Ethical Issues in Professional Tax Practice

CASE DESCRIPTION The primary subject matter of this case concerns the pressure placed upon today's tax professional by both the client and the firm to minimize tax liabilities through aggressive tax positions. Secondary issues include the competitive environment of professional tax practice, incentives to maximize revenue by retaining old and recruiting new clients, challenges facing the entry-level tax professional, and compliance with Circular 230 and the AICPA's Statement on Standards for Tax Service (SSTS). The case is appropriate for all introductory level tax students at both the undergraduate and graduate level and has a difficulty level of five: appropriate for first year graduate students. The case is designed to be taught in one class period and should require approximately three hours of outside preparation by students.