Ethics for Enrolled Agents
There are numerous ethical and professional standards by which paid tax preparers must abide.
Taxpayers are legally responsible for what’s on their own tax returns even if prepared by someone else, but tax preparers can also be subject to numerous penalties, and can even be charged with a criminal offense if it is proved that they have knowingly committed tax fraud.
Examples of improper actions by unscrupulous preparers include the preparation and filing of false paper or electronic income tax returns that claim inflated personal or business expenses, false deductions, unallowable credits, or excessive exemptions. Other legal requirements for paid tax preparers include:
1. Signing the return and filling in the preparer areas of the form.
2. Giving the client a copy of the return.
3. EAs cannot charge a contingent fee (percentage of a client’s refund) for preparing an original tax return.
4. Returning original documents to the client, regardless of any fee dispute.
Anyone who is thinking about offering tax services should read IRS Circular 230. The IRS EA exam, Part 3, is based on the ethical requirements of enrolled agents. You can learn more about the EA exam and get study tools at the PassKey Publications website.
Taxpayers are legally responsible for what’s on their own tax returns even if prepared by someone else, but tax preparers can also be subject to numerous penalties, and can even be charged with a criminal offense if it is proved that they have knowingly committed tax fraud.
Examples of improper actions by unscrupulous preparers include the preparation and filing of false paper or electronic income tax returns that claim inflated personal or business expenses, false deductions, unallowable credits, or excessive exemptions. Other legal requirements for paid tax preparers include:
1. Signing the return and filling in the preparer areas of the form.
2. Giving the client a copy of the return.
3. EAs cannot charge a contingent fee (percentage of a client’s refund) for preparing an original tax return.
4. Returning original documents to the client, regardless of any fee dispute.
Anyone who is thinking about offering tax services should read IRS Circular 230. The IRS EA exam, Part 3, is based on the ethical requirements of enrolled agents. You can learn more about the EA exam and get study tools at the PassKey Publications website.
