Explain which types of services a CPA can and cannot provide to avoid engaging in the unauthorized practice of law
Frequently, legal and accounting questions are so intertwined in tax practice that they are difficult to distinguish. Over the years, a number of court cases have addressed the issue of unauthorized practice of law by accountants and other tax preparers. Though state and federal court cases have some inconsistent results, the current belief is that CPAs and other nonattorneys who practice law before the IRS do not engage in the unauthorized practice of law if they are careful not to provide any general legal services. Thus, the following types of general law activities should be avoided by nonattorneys:
• Expressing a legal opinion on any non-tax matter.
• Drafting wills or trust instruments.
• Drafting contracts.
• Drafting incorporation papers.
• Drafting partnership agreements.
As long as CPAs and other nonattorneys stay within the practice of tax and do not cross over into the practice of general law, they can avoid the problem of unauthorized practice of law.
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Which of the following statements describes the trust gap in private politics?
a) negative information provided by a firm can have more impact on an issue than that provided by an NGO b) negative information provided by an NGO can have more impact on an issue than that provided by a firm c) negative information provided by an NGO does not affect a firm due to the lack of trust gap d) negative information provided by an NGO does not provide the adequate threat as firms are more trustworthy