CPA REG: Tax practice ethics and federal tax procedures
Blueprint I.A–I.D · Area I, Ethics, Professional Responsibilities and Federal Tax Procedures · 10–20% of REG
Ten REG questions on tax practice ethics and federal tax procedures, untimed, with a reason for every answer option.
Or take the full REG mock examA taxpayer with no extension files a return exactly two months late and pays the $10,000 balance due with it. Fraud is not involved. Ignoring interest, what is the total of the failure-to-file and failure-to-pay penalties?
Tax practice ethics and federal tax procedures on CPA REG
Area I of REG (10–20%) covers ethics and responsibilities in tax practice (Circular 230, the AICPA Statements on Standards for Tax Services and preparer penalties), licensing and discipline, federal tax procedures, and accountants' legal duties and liability.
- Blueprint groups
- I.A–I.D
- Share of the section
- Area I, Ethics, Professional Responsibilities and Federal Tax Procedures: 10–20%
- Our drill
- 10 questions from 13 on this topic, untimed, with a reason for every option; one free attempt, unlimited with a pass
What to know
- Circular 230 lets a practitioner rely in good faith on client information but requires reasonable inquiries when it appears incorrect or incomplete, and prompt notice to the client of any noncompliance found (§§10.21, 10.34).
- An undisclosed return position needs substantial authority; a disclosed one needs a reasonable basis; the §6694(a) penalty is the greater of $1,000 or 50% of the preparer's income from the return.
- The IRS generally has three years to assess, six years if gross income stated is understated by more than 25%, and no limit for fraud or no return (IRC §6501).
- Refund claims are due within three years of filing or two years of payment, whichever is later (IRC §6511).
- The Tax Court hears deficiency cases before payment; district courts and the Court of Federal Claims require payment first.
- Under Securities Act §11, plaintiffs need not prove reliance or scienter; auditors defend with due diligence. Rule 10b-5 claims require scienter.
Test yourself on tax practice ethics and federal tax procedures
Ten REG questions on tax practice ethics and federal tax procedures, untimed, with a reason for every answer option.
Or take the full REG mock examCommon questions
How much of the REG section is tax practice ethics and federal tax procedures?
It sits in Blueprint Area I (I.A–I.D). The AICPA weights whole areas, not single topics; see the area’s range on the REG page. Our 72-question mock draws each area at the middle of its range.
Are these real REG questions?
No. The AICPA does not release live exam questions. These are original practice questions written to the published 2027 CPA Exam Blueprints, with a reason for every answer option and the standard or code section behind the key.
More REG topics
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- Book-tax differences and C corporationsdrill
- S corporations, partnerships, LLCs and exempt organizationsdrill
REG full mock exam: 4 hours, 5 testletsREG task-based simulations
Blueprint and exam facts checked November 2026: AICPA: Learn what is tested on the CPA Exam (Blueprints effective January 1, 2027) · AICPA: CPA Exam score release and testing windows · NASBA: CPA Exam FAQ · Virginia Board of Accountancy: CPA Exam fees.
Original independent practice questions written to the AICPA CPA Exam Blueprints. Not affiliated with or endorsed by the AICPA or NASBA.