•I am assigned a project from my CPA firm. I have to go into a new...

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•I am assigned a project from my CPA firm. I have to go into anew building and try to find as many pieces of furniture andfixtures from the building as I can. So for example, a door, a dropceiling, a window, a drinking fountain. I will do this so I can use7 year depreciation instead of 39 year depreciation. If I find$1,000,000 of things I can argue are fixtures instead of buildings,the client will give me and my CPA firm $50,000 cash bonus.
•I am worried that this might be a violation of ethics. Write a1-2 page single spaced email to your supervisor about yourconcerns.
•Find one thing wrong about this in Circular 230, Statement onTax Standards and AICPA Code of Professional Conduct. They must bedifferent – not all contingent fees, for example. Quote and statethe violation within each.
Assume you complete the tax return. Find one possible violationwith Code Section 6694 or the related Treasury regulations
•I am assigned a project from my CPA firm. I have to go into anew building and try to find as many pieces of furniture andfixtures from the building as I can. So for example, a door, a dropceiling, a window, a drinking fountain. I will do this so I can use7 year depreciation instead of 39 year depreciation. If I find$1,000,000 of things I can argue are fixtures instead of buildings,the client will give me and my CPA firm $50,000 cash bonus.
•I am worried that this might be a violation of ethics. Write a1-2 page single spaced email to your supervisor about yourconcerns.
•Find one thing wrong about this in Circular 230, Statement onTax Standards and AICPA Code of Professional Conduct. They must bedifferent – not all contingent fees, for example. Quote and statethe violation within each.
Assume you complete the tax return. Find one possible violationwith Code Section 6694 or the related Treasury regulations

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The ethical standards to be followed by CPAs in tax practice require them to know about applicable rules of the AICPA and the IRS and other statutory and regulatory rules of tax practice This column refreshes practitioners on the AICPA and IRS rules of practice provides a list of resources for questions and answers and details the relationship and similarities between the AICPA and IRS ethics standards related to tax practice Comparisons are made among the AICPA Code of Professional Conduct the AICPA Code AICPA Statements on Standards for Tax Services the Standards Treasury Circular 230 Regulations Governing Practice Before the Internal Revenue Service 31 CFR Part 10 and the Internal Revenue Code IRC and other Treasury regulations In addition to these tax practitioners should be aware of state board rules and state statutes governing practice in the practitioners jurisdiction and any tax compliance filings in the jurisdiction where the clients tax return is filed The AICPA Code and the Standards are enforceable rules for all AICPA members in public practice and industry Circular 230 applies to all CPAs in federal tax practice and the IRC and Treasury regulations are enforceable on both practitioners and the public The number and increases in the amount of penalties in the IRC in recent years make following the tax practice standards all the more important Integrity and Objectivity AICPA Code Rule 102 Integrity and Objectivity states In the performance of any professional service a member shall maintain objectivity and integrity shall be free of conflicts of interest and shall not knowingly misrepresent facts or subordinate his or her judgment to others Included under this section is Interpretation 1022 Conflicts of Interest which states A conflict of interest may occur if a member performs a professional service for a client or employer and the member or his or her firm has a relationship with another person entity product or service that could in the members professional judgment be viewed by the client employer or other appropriate parties as impairing the members objectivity If the member believes that the professional service can be performed with objectivity and the relationship is disclosed to and consent is obtained from such client employer or other appropriate parties the rule shall not operate to prohibit the performance of the professional service When making the disclosure the member should consider Rule 301 Confidential Client Information ET Section 30101 Circular 230 Section 1029 Conflicting Interests is a See Answer

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