ETHICS

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#1
MWPXYZ  
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In a separate thread the topic of ethics has arisen.

When making decisions regarding the ethical treatment of clients and one's possible obligation to the US Treasury and various state governments; what do various tax preparers use as a source for making ethical decisions?

Circular 230? Although that is a guideline implemented by the US government, and I doubt anyone would use a government proclamation as a source for ethical behaviour.

AICPA standards for tax practice? Would anyone use a committee report as a basis for their ethical behavior?

One's feelings? Which "evolve" over time so that one's ethical behavure may change?

Do clients set a higher or lower ethical bar, that we(ethicly) should use,in preparing a tax return? Or representing a client?


And are one's ethics affected by:

Are there insignificant/immaterial/trivial matters that are best dealt with expediently rather than ethicly?

Does one comply with the purpose of the laws, or the literal wording of the laws?

Does one dot every "i" and cross every "t" because the risk of future unanticipated consequences; or do we need to find a level of "good enough" due to the burden of complexity the tax law brings to us and our clients?


Try to respond ethicly in nature and tone, if you respond!
 

#2
Nilodop  
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Would it be OK to respond ethically instead?
 

#3
MWPXYZ  
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If you want to go that extra step!
 

#4
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I think each person has their own idea of what is ethical for them. Yours may not be the same as mine.

I may go 10mph over the speed limit on the interstate, but in a school zone, no. Both are wrong, but in a school zone, I feel ethically responsible to obey the law to the letter.
 

#5
makbo  
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MWPXYZ wrote:When making decisions regarding the ethical treatment of clients and one's possible obligation to the US Treasury and various state governments; what do various tax preparers use as a source for making ethical decisions?


I was thinking about this on my long walk today, and ended up observing that ethics, religion, law, and etiquette are all versions of the same basic thing. Upon returning to my desk, I searched the internet for those four terms and this popped right up, which lays it out simply and plainly:

http://screencast.com/t/n8TEClNfFG

The only source of ethics is your own conscience. It's not illegal to be unethical, nor does ethicality imply legality. What the IRS and some professional organizations refer to as ethics is really just etiquette of a professional kind. The cynical view is that once again, the IRS is trying to get us to do their work for them, by substituting an ethical standard for a legal one.

It's nature's way of solving the Prisoners' Dilemma -- we are all better off collectively if we don't have to spend our resources trying to cheat and steal, or fending off cheating and stealing. (Wikipedia has a good article on Prisoners' Dilemma if you don't know what that is).
 

#6
makbo  
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One more link for now.

http://www.irmi.com/expert/articles/2006/head03.aspx

Almost every individual—excluding perhaps those insane persons who have no sense of right and wrong, but certainly including everyone from religious leaders to gangsters and serial killers—has a set of ethics. [...] If every person's ethics sprang from the same principles or rested on the same source documents [...] then there would be much wider consensus on what is ethically good and ethically bad conduct in any given specific situation.
 

#7
Coddington  
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Except in extreme cases, where someone suggests lying or stealing, I'm of the opinion that ethics should rarely be discussed directly. It's okay to ask someone whether they have substantial authority, a reasonable basis, or MLTN for taking a particular position. It's okay to point out situations in which broad brush pronouncements fail. It's okay to suggest that something falls in the tax shelter or listed transaction area. It's not okay to impugn someone's ethics except in egregious situations. There are more facts and circumstances than dreamt of in our philosophies and how particular issues arise and their attendant circumstances matter more than questioning other people's motives.
-Brian

Director of Tax Accounting Methods & Credits
SourceAdvisors.com

Opinions my own.
 


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