¶2375 Ethics Rules for Practitioners
The Tax Committee of the American Institute of CPAs issued 10 statements on elected topics
between 1964 and 1977. The first two statements were withdrawn in 1982 by the Executive Committee
of the Federal Tax Division. The remaining eight statements were revised and renumbered in 1988 and,
in 2000, they were renamed ‘‘Statements on Standards for Tax Services.'' Prior to 2000, they were
advisory opinions of the Committee as to what are appropriate standards of conduct in certain situations.
Effective October 31, 2000, the Statements are enforceable standards for AICPA members.
ANSWERS TO KEYSTONE PROBLEMS—CHAPTER 2
(¶2161.) The leading case on the issue of the deductibility of home office expenses by teachers is
David J. Weissman,
¶9106, 751 F.2d 512 (CA-3 1984), rev'g 47 TCM 520, CCH Dec.
40,645(M), T.C. Memo. 1983-724. A college professor was required to do scholarly research and writing
in addition to teaching. He spent the majority of his employment-related time doing research and writing
at home because a quiet and safe place to perform this work was not available at the college. The court
held that he was entitled to deduct his home office expenses because his home, not his college office, was
his principal place of business. The home office was necessary to carry out an essential aspect of his job
(i.e., his research) and was maintained for the convenience of the employer. The 7th Circuit in
C. Cadwallader v. Commissioner,
¶50,597, aff'g 57 TCM 1030, denied a deduction for a home
office maintained for the taxpayer's own convenience where a university provided him with adequate
office space. The U.S. Supreme Court, in another office-in-home case,
Nadar E. Soliman
¶50,014, held that the office-in-home must be the principal place where the activities are performed to
be deductible. Since Weissman's principal income-earning activity could be held to be teaching, the
deductibility of his office-in-home after the
decision would be questionable.
(¶2333.) In an office examination the taxpayer or a representative should take only information or
support for items which are requested of the taxpayer by the IRS; otherwise the tax auditor might open
up other areas for investigation. Situations may vary, but some practitioners believe that it is better for
the taxpayer, assuming he or she has a representative such as a CPA or a lawyer, not to be present
because the representative can keep better control over the interview and also approach the matter in a
less emotional atmosphere.
IRS personnel should be treated courteously and should be promptly furnished information and
substantiation relating to applicable tax return items. Although the cooperation of the taxpayer (or
representative) is important, the taxpayer should respond only to questions asked by the agent.
Disclosing unnecessary information could cause problems to the taxpayer.