 | Treasury Department Regulations Governing Practice before Circular No. 230 the Internal Revenue Service (Rev. 6-2014) Catalog Number 16586R www.irs.gov Department Title 31 Code of Federal Regulations, of the Subtitle A, Part 10, Treasury published (June 12, 2014) Internal Revenue Service |
| 31 U.S.C. §330. Practice before the Department (a) Subject to section 500 of title 5, the Secretary of the Treasury may — (1) regulate the practice of representatives of persons before the Department of the Treasury; and (2) before admitting a representative to practice, require that the representative demonstrate — (A) good character; (B) good reputation; (C) necessary qualifications to enable the representative to provide to persons valuable service; and (D) competency to advise and assist persons in presenting their cases. (b) After notice and opportunity for a proceeding, the Secretary may suspend or disbar from practice before the Department, or censure, a representative who — (1) is incompetent; (2) is disreputable; (3) violates regulations prescribed under this section; or (4) with intent to defraud, willfully and knowingly misleads or threatens the person being represented or a prospective person to be represented. The Secretary may impose a monetary penalty on any representative described in the preceding sentence. If the representative was acting on behalf of an employer or any firm or other entity in connection with the conduct giving rise to such penalty, the Secretary may impose a monetary penalty on such employer, firm, or entity if it knew, or reasonably should have known, of such conduct. Such penalty shall not exceed the gross income derived (or to be derived) from the conduct giving rise to the penalty and may be in addition to, or in lieu of, any suspension, disbarment, or censure of the representative. (c) After notice and opportunity for a hearing to any appraiser, the Secretary may — (1) provide that appraisals by such appraiser shall not have any probative effect in any administrative proceeding before the Department of the Treasury or the Internal Revenue Service, and (2) bar such appraiser from presenting evidence or testimony in any such proceeding. (d) Nothing in this section or in any other provision of law shall be construed to limit the authority of the Secretary of the Treasury to impose standards applicable to the rendering of written advice with respect to any entity, transaction plan or arrangement, or other plan or arrangement, which is of a type which the Secretary determines as having a potential for tax avoidance or evasion. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 884; Pub. L. 98–369, div. A, title I, §156(a), July 18, 1984, 98 Stat. 695; Pub. L. 99–514, §2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 108–357, title VIII, §822(a)(1), (b), Oct. 22, 2004, 118 Stat. 1586, 1587; Pub. L. 109–280, title XII, §1219(d), Aug. 17, 2006, 120 Stat. 1085.) Page 2 Treasury Department Circular No. 230 |
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Paragraph 1. ............................................................................5
§ 10.0 Scope of part. ......................................................................5
Subpart A — Rules Governing Authority to Practice ...........................................5
§ 10.1 Offices. ...........................................................................5
§ 10.2 Definitions. ........................................................................6
§ 10.3 Who may practice. .................................................................6
§ 10.4 Eligibility to become an enrolled agent, enrolled retirement plan agent, or
registered tax return preparer. .......................................................8
§ 10.5 Application to become an enrolled agent, enrolled retirement plan agent, or
registered tax return preparer. .......................................................9
§ 10.6 Term and renewal of status as an enrolled agent, enrolled retirement plan agent, or
registered tax return preparer. .......................................................10
§ 10.7 Representing oneself; participating in rulemaking; limited practice; and special appearances. ..16
§ 10.8 Return preparation and application of rules to other individuals. ..........................17
§ 10.9 Continuing education providers and continuing education programs. .......................17
Subpart B — Duties and Restrictions Relating to Practice Before the Internal Revenue Service .......19
§ 10.20 Information to be furnished. ........................................................19
§ 10.21 Knowledge of client’s omission. ......................................................19
§ 10.22 Diligence as to accuracy.............................................................19
§ 10.23 Prompt disposition of pending matters. ...............................................20
§ 10.24 Assistance from or to disbarred or suspended persons and former
Internal Revenue Service employees. .................................................20
§ 10.25 Practice by former government employees, their partners and their associates. ..............20
§ 10.26 Notaries. .........................................................................21
§ 10.27 Fees. ............................................................................21
§ 10.28 Return of client’s records. ..........................................................22
§ 10.29 Conflicting interests. ...............................................................22
§ 10.30 Solicitation. ......................................................................23
§ 10.31 Negotiation of taxpayer checks. ......................................................24
§ 10.32 Practice of law. ...................................................................24
§ 10.33 Best practices for tax advisors. ......................................................24
§ 10.34 Standards with respect to tax returns and documents, affidavits and other papers. ..........24
§ 10.35 Competence. .....................................................................25
§ 10.36 Procedures to ensure compliance. ....................................................26
§ 10.37 Requirements for written advice. ....................................................26
§ 10.38 Establishment of advisory committees.................................................27
Treasury Department Circular No. 230 Page 3
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Subpart C — Sanctions for Violation of the Regulations ........................................28
§ 10.50 Sanctions. ........................................................................28
§ 10.51 Incompetence and disreputable conduct. ..............................................28
§ 10.52 Violations subject to sanction. .......................................................30
§ 10.53 Receipt of information concerning practitioner. ........................................30
Subpart D — Rules Applicable to Disciplinary Proceedings .....................................31
§ 10.60 Institution of proceeding. ...........................................................31
§ 10.61 Conferences.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
§ 10.62 Contents of complaint. .............................................................31
§ 10.63 Service of complaint; service of other papers; service of evidence in support of complaint;
filing of papers. ...................................................................32
§ 10.64 Answer; default. ..................................................................33
§ 10.65 Supplemental charges. .............................................................33
§ 10.66 Reply to answer. ..................................................................34
§ 10.67 Proof; variance; amendment of pleadings..............................................34
§ 10.68 Motions and requests. ..............................................................34
§ 10.69 Representation; ex parte communication. .............................................34
§ 10.70 Administrative Law Judge. .........................................................35
§ 10.71 Discovery. .......................................................................35
§ 10.72 Hearings. ........................................................................36
§ 10.73 Evidence. ........................................................................38
§ 10.74 Transcript........................................................................39
§ 10.75 Proposed findings and conclusions. ...................................................39
§ 10.76 Decision of Administrative Law Judge. ...............................................39
§ 10.77 Appeal of decision of Administrative Law Judge. .......................................40
§ 10.78 Decision on review. ................................................................40
§ 10.79 Effect of disbarment, suspension, or censure. ..........................................40
§ 10.80 Notice of disbarment, suspension, censure, or disqualification. ............................41
§ 10.81 Petition for reinstatement. ..........................................................41
§ 10.82 Expedited suspension...............................................................41
Subpart E — General Provisions ...........................................................43
§ 10.90 Records. .........................................................................43
§ 10.91 Saving provision. ..................................................................44
§ 10.92 Special orders.....................................................................44
§ 10.93 Effective date. ....................................................................44
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Paragraph 1. The authority citation for 31 CFR, part Subpart A — Rules Governing Authority to
10 continues to read as follows: Practice
Authority: Sec. 3, 23 Stat. 258, secs. 2-12, 60 Stat.
237 et. seq.; 5 U.S.C. 301, 500, 551-559; 31 U.S.C. § 10.1 Offices.
321; 31 U.S.C. 330; Reorg. Plan No. 26 of 1950, 15
FR 4935, 64 Stat. 1280, 3 CFR, 1949-1953 Comp., (a) Establishment of office(s) . The Commissioner
p. 1017. shall establish the Office of Professional
Responsibility and any other office(s) within the
§ 10.0 Scope of part. Internal Revenue Service necessary to administer
and enforce this part. The Commissioner shall
(a) This part contains rules governing the appoint the Director of the Office of Professional
recognition of attorneys, certified public accountants, Responsibility and any other Internal Revenue
enrolled agents, enrolled retirement plan agents, official(s) to manage and direct any office(s)
registered tax return preparers, and other persons established to administer or enforce this part.
representing taxpayers before the Internal Revenue Offices established under this part include, but are
Service. Subpart A of this part sets forth rules relating not limited to:
to the authority to practice before the Internal Revenue (1) The Office of Professional Responsibility, which
Service; subpart B of this part prescribes the duties shall generally have responsibility for matters related
and restrictions relating to such practice; subpart C to practitioner conduct and shall have exclusive
of this part prescribes the sanctions for violating the responsibility for discipline, including disciplinary
regulations; subpart D of this part contains the rules proceedings and sanctions; and
applicable to disciplinary proceedings; and subpart E (2) An office with responsibility for matters related
of this part contains general provisions relating to the to authority to practice before the Internal Revenue
availability of official records. Service, including acting on applications for
(b) Effective/applicability date. This section is enrollment to practice before the Internal Revenue
applicable beginning August 2, 2011. Service and administering competency testing and
continuing education.
(b) Officers and employees within any office
established under this part may perform acts necessary
or appropriate to carry out the responsibilities of their
office(s) under this part or as otherwise prescribed by
the Commissioner.
(c) Acting. The Commissioner will designate an
officer or employee of the Internal Revenue Service
to perform the duties of an individual appointed
under paragraph (a) of this section in the absence of
that officer or employee or during a vacancy in that
office.
(d) Effective/applicability date. This section is
applicable beginning August 2, 2011, except that
paragraph (a)(1) is applicable beginning June 12,
2014.
Treasury Department Circular No. 230 § 10.1 —Page 5
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§ 10.2 Definitions. before the Internal Revenue Service may practice
before the Internal Revenue Service by filing with
(a) As used in this part, except where the text the Internal Revenue Service a written declaration
provides otherwise — that the attorney is currently qualified as an attorney
(1) Attorney means any person who is a member and is authorized to represent the party or parties.
in good standing of the bar of the highest court of Notwithstanding the preceding sentence, attorneys
any state, territory, or possession of the United who are not currently under suspension or disbarment
States, including a Commonwealth, or the District of from practice before the Internal Revenue Service
Columbia. are not required to file a written declaration with the
(2) Certified public accountant means any person IRS before rendering written advice covered under
who is duly qualified to practice as a certified public §10.37, but their rendering of this advice is practice
accountant in any state, territory, or possession of the before the Internal Revenue Service.
