STU1

Question 1

What entity may censure a CPA for disreputable conduct.

Answer 1

The Secretary of the Treasury may censure, suspend, or disbar from practice before the IRS any attorney, CPA, or enrolled agent who is shown to be incompetent or disreputable.

Question 2

Does the IRS notify state authorities if a CPA is suspended from practicing before the IRS?

Answer 2

A notice of disbarment or suspension of a certified public accountant from practice before the Internal Revenue Service is issued to IRS employees, interested departments and agencies of the federal government, and state licensing authorities.

Question 3

The confidentiality privilege given to nonattorney tax providers may be asserted to prevent disclosure of information to any regulatory body.

Answer 3

False. The confidentiality privilege is extended to certain nonattorneys. However, the privilege may not be asserted to prevent the disclosure of information to any regulatory body other than the IRS.