2023 IRS Compliance Considerations for your Accounting Services Firm
There are a number of IRS compliance policies that you would need to implement in order to serve as an accounting firm in the state of Massachusetts. Some of the key IRS compliance policies that you would need to follow include:
Circular 230: This is a set of regulations issued by the IRS that govern the practice of tax professionals, including accountants, enrolled agents, and tax attorneys. The regulations cover a wide range of topics, including standards of conduct, practice before the IRS, and the preparation of tax returns and other documents.
Tax compliance: As an accounting firm, you would need to comply with federal and state tax laws and regulations, including filing accurate and timely tax returns, maintaining accurate records, and reporting any suspicious or fraudulent activity to the IRS.
Anti-money laundering (AML) laws: Accounting firms may be subject to AML laws that require them to implement procedures to detect and prevent money laundering. This includes implementing a customer identification program (CIP), monitoring transactions for suspicious activity, and filing suspicious activity reports (SARs) with the Financial Crimes Enforcement Network (FinCEN).
Cybersecurity: As an accounting firm, you would need to protect sensitive client data from cyber threats, by implementing appropriate security measures, such as firewalls, intrusion detection systems, and encryption. The IRS has also issued guidelines for safeguarding taxpayer data which accounting firms should be aware of.
Continuing Professional Education (CPE): Many states require accountants to complete a certain number of CPE hours annually to maintain their licenses. The IRS also requires enrolled agents to complete 72 hours of continuing education every three years.
It's important to note that compliance policies and regulations can change over time, and it's crucial for you to stay informed and up-to-date on the latest compliance requirements that apply to your accounting firm. It is also recommended to consult with a legal professional to ensure compliance.