Chapter 4: Avoiding Conflicting Interests (Section 10.29)
This chapter explains the importance of avoiding conflicts of interest when representing clients. Tax professionals must disclose potential conflicts and obtain written consent from all parties involved. Failure to manage conflicts can lead to penalties, including suspension under Circular 230.
Commenting is not enabled on this course.
1.
You are approached by two business partners who want you to represent them both. They inform you that they occasionally have disputes over financial matters. What should you do?
2.
You discover that a client’s interests conflict with another client you’ve been representing. What is your best course of action under Circular 230?
3.
While preparing a joint return for a married couple, you discover one spouse is hiding income from the other. How should you handle this conflict of interest?