CPA Regulation (REG)

Certified Public Accountant Regulation (REG) covers ethics, federal tax procedures, business law, and professional responsibilities for aspiring CPAs.

Advanced Topics

Federal Tax Procedures and Representation

Navigating IRS Procedures

CPAs must know how the IRS operates, including audits, appeals, and collection processes. Understanding taxpayer rights and representation is key.

Audits and Examinations

The IRS may select returns for audit. CPAs help clients prepare, respond to questions, and provide documentation.

Appeals and Dispute Resolution

If a taxpayer disagrees with IRS findings, they can appeal within the IRS or take the matter to tax court.

Penalties and Interest

Failure to comply with tax rules can result in penalties and interest. CPAs work to minimize these for clients.

Representation

CPAs can represent clients before the IRS, providing invaluable support during stressful times.

Real-World Example

Helping a client through an audit or negotiating an installment agreement with the IRS.

Examples

  • Assisting a client in responding to an IRS audit letter.

  • Negotiating a payment plan for a taxpayer with outstanding tax debt.

In a Nutshell

Understanding federal tax procedures helps CPAs protect and represent clients during IRS interactions.

Key Terms

Audit
An examination of tax returns and records by the IRS.
Installment Agreement
A payment plan for taxpayers who owe taxes but cannot pay in full.