10.33—Best practices for tax advisors.
(a) Best practices.
Tax advisors
should provide clients with the highest quality
representation concerning Federal tax issues by
adhering to best practices in providing advice and
in preparing or assisting in the preparation of a
submission to the Internal Revenue Service. In
addition to compliance with the standards of
practice provided elsewhere in this part, best
practices include the following:
(1)
Communicating clearly with the client
regarding the terms of the engagement. For
example, the advisor should determine the client's
expected purpose for and use of the advice and
should have a clear understanding with the client
regarding the form and scope of the advice or
assistance to be rendered.
(2)
Establishing the facts, determining which
facts are relevant, evaluating the reasonableness
of any assumptions or representations, relating
the applicable law (including potentially
applicable judicial doctrines) to the relevant
facts, and arriving at a conclusion supported by
the law and the facts.
(3)
Advising the client regarding the import of
the conclusions reached, including, for example,
whether a taxpayer may avoid accuracy-related
penalties under the Internal Revenue Code if a
taxpayer acts in reliance on the advice.
(b)
Procedures to ensure best
practices for tax advisors. Tax advisors with
responsibility for overseeing a firm's practice of
providing advice concerning Federal tax issues or
of preparing or assisting in the preparation of
submissions to the Internal Revenue Service should
take reasonable steps to ensure that the firm's
procedures for all members, associates, and
employees are consistent with the best practices
set forth in paragraph (a) of this section.