I am an EA employed by a CPA. The CPA is licensed in NC and MA. He had a problem with getting CPE (18.5 hours out of 40 including no ethics hours) accepted by NC. He told me yesterday that, instead of fighting it, he is probably going to accept the one year suspension proposed by the board. An internet search reveals that he signed a Consent Order on October 10th and it was accepted by the board on the 20th. So he either has returned his certificate very recently or must do so imminently. He is listed as Active in NC and MA. He told me yesterday that he would understand if I felt the need to leave. It would be nice to be able to afford my principles, but I have to be realistic that a permanent job may not come along immediately and me opening a full-time practice is not viable for my wife and me right now. With that in mind, I must do what I can, at my current employment, to protect my own credential.
Circular 230 10.51(10) says that suspension by any state etc CPA board is disreputable conduct. 10.51(11) says "Knowingly aiding and abetting another person to practice before the Internal Revenue Service during a period of suspension, disbarment or ineligibility of such other person" is also disreputable. I am on Powers of Attorney for numerous clients, some of which I have signed since the Consent Order. At what point must I cease representing his clients before the IRS? I have in the back of my mind a thought that he is supposed to notify the IRS if his CPA license is suspended, but I cannot find that in Circular 230. My employer seems to think that his MA license is enough to allow him to practice before the IRS.
I want to do the right thing by clients, if that is practical. However, no client is worth my EA credential and I wonder if telling my employer that I can no longer represent his clients before the IRS (effective first thing Monday morning) would be an appropriate course of action. All thoughtful observations and suggestions would be gratefully received.