Ethics Tax Procedures

# REG — Ethics, Tax Procedures & Professional Responsibilities Exam: CPA — REG (Taxation & Regulation) — Core section (all candidates required) Last Updated: June 2026 --- ## Circular 230 — Practice Before the IRS Circular 230 governs practitioners who practice before the IRS, including CPAs, attorneys, enrolled agents, and enrolled retirement plan agents. ### Who Can Practice Before the IRS? | Practitioner | Scope | |---|---| | Attorneys | Unlimited representation rights | | CPAs | Unlimited representation rights | | Enrolled Agents (EAs) | Unlimited representation rights | | Enrolled Actuaries | Limited to actuarial matters | | Annual Filing Season Program (AFSP) | Limited — prepare returns and represent clients for returns they prepared | | Unenrolled preparers | Can prepare returns; NO representation rights (except returns they prepared for limited purposes) | ### Key Circular 230 Duties Due diligence: - Practitioners must exercise due diligence in preparing, approving, and filing documents - Must make reasonable inquiries if information furnished appears incorrect or incomplete - Cannot ignore obvious errors or implausible information Competence: - Practitioners must possess the necessary competence to engage in practice - Can associate with competent co-practitioners if knowledge is lacking Prompt disposition: Practitioners shall not unreasonably delay the prompt disposition of any matter before the IRS. Fees: Contingent fees are generally prohibited (except for certain refund claims and examination matters). Cannot charge unconscionable fees. ### Practitioner Obligations | Obligation | Rule | |---|---| | Return client records | Must promptly return on request (even if fees…