Regulatory Ethics
There are no prerequisites.

Course Description

In 2011 and 2012, the IRS announced major revisions and proposed changes to Circular 230. The recently revised Circular 230 imposes new duties and responsibilities upon practitioners who represent taxpayers before the IRS. Practitioners must comply with these requirements, necessitating a complete understanding of their duties within the tax system and to their clients. Ethical Dilemmas in Representation will help you balance your duties and avoid ethical violations by thoroughly detailing revisions and proposed changes, giving you the necessary information to remain complaint with Circular 230.


Robert (Bob) E. McKenzie, EA, Esq.

Robert (Bob) E. McKenzie, EA, Esq., is a partner of the law firm of Arnstein & Lehr LLP of Chicago, Illinois, concentrating his practice in representation before the IRS and state tax agencies. He has lectured extensively on the subject of taxation and has made numerous media appearances, including on Dateline NBC and ABC World News Tonight.

Bob has been elected to the American College of Tax Counsel where he serves as secretary/treasurer of its board of regents. Prior to entering private practice, he was employed by the IRS Collection Division in Chicago, Illinois. From 2009–2011, Bob served as a member of the IRS Advisory Council (IRSAC), a group appointed by the IRS Commissioner.

Bob is the author of Representation Before the Collection Division of the IRS as well as the coauthor of Representing the Audited Taxpayer Before the IRS and Representation Before the United States Tax Court.

Course Specifics

Regulatory Ethics
Sep 4, 2017
There are no prerequisites.

Compliance Information

IRS Provider #: 0MYXB
IRS Course ID: 0MYXB-E-00869-15-S
CTEC Provider #: 2071
CTEC Course ID: 2071-CE-1359
CTEC Ethics Credit: 2
Qualifies for CA Fraud: No

Learning Objectives

Upon successful completion of this course, participants will be able to:

  • Identify regulations under Circular 230, including the impact of the Loving case on tax preparer regulations, PTIN rules, eligibility to become an enrolled agent, and standards with respect to tax returns and documents.
  • Cite regulations under Circular 230, including sanctions, disreputable conduct, continuing education requirements, monetary penalties, and conflicting interests.
  • Recognize the regulations under Circular 230, including best practices, knowledge of client's omissions, return of client records, solicitation, sanctions, and privacy restrictions on disclosure of client information.

Table of Contents

Ethical Dilemmas in Representation

Learning Objectives

Office of Professional Responsibility

New Regulations

Eliminate 10.35 Covered opinions

Section 10.39

Section 10.36

Section 10.51

Section 10.82

Tax Preparer Regulation

IRS Barred From Enforcing Preparer Regulation

Additional Opinion


Compliance Checks



User Fees

Continuing Education Providers

IRS Offices Administering and Enforcing Circular 230

Eligibility to Become an Enrolled Agent or Enrolled Retirement Plan Agent

Competency Exam & Suitability Checks

Requirements for PTINs


Standards With Respect to Tax Returns and Documents, § 6694 & § 10.34(a)

Independent Determination

Procedures to Ensure Compliance

Authority to Accept a Practitioner’s Consent to Sanction

Incompetence and Disreputable Conduct

Electronic Filing

Exclusions From Electronic Filing

Failure to Possess PTIN

Appeal of Decision of Administrative Law Judge


Standards for Continuing Education Providers and Accrediting Organizations

New provider application process

IRC § 6694 - Prior Standard

Penalty Increase

Adequate Disclosure

Monetary Penalties Notice 2007-39

Acted on Behalf of Firm


2007 Circular 230 Revisions

Practice Before the Internal Revenue Service

Contingent Fees 10.27

Notice 2008-43, 2008-15 IRB

Conflicting Interests 10.29

Enrolled Retirement Plan Agents 10.3(e)

Standards with Respect to Tax Returns and Documents, Affidavits and Other Papers 10.34

Sanction 10.50

Incompetence and Disreputable Conduct 10.51

Violations Subject to Sanction 10.52

Supplemental Charges 10.65

Publicity of Disciplinary Proceedings 10.72

Expedited Suspension 10.82

Conforming 10.34 to § 6694

Reasonable Belief More Likely Than Not

2004 Circular 230 Revisions

§ 10.33 Best Practices for Tax Advisors

§ 10.36 Procedures to ensure compliance

§ 10.37 Requirements for other written advice

§ 10.38 Establishment of Advisory Committees

2002 Circular 230 Revisions

Explanation of other provisions

Who May Practice


Unenrolled Practice

Information to be Furnished

Knowledge of Client’s Omission

Diligence as to Accuracy

Practice by Former Government Employees, Their Partners and Their Associates

Return of Client’s Records

Avoiding Conflicts of Interest while Representing Clients before the IRS



Disreputable Conduct

Receipt of Information Concerning Practitioner

Consolidation of Appraiser Disqualification Rules

Various Aspects of Disciplinary Proceedings

IRC Section 7216

Permissible Disclosures

Disclosures Consented to by Taxpayer

Scenarios for Trouble

Scenario 1

Scenario 2

Scenario 3

Scenario 4

Scenario 5

Scenario 6

Scenario 7

Scenario 8

Scenario 9

Scenario 10

Scenario 11

Scenario 12

Scenario 13

Jan 1, 2008 - Notice 2008-12

Q & A’s

IRC § 6694

Email Disclaimer Eliminated by 2014 Revised Circular 230

Conflict of interest “Informed Consent” Letter/Separate Representation

New IRS Filing Season Program Unveiled for Tax Return Preparers

Review Questions

Review Question Answers and Rationales



Final Examination

Answer Sheet

Course Evaluation

Choose Your Preferred Format

Online Access

Get immediate access to a robust collection of learning and reference materials, allowing you to dive deep into the information you need. Our self-study materials are authored by top-quality, industry experts who focus on helping you grasp concepts quickly using real-life examples. Download your CPE to any device, and take it with you so you can learn when and wherever you want. Complete your CPE with an online exam, and enjoy instant grading with the option to print your certificate immediately upon passing.

online access
Hard Copy

Our self-study materials are authored by top-quality, industry experts. You’ll receive a bound notebook of all the course materials, shipped to you within one business day. In addition, you’ll also have full online access. Each self-study package includes a robust collection of learning and reference materials to help you cover the information efficiently and put it into practice immediately.

hard copy
Self-Study Video

Experience high-quality instruction with our Self-Study Videos, available to you 24/7. With more than 80+ videos currently in the Western CPE Self-Study Video library, you can see and hear our expert instructors deliver the information you need in a dynamic way that allows you to immediately apply your learning. Unlike a live course or webcast, you can complete the course on your own time, playing and pausing as needed. Self-Study Videos allow you to complete your CPE requirements on your own time.

hard copy

Back to top