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Advise clients promptly of errors or omissions of the preparer or client in any tax matter with respect to which the preparer is retained. Submit records, etc., requested by the IRS in a timely manner. Exercise due diligence and use best practices of the profession. [12]
Due diligence can be a legal obligation, but the term more commonly applies to voluntary investigations. It may also offer a defence against legal action. A common example of due diligence is the process through which a potential acquirer evaluates a target company or its assets in advance of a merger or acquisition. [1]
Therefore, conducting due diligence is crucial in order to ensure the exchange funds are being held in a safe manner and the Exchanger's (entity/individual deferring taxes via 1031 Exchange) funds are protected in the event the Qualified Intermediary can't provide the funds at closing.
Less need for due diligence: ... The IRS may scrutinize the sale price of a non-arm’s length deal to determine if it meets fair market value or is regarded as a gift. “The closer the home is ...
Conduct Due Diligence. When it comes to real estate, what you don’t know can hurt you. ... Get estimates from a few insurers, and inquire about property tax directly with the county taxing ...
The Office of Professional Responsibility (OPR) at the U.S. Internal Revenue Service (IRS) is responsible for all matters related to "tax practitioner" misconduct, discipline and practice before the IRS under 31 CFR Subtitle A, Part 10 (Circular 230, Regulations Governing Practice before the Internal Revenue Service).
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