United States, including a Commonwealth, or the (b) Certified public accountants. Any certified
District of Columbia. public accountant who is not currently under
(3) Commissioner refers to the Commissioner of suspension or disbarment from practice before the
Internal Revenue. Internal Revenue Service may practice before the
(4) Practice before the Internal Revenue Internal Revenue Service by filing with the Internal
Service comprehends all matters connected with a Revenue Service a written declaration that the
presentation to the Internal Revenue Service or any certified public accountant is currently qualified as
of its officers or employees relating to a taxpayer’s a certified public accountant and is authorized to
rights, privileges, or liabilities under laws or represent the party or parties. Notwithstanding the
regulations administered by the Internal Revenue preceding sentence, certified public accountants who
Service. Such presentations include, but are not are not currently under suspension or disbarment
limited to, preparing documents; filing documents; from practice before the Internal Revenue Service
corresponding and communicating with the Internal are not required to file a written declaration with the
Revenue Service; rendering written advice with IRS before rendering written advice covered under
respect to any entity, transaction, plan or arrangement, §10.37, but their rendering of this advice is practice
or other plan or arrangement having a potential for before the Internal Revenue Service.
tax avoidance or evasion; and representing a client at (c) Enrolled agents. Any individual enrolled as an
conferences, hearings, and meetings. agent pursuant to this part who is not currently under
(5) Practitioner means any individual described suspension or disbarment from practice before the
in paragraphs (a), (b), (c), (d), (e), or (f) of §10.3. Internal Revenue Service may practice before the
(6) A tax return includes an amended tax return Internal Revenue Service.
and a claim for refund. (d) Enrolled actuaries.
(7) Service means the Internal Revenue Service. (1) Any individual who is enrolled as an actuary
(8) Tax return preparer means any individual by the Joint Board for the Enrollment of Actuaries
within the meaning of section 7701(a)(36) and 26 pursuant to 29 U.S.C. 1242 who is not currently
CFR 301.7701-15. under suspension or disbarment from practice before
(b) Effective/applicability date. This section is the Internal Revenue Service may practice before the
applicable on August 2, 2011. Internal Revenue Service by filing with the Internal
Revenue Service a written declaration stating that he
§ 10.3 Who may practice. or she is currently qualified as an enrolled actuary
and is authorized to represent the party or parties on
(a) Attorneys. Any attorney who is not currently whose behalf he or she acts.
under suspension or disbarment from practice (2) Practice as an enrolled actuary is limited
Page 6 —§ 10.2 Treasury Department Circular No. 230
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to representation with respect to issues involving (1) Any individual enrolled as a retirement plan
the following statutory provisions in title 26 of agent pursuant to this part who is not currently under
the United States Code: sections 401 (relating to suspension or disbarment from practice before the
qualification of employee plans), 403(a) (relating Internal Revenue Service may practice before the
to whether an annuity plan meets the requirements Internal Revenue Service.
of section 404(a) (2)), 404 (relating to deductibility (2) Practice as an enrolled retirement plan agent
of employer contributions), 405 (relating to is limited to representation with respect to issues
qualification of bond purchase plans), 412 (relating involving the following programs: Employee Plans
to funding requirements for certain employee Determination Letter program; Employee Plans
plans), 413 (relating to application of qualification Compliance Resolution System; and Employee
requirements to collectively bargained plans and Plans Master and Prototype and Volume Submitter
to plans maintained by more than one employer), program. In addition, enrolled retirement plan agents
414 (relating to definitions and special rules with are generally permitted to represent taxpayers with
respect to the employee plan area), 419 (relating respect to IRS forms under the 5300 and 5500 series
to treatment of funded welfare benefits), 419A which are filed by retirement plans and plan sponsors,
(relating to qualified asset accounts), 420 (relating but not with respect to actuarial forms or schedules.
to transfers of excess pension assets to retiree health (3) An individual who practices before the
accounts), 4971 (relating to excise taxes payable as Internal Revenue Service pursuant to paragraph (e)
a result of an accumulated funding deficiency under (1) of this section is subject to the provisions of this
section 412), 4972 (relating to tax on nondeductible part in the same manner as attorneys, certified public
contributions to qualified employer plans), 4976 accountants, enrolled agents, enrolled actuaries, and
(relating to taxes with respect to funded welfare registered tax return preparers.
benefit plans), 4980 (relating to tax on reversion of (f) Registered tax return preparers.
qualified plan assets to employer), 6057 (relating (1) Any individual who is designated as a
to annual registration of plans), 6058 (relating to registered tax return preparer pursuant to §10.4(c)
information required in connection with certain plans of this part who is not currently under suspension
of deferred compensation), 6059 (relating to periodic or disbarment from practice before the Internal
report of actuary), 6652(e) (relating to the failure Revenue Service may practice before the Internal
to file annual registration and other notifications Revenue Service.
by pension plan), 6652(f) (relating to the failure to (2) Practice as a registered tax return preparer
file information required in connection with certain is limited to preparing and signing tax returns
plans of deferred compensation), 6692 (relating to and claims for refund, and other documents for
the failure to file actuarial report), 7805(b) (relating submission to the Internal Revenue Service. A
to the extent to which an Internal Revenue Service registered tax return preparer may prepare all or
ruling or determination letter coming under the substantially all of a tax return or claim for refund of
statutory provisions listed here will be applied without tax. The Internal Revenue Service will prescribe by
retroactive effect); and 29 U.S.C. § 1083 (relating to forms, instructions, or other appropriate guidance the
the waiver of funding for nonqualified plans). tax returns and claims for refund that a registered tax
(3) An individual who practices before the return preparer may prepare and sign.
Internal Revenue Service pursuant to paragraph (d) (3) A registered tax return preparer may represent
(1) of this section is subject to the provisions of this taxpayers before revenue agents, customer service
part in the same manner as attorneys, certified public representatives, or similar officers and employees of
accountants, enrolled agents, enrolled retirement the Internal Revenue Service (including the Taxpayer
plan agents, and registered tax return preparers. Advocate Service) during an examination if the
(e) Enrolled retirement plan agents — registered tax return preparer signed the tax return
Treasury Department Circular No. 230 § 10.3 — Page 7
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or claim for refund for the taxable year or period § 10.4 Eligibility to become an enrolled agent,
under examination. Unless otherwise prescribed by enrolled retirement plan agent, or registered tax
regulation or notice, this right does not permit such return preparer.
individual to represent the taxpayer, regardless of
the circumstances requiring representation, before (a) Enrollment as an enrolled agent upon
appeals officers, revenue officers, Counsel or similar examination. The Commissioner, or delegate, will
officers or employees of the Internal Revenue grant enrollment as an enrolled agent to an applicant
Service or the Treasury Department. A registered tax eighteen years of age or older who demonstrates
return preparer’s authorization to practice under this special competence in tax matters by written
part also does not include the authority to provide examination administered by, or administered under
tax advice to a client or another person except as the oversight of, the Internal Revenue Service, who
necessary to prepare a tax return, claim for refund, possesses a current or otherwise valid preparer tax
or other document intended to be submitted to the identification number or other prescribed identifying
Internal Revenue Service. number, and who has not engaged in any conduct
(4) An individual who practices before the that would justify the suspension or disbarment of
Internal Revenue Service pursuant to paragraph (f) any practitioner under the provisions of this part.
(1) of this section is subject to the provisions of this (b) Enrollment as a retirement plan agent upon
part in the same manner as attorneys, certified public examination. The Commissioner, or delegate, will
accountants, enrolled agents, enrolled retirement grant enrollment as an enrolled retirement plan
plan agents, and enrolled actuaries. agent to an applicant eighteen years of age or older
(g) Others. Any individual qualifying under who demonstrates special competence in qualified
paragraph §10.5(e) or §10.7 is eligible to practice retirement plan matters by written examination
before the Internal Revenue Service to the extent administered by, or administered under the oversight
provided in those sections. of, the Internal Revenue Service, who possesses a
(h) Government officers and employees, and current or otherwise valid preparer tax identification
others. An individual, who is an officer or employee number or other prescribed identifying number, and
of the executive, legislative, or judicial branch of the who has not engaged in any conduct that would justify
United States Government; an officer or employee the suspension or disbarment of any practitioner
of the District of Columbia; a Member of Congress; under the provisions of this part.
or a Resident Commissioner may not practice before (c) Designation as a registered tax return preparer.
the Internal Revenue Service if such practice violates The Commissioner, or delegate, may designate
18 U.S.C. §§ 203 or 205. an individual eighteen years of age or older as
(i) State officers and employees. No officer or a registered tax return preparer provided an
employee of any State, or subdivision of any State, applicant demonstrates competence in Federal tax
whose duties require him or her to pass upon, return preparation matters by written examination
investigate, or deal with tax matters for such State administered by, or administered under the oversight
or subdivision, may practice before the Internal of, the Internal Revenue Service, or otherwise meets
Revenue Service, if such employment may disclose the requisite standards prescribed by the Internal
facts or information applicable to Federal tax matters. Revenue Service, possesses a current or otherwise valid
(j) Effective/applicability date. Paragraphs (a), (b), preparer tax identification number or other prescribed
and (g) of this section are applicable beginning June identifying number, and has not engaged in any conduct
12, 2014. Paragraphs (c) through (f), (h), and (i) of that would justify the suspension or disbarment of any
this section are applicable beginning August 2, 2011. practitioner under the provisions of this part.
