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Abstract
This article addresses the elements of effective quality control systems at CPA firm tax practices and provides a framework for a tax practice quality control process flow. The importance of a documented system of quality control in all tax practices acquires new significance in light of the recently proposed changes to the Circular 230 regulations. Sec. 10.36 is now revised to provide that persons with principal authority over a firm's practice elements governed by Circular 230, including the provision of advice on federal tax matters and the preparation of returns, amended returns, claims of refund and other documents for submission to the IRS, 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 all conduct requirements of Circular 230. Sec. 10.22 currently requires a Circular 230 practitioner to be diligent as to accuracy in all dealings with the IRS.