Ethics II

[Bees Knees]

I don't see where Cir 230 applies to this issue, 230 applies to tax representation before the IRS not with dealing with spouses in the preparation of a return.

Tax preparation is one of many aspect of practice before the IRS.

"Circular 230, Section 10.2(d) Practice before the Internal Revenue Service comprehends all matters connected with a presentation to the Internal Revenue Service or any of its officers or employees relating to a taxpayer’s rights, privileges, or liabilities under laws or regulations administered by the Internal Revenue Service. Such presentations include, but are not limited to, preparing and filing documents, corresponding and communicating with the Internal Revenue Service, and representing a client at conferences, hearings, and meetings."

[Bees Knees]

The correct answer is you could prepare the tax return. However the right thing to do is don't get involved in a potential mess.

I agree.

People have confused Ethics with the idea that it is all about doing the right thing. Ethics in our profession is not a religious or spiritual or moral concept. It is simply a set of rules governed by the IRS and whatever trade association we belong to. Ethics is simply obeying rules of conduct. Those rules are not perfect, and often times they are not very well defined. And in this case, not necessarily the practical thing to do. I would refuse the engagement. Yes, the rules of Ethics say I can do a conflict of interest provided I have written authorization, but that doesn't mean it is the right thing to do.

Do not confuse Ethics with the right thing to do. They are not always the same.

[Rocky]

Interesting point

People have confused Ethics with the idea that it is all about doing the right thing. Ethics in our profession is not a religious or spiritual or moral concept. It is simply a set of rules governed by the IRS and whatever trade association we belong to. Ethics is simply obeying rules of conduct...

Do not confuse Ethics with the right thing to do. They are not always the same.

Not surprising that we might confuse them considering there are three possible uses of the word ethic, according to Webster:

1 plural but singular or plural in construction : the discipline dealing with what is good and bad and with moral duty and obligation

2 a : a set of moral principles : a theory or system of moral values <the present-day materialistic ethic> <an old-fashioned work ethic> -- often used in plural but sing. or plural in constr. <an elaborate ethics> <Christian ethics> b plural but singular or plural in construction : the principles of conduct governing an individual or a group <professional ethics> c : a guiding philosophy d : a consciousness of moral importance <forge a conservation ethic>

3 plural : a set of moral issues or aspects (as rightness) <debated the ethics of human cloning>

[taxmandan]

Tax preparation is one of many aspect of practice before the IRS.

"Circular 230, Section 10.2(d) Practice before the Internal Revenue Service comprehends all matters connected with a presentation to the Internal Revenue Service or any of its officers or employees relating to a taxpayer’s rights, privileges, or liabilities under laws or regulations administered by the Internal Revenue Service. Such presentations include, but are not limited to, preparing and filing documents, corresponding and communicating with the Internal Revenue Service, and representing a client at conferences, hearings, and meetings."

So all unenrolled preparers who are not CPAs or lawyers are in violation of Cir 230 for preparing tax returns? Tax return preparation is not considered "practice before the IRS."

[jainen]

unenrolled preparers

Circular 230 does not require any registration for tax preparation. Nevertheless, tax preparation is practicing before the IRS, and unenrolled tax preparers are subject to its rules. In fact, several of its provisions apply specifically and exclusively to unenrolled preparers.