(d) Enrollment of former Internal Revenue Service
employees. The Commissioner, or delegate, may
Page 8 — § 10.3 Treasury Department Circular No. 230
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grant enrollment as an enrolled agent or enrolled employment, or excise taxes.
retirement plan agent to an applicant who, by virtue (6) An applicant for enrollment as an enrolled
of past service and technical experience in the retirement plan agent who is requesting such
Internal Revenue Service, has qualified for such enrollment based on former employment with the
enrollment and who has not engaged in any conduct Internal Revenue Service must have had a minimum
that would justify the suspension or disbarment of of five years continuous employment with the
any practitioner under the provisions of this part, Internal Revenue Service during which the applicant
under the following circumstances: must have been regularly engaged in applying and
(1) The former employee applies for enrollment interpreting the provisions of the Internal Revenue
on an Internal Revenue Service form and supplies Code and the regulations relating to qualified
the information requested on the form and such other retirement plan matters.
information regarding the experience and training of (7) For the purposes of paragraphs (d)(5) and (6)
the applicant as may be relevant. of this section, an aggregate of 10 or more years of
(2) The appropriate office of the Internal Revenue employment in positions involving the application
Service provides a detailed report of the nature and and interpretation of the provisions of the Internal
rating of the applicant’s work while employed by Revenue Code, at least three of which occurred within
the Internal Revenue Service and a recommendation the five years preceding the date of application, is the
whether such employment qualifies the applicant equivalent of five years continuous employment.
technically or otherwise for the desired authorization. (e) Natural persons. Enrollment to practice may be
(3) Enrollment as an enrolled agent based on an granted only to natural persons.
applicant’s former employment with the Internal (f) Effective/applicability date. This section is
Revenue Service may be of unlimited scope or it applicable beginning August 2, 2011.
may be limited to permit the presentation of matters
only of the particular specialty or only before the § 10.5 Application to become an enrolled agent,
particular unit or division of the Internal Revenue enrolled retirement plan agent, or registered tax
Service for which the applicant’s former employment return preparer.
has qualified the applicant. Enrollment as an enrolled
retirement plan agent based on an applicant’s former (a) Form; address. An applicant to become an
employment with the Internal Revenue Service will enrolled agent, enrolled retirement plan agent,
be limited to permit the presentation of matters only or registered tax return preparer must apply as
with respect to qualified retirement plan matters. required by forms or procedures established and
(4) Application for enrollment as an enrolled published by the Internal Revenue Service, including
agent or enrolled retirement plan agent based on an proper execution of required forms under oath or
applicant’s former employment with the Internal affirmation. The address on the application will be
Revenue Service must be made within three years the address under which a successful applicant is
from the date of separation from such employment. enrolled or registered and is the address to which all
(5) An applicant for enrollment as an enrolled correspondence concerning enrollment or registration
agent who is requesting such enrollment based will be sent.
on former employment with the Internal Revenue (b) Fee. A reasonable nonrefundable fee may be
Service must have had a minimum of five years charged for each application to become an enrolled
continuous employment with the Internal Revenue agent, enrolled retirement plan agent, or registered
Service during which the applicant must have been tax return preparer. See 26 CFR part 300.
regularly engaged in applying and interpreting (c) Additional information; examination. The Internal
the provisions of the Internal Revenue Code and Revenue Service may require the applicant, as a
the regulations relating to income, estate, gift, condition to consideration of an application, to file
Treasury Department Circular No. 230 § 10.5 — Page 9
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additional information and to submit to any written if true, is not sufficient to warrant granting the
or oral examination under oath or otherwise. Upon application to practice, or the Commissioner,
the applicant’s written request, the Internal Revenue or delegate, has information indicating that the
Service will afford the applicant the opportunity to statements in the application are untrue or that the
be heard with respect to the application. applicant would not otherwise qualify to become
(d) Compliance and suitability checks. an enrolled agent, enrolled retirement plan agent, or
(1) As a condition to consideration of an registered tax return preparer. Issuance of temporary
application, the Internal Revenue Service may recognition does not constitute either a designation
conduct a Federal tax compliance check and or a finding of eligibility as an enrolled agent,
suitability check. The tax compliance check will be enrolled retirement plan agent, or registered tax
limited to an inquiry regarding whether an applicant return preparer, and the temporary recognition may
has filed all required individual or business tax be withdrawn at any time.
returns and whether the applicant has failed to pay, or (f) Protest of application denial. The applicant
make proper arrangements with the Internal Revenue will be informed in writing as to the reason(s) for
Service for payment of, any Federal tax debts. any denial of an application. The applicant may,
The suitability check will be limited to an inquiry within 30 days after receipt of the notice of denial of
regarding whether an applicant has engaged in any the application, file a written protest of the denial as
conduct that would justify suspension or disbarment prescribed by the Internal Revenue Service in forms,
of any practitioner under the provisions of this part guidance, or other appropriate guidance. A protest
on the date the application is submitted, including under this section is not governed by subpart D of
whether the applicant has engaged in disreputable this part.
conduct as defined in §10.51. The application will (f) Effective/applicability date. This section is
be denied only if the results of the compliance or applicable to applications received on or after
suitability check are sufficient to establish that the August 2, 2011.
practitioner engaged in conduct subject to sanctions
under §§10.51 and 10.52. § 10.6 Term and renewal of status as an enrolled
(2) If the applicant does not pass the tax agent, enrolled retirement plan agent, or
compliance or suitability check, the applicant will registered tax return preparer.
not be issued an enrollment or registration card or
certificate pursuant to §10.6(b) of this part. An (a) Term. Each individual authorized to practice
applicant who is initially denied enrollment or before the Internal Revenue Service as an enrolled
registration for failure to pass a tax compliance agent, enrolled retirement plan agent, or registered
check may reapply after the initial denial if the tax return preparer will be accorded active enrollment
applicant becomes current with respect to the or registration status subject to renewal of enrollment
applicant’s tax liabilities. or registration as provided in this part.
(e) Temporary recognition. On receipt of a properly (b) Enrollment or registration card or certificate.
executed application, the Commissioner, or delegate, The Internal Revenue Service will issue an
may grant the applicant temporary recognition to enrollment or registration card or certificate to each
practice pending a determination as to whether status individual whose application to practice before the
as an enrolled agent, enrolled retirement plan agent, Internal Revenue Service is approved. Each card
or registered tax return preparer should be granted. or certificate will be valid for the period stated on
Temporary recognition will be granted only in the card or certificate. An enrolled agent, enrolled
unusual circumstances and it will not be granted, in retirement plan agent, or registered tax return preparer
any circumstance, if the application is not regular on may not practice before the Internal Revenue Service
its face, if the information stated in the application, if the card or certificate is not current or otherwise
Page 10 — § 10.5 Treasury Department Circular No. 230
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valid. The card or certificate is in addition to any effective April 1, 2004.
notification that may be provided to each individual (iii) Enrolled agents who have a social security
who obtains a preparer tax identification number. number or tax identification number that ends with
(c) Change of address. An enrolled agent, enrolled the numbers 4, 5, or 6, except for those individuals
retirement plan agent, or registered tax return preparer who received their initial enrollment after November
must send notification of any change of address 1, 2004, must apply for renewal between November
to the address specified by the Internal Revenue 1, 2004, and January 31, 2005. The renewal will be
Service within 60 days of the change of address. effective April 1, 2005.
This notification must include the enrolled agent’s, (iv) Enrolled agents who have a social security
enrolled retirement plan agent’s, or registered tax number or tax identification number that ends with
return preparer’s name, prior address, new address, the numbers 7, 8, or 9, except for those individuals
tax identification number(s) (including preparer tax who received their initial enrollment after November
identification number), and the date the change of 1, 2005, must apply for renewal between November
address is effective. Unless this notification is sent, 1, 2005, and January 31, 2006. The renewal will be
the address for purposes of any correspondence effective April 1, 2006.
from the appropriate Internal Revenue Service (v) Thereafter, applications for renewal as an
office responsible for administering this part shall enrolled agent will be required between November
be the address reflected on the practitioner’s most 1 and January 31 of every subsequent third year as
recent application for enrollment or registration, or specified in paragraph (d)(2)(i), (d)(2)(ii), or (d)
application for renewal of enrollment or registration. (2)(iii) of this section according to the last number
A practitioner’s change of address notification of the individual’s social security number or tax
under this part will not constitute a change of the identification number. Those individuals who
practitioner’s last known address for purposes of receive initial enrollment as an enrolled agent after
section 6212 of the Internal Revenue Code and November 1 and before April 2 of the applicable
regulations thereunder. renewal period will not be required to renew their
(d) Renewal. enrollment before the first full renewal period
(1) In general. Enrolled agents, enrolled following the receipt of their initial enrollment.
retirement plan agents, and registered tax return (3) Renewal period for enrolled retirement plan
preparers must renew their status with the Internal agents.
Revenue Service to maintain eligibility to practice (i) All enrolled retirement plan agents must
before the Internal Revenue Service. Failure to renew their preparer tax identification number as
receive notification from the Internal Revenue prescribed by the Internal Revenue Service in forms,
Service of the renewal requirement will not be instructions, or other appropriate guidance.
justification for the individual’s failure to satisfy this (ii) Enrolled retirement plan agents will be
requirement. required to renew their status as enrolled retirement
(2) Renewal period for enrolled agents. plan agents between April 1 and June 30 of every
(i) All enrolled agents must renew their preparer third year subsequent to their initial enrollment.
tax identification number as prescribed by forms, (4) Renewal period for registered tax return
instructions, or other appropriate guidance. preparers. Registered tax return preparers must
(ii) Enrolled agents who have a social security renew their preparer tax identification number and
number or tax identification number that ends with their status as a registered tax return preparer as
the numbers 0, 1, 2, or 3, except for those individuals prescribed by the Internal Revenue Service in forms,
who received their initial enrollment after November instructions, or other appropriate guidance.
1, 2003, must apply for renewal between November (5) Notification of renewal. After review and
1, 2003, and January 31, 2004. The renewal will be approval, the Internal Revenue Service will notify
Treasury Department Circular No. 230 § 10.6 — Page 11
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the individual of the renewal and will issue the (A) In general. Subject to paragraph (e)(2)(iii)
individual a card or certificate evidencing current (B) of this section, an individual who receives initial
status as an enrolled agent, enrolled retirement plan enrollment during an enrollment cycle must complete
agent, or registered tax return preparer. two hours of qualifying continuing education credit
(6) Fee. A reasonable nonrefundable fee may be for each month enrolled during the enrollment cycle.
charged for each application for renewal filed. See 26 Enrollment for any part of a month is considered
CFR part 300. enrollment for the entire month.
