Question: Circular 2 3 0 provides that a practitioner Select one: a . May rely in good faith without verification on information furnished by the taxpayer
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This is a multiplechoice question related to Circular 230 which governs the practice of practitioners before the IRS in the United States Explanation and Answer Circle 230 provides rules on how tax practitioners such as accountants attorneys and enrolled agents must conduct themselves when representing taxpayers before the Internal Revenue Service IRS StepbyStep Analysis Step 1 Understand the Question Context Circular 230 pertains to the ethical guidelines and responsibilities of individuals who practice before the IRS This includes due diligence acts discreditable conflicts of interest etc Step 2 Analyze Each Option Option a This option suggests practitioners can rely on taxpayerfurnished information in good faith without verification Option b This implies practitioners can ignore implications of the information provided to them Option c This suggests practitioners must accept incorrect information Option d Suggests practitioners must always physically inspect social security cards Step 3 Identify the Correct Guidance as per Circular 230 Practitioners are allowed to rely on information provided by the taxpayer in good faith without the obligation to independently verify such information unless it is inherently incorrect or shows signs of being incomplete or inconsistent This is covered under the due diligence responsibilities where a practitioner ... View full answer
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