f7the f7IRS f7in f7a f7court f7of
f7law. f7Typically, f7a f7tax f7attorney f7handles f7tax f7litigation f7that f7progresses f7beyond f7the
f7final f7IRS f7appeal.
Page f76
1-8. CPAs f7serve f7is f7a f7support f7capacity f7in f7tax f7litigation.
Page f76
1-9. Tax f7research f7consists f7of f7the f7resolution f7of f7unanswered f7taxation f7questions.
f7The f7tax f7research f7process f7includes f7the f7following:
1. Identification f7of f7pertinent f7issues;
2. Specification f7of f7proper f7authorities;
3. Evaluation f7of f7the f7propriety f7of f7authorities; f7and,
4. Application f7of f7authorities f7to f7a f7specific f7situation.
Page f76
1-10. Circular f7230 f7is f7issued f7by f7the f7Treasury f7Department f7and f7applies f7to f7all f7who
f7practice f7before f7the f7IRS.
Page f77
,Federal f7Tax f7Research, f711th Page f71-3
f7Edition
1-11. In f7addition f7to f7Circular f7230, f7CPAs f7must f7follow f7the f7AICPA's f7Code f7of
f7Professional f7Conduct f7and f7Statements f7on f7Standards f7for f7Tax f7Services. f7CPAs
f7must f7also f7abide f7by f7the f7rules f7of f7the f7appropriate f7state f7board(s) f7of
f7accountancy.
Page f77
1-12. A f7return f7preparer f7must f7obtain f718 f7hours f7of f7continuing f7education f7from f7an f7IRS-
approved f7CE f7Provider. f7The f7hours f7must f7include f7a f76 f7credit f7hour f7Annual
f7Federal f7Tax f7Refresher f7course f7(AFTR) f7that f7covers f7filing f7season f7issues f7and
f7tax f7law f7updates. f7The f7AFTR f7course f7must f7include f7a f7knowledge-based
f7comprehension f7test f7administered f7at f7the f7conclusion f7of f7the f7course f7by f7the f7CE
f7Provider.
Limited f7practice f7rights f7allow f7individuals f7to f7represent f7clients f7whose f7returns f7they
f7prepared f7and f7signed, f7but f7only f7before f7revenue f7agents, f7customer f7service
f7representatives, f7and f7similar f7IRS f7employees.
Page f710 f7and f7IRS.gov
1-13. False. f7Only f7communication f7with f7the f7IRS f7concerning f7a f7taxpayer's f7rights,
f7privileges, f7or f7liability f7is f7included. f7Practice f7before f7the f7IRS f7does f7not f7include
f7representation f7before f7the f7Tax f7Court.
Page f77
1-14. Section f710.2 f7of f7Subpart f7A f7of f7Circular f7230 f7defines f7practice f7before f7the f7IRS f7as f7including:
matters f7connected f7with f7presentation f7to f7the f7Internal f7Revenue f7Service f7or
f7any f7of f7its f7officers f7or f7employees f7relating f7to f7a f7client's f7rights, f7privileges,
f7or f7liabilities f7under f7laws f7or f7regulations f7administered f7by f7the f7Internal
f7Revenue f7Service. f7Such f7presentations f7include f7the f7preparation f7and f7filing
f7of f7necessary f7documents, f7correspondence f7with, f7and f7communications f7to
f7the f7Internal f7Revenue f7Service, f7and f7the f7representation f7of f7a f7client f7at
f7conferences, f7hearings, f7and f7meetings.
Page f77
1-15. To f7become f7an f7Enrolled f7Agent f7an f7individual f7can f7(1) f7pass f7a f7test f7given f7by f7the
f7IRS f7or f7(2) f7work f7for f7the f7IRS f7for f7five f7years. f7Circular f7230, f7Subpart f7A,
f7Secs. f710.4 f7to f710.6.
Page f79
1-16. Enrolled f7Agents f7must f7complete f772 f7hours f7of f7Continuing f7Education f7every f7three
f7years f7(an f7average f7of f724 f7per f7year, f7with f7a f7minimum f7of f716 f7hours f7during f7any
f7year.). f7Circular f7230, f7Subpart f7A. f7§10.6.
