One thing to note is that the AICPA is the group that developed the SSTS utilized in tax preparations. The standard SSTS #1 applies to this circumstance because the accountant is preparing, signing tax returns, and submitting to the appropriate state or federal tax office. The SSTS’s previously were known as SRTP’s with one major exception – SRTP’s were not enforceable. Monsour, Elias, & Cruz (2006) notes since the year 2000, the SSTS are now enforceable codes of conduct for CPA’s whether they are members of the AICPA or not (p. 155). This means that professionals preparing a client’s tax returns are held to higher standards and ethics and are accountable to the …show more content…
For instance, Code 1.100.001 discusses the integrity and objectivity of the CPA and how they are required to be professional, without being self-serving and ensure they do not falsify information. Another code is the confidentiality of the accountant to the information involving the client (Code 0.0400.09). The client information including tax information is to remain confidential. The accountant will convey to the client what needs to be done or make recommendations. At that point, the client will proceed as they see fit, whether they take heed to the recommendations or not. The IRS also got involved in providing requirements to the tax preparers who are practicing before the IRS. Bolt-Lee & Moody (2009) notes the establishment of Circular 230 with provisions to specify technical and ethical restrictions on the tax practitioner (p.16). Additionally, penalty provisions of tax law provide sanctions for noncompliance--including monetary fines and imprisonment by both the AICPA Codes and the IRS Circular