(7) Forms. Forms required for renewal may be (B) Ethics. An individual who receives
obtained by sending a written request to the address initial enrollment during an enrollment cycle must
specified by the Internal Revenue Service or from complete two hours of ethics or professional conduct
such other source as the Internal Revenue Service for each enrollment year during the enrollment cycle.
will publish in the Internal Revenue Bulletin (see Enrollment for any part of an enrollment year is
26 CFR 601.601(d)(2)(ii)(b)) and on the Internal considered enrollment for the entire year.
Revenue Service webpage (www.irs.gov). (3) Requirements for renewal as a registered
(e) Condition for renewal: continuing education. tax return preparer. A minimum of 15 hours of
In order to qualify for renewal as an enrolled agent, continuing education credit, including two hours of
enrolled retirement plan agent, or registered tax ethics or professional conduct, three hours of Federal
return preparer, an individual must certify, in the tax law updates, and 10 hours of Federal tax law
manner prescribed by the Internal Revenue Service, topics, must be completed during each registration
that the individual has satisfied the requisite number year.
of continuing education hours. (f) Qualifying continuing education —
(1) Definitions. For purposes of this section — (1) General —
(i) Enrollment year means January 1 to (i) Enrolled agents. To qualify for continuing
December 31 of each year of an enrollment cycle. education credit for an enrolled agent, a course of
(ii) Enrollment cycle means the three successive learning must —
enrollment years preceding the effective date of (A) Be a qualifying continuing education
renewal. program designed to enhance professional
(iii) Registration year means each 12-month knowledge in Federal taxation or Federal tax related
period the registered tax return preparer is authorized matters (programs comprised of current subject
to practice before the Internal Revenue Service. matter in Federal taxation or Federal tax related
(iv) The effective date of renewal is the first day matters, including accounting, tax return preparation
of the fourth month following the close of the period software, taxation, or ethics); and
for renewal described in paragraph (d) of this section. (B) Be a qualifying continuing education
(2) For renewed enrollment as an enrolled agent program consistent with the Internal Revenue Code
or enrolled retirement plan agent — and effective tax administration.
(i) Requirements for enrollment cycle. A (ii) Enrolled retirement plan agents. To qualify
minimum of 72 hours of continuing education credit, for continuing education credit for an enrolled
including six hours of ethics or professional conduct, retirement plan agent, a course of learning must —
must be completed during each enrollment cycle. (A) Be a qualifying continuing education
(ii) Requirements for enrollment year. A program designed to enhance professional knowledge
minimum of 16 hours of continuing education credit, in qualified retirement plan matters; and
including two hours of ethics or professional conduct, (B) Be a qualifying continuing education
must be completed during each enrollment year of an program consistent with the Internal Revenue Code
enrollment cycle. and effective tax administration.
(iii) Enrollment during enrollment cycle — (iii) Registered tax return preparers. To
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qualify for continuing education credit for a registered examination), including the issuance of a certificate
tax return preparer, a course of learning must — of completion by the continuing education provider;
(A) Be a qualifying continuing education (C) Provide a written outline, textbook, or
program designed to enhance professional suitable electronic educational materials; and
knowledge in Federal taxation or Federal tax related (D) Satisfy the requirements established for a
matters (programs comprised of current subject qualified continuing education program pursuant to
matter in Federal taxation or Federal tax related §10.9.
matters, including accounting, tax return preparation (iii) Serving as an instructor, discussion leader
software, taxation, or ethics); and or speaker.
(B) Be a qualifying continuing education (A) One hour of continuing education credit
program consistent with the Internal Revenue Code will be awarded for each contact hour completed
and effective tax administration. as an instructor, discussion leader, or speaker at
(2) Qualifying programs — an educational program that meets the continuing
(i) Formal programs. A formal program education requirements of paragraph (f) of this
qualifies as a continuing education program if it — section.
(A) Requires attendance and provides each (B) A maximum of two hours of continuing
attendee with a certificate of attendance; education credit will be awarded for actual subject
(B) Is conducted by a qualified instructor, preparation time for each contact hour completed as
discussion leader, or speaker (in other words, a an instructor, discussion leader, or speaker at such
person whose background, training, education, and programs. It is the responsibility of the individual
experience is appropriate for instructing or leading claiming such credit to maintain records to verify
a discussion on the subject matter of the particular preparation time.
program); (C) The maximum continuing education credit
(C) Provides or requires a written outline, for instruction and preparation may not exceed four
textbook, or suitable electronic educational materials; hours annually for registered tax return preparers and
and six hours annually for enrolled agents and enrolled
(D) Satisfies the requirements established for retirement plan agents.
a qualified continuing education program pursuant to (D) An instructor, discussion leader, or
§10.9. speaker who makes more than one presentation
(ii) Correspondence or individual study on the same subject matter during an enrollment
programs (including taped programs). Qualifying cycle or registration year will receive continuing
continuing education programs include education credit for only one such presentation for
correspondence or individual study programs that the enrollment cycle or registration year.
are conducted by continuing education providers (3) Periodic examination. Enrolled Agents and
and completed on an individual basis by the enrolled Enrolled Retirement Plan Agents may establish
individual. The allowable credit hours for such eligibility for renewal of enrollment for any
programs will be measured on a basis comparable to enrollment cycle by —
the measurement of a seminar or course for credit in (i) Achieving a passing score on each part of
an accredited educational institution. Such programs the Special Enrollment Examination administered
qualify as continuing education programs only if under this part during the three year period prior to
they — renewal; and
(A) Require registration of the participants by (ii) Completing a minimum of 16 hours of
the continuing education provider; qualifying continuing education during the last year
(B) Provide a means for measuring successful of an enrollment cycle.
completion by the participants (for example, a written
Treasury Department Circular No. 230 § 10.6 — Page 13
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(g) Measurement of continuing education (ii) The location of the program;
coursework. (iii) The title of the program and copy of its
(1) All continuing education programs will be content;
measured in terms of contact hours. The shortest (iv) The dates of the program; and
recognized program will be one contact hour. (v) The credit hours claimed.
(2) A contact hour is 50 minutes of continuous (i) Waivers.
participation in a program. Credit is granted only for (1) Waiver from the continuing education
a full contact hour, which is 50 minutes or multiples requirements for a given period may be granted for
thereof. For example, a program lasting more than the following reasons —
50 minutes but less than 100 minutes will count as (i) Health, which prevented compliance with
only one contact hour. the continuing education requirements;
(3) Individual segments at continuous (ii) Extended active military duty;
conferences, conventions and the like will be (iii) Absence from the United States for an
considered one total program. For example, two extended period of time due to employment or other
90-minute segments (180 minutes) at a continuous reasons, provided the individual does not practice
conference will count as three contact hours. before the Internal Revenue Service during such
(4) For university or college courses, each absence; and
semester hour credit will equal 15 contact hours and (iv) Other compelling reasons, which will be
a quarter hour credit will equal 10 contact hours. considered on a case-by-case basis.
(h) Recordkeeping requirements. (2) A request for waiver must be accompanied
(1) Each individual applying for renewal must by appropriate documentation. The individual is
retain for a period of four years following the date required to furnish any additional documentation
of renewal the information required with regard to or explanation deemed necessary. Examples of
qualifying continuing education credit hours. Such appropriate documentation could be a medical
information includes — certificate or military orders.
(i) The name of the sponsoring organization; (3) A request for waiver must be filed no later
(ii) The location of the program; than the last day of the renewal application period.
(iii) The title of the program, qualified program (4) If a request for waiver is not approved, the
number, and description of its content; individual will be placed in inactive status. The
(iv) Written outlines, course syllibi, textbook, individual will be notified that the waiver was not
and/or electronic materials provided or required for approved and that the individual has been placed on a
the course; roster of inactive enrolled agents, enrolled retirement
(v) The dates attended; plan agents, or registered tax return preparers.
(vi) The credit hours claimed; (5) If the request for waiver is not approved, the
(vii) The name(s) of the instructor(s), discussion individual may file a protest as prescribed by the
leader(s), or speaker(s), if appropriate; and Internal Revenue Service in forms, instructions, or
(viii) The certificate of completion and/or other appropriate guidance. A protest filed under this
signed statement of the hours of attendance obtained section is not governed by subpart D of this part.
from the continuing education provider. (6) If a request for waiver is approved, the
(2) To receive continuing education credit for individual will be notified and issued a card or
service completed as an instructor, discussion leader, certificate evidencing renewal.
or speaker, the following information must be (7) Those who are granted waivers are required
maintained for a period of four years following the to file timely applications for renewal of enrollment
date of renewal — or registration.
(i) The name of the sponsoring organization; (j) Failure to comply.
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(1) Compliance by an individual with the are eligible to practice before the Internal Revenue
requirements of this part is determined by the Internal Service, or use the terms enrolled agent, enrolled
Revenue Service. The Internal Revenue Service retirement plan agent, or registered tax return
will provide notice to any individual who fails to preparer, the designations “EA” or “ERPA” or other
meet the continuing education and fee requirements form of reference to eligibility to practice before the
of eligibility for renewal. The notice will state the Internal Revenue Service.
basis for the determination of noncompliance and (5) An individual placed in inactive status
will provide the individual an opportunity to furnish may be reinstated to an active status by filing an
the requested information in writing relating to application for renewal and providing evidence of
the matter within 60 days of the date of the notice. the completion of all required continuing education
Such information will be considered in making a hours for the enrollment cycle or registration year.
final determination as to eligibility for renewal. The Continuing education credit under this paragraph (j)
individual must be informed of the reason(s) for any (5) may not be used to satisfy the requirements of
denial of a renewal. The individual may, within 30 the enrollment cycle or registration year in which the
days after receipt of the notice of denial of renewal, individual has been placed back on the active roster.
file a written protest of the denial as prescribed by (6) An individual placed in inactive status
the Internal Revenue Service in forms, instructions, must file an application for renewal and satisfy the
or other appropriate guidance. A protest under this requirements for renewal as set forth in this section
section is not governed by subpart D of this part. within three years of being placed in inactive
(2) The continuing education records of an status. Otherwise, the name of such individual will
enrolled agent, enrolled retirement plan agent, or be removed from the inactive status roster and the
registered tax return preparer may be reviewed to individual’s status as an enrolled agent, enrolled
determine compliance with the requirements and retirement plan agent, or registered tax return
standards for renewal as provided in paragraph (f) preparer will terminate. Future eligibility for active
of this section. As part of this review, the enrolled status must then be reestablished by the individual as
agent, enrolled retirement plan agent or registered tax provided in this section.
return preparer may be required to provide the Internal (7) Inactive status is not available to an individual
Revenue Service with copies of any continuing who is the subject of a pending disciplinary matter
education records required to be maintained under before the Internal Revenue Service.
this part. If the enrolled agent, enrolled retirement (k) Inactive retirement status. An individual who no
plan agent or registered tax return preparer fails longer practices before the Internal Revenue Service
to comply with this requirement, any continuing may request to be placed in an inactive retirement
education hours claimed may be disallowed. status at any time and such individual will be placed
(3) An individual who has not filed a timely in an inactive retirement status. The individual will
application for renewal, who has not made a timely be ineligible to practice before the Internal Revenue
response to the notice of noncompliance with the Service. An individual who is placed in an inactive
renewal requirements, or who has not satisfied retirement status may be reinstated to an active
the requirements of eligibility for renewal will be status by filing an application for renewal and
placed on a roster of inactive enrolled individuals providing evidence of the completion of the required
or inactive registered individuals. During this time, continuing education hours for the enrollment cycle
the individual will be ineligible to practice before the or registration year. Inactive retirement status is not
Internal Revenue Service. available to an individual who is ineligible to practice
(4) Individuals placed in inactive status and before the Internal Revenue Service or an individual
individuals ineligible to practice before the Internal who is the subject of a pending disciplinary matter
Revenue Service may not state or imply that they under this part.
