Compliance deep dive

Built to support CPA diligence and professional review.

TaxSwarm supports professional tax analysis. The compliance layer is designed to make professional review faster, clearer, and more defensible by carrying authority, assumptions, disclosure posture, documentation, and decision history with each strategy.

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Compliance posture

Every strategy should answer: why this position, why now, and with what support?

The product experience is built around CPA sign-off, professional documentation continuity, and explicit unresolved-risk visibility.

Professional standards

The platform surfaces the review facts CPAs need.

TaxSwarm organizes the evidence. The practitioner still evaluates, approves, documents, and advises.

Circular 230

TaxSwarm supports CPA diligence by attaching assumptions, authorities, strategy risk posture, and written-advice context to recommendations. The CPA remains responsible for judgment and sign-off.

§10.22 due diligence§10.35 competence§10.37 written advice§10.34 return-position care

AICPA SSTS 1-4

Strategy output is designed to help CPAs evaluate return positions, answers to questions, procedural aspects, and estimate use under the revised SSTS framework.

SSTS 1 return positionsSSTS 2 return answersSSTS 3 procedural aspectsSSTS 4 estimates

Disclosure posture

Authority level, Form 8275/8275-R posture, source authority, required forms, and documentation requirements are surfaced at the strategy level for CPA review.

Substantial authorityReasonable basisForm 8275 reviewForm 8275-R review

Preparer penalty review

Recommendations can include §6694 exposure, disclosure recommendations, audit-defense documentation, and notes when a position needs additional authority review.

§6694 exposureDocumentation listClient representationComputation workpapers

Documentation record

Defensibility lives in the evidence record.

A strong strategy card is a traceable record of facts, authority, computations, risk posture, CPA decisions, and implementation steps.

Documentation record example

A strategy should be defensible before it is persuasive.

01. Source factsClient profile, documents, notes, interests, and entity links preserved.
logged
02. Law authorityIRC, Treasury Regs, IRS guidance, and form instructions attached.
logged
03. Risk postureAuthority level, disclosure recommendation, and preparer penalty exposure mapped.
logged
04. CPA decisionAccept/reject notes, implementation record, and report artifacts retained.
CPA
Circular 230

Supports due diligence, competence, and written-advice review with source-backed facts, assumptions, and risk posture.

AICPA SSTS 1-4

Surfaces tax-return position support, answers-to-questions context, procedural considerations, and estimate assumptions.

Form 8275 / 8275-R

Flags disclosure posture based on authority level so the CPA can evaluate penalty-protection steps.

IRC §6694

Shows preparer penalty exposure and the documentation needed to support reasonable cause and good-faith reliance.

CPA review

Every strategy in TaxSwarm is built for defensibility.

Walk through the compliance tab, calculation trace, decision history, memo exports, and implementation record with your firm’s review team.

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