ATP 105 Ethics study guide

ATP 105 Ethics · Work through your exam, one topic at a time.

The Accredited Tax Preparer (ATP) is a credential offered by the Accreditation Council for Accountancy and Taxation (ACAT), a credentialing organization focused on accounting and taxation professionals. The ATP indicates that the holder specializes in preparing individual tax returns and understands tax laws, forms, and filing requirements. It suits tax preparers who want to distinguish themselves in a competitive marketplace, demonstrate proven knowledge to clients and employers, and pursue continuing professional development. The exam covers two domains: Personal Income Taxation and Ethics and Procedures. Topics on this exam: Personal Income Taxation and Ethics and Procedures. The ATP 105 Ethics study guide has 2 sections and about 758 words.

Personal Income Taxation: Gross Income, Adjustments, and Deductions

Personal income taxation is best understood as a pipeline rather than a single calculation. Start with gross income - all income from whatever source derived unless a statute excludes it. From gross income subtract adjustments (above-the-line deductions such as certain retirement contributions, self-employment tax, and student loan interest) to reach adjusted gross income (AGI) . AGI is the hinge of the return: most limitations, phase-outs, and credit thresholds are keyed to it.

363 words, about 2 min 02

Ethics and Procedures: Circular 230, Practice, and Professional Responsibility

Ethics questions on this exam are grounded in the rules governing practice before the IRS, principally Circular 230 , together with the preparer penalty provisions and the standards for return positions. A candidate must know who may practice, what due diligence requires, when a preparer may sign a return, and the difference between a realistic possibility standard and a more likely than not standard for positions. Understand the rules on contingent fees , confidentiality , conflicts of interest , and written advice . Know the preparer penalty structure: penalties attach to unreasonable positions, to willful or reckless conduct, and to failure to furnish information or retain records.

395 words, about 2 min