If the taxpayer seeks the advice of a tax practitioner, the practitioner must exercise due diligence in determining the corrections of any oral or written representations made to the client about the program and the implications for that taxpayer of going forward.
If the taxpayer decides to proceed with the disclosure, the practitioner must exercise due diligence in determining the correctness of any oral or written representations that the practitioner makes during the representation to the Department of the Treasury. The practitioner must avoid giving or participating in giving false or misleading information to the Department of the Treasury or giving a false or misleading opinion to the taxpayer.
If the taxpayer decides not to make the voluntary disclosure despite the taxpayer’s non-compliance with U.S. tax laws, Circular 230 requires the tax practitioner to advise the client of the fact of the client’s non-compliance and the consequences of the client’s non-compliance.
A practitioner whose client declines to make a full disclosure of the existence of, or any taxable income from, a foreign financial account during a taxable year, may not prepare the client’s income tax return for that year without being in violation of Circular 230.