Treasury Department Circular No. 230 § 10.6 — Page 15
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(l) Renewal while under suspension or disbarment. parent, subsidiary, or other affiliated corporation),
An individual who is ineligible to practice before the association, or organized group may represent the
Internal Revenue Service by virtue of disciplinary corporation, association, or organized group.
action under this part is required to conform to the (v) A regular full-time employee of a trust,
requirements for renewal of enrollment or registration receivership, guardianship, or estate may represent
before the individual’s eligibility is restored. the trust, receivership, guardianship, or estate.
(m) Enrolled actuaries. The enrollment and renewal (vi) An officer or a regular employee of
of enrollment of actuaries authorized to practice a governmental unit, agency, or authority may
under paragraph (d) of §10.3 are governed by the represent the governmental unit, agency, or authority
regulations of the Joint Board for the Enrollment of in the course of his or her official duties.
Actuaries at 20 CFR 901.1 through 901.72. (vii) An individual may represent any individual
(n) Effective/applicability date. This section is or entity, who is outside the United States, before
applicable to enrollment or registration effective personnel of the Internal Revenue Service when such
beginning August 2, 2011. representation takes place outside the United States.
(2) Limitations.
§ 10.7 Representing oneself; participating (i) An individual who is under suspension or
in rulemaking; limited practice; and special disbarment from practice before the Internal Revenue
appearances. Service may not engage in limited practice before the
Internal Revenue Service under paragraph (c)(1) of
(a) Representing oneself. Individuals may appear on this section.
their own behalf before the Internal Revenue Service (ii) The Commissioner, or delegate, may,
provided they present satisfactory identification. after notice and opportunity for a conference, deny
(b) Participating in rulemaking. Individuals eligibility to engage in limited practice before the
may participate in rulemaking as provided by the Internal Revenue Service under paragraph (c)(1) of
Administrative Procedure Act. See 5 U.S.C. § 553. this section to any individual who has engaged in
(c) Limited practice — conduct that would justify a sanction under §10.50.
(1) In general. Subject to the limitations in (iii) An individual who represents a taxpayer
paragraph (c)(2) of this section, an individual who under the authority of paragraph (c)(1) of this section
is not a practitioner may represent a taxpayer before is subject, to the extent of his or her authority, to such
the Internal Revenue Service in the circumstances rules of general applicability regarding standards
described in this paragraph (c)(1), even if the of conduct and other matters as prescribed by the
taxpayer is not present, provided the individual Internal Revenue Service.
presents satisfactory identification and proof of (d) Special appearances. The Commissioner,
his or her authority to represent the taxpayer. The or delegate, may, subject to conditions deemed
circumstances described in this paragraph (c)(1) are appropriate, authorize an individual who is not
as follows: otherwise eligible to practice before the Internal
(i) An individual may represent a member of his Revenue Service to represent another person in a
or her immediate family. particular matter.
(ii)A regular full-time employee of an individual (e) Fiduciaries. For purposes of this part, a
employer may represent the employer. fiduciary (for example, a trustee, receiver, guardian,
(iii) A general partner or a regular full-time personal representative, administrator, or executor) is
employee of a partnership may represent the considered to be the taxpayer and not a representative
partnership. of the taxpayer.
(iv) A bona fide officer or a regular full- (f) Effective/applicability date. This section is
time employee of a corporation (including a applicable beginning August 2, 2011.
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§ 10.8 Return preparation and application of § 10.9 Continuing education providers and
rules to other individuals. continuing education programs.
(a) Preparing all or substantially all of a tax return. (a) Continuing education providers —
Any individual who for compensation prepares or (1) In general. Continuing education providers
assists with the preparation of all or substantially are those responsible for presenting continuing
all of a tax return or claim for refund must have education programs. A continuing education provider
a preparer tax identification number. Except as must —
otherwise prescribed in forms, instructions, or other (i) Be an accredited educational institution;
appropriate guidance, an individual must be an (ii) Be recognized for continuing education
attorney, certified public accountant, enrolled agent, purposes by the licensing body of any State, territory,
or registered tax return preparer to obtain a preparer or possession of the United States, including a
tax identification number. Any individual who for Commonwealth, or the District of Columbia;
compensation prepares or assists with the preparation (iii) Be recognized and approved by a qualifying
of all or substantially all of a tax return or claim for organization as a provider of continuing education
refund is subject to the duties and restrictions relating on subject matters within §10.6(f) of this part. The
to practice in subpart B, as well as subject to the Internal Revenue Service may, at its discretion,
sanctions for violation of the regulations in subpart C. identify a professional organization, society or
(b) Preparing a tax return and furnishing business entity that maintains minimum education
information. Any individual may for compensation standards comparable to those set forth in this part as
prepare or assist with the preparation of a tax return a qualifying organization for purposes of this part in
or claim for refund (provided the individual prepares appropriate forms, instructions, and other appropriate
less than substantially all of the tax return or claim for guidance; or
refund), appear as a witness for the taxpayer before (iv) Be recognized by the Internal Revenue
the Internal Revenue Service, or furnish information Service as a professional organization, society, or
at the request of the Internal Revenue Service or any business whose programs include offering continuing
of its officers or employees. professional education opportunities in subject
(c) Application of rules to other individuals. Any matters within §10.6(f) of this part. The Internal
individual who for compensation prepares, or assists Revenue Service, at its discretion, may require such
in the preparation of, all or a substantial portion of a professional organizations, societies, or businesses
document pertaining to any taxpayer’s tax liability for to file an agreement and/or obtain Internal Revenue
submission to the Internal Revenue Service is subject Service approval of each program as a qualified
to the duties and restrictions relating to practice in continuing education program in appropriate forms,
subpart B, as well as subject to the sanctions for instructions or other appropriate guidance.
violation of the regulations in subpart C. Unless (2) Continuing education provider numbers —
otherwise a practitioner, however, an individual (i) In general. A continuing education provider
may not for compensation prepare, or assist in the is required to obtain a continuing education provider
preparation of, all or substantially all of a tax return number and pay any applicable user fee.
or claim for refund, or sign tax returns and claims for (ii) Renewal. A continuing education provider
refund. For purposes of this paragraph, an individual maintains its status as a continuing education provider
described in 26 CFR 301.7701-15(f) is not treated during the continuing education provider cycle by
as having prepared all or a substantial portion of the renewing its continuing education provider number as
document by reason of such assistance. prescribed by forms, instructions or other appropriate
(d) Effective/applicability date. This section is guidance and paying any applicable user fee.
applicable beginning August 2, 2011.
Treasury Department Circular No. 230 § 10.9 — Page 17
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(3) Requirements for qualified continuing (ii) Update programs. Update programs may
education programs. A continuing education use the same number as the program subject to
provider must ensure the qualified continuing update. An update program is a program that instructs
education program complies with all the following on a change of existing law occurring within one
requirements — year of the update program offering. The qualifying
(i) Programs must be developed by individual(s) education program subject to update must have been
qualified in the subject matter; offered within the two year time period prior to the
(ii) Program subject matter must be current; change in existing law.
(iii) Instructors, discussion leaders, and speakers (iii) Change in existing law. A change in
must be qualified with respect to program content; existing law means the effective date of the statute or
(iv) Programs must include some means for regulation, or date of entry of judicial decision, that
evaluation of the technical content and presentation is the subject of the update.
to be evaluated; (b) Failure to comply. Compliance by a continuing
(v) Certificates of completion bearing a current education provider with the requirements of this part
qualified continuing education program number is determined by the Internal Revenue Service. A
issued by the Internal Revenue Service must be continuing education provider who fails to meet the
provided to the participants who successfully requirements of this part will be notified by the Internal
complete the program; and Revenue Service. The notice will state the basis for
(vi) Records must be maintained by the the determination of noncompliance and will provide
continuing education provider to verify the the continuing education provider an opportunity to
participants who attended and completed the furnish the requested information in writing relating to
program for a period of four years following the matter within 60 days of the date of the notice. The
completion of the program. In the case of continuous continuing education provider may, within 30 days after
conferences, conventions, and the like, records must receipt of the notice of denial, file a written protest as
be maintained to verify completion of the program prescribed by the Internal Revenue Service in forms,
and attendance by each participant at each segment instructions, or other appropriate guidance. A protest
of the program. under this section is not governed by subpart D of this
(4) Program numbers — part.
(i) In general. Every continuing education (c) Effective/applicability date. This section is
provider is required to obtain a continuing education applicable beginning August 2, 2011.
provider program number and pay any applicable
user fee for each program offered. Program
numbers shall be obtained as prescribed by forms,
instructions or other appropriate guidance. Although,
at the discretion of the Internal Revenue Service, a
continuing education provider may be required to
demonstrate that the program is designed to enhance
professional knowledge in Federal taxation or
Federal tax related matters (programs comprised
of current subject matter in Federal taxation or
Federal tax related matters, including accounting, tax
return preparation software, taxation, or ethics) and
complies with the requirements in paragraph (a)(2)of
this section before a program number is issued.
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Subpart B — Duties and Restrictions Relating to faith and on reasonable grounds that the record or
Practice Before the Internal Revenue Service information is privileged.
(c) Effective/applicability date. This section is
§ 10.20 Information to be furnished. applicable beginning August 2, 2011.
(a) To the Internal Revenue Service. § 10.21 Knowledge of client’s omission.
