IRS Proposes Revised Standards For Tax Professionals

by Glen Shapiro, LawAndTax-News.com, New York

07 February 2006

The US Treasury Department and the Internal Revenue Service on Friday issued a notice proposing amendments to Treasury Department Circular 230.

This provision governs tax professionals who practice before the IRS. Ensuring that tax professionals adhere to professional standards and follow the law is one of the top four enforcement goals for the IRS. This proposed revision of Circular 230 plays a critical part in achieving this goal.

The revisions to Circular 230 proposed last week would modify:

• The definition of practice;
• Eligibility for enrollment;
• Unenrolled practice; and
• The rules concerning contingent fees, conflicts of interest, standards with respect to tax returns and documents, affidavits and other papers, sanctions, discovery, publicity, and appeals.

The proposed regulations do not, however, address the standards for written tax advice that were the subject of final amendments to the regulations issued in December 2004 and modified in May 2005.

A hearing on the proposed regulations is scheduled for Wednesday, June 21, 2006 at 10 a.m., in the IRS auditorium. The Treasury Department and the IRS are requesting comments on the proposed regulations by April 7, 2006.

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