2026 · IRS-Approved Continuing Education · Category 3 Ethics

Navigating
Circular 230
in an AI World

6
Modules
31
Lessons
2
CE Hours
70%
To Pass

Course Structure at a Glance

1

Ethical Foundations

Preamble · Circular 230 overview · 2020–2026 landscape changes

  • Learning objectives & course overview — CE requirements and course roadmap
  • What ethics means for tax professionals today — dual trust, OPR, and sanctions
  • AI tools & ethical obligations — first look at §10.20, §10.22, §10.37
2

Authority to Practice

Subpart A · §10.3–10.10 · enrollment, renewal, restrictions

  • Who may practice before the IRS — all categories under §10.3 and their scope
  • Enrollment requirements & renewal — CE minimums, PTIN, lapsed enrollment consequences
  • Restrictions on practice — suspension, unenrolled preparers, student practice
  • AI & licensing gray areas — who is the practitioner of record when AI generates advice
3

Modern Due Diligence

Subpart B · §10.22–10.37 · competence, written advice, advertising

  • Competence & diligence — §10.22 four-element standard; what competence requires in 2026
  • Written advice & covered opinions — §10.37 standard applied to every email and memo
  • Positions, omissions & misleading conduct — §10.34 reasonable basis; §10.36 supervisory obligations
  • AI advice as written advice: deep dive — the three-part test and verification protocol
  • Scenario workshop — four realistic cases: competence, advertising, written advice, supervisor liability
4

AI, Data & Digital Ethics

§10.20, §10.22, §10.37 · WISP · vendor evaluation · 2026 AI guidance

  • AI in tax practice: opportunity & obligation — types of tools, hallucination risk, OPR 2024 advisory
  • Client data privacy & confidentiality — §10.20 and IRC §7216 applied to AI platforms
  • WISP, cybersecurity & the FTC Safeguards Rule — six required WISP elements; AI tool governance
  • AI vendor evaluation & data agreements — three-part checklist; red flags that disqualify a vendor
  • When AI goes wrong: liability & case studies — five OPR-pattern cases with lessons
5

Fees, Conflicts & Clients

§10.21, §10.27–10.29
The #1 source of OPR discipline

  • Fee types & what Circular 230 permits — contingent, unconscionable, referral fees; §10.28 records return
  • Fee agreements & written disclosures — engagement letter essentials; 2026 AI use provision
  • Conflicts of interest: types & identification — five conflict types; §10.29 two-prong test
  • Conflict waivers: disclosure, consent & documentation — what informed consent requires; non-waivable conflicts
  • Client fraud, errors & withdrawal obligations — §10.21 duty; withdrawal protocol
  • AI & client relationship ethics — disclosure, §7216 consent, personal interest conflicts
6

Enforcement & OPR

Subparts C, D & OPR procedures
real cases
reinstatement

  • OPR structure & authority — sanctions, referral sources, FY2024 enforcement record highs
  • Anatomy of an OPR investigation — all five stages from intake through published decision
  • Real OPR cases: lessons learned — five anonymized cases across top violation categories
  • What to do if OPR contacts you — step-by-step response protocol; mistakes that make it worse
  • Reinstatement after discipline — §10.81 waiting periods, petition process, favorable evidence
  • Proactive compliance: staying off OPR’s radar — annual checklist; documentation as your shield

CE Credit & Certification Details

Upon passing the 20-question final exam with a score of 70% or higher, you will receive a personalized certificate of completion confirming 2 hours of IRS-approved Continuing Education in the Ethics category. Retain your certificate for at least 3 years as required by your enrollment agreement.

What makes this course different

Core competencies covered in this course

  • AI ethics woven throughout every module — not a standalone add-on. AI implications for §10.20, §10.22, §10.34, and §10.37 are addressed in context, exactly as OPR considers them
  • Real OPR case patterns in every module — the scenarios reflect actual discipline patterns from OPR’s published record, not hypothetical textbook examples
  • Module 5 goes deeper than any competitor on fees, conflicts, and §10.21 client fraud — consistently the #1 OPR discipline category and the most under-covered topic in ethics CE
  • Reflects 2024–2026 enforcement reality — OPR record discipline levels, FTC Safeguards Rule revision, IRA enforcement funding, and the AI practice guidance practitioners need now

Enrolled Agents

Satisfies IRS CE requirements; covers EFIN/PTIN protection and e-services security

CPAs

Covers FTC Safeguards Rule WISP obligation now mandatory for all tax preparation firms

Solo Practitioners

Tailored for small offices with limited IT resources — practical, low-cost implementations

Firm Staff

Staff training on phishing, AI scams, and data handling — your compliance obligation under §10.36