Introduction

Ethical tax practice is critical for maintaining trust, ensuring compliance, and upholding professional integrity. Tax professionals must navigate complex tax laws while adhering to ethical standards set by governing bodies such as the IRS, AICPA, and state boards of accountancy. Ethical lapses can lead to severe penalties, legal consequences, and reputational damage.

This 5-day Ethics in Tax Practice course provides an in-depth understanding of tax ethics, compliance obligations, conflict resolution, and professional responsibilities. Participants will learn how to identify ethical dilemmas, prevent misconduct, and maintain integrity in tax representation.

Course Objectives

By the end of this course, participants will be able to:

• Understand ethical standards in tax practice under IRS Circular 230 and AICPA guidelines.
• Recognize conflicts of interest and ethical dilemmas in tax preparation and representation.
• Apply best practices to ensure compliance and avoid fraudulent tax activities.
• Understand the consequences of tax evasion, preparer penalties, and ethical misconduct.
• Maintain professional integrity while serving clients and the public interest.

Who Should Attend?

This course is ideal for:

• Tax professionals, CPAs, and Enrolled Agents (EAs)
• Attorneys and financial advisors involved in tax planning
• Business owners and corporate tax managers
• Government tax auditors and regulators
• Anyone preparing or advising on tax matters

No prior tax ethics knowledge is required, but familiarity with tax preparation and compliance is beneficial.

Course Outline

Day 1: Foundations of Ethical Tax Practice

• What is tax ethics? Importance of ethics in tax compliance and reporting
• Key ethical frameworks: AICPA Code of Professional Conduct, IRS Circular 230, ABA tax ethics
• Responsibilities of tax practitioners, preparers, and advisors
• Difference between tax avoidance (legal) vs. tax evasion (illegal)
• Ethical decision-making in gray areas of tax law

Workshop: Identifying ethical violations in hypothetical tax scenarios

Day 2: Compliance with IRS Circular 230 and Tax Preparer Responsibilities

• Overview of IRS Circular 230 rules and standards
• Due diligence requirements for tax preparers
• Avoiding false or misleading tax positions
• Understanding preparer penalties for negligence or fraud
• Maintaining confidentiality and data protection for taxpayer information

Case Study: Reviewing a tax return to identify potential ethical and compliance issues

Day 3: Handling Conflicts of Interest & Unethical Client Requests

• Recognizing conflicts of interest in tax practice
• Ethical considerations when representing multiple clients (spouses, businesses, partners)
• Managing client pressure to manipulate tax returns
• Handling suspected tax fraud and whistleblower protections
• Best practices for declining unethical clients or engagements

Workshop: Role-playing conflict resolution between a tax preparer and a high-risk client

Day 4: Taxpayer Representation, IRS Disputes, and Legal Consequences

• Ethical considerations in representing clients before the IRS
• Understanding audit representation, offers in compromise (OIC), and appeals
• The role of tax attorneys vs. CPAs vs. enrolled agents in client advocacy
• Consequences of aiding or abetting tax fraud
• Case law examples of high-profile tax ethics violations

Case Study: Analyzing a real-world IRS fraud case and discussing ethical violations

Day 5: Future of Ethics in Taxation & Professional Best Practices

• Emerging ethical issues in AI-driven tax automation and digital tax compliance
• Ethical dilemmas in cross-border taxation and offshore tax havens
• Anti-money laundering (AML) and financial crime prevention responsibilities
• Professional best practices for maintaining ethical integrity in tax consulting
• How to handle ethical complaints, investigations, and disciplinary actions

Capstone Exercise: Developing an ethics policy for a tax firm to ensure compliance and integrity

Conclusion & Certification

Participants who complete the course will receive a Certification in Tax Ethics and Compliance, demonstrating expertise in ethical tax practice and professional responsibility.

Program Benefits

• Comprehensive Coverage – Covers ethics, compliance, conflicts of interest, and IRS representation.
• Hands-On Learning – Includes real-world case studies, workshops, and ethical dilemma scenarios.
• Professional Integrity Focus – Ensures tax professionals adhere to high ethical standards.
• Legal & Regulatory Compliance – Learn how to avoid IRS penalties and professional misconduct.
• Future-Proof Knowledge – Stay informed on emerging ethical challenges in digital tax compliance.