Page f79
1-17. True. f7As f7a f7general f7rule, f7an f7individual f7must f7be f7an f7enrolled f7agent, f7attorney, f7or
f7CPA f7to f7represent f7a f7client f7before f7the f7IRS. f7There f7are f7limited f7situations f7where
f7others f7may f7represent f7a f7taxpayer; f7however, f7this f7fact f7pattern f7is f7not f7one f7of
f7them. f7Since f7Leigh f7did f7not f7sign f7the f7return, f7she f7cannot f7represent f7the f7taxpayer,
f7only f7Rose f7can.
, Federal f7Tax f7Research, f711th Page f71-4
f7Edition
Pages f710-11
1-18. The f7names f7of f7organizations f7that f7can f7be f7represented f7by f7regular f7full-time
f7employees f7are f7found f7in f7Circular f7230, f7§10.7(c). f7A f7regular f7full-time f7employee
f7can f7represent f7the f7employer f7(individual f7employer). f7A f7regular f7full-time f7employee
f7of f7a f7partnership f7may f7represent f7the f7partnership. f7Also, f7a f7regular f7full-time
f7employee f7of f7a f7trust, f7receivership, f7guardianship, f7or f7estate f7may f7represent f7the
f7trust, f7receivership, f7guardianship, f7or f7estate. f7Furthermore, f7a f 7 regular f7full-time
f7employee f7of f7a f7governmental f7unit, f7agency, f7or f7authority f7may f7represent f7the
f7governmental f7unit, f7agency, f7or f7authority f7in f7the f7course f7of f7his f7or f7her f7official
f7duties.
Page f710
1-19. Yes. f7Circular f7230, f7Subpart f7A, f7Sec. f710.7.
Page f710
1-20. True. f7A f7practitioner f7may f7be f7suspended f7or f7disbarred f7from f7practice f7before f7the
f7IRS f7if f7he f7or f7she f7knowingly f7helps f7a f7suspended f7or f7disbarred f7person f7practice
f7indirectly f7before f7the f7IRS.
Page f712
1-21. A f7practitioner f7may f7not f7advise f7a f7client f7to f7take f7a f7position f7on f7a f7document,
f7affidavit, f7or f7other f7paper f7submitted f7to f7the f7Internal f7Revenue f7Service f7unless f7the
f7position f7is f7not f7frivolous.
Circular f7230 f7§10.34(b)
Page f714
1-22. Under f7Circular f7230, f7an f7attorney, f7certified f7public f7accountant f7(CPA), f7or f7enrolled
f7agent f7may f7use f7mass f7media f7(e.g., f7T.V. f7and f7the f7Internet) f7for f7advertising
f7purposes. f7Such f7media f7may f7not f7contain f7false, f7fraudulent, f7unduly f7influencing,
f7coercive, f7or f7unfair f7statements f7or f7claims. f7Attorneys, f7CPAs, f7and f7enrolled f7agents
f7must f7also f7observe f7any f7applicable f7standards f7of f7ethical f7conduct f7adopted f7by f7the
f7American f7Bar f7Association f7(ABA), f7the f7American f7Institute f7of f7Certified f7Public
f7Accountants f7(AICPA), f7and f7the f7National f7Association f7of f7Enrolled f7Agents
f7(NAEA). f7Additional f7standards f7and f7listing f7of f7items f7that f7may f7be f7included f7in
f7mass f7media f7advertising f7are f7defined f7under f7Section f710.30 f7of f7Subpart f7B f7in
f7Circular f7230.
Page f719
1-23. Under f7Section f710.25 f7of f7Circular f7230, f7partners f7of f7government f7employees f7cannot
f7represent f7anyone f7for f7which f7the f7government f7employee-partner f7has f7(or f7has f7had)
f7official f7responsibility. f7For f7instance, f7a f7CPA f7firm f7with f7an f7IRS f7agent f7could f7not
f7represent f7any f7taxpayer f7that f7is f7(or f7was f7in f7the f7past) f7assigned f7to f7the f7IRS f7agent-
partner.
Page f712
1-24. Under f7Section f710.21 f7of f7Circular f7230, f7each f7attorney, f7CPA, f7enrolled f7agent, f7or
f7enrolled f7actuary f7who f7knows f7that f7the f7client f7has f7not f7complied f7with f7the
f7Edition
AN INTRODUCTION TO TAX PRACTICE AND ETHICS
CHAPTER f71
DISCUSSION f7QUESTIONS
1-1. In f7the f7United f7States, f7the f7tax f7system f7is f7an f7outgrowth f7of f7the f7following f7five
f7disciplines: f7law, f7accounting, f7economics, f7political f7science, f7and f7sociology. f7The
f7environment f7for f7the f7tax f7system f7is f7provided f7by f7the f7principles f7of f7economics,
f7sociology, f7and f7political f7science, f7while f7the f7legal f7and f7accounting f7fields f7are
f7responsible f7for f7the f7system's f7interpretation f7and f7application.
