1. ETHICS: ENSURE COMPLIANCE TO AVOID SANCTIONS
PRESENTED BY:
IGNACIO ALEX BURGOS, EA

2. Procedures, Compliance and Sanctions
circular 230 sections procedures ensure compliance touch on current issues corrections consequences

3. § 10.52 Violations subject to sanction.
(a) A practitioner may be sanctioned under §10.50 if the practitioner —
(1) Willfully violates any of the regulations (other than §10.33) contained in this part; or
(2) Recklessly or through gross incompetence (within the meaning of §10.51(a)(13)) violates §§ 10.34, 10.35, or (b) Effective/applicability date. This section is applicable to conduct occurring on or after September 26, 2007.

4. Sample Penalties
6695 – (a) Failure to furnish copy to taxpayer (b) Failure to sign (c) Failure to furnish identifying number Various fines some have a $25,000 maximum, A-E but not F & G
6701 – Aiding and abetting has a fee of $1,000 / $10,000 if corporate
6713 – Disclosure or use of information by preparers of returns a $250 penalty for each such disclosure or use, but the total amount shall not exceed $10,000 for any calendar year.

5. Sample Penalties
7206 – Fraudulent statement has a penalty of $100,000 / $500,000 and/or up to 3 years imprisonment
7216 – Disclosure or use of information by return preparers imposes a $1,000 and / or 1year imprisonment plus court cost
7407 – Action to enjoin (prohibit) tax return preparer – loss of livelihood resulting from injunctive action due the conduct that was contrary to code and other fraudulent or deceptive conduct

6. § 10.36 Procedures to ensure compliance.
(a) Any individual subject to the provisions of this part who has (or individuals who have or share) principal authority and responsibility for overseeing a firm’s practice governed by this part, including the provision of advice concerning Federal tax matters and preparation of tax returns, claims for refund, or other documents for submission to the Internal Revenue Service, must take reasonable steps to ensure that the firm has adequate procedures in effect for all members, associates, and employees for purposes of complying with subparts A, B, and C of this part, as applicable.

7. Ensure Adequate Procedures
FTC Standards for Safeguarding Customer Information Rule (16 CFR Part 314)
This Rule requires that financial institutions develop, implement and maintain an Information Security Program.

8. Ensure Adequate Procedures
Employee hand books
PROCEDURE HAND OUTS
POST POSTERS
DAILY REMINDERS DAILY HANDOUTS

9. Compliance:
acquiescence, agreement, obedience, submission, amenability, willingness, agreement, acceptance

10. Ensure Compliance
Employee hand books procedure hand outs post posters daily reminders daily handouts

11. Ensure Compliance Are there procedures RETURNS MEDIA
DOCUMENTS MAILED ED

12. data breach Hard copies computers Networks
Latest Buzz
data breach Hard copies computers Networks
PHISHING S, ATTACHMENTS
SCAMS PHONE - IRS IMPOSTERS PRIVATE COLLECTORS
DIRECT – FAKE IRS LETTERS

13. Latest Buzz
Courtesy of
Iowa State University

14. Ensure Procedures are Being Followed
Monitor Discuss

15. Correct Noncompliance
Take action
FORMER PREPARER LESTER MORRISON, PLEADED GUILTY IN 2010 OF ORCHESTRATING A LARGE-SCALE TAX FRAUD
IS BANNED FROM WORKING AS A FEDERAL INCOME TAX RETURN PREPARER
ENGAGING IN ANY CONDUCT INTERFERING WITH THE FEDERAL TAX LAWS.

16. Correct Noncompliance
from he and his associates 4 ea. prepared thousands of false and fraudulent returns through a prep business located in two states
USED IMPROPER DEDUCTIONS, CLAIMED LOSSES FOR PHONY BUSINESSESS.
USED DECEASED CHILDREN STOLEN IDs TO CLAIM DEPENDENT DEDUCTIONS
CAUSED $28 MILLION IN TAX REFUNDS AND LIED TO INVESTIGATORS
SENTENCED TO 72 MONTHS IN PRISON AND ORDERED TO PAY $17.3 MILLION IN RESTITUTION TO THE IRS

17. Preparer Eliana Sarmiento, formerly with K&S Tax Solution
Correct Noncompliance
Preparer Eliana Sarmiento, formerly with K&S Tax Solution
FOUND GUILTY OF MULTIPLE CHARGES IN SCHEMES TO FILE FRADULENT RETURNS
HER AND 14 OTHER CO-WORKERS STOLE MORE THAN $19 MILLION IN REFUNDS
FILED FALSE RETURNS WITH STOLEN IDs FROM RESIDENTS OF PUERTO RICO
$281,348,627 IN ATTEMPTED FRAUDULENT RETURNS AND $19,799,175 IN TREASURY FUNDS STOLEN

18. two counts of theft of public funds, each a maximum 10 years in prison
Correct Noncompliance
two counts of theft of public funds, each a maximum 10 years in prison
TWO COUNTS OF CONSPIRING TO STEAL PUBLIC FUNDS, EACH A MAXIMUM OF FIVE YEARS IN PRISON AND
TWO COUNTS OF AGGRAVATED ID THEFT , EACH A MANDATORY TWO YEARS IN PRISON

19. WHAT IF?
Forward s to Phone Scams - IRS Imposters –

20. WHAT IF?
Call IRS Want iTunes card – Call Apple Support at FOR MORE INFO IRS PUB 4557 Safeguarding Taxpayer Data - CHECKLIST - FOR COMMENTS OR SUGGESTIONS

21. SUMMARY
circular 230 sections procedures ensure compliance touch on current issues corrections consequences CONTACT INFORMATION