REG Ethics, Professional Responsibilities, and Tax Procedures

This part covers the responsibility side of REG. Candidates need these chapters because many questions turn on what a practitioner may do, disclose, sign, defend, or challenge, not just on the underlying tax computation.

In This Part

• Tax Practice Ethics and Professional Standards covers conduct rules, preparer responsibilities, and professional judgment.
• Licensing Oversight and Disciplinary Systems explains who licenses CPAs and how discipline is imposed.
• Federal Tax Procedure and Authority covers audits, deadlines, penalties, and research hierarchy.
• Legal Duties, Privilege, and Civil Liability connects tax engagements to negligence, confidentiality, and contract claims.

How to Use This Part

• Read these chapters in order because professional duties and procedure work together.
• Focus on what the practitioner is allowed or required to do in a given scenario.
• Revisit this part whenever a REG miss turns on ethics, authority, or procedural posture rather than a computation.

In this section

• Tax Practice Ethics and Professional Standards
  Circular 230, preparer duties, SSTS, penalty exposure, and independence standards for REG.
  • Circular 230 Duties, Restrictions, and OPR Enforcement
    Rules for practice before the IRS, including due diligence, conflicts, fees, and sanctions.
  • Tax Practitioner Duties, Restrictions, and Conflict Rules
    Signing, confidentiality, conflicts, disclosure limits, and core conduct rules for tax practitioners.
  • Tax Return Preparer Status and Penalty Exposure
    Who counts as a preparer, how signing and nonsigning roles differ, and which penalties can apply.
  • AICPA Tax Standards and Return-Position Rules
    How the SSTS guide return positions, error handling, estimates, and tax advice.
  • Integrity, Objectivity, and Independence in Tax Practice
    Professional standards for unbiased judgment, conflict control, and defensible tax advice.
• Licensing Oversight and Disciplinary Systems
  Accountancy board authority, discipline triggers, sanctions, and corrective actions tested in REG.
  • State Board Authority Over CPA Licensing and Discipline
    How state boards license CPAs, enforce standards, and coordinate discipline.
  • Investigations, Sanctions, and Disciplinary Proceedings
    Complaint intake, investigation, hearings, and sanctions in CPA discipline matters.
  • Common CPA Violations and Likely Remedies
    Typical misconduct patterns and the remedies or sanctions they commonly trigger.
• Federal Tax Procedure and Authority
  REG procedure coverage for audits, substantiation, deadlines, penalties, and research authority.
  • IRS Examination, Appeals, and Procedural Escalation
    How IRS exams move from audit to appeals and how taxpayers respond at each stage.
  • Substantiation, Disclosure, and Recordkeeping Duties
    Documentation, disclosure rules, and recordkeeping duties that support tax positions.
  • Assessment Periods, Refund Windows, and Filing Deadlines
    The time limits that govern assessment, refund claims, extensions, and filing obligations.
  • Civil Versus Criminal Tax Penalties
    When tax noncompliance stays civil, when it becomes criminal, and what penalties apply.
  • Tax Authority Hierarchy for Research and Support
    How to rank Code, regulations, rulings, and other authorities when supporting a tax conclusion.
• Legal Duties, Privilege, and Civil Liability
  REG legal-responsibility coverage for duty of care, privilege, confidentiality, malpractice, and contract claims.
  • Common Law Duties Owed to Clients and Third Parties
    Negligence, privity, foreseeability, and third-party exposure in CPA work.
  • Privilege, Confidentiality, and Taxpayer Information Protection
    Attorney-client privilege, IRC Section 7525, confidentiality duties, and privacy limits.
  • Malpractice Exposure and Engagement Contract Claims
    How malpractice and breach-of-contract claims arise in tax engagements and how firms reduce exposure.