Each f7of f7these f7disciplines f7affects f7this f7country's f7tax f7system f7in f7a f7unique f7way.
f7Economists f7address f7such f7issues f7as f7how f7proposed f7tax f7legislation f7will f7affect f7the
f7rate f7of f7inflation f7or f7economic f7growth. f7Measurement f7of f7the f7social f7equity f7of f7a
f7tax, f7and f7determining f7whether f7a f7tax f7system f7discriminates f7against f7certain
f7taxpayers, f7are f7issues f7that f7are f7examined f7by f7sociologists f7and f7political f7scientists.
f7Finally, f7attorneys f7are f7responsible f7for f7the f7inter- f7pretation f7of f7the f7taxation
f7statutes, f7and f7accountants f7ensure f7that f7these f7same f7statutes f7are f7applied
f7consistently.
Page f74
1-2. The f7other f7major f7categories f7of f7tax f7practice f7in f7addition f7to f7tax f7research f7are:
tax f7compliance
tax f7planning
tax
litigation f7Page f75
f7
1-3. Tax f7compliance f7consists f7of f7gathering f7pertinent f7information, f7evaluating f7and
f7classifying f7that f7information, f7and f7filing f7any f7necessary f7tax f7returns. f7Compliance
f7also f7includes f7other f7functions f7necessary f7to f7satisfy f7governmental f7requirements,
f7such f7as f7representing f7a f7client f7during f7an f7IRS f7audit.
Page f75
1-4. Most f7of f7the f7tax f7compliance f7work f7is f7performed f7by f7commercial f7tax f7preparers,
f7enrolled f7agents, f7attorneys, f7and f7CPAs. f7Noncomplex f7individual, f7partnership, f7and
f7corporate f7tax f7returns f7often f7are f7completed f7by f7commercial f7tax f7preparers. f7The
f7preparation f7of f7more f7complex f7returns f7usually f7is f7performed f7by f7enrolled f7agents,
f7attorneys, f7and f7CPAs. f7The f7latter f7groups f7also f7provide f7tax f7planning f7services f7and
f7represent f7their f7clients f7before f7the f7IRS.
An f7enrolled f7agent f7is f7one f7who f7is f7admitted f7to f7practice f7before f7the f7IRS f7by
f7passing f7a f7special f7IRS-administered f7examination, f7or f7who f7has f7worked f7for f7the
f7IRS f7for f7five f7years, f7and f7is f7issued f7a f7permit f7to f7represent f7clients f7before f7the f7IRS.
f7CPAs f7and f7attorneys f7are f7not f7required f7to f7take f7this f7examination f7and f7are
f7automatically f7admitted f7to f7practice f7before f7the f7IRS f7if f7they f7are f7in f7good f7standing
f7with f7the f7appropriate f7professional f7licensing f7board.
,Federal f7Tax f7Research, f711th Page f71-2
f7Edition
Page f75 f7and f7Circular f7230
1-5. Tax f7planning f7is f7the f7process f7of f7arranging f7one's f7financial f7affairs f7to f7minimize f7any
f7tax f7liability. f7Much f7of f7modern f7tax f7practice f7centers f7around f7this f7process, f7and f7the
f7resulting f7outcome f7is f7tax f7avoidance. f7There f7is f7nothing f7illegal f7or f7immoral f7in f7the
f7avoidance f7of f7taxa- f7tion, f7as f7long f7as f7the f7taxpayer f7remains f7within f7legal f7bounds.
f7In f7contrast, f7tax f7evasion f7constitutes f7the f7illegal f7nonpayment f7of f7a f7tax f7and f7cannot
f7be f7condoned. f7Activities f7of f7this f7sort f7clearly f7violate f7existing f7legal f7constraints f7and
f7fall f7outside f7of f7the f7domain f7of f7the f7professional f7tax f7practitioner.
Page f76
1-6. In f7an f7open f7tax f7planning f7situation, f7the f7transaction f7is f7not f7yet f7complete, f7therefore,
f7the f7tax f7practitioner f7maintains f7some f7degree f7of f7control f7over f7the f7potential f7tax
f7liability, f7and f7the f7transaction f7may f7be f7modified f7to f7achieve f7a f7more f7favorable f7tax
f7treatment. f7In f7a f7closed f7transaction f7however, f7all f7of f7the f7pertinent f7actions f7have
f7been f7completed, f7and f7tax f7planning f7activities f7may f7be f7limited f7to f7the f7presentation
f7of f7the f7situation f7to f7the f7government f7in f7the f7most f7legally f7advantageous f7manner
f7possible.
