B any partnership or any other entity plan or

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b. Any partnership or any other entity, plan, or arrangement the principal purpose of which is federal tax avoidance or evasion; or c. Any partnership or any other entity, plan, or arrangement having as a significant purpose federal tax avoidance or evasion if the written advice is (i) a reliance opinion, (ii) a marketed opinion, (iii) subject to conditions of confidentiality, or (iv) subject to contractual protection. ETHICS AND PROFESSIONAL RESPONSIBILITIES
D. Sanctions The Secretary of the Treasury or her/his delegate, after conducting a proceeding, may censure (publicly reprimand), suspend, or disbar any practitioner from practice before the IRS if the practitioner: (i) is shown to be incompetent or disreputable, (ii) fails to comply with Circular 230, or (iii) with intent to defraud, willingly and knowingly misleads or threatens a client or prospective client. ETHICS AND PROFESSIONAL RESPONSIBILITIES
AICPA STATEMENTS ON STANDARDS FOR TAX SERVICES The AICPA's Tax Executive Committee published the eight Statements on Standards for Tax Services ("SSTSs") in August 2000 and revised them with an effective date of January 1, 2010. The SSTSs set forth the ethical tax practice standards for members of the AICPA, and the AICPA will enforce these SSTSs as part of the AICPA's Code of Professional Conduct Rule 201, General Standards, and Rule 202, Compliance With Standards. AICPA members are expected to comply with the SSTSs. ETHICS AND PROFESSIONAL RESPONSIBILITIES
A. Tax Return Positions 1. In preparing a return, a tax preparer who is a member of the AICPA may recommend to a taxpayer a tax return position. 2. A tax return position is either of the following: a. A position taken on the tax return that the tax preparer has advised the taxpayer to take; or b. A position taken on the tax return that the tax preparer has concluded is appropriate based on all the material facts. ETHICS AND PROFESSIONAL RESPONSIBILITIES
B. Answers to Questions on Returns 1. Reasonable Effort to Answer All Questions on Tax Returns A tax preparer should make a reasonable effort to obtain from the taxpayer the information necessary to provide appropriate answers to all questions on a tax return. 2. Necessity of a Reasonable Effort Although not all questions on a tax return are of equal importance, a tax preparer should make a reasonable effort to answer all questions. ETHICS AND PROFESSIONAL RESPONSIBILITIES
2. Necessity of a Reasonable Effort a. An answer to a question may impact the determination of taxable income or loss and tax liability. b. Failure to answer a question may result in an incomplete return or a penalty. c. A tax preparer often must sign a declaration stating that the return is true, correct, and complete. ETHICS AND PROFESSIONAL RESPONSIBILITIES
3. Reasonable Grounds for Omission a. Not Easily Obtainable and Insignificant b. Uncertainty c. Voluminous Answer ETHICS AND PROFESSIONAL RESPONSIBILITIES
C. Use of Estimates 1. Tax Preparer May Use Estimates Provided by Taxpayer Unless prohibited by statute or rule, the tax preparer may

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