(1) A practitioner must, on a proper and lawful
request by a duly authorized officer or employee A practitioner who, having been retained by a
of the Internal Revenue Service, promptly submit client with respect to a matter administered by the
records or information in any matter before the Internal Revenue Service, knows that the client has
Internal Revenue Service unless the practitioner not complied with the revenue laws of the United
believes in good faith and on reasonable grounds that States or has made an error in or omission from any
the records or information are privileged. return, document, affidavit, or other paper which
(2) Where the requested records or information the client submitted or executed under the revenue
are not in the possession of, or subject to the control laws of the United States, must advise the client
of, the practitioner or the practitioner’s client, the promptly of the fact of such noncompliance, error,
practitioner must promptly notify the requesting or omission. The practitioner must advise the client
Internal Revenue Service officer or employee and the of the consequences as provided under the Code
practitioner must provide any information that the and regulations of such noncompliance, error, or
practitioner has regarding the identity of any person omission.
who the practitioner believes may have possession or
control of the requested records or information. The § 10.22 Diligence as to accuracy.
practitioner must make reasonable inquiry of his or her
client regarding the identity of any person who may (a) In general. A practitioner must exercise due
have possession or control of the requested records diligence —
or information, but the practitioner is not required to (1) In preparing or assisting in the preparation
make inquiry of any other person or independently of, approving, and filing tax returns, documents,
verify any information provided by the practitioner’s affidavits, and other papers relating to Internal
client regarding the identity of such persons. Revenue Service matters;
(3) When a proper and lawful request is made (2) In determining the correctness of oral or
by a duly authorized officer or employee of the written representations made by the practitioner to
Internal Revenue Service, concerning an inquiry the Department of the Treasury; and
into an alleged violation of the regulations in this (3) In determining the correctness of oral or
part, a practitioner must provide any information the written representations made by the practitioner to
practitioner has concerning the alleged violation and clients with reference to any matter administered by
testify regarding this information in any proceeding the Internal Revenue Service.
instituted under this part, unless the practitioner (b) Reliance on others. Except as modified by
believes in good faith and on reasonable grounds that §§10.34 and 10.37, a practitioner will be presumed
the information is privileged. to have exercised due diligence for purposes of
(b) Interference with a proper and lawful request this section if the practitioner relies on the work
for records or information. A practitioner may not product of another person and the practitioner used
interfere, or attempt to interfere, with any proper reasonable care in engaging, supervising, training,
and lawful effort by the Internal Revenue Service, and evaluating the person, taking proper account of
its officers or employees, to obtain any record or the nature of the relationship between the practitioner
information unless the practitioner believes in good and the person.
Treasury Department Circular No. 230 § 10.22 — Page 19
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(c) Effective/applicability date. Paragraph (a) of (4) Particular matter involving specific parties is
this section is applicable on September 26, 2007. defined at 5 CFR 2637.201(c), or superseding post-
Paragraph (b) of this section is applicable beginning employment regulations issued by the U.S. Office of
June 12, 2014. Government Ethics.
(5) Rule includes Treasury regulations, whether
§ 10.23 Prompt disposition of pending matters. issued or under preparation for issuance as notices
of proposed rulemaking or as Treasury decisions,
A practitioner may not unreasonably delay the revenue rulings, and revenue procedures published
prompt disposition of any matter before the Internal in the Internal Revenue Bulletin (see 26 CFR
Revenue Service. 601.601(d)(2)(ii)(b)).
(b) General rules —
§ 10.24 Assistance from or to disbarred or (1) No former Government employee may,
suspended persons and former Internal Revenue subsequent to Government employment, represent
Service employees. anyone in any matter administered by the Internal
Revenue Service if the representation would violate
A practitioner may not, knowingly and directly or 18 U.S.C. 207 or any other laws of the United States.
indirectly: (2) No former Government employee who
(a) Accept assistance from or assist any person personally and substantially participated in a
who is under disbarment or suspension from practice particular matter involving specific parties may,
before the Internal Revenue Service if the assistance subsequent to Government employment, represent
relates to a matter or matters constituting practice or knowingly assist, in that particular matter, any
before the Internal Revenue Service. person who is or was a specific party to that particular
(b) Accept assistance from any former government matter.
employee where the provisions of § 10.25 or any (3) A former Government employee who within
Federal law would be violated. a period of one year prior to the termination of
Government employment had official responsibility
§ 10.25 Practice by former government employees, for a particular matter involving specific parties may
their partners and their associates. not, within two years after Government employment
is ended, represent in that particular matter any person
(a) Definitions. For purposes of this section — who is or was a specific party to that particular matter.
(1) Assist means to act in such a way as to advise, (4) No former Government employee may, within
furnish information to, or otherwise aid another one year after Government employment is ended,
person, directly, or indirectly. communicate with or appear before, with the intent to
(2) Government employee is an officer or influence, any employee of the Treasury Department
employee of the United States or any agency of in connection with the publication, withdrawal,
the United States, including a special Government amendment, modification, or interpretation of a rule
employee as defined in 18 U.S.C. 202(a), or of the the development of which the former Government
District of Columbia, or of any State, or a member of
employee participated in, or for which, within a period
Congress or of any State legislature.
of one year prior to the termination of Government
(3) Member of a firm is a sole practitioner or
employment, the former government employee had
an employee or associate thereof, or a partner,
official responsibility. This paragraph (b)(4) does
stockholder, associate, affiliate or employee of a
not, however, preclude any former employee from
partnership, joint venture, corporation, professional
appearing on one’s own behalf or from representing
association or other affiliation of two or more
a taxpayer before the Internal Revenue Service in
practitioners who represent nongovernmental
connection with a particular matter involving specific
parties.
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parties involving the application or interpretation of matter administered by the Internal Revenue Service
a rule with respect to that particular matter, provided and for which he or she is employed as counsel,
that the representation is otherwise consistent with attorney, or agent, or in which he or she may be in any
the other provisions of this section and the former way interested.
employee does not utilize or disclose any confidential
information acquired by the former employee in the § 10.27 Fees.
development of the rule.
(c) Firm representation — (a) In general. A practitioner may not charge an
(1) No member of a firm of which a former unconscionable fee in connection with any matter
Government employee is a member may represent before the Internal Revenue Service.
or knowingly assist a person who was or is a specific (b) Contingent fees —
party in any particular matter with respect to which (1) Except as provided in paragraphs (b)(2), (3),
the restrictions of paragraph (b)(2) of this section and (4) of this section, a practitioner may not charge
apply to the former Government employee, in that a contingent fee for services rendered in connection
particular matter, unless the firm isolates the former with any matter before the Internal Revenue Service.
Government employee in such a way to ensure that (2) A practitioner may charge a contingent
the former Government employee cannot assist in fee for services rendered in connection with the
the representation. Service’s examination of, or challenge to —
(2) When isolation of a former Government (i) An original tax return; or
employee is required under paragraph (c)(1) of (ii) An amended return or claim for refund or
this section, a statement affirming the fact of such credit where the amended return or claim for refund
isolation must be executed under oath by the former or credit was filed within 120 days of the taxpayer
Government employee and by another member of the receiving a written notice of the examination of, or a
firm acting on behalf of the firm. The statement must written challenge to the original tax return.
clearly identify the firm, the former Government (3) A practitioner may charge a contingent fee
employee, and the particular matter(s) requiring for services rendered in connection with a claim
isolation. The statement must be retained by the firm for credit or refund filed solely in connection with
and, upon request, provided to the office(s) of the the determination of statutory interest or penalties
Internal Revenue Service administering or enforcing assessed by the Internal Revenue Service.
this part. (4) A practitioner may charge a contingent fee
(d) Pending representation. The provisions of for services rendered in connection with any judicial
this regulation will govern practice by former proceeding arising under the Internal Revenue Code.
Government employees, their partners and (c) Definitions. For purposes of this section —
associates with respect to representation in particular (1) Contingent fee is any fee that is based, in
matters involving specific parties where actual whole or in part, on whether or not a position taken
representation commenced before the effective date on a tax return or other filing avoids challenge by
of this regulation. the Internal Revenue Service or is sustained either
(e) Effective/applicability date. This section is by the Internal Revenue Service or in litigation.
applicable beginning August 2, 2011. A contingent fee includes a fee that is based on a
percentage of the refund reported on a return, that
§ 10.26 Notaries. is based on a percentage of the taxes saved, or that
otherwise depends on the specific result attained. A
A practitioner may not take acknowledgments, contingent fee also includes any fee arrangement
administer oaths, certify papers, or perform any in which the practitioner will reimburse the client
official act as a notary public with respect to any for all or a portion of the client’s fee in the event
Treasury Department Circular No. 230 § 10.27 — Page 21
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that a position taken on a tax return or other filing materials provided to the practitioner, or obtained
is challenged by the Internal Revenue Service or by the practitioner in the course of the practitioner’s
is not sustained, whether pursuant to an indemnity representation of the client, that preexisted the
agreement, a guarantee, rescission rights, or any retention of the practitioner by the client. The term also
other arrangement with a similar effect. includes materials that were prepared by the client or a
(2) Matter before the Internal Revenue Service third party (not including an employee or agent of the
includes tax planning and advice, preparing or filing practitioner) at any time and provided to the practitioner
or assisting in preparing or filing returns or claims with respect to the subject matter of the representation.
for refund or credit, and all matters connected with The term also includes any return, claim for refund,
a presentation to the Internal Revenue Service schedule, affidavit, appraisal or any other document
or any of its officers or employees relating to a prepared by the practitioner, or his or her employee or
taxpayer’s rights, privileges, or liabilities under agent, that was presented to the client with respect to
laws or regulations administered by the Internal a prior representation if such document is necessary
Revenue Service. Such presentations include, but for the taxpayer to comply with his or her current
are not limited to, preparing and filing documents, Federal tax obligations. The term does not include any
corresponding and communicating with the Internal return, claim for refund, schedule, affidavit, appraisal
Revenue Service, rendering written advice with or any other document prepared by the practitioner
respect to any entity, transaction, plan or arrangement, or the practitioner’s firm, employees or agents if the
and representing a client at conferences, hearings, practitioner is withholding such document pending the
and meetings. client’s performance of its contractual obligation to pay
(d) Effective/applicability date. This section is fees with respect to such document.
applicable for fee arrangements entered into after
March 26, 2008. § 10.29 Conflicting interests.
