Tax practitioners frequently face ethical and compliance challenges when clients lack complete or adequate records to support business deductions. This course provides essential guidance on navigating those challenges while maintaining compliance with Circular 230 and professional ethical standards. Designed for tax professionals advising individuals and closely held businesses, this program focuses on responsibly helping clients document and substantiate expenses without crossing ethical or regulatory boundaries.
Participants will examine Circular 230 practitioner obligations, best practices for educating clients on recordkeeping requirements, and appropriate methods for estimating or reconstructing business expenses. The course also explores required disclosures when filing returns with incomplete documentation, the practical application and limitations of the *Cohan Rule*, and how the IRS and Tax Court evaluate reconstructed expense claims. Through real‑world case discussions and compliance-focused analysis, attendees will gain clarity on how to protect both their clients and their practices while navigating common documentation issues.
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2029 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
Publication Date: August 2026
Designed For
This course is designed for CPAs, enrolled agents, and tax practitioners who prepare or review individual and small business returns involving business expense deductions.
Topics Covered
- Overview of Circular 230 ethical and compliance requirements
- Professional responsibilities when client records are incomplete
- Best practices for documenting and reconstructing business expenses
- Disclosure requirements and risk mitigation strategies
- Application and limitations of the *Cohan Rule*
- IRS audit considerations for business expense deductions
- Tax Court cases addressing missing or inadequate documentation
Learning Objectives
- Identify tax practitioner ethical and compliance obligations under Circular 230
- Apply best practices for advising clients on proper recordkeeping and expense documentation
- Evaluate acceptable methods for estimating or reconstructing business expenses
- Determine when disclosures are required for tax returns filed with incomplete records
- Analyze when the *Cohan Rule* may or may not support a taxpayer’s deduction claims
- Explain how the IRS and Tax Court evaluate reconstructed expense documentation
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Regulatory Ethics (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Jane Ryder
Jane Ryder, EA, CPA, is a nationwide professional educator.Jane Ryder, EA, CPA writes and speaks nationwide on many tax, compliance, representation and accounting topics. She runs her full-service CPA firm in San Diego, California and has been providing tax, accounting, representation and tax collection services since 1980.