Treasury Circular 230 govern federal tax practice standards, which provides a set of ethical rules that accountants must follow to avoid penalties and being prohibited from practicing before the IRS. In this scenario, after reviewing the client documents, the CPA concludes that there is not enough supporting documents to result in a tax refund. Circular 230 Section 10.34(a)(1)(i) states, a practitioner may not willfully or recklessly sign a tax return or claim for refund that he knows lacks a reasonable basis. The CPA needs to make sure all information is accurate, correct, and with supporting documents before filing to the IRS. He should ask the client for further information and documents to support the refund the client thinks he should
