Handling Conflicts, Errors, and Due Diligence on Tax Returns

Overview

In this course, you’ll uncover the ten most common financial statement mistakes nonprofits make — and how these errors can jeopardize compliance, transparency, and your organization’s credibility. You’ll learn practical policies and procedures to spot, prevent, and fix these pitfalls, helping you boost the accuracy and reliability of your financial reporting. Walk away empowered to strengthen your nonprofit’s financial health and build lasting trust with stakeholders. This session was recorded on May 29, 2025, for CalCPA’s Not-for-Profit Organizations Conference.

Highlights

• Overview of the rules about discovering an error in a return either when rendering future preparation services or during representation in an administrative proceeding
• Discussion of the duty to 'advise' clients concerning potential taxpayer penalties associated with discovering an error or omission
• Discussion of the Circular 230 requirements when a conflict of interest exists in a client engagement
• Circular 230 and the IRS Office of Professional Responsibility oversight and disciplinary authority
• Due diligence requirements under Treasury guidance, including supervisory responsibilities
• Due diligence requirements under professional standards
• Increased expectations for inquiry and analysis —
• Meeting increased expectations: informing clients and defensive measures for practitioners
• Due diligence for preparer advice responsibilities

Prerequisites

Tax practitioners with two years experience and a working knowledge of the AICPA Statements on Standards for Tax Services and IRS Circular 230.

Objectives

• Evaluate scenarios to determine permissibility, required safeguards, and obtain necessary consents in compliance with professional standards.
• Analyze responsibilities when identifying errors or omissions and take appropriate actions to advise, document, or address the situation.
• Develop a workflow for due diligence that includes documentation, reliance thresholds, and proper agreements to mitigate risks and ensure compliance.

Preparation

None.

Notice

This is a self-study/on demand course offered by a 3rd party vendor and will NOT be accessible in the My Upcoming CPE section of the ISCPA website. Course access information will be emailed directly to you by CalCPA. The course expires one year from the purchase date. Format = Online Self-Study.