Page f76
1-7. Tax f7litigation f7is f7the f7process f7of f7settling f7a f7dispute f7with f7the f7IRS f7in f7a f7court f7of
f7law. f7Typically, f7a f7tax f7attorney f7handles f7tax f7litigation f7that f7progresses f7beyond f7the
f7final f7IRS f7appeal.
Page f76
1-8. CPAs f7serve f7is f7a f7support f7capacity f7in f7tax f7litigation.
Page f76
1-9. Tax f7research f7consists f7of f7the f7resolution f7of f7unanswered f7taxation f7questions.
f7The f7tax f7research f7process f7includes f7the f7following:
1. Identification f7of f7pertinent f7issues;
2. Specification f7of f7proper f7authorities;
3. Evaluation f7of f7the f7propriety f7of f7authorities; f7and,
4. Application f7of f7authorities f7to f7a f7specific f7situation.
Page f76
1-10. Circular f7230 f7is f7issued f7by f7the f7Treasury f7Department f7and f7applies f7to f7all f7who
f7practice f7before f7the f7IRS.
Page f77
,Federal f7Tax f7Research, f711th Page f71-3
f7Edition
1-11. In f7addition f7to f7Circular f7230, f7CPAs f7must f7follow f7the f7AICPA's f7Code f7of
f7Professional f7Conduct f7and f7Statements f7on f7Standards f7for f7Tax f7Services. f7CPAs
f7must f7also f7abide f7by f7the f7rules f7of f7the f7appropriate f7state f7board(s) f7of
f7accountancy.
Page f77
1-12. A f7return f7preparer f7must f7obtain f718 f7hours f7of f7continuing f7education f7from f7an f7IRS-
approved f7CE f7Provider. f7The f7hours f7must f7include f7a f76 f7credit f7hour f7Annual
f7Federal f7Tax f7Refresher f7course f7(AFTR) f7that f7covers f7filing f7season f7issues f7and
f7tax f7law f7updates. f7The f7AFTR f7course f7must f7include f7a f7knowledge-based
f7comprehension f7test f7administered f7at f7the f7conclusion f7of f7the f7course f7by f7the f7CE
f7Provider.
Limited f7practice f7rights f7allow f7individuals f7to f7represent f7clients f7whose f7returns f7they
f7prepared f7and f7signed, f7but f7only f7before f7revenue f7agents, f7customer f7service
f7representatives, f7and f7similar f7IRS f7employees.
Page f710 f7and f7IRS.gov
1-13. False. f7Only f7communication f7with f7the f7IRS f7concerning f7a f7taxpayer's f7rights,
f7privileges, f7or f7liability f7is f7included. f7Practice f7before f7the f7IRS f7does f7not f7include
f7representation f7before f7the f7Tax f7Court.
Page f77
1-14. Section f710.2 f7of f7Subpart f7A f7of f7Circular f7230 f7defines f7practice f7before f7the f7IRS f7as f7including:
matters f7connected f7with f7presentation f7to f7the f7Internal f7Revenue f7Service f7or
f7any f7of f7its f7officers f7or f7employees f7relating f7to f7a f7client's f7rights, f7privileges,
f7or f7liabilities f7under f7laws f7or f7regulations f7administered f7by f7the f7Internal
f7Revenue f7Service. f7Such f7presentations f7include f7the f7preparation f7and f7filing
f7of f7necessary f7documents, f7correspondence f7with, f7and f7communications f7to
f7the f7Internal f7Revenue f7Service, f7and f7the f7representation f7of f7a f7client f7at
f7conferences, f7hearings, f7and f7meetings.
Page f77
1-15. To f7become f7an f7Enrolled f7Agent f7an f7individual f7can f7(1) f7pass f7a f7test f7given f7by f7the
f7IRS f7or f7(2) f7work f7for f7the f7IRS f7for f7five f7years. f7Circular f7230, f7Subpart f7A,
f7Secs. f710.4 f7to f710.6.
Page f79
1-16. Enrolled f7Agents f7must f7complete f772 f7hours f7of f7Continuing f7Education f7every f7three
f7years f7(an f7average f7of f724 f7per f7year, f7with f7a f7minimum f7of f716 f7hours f7during f7any
f7year.). f7Circular f7230, f7Subpart f7A. f7§10.6.