§ 10.28 Return of client’s records. (a) Except as provided by paragraph (b) of
this section, a practitioner shall not represent a
(a) In general, a practitioner must, at the request of client before the Internal Revenue Service if the
a client, promptly return any and all records of the representation involves a conflict of interest. A
client that are necessary for the client to comply with conflict of interest exists if —
his or her Federal tax obligations. The practitioner (1) The representation of one client will be
may retain copies of the records returned to a client. directly adverse to another client; or
The existence of a dispute over fees generally does (2)There is a significant risk that the representation
not relieve the practitioner of his or her responsibility of one or more clients will be materially limited by
under this section. Nevertheless, if applicable state law the practitioner’s responsibilities to another client,
allows or permits the retention of a client’s records by a former client or a third person, or by a personal
a practitioner in the case of a dispute over fees for interest of the practitioner.
services rendered, the practitioner need only return (b) Notwithstanding the existence of a conflict
those records that must be attached to the taxpayer’s of interest under paragraph (a) of this section, the
return. The practitioner, however, must provide the practitioner may represent a client if —
client with reasonable access to review and copy (1) The practitioner reasonably believes that the
any additional records of the client retained by the practitioner will be able to provide competent and
practitioner under state law that are necessary for the diligent representation to each affected client;
client to comply with his or her Federal tax obligations. (2) The representation is not prohibited by law;
(b) For purposes of this section — Records of the and
client include all documents or written or electronic (3) Each affected client waives the conflict of
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interest and gives informed consent, confirmed of employment in matters related to the Internal
in writing by each affected client, at the time the Revenue Service if the solicitation violates Federal
existence of the conflict of interest is known by the or State law or other applicable rule, e.g., attorneys
practitioner. The confirmation may be made within a are precluded from making a solicitation that is
reasonable period of time after the informed consent, prohibited by conduct rules applicable to all attorneys
but in no event later than 30 days. in their State(s) of licensure. Any lawful solicitation
(c) Copies of the written consents must be retained made by or on behalf of a practitioner eligible to
by the practitioner for at least 36 months from the practice before the Internal Revenue Service must,
date of the conclusion of the representation of the nevertheless, clearly identify the solicitation as
affected clients, and the written consents must be such and, if applicable, identify the source of the
provided to any officer or employee of the Internal information used in choosing the recipient.
Revenue Service on request. (b) Fee information.
(d) Effective/applicability date. This section is (1)(i) A practitioner may publish the availability
applicable on September 26, 2007. of a written schedule of fees and disseminate the
following fee information —
§ 10.30 Solicitation. (A) Fixed fees for specific routine services.
(B) Hourly rates.
(a) Advertising and solicitation restrictions. (C) Range of fees for particular services.
(1) A practitioner may not, with respect to (D) Fee charged for an initial consultation.
any Internal Revenue Service matter, in any way (ii)Any statement of fee information concerning
use or participate in the use of any form of public matters in which costs may be incurred must include
communication or private solicitation containing a a statement disclosing whether clients will be
false, fraudulent, or coercive statement or claim; or a responsible for such costs.
misleading or deceptive statement or claim. Enrolled (2) A practitioner may charge no more than the
agents, enrolled retirement plan agents, or registered rate(s) published under paragraph (b)(1) of this
tax return preparers, in describing their professional section for at least 30 calendar days after the last date
designation, may not utilize the term “certified” or on which the schedule of fees was published.
imply an employer/employee relationship with the (c) Communication of fee information. Fee
Internal Revenue Service. Examples of acceptable information may be communicated in professional
descriptions for enrolled agents are “enrolled to lists, telephone directories, print media, mailings,
represent taxpayers before the Internal Revenue and electronic mail, facsimile, hand delivered
Service,” “enrolled to practice before the Internal flyers, radio, television, and any other method.
Revenue Service,” and “admitted to practice before The method chosen, however, must not cause the
the Internal Revenue Service.” Similarly, examples communication to become untruthful, deceptive,
of acceptable descriptions for enrolled retirement or otherwise in violation of this part. A practitioner
plan agents are “enrolled to represent taxpayers may not persist in attempting to contact a prospective
before the Internal Revenue Service as a retirement client if the prospective client has made it known
plan agent” and “enrolled to practice before the to the practitioner that he or she does not desire
Internal Revenue Service as a retirement plan to be solicited. In the case of radio and television
agent.” An example of an acceptable description for broadcasting, the broadcast must be recorded
registered tax return preparers is “designated as a and the practitioner must retain a recording of the
registered tax return preparer by the Internal Revenue actual transmission. In the case of direct mail and
Service.” e-commerce communications, the practitioner must
(2) A practitioner may not make, directly or retain a copy of the actual communication, along
indirectly, an uninvited written or oral solicitation with a list or other description of persons to whom the
Treasury Department Circular No. 230 § 10.30 — Page 23
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communication was mailed or otherwise distributed. regarding the terms of the engagement. For example,
The copy must be retained by the practitioner for a the advisor should determine the client’s expected
period of at least 36 months from the date of the last purpose for and use of the advice and should have
transmission or use. a clear understanding with the client regarding the
(d) Improper associations. A practitioner may not, form and scope of the advice or assistance to be
in matters related to the Internal Revenue Service, rendered.
assist, or accept assistance from, any person or entity (2) Establishing the facts, determining which
who, to the knowledge of the practitioner, obtains facts are relevant, evaluating the reasonableness
clients or otherwise practices in a manner forbidden of any assumptions or representations, relating the
under this section. applicable law (including potentially applicable
(e) Effective/applicability date. This section is judicial doctrines) to the relevant facts, and arriving
applicable beginning August 2, 2011. at a conclusion supported by the law and the facts.
(3) Advising the client regarding the import of
(Approved by the Office of Management and Budget the conclusions reached, including, for example,
under Control No. 1545-1726) whether a taxpayer may avoid accuracy-related
penalties under the Internal Revenue Code if a
§ 10.31 Negotiation of taxpayer checks. taxpayer acts in reliance on the advice.
(4) Acting fairly and with integrity in practice
(a) A practitioner may not endorse or otherwise before the Internal Revenue Service.
negotiate any check (including directing or accepting (b) Procedures to ensure best practices for tax
payment by any means, electronic or otherwise, into advisors. Tax advisors with responsibility for
an account owned or controlled by the practitioner or overseeing a firm’s practice of providing advice
any firm or other entity with whom the practitioner concerning Federal tax issues or of preparing or
is associated) issued to a client by the government in assisting in the preparation of submissions to the
respect of a Federal tax liability. Internal Revenue Service should take reasonable steps
(b) Effective/applicability date. This section is to ensure that the firm’s procedures for all members,
applicable beginning June 12, 2014. associates, and employees are consistent with the best
practices set forth in paragraph (a) of this section.
§ 10.32 Practice of law. (c) Applicability date. This section is effective after
June 20, 2005.
Nothing in the regulations in this part may be
construed as authorizing persons not members of the § 10.34 Standards with respect to tax returns and
bar to practice law. documents, affidavits and other papers.
§ 10.33 Best practices for tax advisors. (a) Tax returns.
(1) A practitioner may not willfully, recklessly, or
(a) Best practices. Tax advisors should provide through gross incompetence —
clients with the highest quality representation (i) Sign a tax return or claim for refund that
concerning Federal tax issues by adhering to best the practitioner knows or reasonably should know
practices in providing advice and in preparing or contains a position that —
assisting in the preparation of a submission to the (A) Lacks a reasonable basis;
Internal Revenue Service. In addition to compliance (B) Is an unreasonable position as described
with the standards of practice provided elsewhere in in section 6694(a)(2) of the Internal Revenue Code
this part, best practices include the following: (Code) (including the related regulations and other
(1) Communicating clearly with the client published guidance); or
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(C) Is a willful attempt by the practitioner (A) The practitioner advised the client with
to understate the liability for tax or a reckless or respect to the position; or
intentional disregard of rules or regulations by the (B) The practitioner prepared or signed the tax
practitioner as described in section 6694(b)(2) of the return; and
Code (including the related regulations and other (ii) Any document, affidavit or other paper
published guidance). submitted to the Internal Revenue Service.
(ii) Advise a client to take a position on a tax (2) The practitioner also must inform the client
return or claim for refund, or prepare a portion of a of any opportunity to avoid any such penalties by
tax return or claim for refund containing a position, disclosure, if relevant, and of the requirements for
that — adequate disclosure.
(A) Lacks a reasonable basis; (3) This paragraph (c) applies even if the
(B) Is an unreasonable position as described practitioner is not subject to a penalty under the
in section 6694(a)(2) of the Code (including the Internal Revenue Code with respect to the position
related regulations and other published guidance); or or with respect to the document, affidavit or other
(C) Is a willful attempt by the practitioner paper submitted.
to understate the liability for tax or a reckless or (d) Relying on information furnished by
intentional disregard of rules or regulations by the clients. A practitioner advising a client to take
practitioner as described in section 6694(b)(2) of the a position on a tax return, document, affidavit or
Code (including the related regulations and other other paper submitted to the Internal Revenue
published guidance). Service, or preparing or signing a tax return as a
(2) A pattern of conduct is a factor that will preparer, generally may rely in good faith without
be taken into account in determining whether a verification upon information furnished by the
practitioner acted willfully, recklessly, or through client. The practitioner may not, however, ignore the
gross incompetence. implications of information furnished to, or actually
(b) Documents, affidavits and other papers — known by, the practitioner, and must make reasonable
(1) A practitioner may not advise a client to take inquiries if the information as furnished appears to
a position on a document, affidavit or other paper be incorrect, inconsistent with an important fact or
submitted to the Internal Revenue Service unless the another factual assumption, or incomplete.
position is not frivolous. (e) Effective/applicability date. Paragraph (a) of
(2) A practitioner may not advise a client to this section is applicable for returns or claims for
submit a document, affidavit or other paper to the refund filed, or advice provided, beginning August 2,
Internal Revenue Service — 2011. Paragraphs (b) through (d) of this section are
(i) The purpose of which is to delay or impede applicable to tax returns, documents, affidavits, and
the administration of the Federal tax laws; other papers filed on or after September 26, 2007.
