Applying the AICPA's Professional Standards to Tax Practice

Best Practices for Minimizing Risk and Penalties

James J. Rigos, JD, LLM (Tax), CPA

In BriefMany CPAs are acutely aware of the liability risks presented by financial reporting and auditing engagements but are less vigilant about the risks posed by tax preparation work. The AICPA's guidance on tax practice is a part of the Code of Professional Conduct and, combined with relevant IRS guidance from Circular 230, represents a useful example of best practices in this area. The author provides some practical advice for tax preparers seeking to avoid conflicts of interest, clearly delineate professional responsibilities, manage client expectations, and minimize risk.