Page f79
1-17. True. f7As f7a f7general f7rule, f7an f7individual f7must f7be f7an f7enrolled f7agent, f7attorney, f7or
f7CPA f7to f7represent f7a f7client f7before f7the f7IRS. f7There f7are f7limited f7situations f7where
f7others f7may f7represent f7a f7taxpayer; f7however, f7this f7fact f7pattern f7is f7not f7one f7of
f7them. f7Since f7Leigh f7did f7not f7sign f7the f7return, f7she f7cannot f7represent f7the f7taxpayer,
f7only f7Rose f7can.
, Federal f7Tax f7Research, f711th Page f71-4
f7Edition
Pages f710-11
1-18. The f7names f7of f7organizations f7that f7can f7be f7represented f7by f7regular f7full-time
f7employees f7are f7found f7in f7Circular f7230, f7§10.7(c). f7A f7regular f7full-time f7employee
f7can f7represent f7the f7employer f7(individual f7employer). f7A f7regular f7full-time f7employee
f7of f7a f7partnership f7may f7represent f7the f7partnership. f7Also, f7a f7regular f7full-time
f7employee f7of f7a f7trust, f7receivership, f7guardianship, f7or f7estate f7may f7represent f7the
f7trust, f7receivership, f7guardianship, f7or f7estate. f7Furthermore, f7a f 7 regular f7full-time
f7employee f7of f7a f7governmental f7unit, f7agency, f7or f7authority f7may f7represent f7the
f7governmental f7unit, f7agency, f7or f7authority f7in f7the f7course f7of f7his f7or f7her f7official
f7duties.
Page f710
1-19. Yes. f7Circular f7230, f7Subpart f7A, f7Sec. f710.7.
Page f710
1-20. True. f7A f7practitioner f7may f7be f7suspended f7or f7disbarred f7from f7practice f7before f7the
f7IRS f7if f7he f7or f7she f7knowingly f7helps f7a f7suspended f7or f7disbarred f7person f7practice
f7indirectly f7before f7the f7IRS.
Page f712
1-21. A f7practitioner f7may f7not f7advise f7a f7client f7to f7take f7a f7position f7on f7a f7document,
f7affidavit, f7or f7other f7paper f7submitted f7to f7the f7Internal f7Revenue f7Service f7unless f7the
f7position f7is f7not f7frivolous.
Circular f7230 f7§10.34(b)
Page f714
1-22. Under f7Circular f7230, f7an f7attorney, f7certified f7public f7accountant f7(CPA), f7or f7enrolled
f7agent f7may f7use f7mass f7media f7(e.g., f7T.V. f7and f7the f7Internet) f7for f7advertising
f7purposes. f7Such f7media f7may f7not f7contain f7false, f7fraudulent, f7unduly f7influencing,
f7coercive, f7or f7unfair f7statements f7or f7claims. f7Attorneys, f7CPAs, f7and f7enrolled f7agents
f7must f7also f7observe f7any f7applicable f7standards f7of f7ethical f7conduct f7adopted f7by f7the
f7American f7Bar f7Association f7(ABA), f7the f7American f7Institute f7of f7Certified f7Public
f7Accountants f7(AICPA), f7and f7the f7National f7Association f7of f7Enrolled f7Agents
f7(NAEA). f7Additional f7standards f7and f7listing f7of f7items f7that f7may f7be f7included f7in
f7mass f7media f7advertising f7are f7defined f7under f7Section f710.30 f7of f7Subpart f7B f7in
f7Circular f7230.
Page f719
1-23. Under f7Section f710.25 f7of f7Circular f7230, f7partners f7of f7government f7employees f7cannot
f7represent f7anyone f7for f7which f7the f7government f7employee-partner f7has f7(or f7has f7had)
f7official f7responsibility. f7For f7instance, f7a f7CPA f7firm f7with f7an f7IRS f7agent f7could f7not
f7represent f7any f7taxpayer f7that f7is f7(or f7was f7in f7the f7past) f7assigned f7to f7the f7IRS f7agent-
partner.
Page f712
1-24. Under f7Section f710.21 f7of f7Circular f7230, f7each f7attorney, f7CPA, f7enrolled f7agent, f7or
f7enrolled f7actuary f7who f7knows f7that f7the f7client f7has f7not f7complied f7with f7the
