Page 9
1-17. True. As a general rule, an individual must be an EA, attorney, or CPA to represent a client before the IRS. There are limited situations where others may represent a taxpayer; however, this fact pattern is not one of them. Since Leigh did not sign the return, she cannot represent the taxpayer, only Rose can.
Pages 10–11
1-18. The names of organizations that can be represented by regular full-time employees are found in Circular 230, § 10.7(c). A regular full-time employee can represent the employer (individual employer). A regular full-time employee of a partnership may represent the partnership. Also, a regular full-time employee of a trust, receivership, guardianship, or estate may represent the trust, receivership, guardianship, or estate. Furthermore, a regular full-time employee of a governmental unit, agency, or authority may represent the governmental unit, agency, or authority in the course of his or her official duties.
Page 10
1-19. Yes. Circular 230, Subpart A, § 10.7.
Page 10
1-20. True. A practitioner may be suspended or disbarred from practice before the IRS if he or she knowingly helps a suspended or disbarred person practice indirectly before the IRS.
Page 12
1-21. A practitioner may not advise a client to take a position on a document, affidavit, or other paper submitted to the IRS unless the position is not frivolous. Circular 230 § 10.34(b).
Page 14
1-22. Under Circular 230, an attorney, a CPA, or an EA may use mass media (e.g., T.V. and the Internet) for advertising purposes. Such media may not contain false, fraudulent, unduly influencing, coercive, or unfair statements or claims. Attorneys, CPAs, and EAs must also observe any applicable standards of ethical conduct adopted by the American Bar Association (ABA), the American Institute of Certified Public Accountants (AICPA), and the National Association of Enrolled Agents (NAEA). Additional standards and listing of items that may be included in mass media advertising are defined under § 10.30 of Subpart B in Circular 230.
Page 19
1-23. Under § 10.25 of Circular 230, partners of government employees cannot represent anyone for which the government employee-partner has (or has had) official responsibility. For instance, a CPA firm with an IRS agent could not represent any taxpayer who is (or was in the past) assigned to the IRS agent-partner.
Page 12
1-24. Under § 10.21 of Circular 230, each attorney, CPA, EA, or enrolled actuary who knows that the client has not complied with the revenue laws of the United States or has made an error in or omission from any return, document, affidavit, or other paper which the client is required by the revenue laws of the United States to execute shall advise the client promptly of the fact of such noncompliance, error, or omission.