Analyzing the New Circular 230 and Exploring Everyday Ethics

Author: A.J. Reynolds

<b><font color="ff0000">Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card</font></b><p>&#10;&#10;An Analysis of the new Circular 230 will be discussed and reviewed.</p><p>&#8220;Ethics knows the difference between what you have a right to do and what is RIGHT to do.&#8221; - Associate Justice of the Supreme Court of the United States, Potter Stewart</p><p>Why Authority matters: Circular 230 Considerations, such as diligence regarding accuracy, standards with respect to tax returns, requirements for written advice, competence, and taking unreasonable positions or willful and reckless conduct.</p><p>As a tax professional, protecting client privacy is paramount to maintain trust, confidentiality, complying with our ethical obligations and understanding it is also a legal requirement.</p>

Publication Date: November 2025

Designed For
All Tax Professionals needing a refresher on due diligence, conflicts of interest, and all ethical aspects of your tax practice.

Topics Covered

• Ethics and Morals
• Code of Professional Conduct
• Changes in Technology
• Changes in Circular 230
• Cognitive Bias
• Oursourcing or Offshoring
• Form 14157
• Preparer Due Diligence
• Due Diligence and Form 8867
• Circular 230 &#167;10.29 Conflicting Interest
• Circular 230 &#167;10.33 Best Practices for Tax Advisors
• Circular 230 &#167;10.34 Standards for Tax Returns and Claims for Refund
• Circular 230 &#167;10.35 Competence
• Circular 230 &#167;10.37 Requirements for Written Advice
• Tax Planning
• Office Practices and Security
• Substantial Authority
• What is &#167;7216
• Circular 230 Proposed Amendments

Learning Objectives

• Identify best practices for secure and professional digitial communication with clients, including ethical pitfalls of informal platforms
• Recognize how congnitive bias can affect ethical judgment and decision-making in tax engagements
• Explain the ethical risks and disclosure responsibilities when outsourcing or offshoring tax work
• Recognize how to apply appropriate responses to questionable client behavior and explain when to disengage from an engagement ethically
• Explain how to clarify your obligations under Circular 230, especially as the advisory and representation roles of tax professionals continue to expand
• Explain how to distinguish ethical boundaries when advising on aggressive tax positions, planning strategies and potential tax avoidance schemes
• Explain how to draft and manage clear, ethical engagement letters that set realistic expectations and protect both preparer and client

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Regulatory Ethics (2 hours)

Program Prerequisites
None

Advance Preparation
None