(ii) That is frivolous; or
(iii) That contains or omits information in a § 10.35 Competence.
manner that demonstrates an intentional disregard
of a rule or regulation unless the practitioner also (a) A practitioner must possess the necessary
advises the client to submit a document that evidences competence to engage in practice before the Internal
a good faith challenge to the rule or regulation. Revenue Service. Competent practice requires the
(c) Advising clients on potential penalties — appropriate level of knowledge, skill, thoroughness,
(1) A practitioner must inform a client of any and preparation necessary for the matter for which the
penalties that are reasonably likely to apply to the practitioner is engaged. A practitioner may become
client with respect to — competent for the matter for which the practitioner
(i) A position taken on a tax return if — has been engaged through various methods, such
Treasury Department Circular No. 230 § 10.35 — Page 25
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as consulting with experts in the relevant area or pattern or practice, in connection with their practice
studying the relevant law. with the firm, of failing to comply with this part, as
(b) Effective/applicability date. This section is applicable; or
applicable beginning June 12, 2014. (3) The individual knows or should know that one
or more individuals who are members of, associated
§ 10.36 Procedures to ensure compliance. with, or employed by, the firm are, or have, engaged
in a pattern or practice, in connection with their
(a) Any individual subject to the provisions of this practice with the firm, that does not comply with
part who has (or individuals who have or share) this part, as applicable, and the individual, through
principal authority and responsibility for overseeing willfulness, recklessness, or gross incompetence fails
a firm’s practice governed by this part, including the to take prompt action to correct the noncompliance.
provision of advice concerning Federal tax matters (c) Effective/applicability date. This section is
and preparation of tax returns, claims for refund, applicable beginning June 12, 2014.
or other documents for submission to the Internal
Revenue Service, must take reasonable steps to § 10.37 Requirements for written advice.
ensure that the firm has adequate procedures in
effect for all members, associates, and employees (a) Requirements.
for purposes of complying with subparts A, B, and (1) A practitioner may give written advice
C of this part, as applicable. In the absence of a (including by means of electronic communication)
person or persons identified by the firm as having concerning one or more Federal tax matters subject to
the principal authority and responsibility described the requirements in paragraph (a)(2) of this section.
in this paragraph, the Internal Revenue Service Government submissions on matters of general
may identify one or more individuals subject to the policy are not considered written advice on a Federal
provisions of this part responsible for compliance tax matter for purposes of this section. Continuing
education presentations provided to an audience
with the requirements of this section.
solely for the purpose of enhancing practitioners’
(b) Any such individual who has (or such
professional knowledge on Federal tax matters
individuals who have or share) principal authority
are not considered written advice on a Federal tax
as described in paragraph (a) of this section will be
matter for purposes of this section. The preceding
subject to discipline for failing to comply with the
sentence does not apply to presentations marketing
requirements of this section if—
or promoting transactions.
(1) The individual through willfulness,
(2) The practitioner must—
recklessness, or gross incompetence does not take
(i) Base the written advice on reasonable factual
reasonable steps to ensure that the firm has adequate
and legal assumptions (including assumptions as to
procedures to comply with this part, as applicable,
future events);
and one or more individuals who are members of,
(ii) Reasonably consider all relevant facts
associated with, or employed by, the firm are, or and circumstances that the practitioner knows or
have, engaged in a pattern or practice, in connection reasonably should know;
with their practice with the firm, of failing to comply (iii) Use reasonable efforts to identify and
with this part, as applicable; ascertain the facts relevant to written advice on each
(2) The individual through willfulness, Federal tax matter;
recklessness, or gross incompetence does not take (iv) Not rely upon representations, statements,
reasonable steps to ensure that firm procedures findings, or agreements (including projections,
in effect are properly followed, and one or more financial forecasts, or appraisals) of the taxpayer
individuals who are members of, associated with, or any other person if reliance on them would be
or employed by, the firm are, or have, engaged in a unreasonable;
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(v) Relate applicable law and authorities to facts and circumstances, with emphasis given to the
facts; and additional risk caused by the practitioner’s lack of
(vi) Not, in evaluating a Federal tax matter, take knowledge of the taxpayer’s particular circumstances,
into account the possibility that a tax return will not when determining whether a practitioner has failed
be audited or that a matter will not be raised on audit. to comply with this section.
(3) Reliance on representations, statements, (d) Federal tax matter. A Federal tax matter, as
findings, or agreements is unreasonable if the used in this section, is any matter concerning the
practitioner knows or reasonably should know that application or interpretation of---
one or more representations or assumptions on which (1) A revenue provision as defined in section
any representation is based are incorrect, incomplete, 6110(i)(1)(B) of the Internal Revenue Code;
or inconsistent. (2) Any provision of law impacting a person’s
(b) Reliance on advice of others. A practitioner obligations under the internal revenue laws and
may only rely on the advice of another person if the regulations, including but not limited to the person’s
advice was reasonable and the reliance is in good liability to pay tax or obligation to file returns; or
faith considering all the facts and circumstances. (3) Any other law or regulation administered by
Reliance is not reasonable when— the Internal Revenue Service.
(1) The practitioner knows or reasonably should (e) Effective/applicability date. This section is
know that the opinion of the other person should not applicable to written advice rendered after June 12,
be relied on; 2014.
(2) The practitioner knows or reasonably should
know that the other person is not competent or lacks § 10.38 Establishment of advisory committees.
the necessary qualifications to provide the advice; or
(3) The practitioner knows or reasonably should (a) Advisory committees. To promote and maintain
know that the other person has a conflict of interest in the public’s confidence in tax advisors, the Internal
violation of the rules described in this part. Revenue Service is authorized to establish one or
(c) Standard of review. more advisory committees composed of at least
(1) In evaluating whether a practitioner giving six individuals authorized to practice before the
written advice concerning one or more Federal Internal Revenue Service. Membership of an
tax matters complied with the requirements of this advisory committee must be balanced among those
section, the Commissioner, or delegate, will apply a who practice as attorneys, accountants, enrolled
reasonable practitioner standard, considering all facts agents, enrolled actuaries, enrolled retirement plan
and circumstances, including, but not limited to, the agents, and registered tax return preparers. Under
scope of the engagement and the type and specificity procedures prescribed by the Internal Revenue
of the advice sought by the client. Service, an advisory committee may review and make
(2) In the case of an opinion the practitioner general recommendations regarding the practices,
knows or has reason to know will be used or referred procedures, and policies of the offices described in
to by a person other than the practitioner (or a person §10.1.
who is a member of, associated with, or employed by (b) Effective date. This section is applicable
the practitioner’s firm) in promoting, marketing, or beginning August 2, 2011.
recommending to one or more taxpayers a partnership
or other entity, investment plan or arrangement
a significant purpose of which is the avoidance or
evasion of any tax imposed by the Internal Revenue
Code, the Commissioner, or delegate, will apply a
reasonable practitioner standard, considering all
Treasury Department Circular No. 230 § 10.38 —Page 27
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Subpart C — Sanctions for Violation of the paragraph (a) of this section.
Regulations (ii) If the practitioner described in paragraph
(c)(1)(i) of this section was acting on behalf of an
§ 10.50 Sanctions. employer or any firm or other entity in connection
with the conduct giving rise to the penalty, the
(a) Authority to censure, suspend, or disbar. The Secretary of the Treasury, or delegate, may impose
Secretary of the Treasury, or delegate, after notice a monetary penalty on the employer, firm, or entity
and an opportunity for a proceeding, may censure, if it knew, or reasonably should have known of such
suspend, or disbar any practitioner from practice conduct.
before the Internal Revenue Service if the practitioner (2) Amount of penalty. The amount of the penalty
is shown to be incompetent or disreputable (within shall not exceed the gross income derived (or to be
the meaning of §10.51), fails to comply with any derived) from the conduct giving rise to the penalty.
regulation in this part (under the prohibited conduct (3) Coordination with other sanctions. Subject to
standards of §10.52), or with intent to defraud, paragraph (c)(2) of this section —
willfully and knowingly misleads or threatens a client (i) Any monetary penalty imposed on a
or prospective client. Censure is a public reprimand. practitioner under this paragraph (c) may be in
(b) Authority to disqualify. The Secretary of the addition to or in lieu of any suspension, disbarment or
Treasury, or delegate, after due notice and opportunity censure and may be in addition to a penalty imposed
for hearing, may disqualify any appraiser for a on an employer, firm or other entity under paragraph
violation of these rules as applicable to appraisers. (c)(1)(ii) of this section.
(1) If any appraiser is disqualified pursuant (ii) Any monetary penalty imposed on an
to this subpart C, the appraiser is barred from employer, firm or other entity may be in addition to
presenting evidence or testimony in any or in lieu of penalties imposed under paragraph (c)
administrative proceeding before the Department (1)(i) of this section.
of Treasury or the Internal Revenue Service, (d) Authority to accept a practitioner’s consent to
unless and until authorized to do so by the Internal sanction. The Internal Revenue Service may accept
Revenue Service pursuant to §10.81, regardless of a practitioner’s offer of consent to be sanctioned
whether the evidence or testimony would pertain under §10.50 in lieu of instituting or continuing a
to an appraisal made prior to or after the effective proceeding under §10.60(a).
date of disqualification. (e) Sanctions to be imposed. The sanctions imposed
(2) Any appraisal made by a disqualified by this section shall take into account all relevant
appraiser after the effective date of disqualification facts and circumstances.
will not have any probative effect in any (f) Effective/applicability date. This section is
administrative proceeding before the Department applicable to conduct occurring on or after August 2,
of the Treasury or the Internal Revenue Service. 2011, except that paragraphs (a), (b)(2), and (e) apply
An appraisal otherwise barred from admission into to conduct occurring on or after September 26, 2007,
evidence pursuant to this section may be admitted into and paragraph (c) applies to prohibited conduct that
evidence solely for the purpose of determining the occurs after October 22, 2004.
taxpayer’s reliance in good faith on such appraisal.
(c) Authority to impose monetary penalty — § 10.51 Incompetence and disreputable conduct.
(1) In general.
(i) The Secretary of the Treasury, or delegate, (a) Incompetence and disreputable conduct.
after notice and an opportunity for a proceeding, Incompetence and disreputable conduct for which
may impose a monetary penalty on any practitioner a practitioner may be sanctioned under §10.50
who engages in conduct subject to sanction under includes, but is not limited to —
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(1) Conviction of any criminal offense under the official action of any officer or employee of the
Federal tax laws. Internal Revenue Service by the use of threats, false
(2) Conviction of any criminal offense involving accusations, duress or coercion, by the offer of any
dishonesty or breach of trust. special inducement or promise of an advantage or by
(3) Conviction of any felony under Federal or the bestowing of any gift, favor or thing of value.
State law for which the conduct involved renders (10) Disbarment or suspension from practice
the practitioner unfit to practice before the Internal as an attorney, certified public accountant, public
Revenue Service. accountant, or actuary by any duly constituted
(4) Giving false or misleading information, or authority of any State, territory, or possession of the
participating in any way in the giving of false or United States, including a Commonwealth, or the
misleading information to the Department of the District of Columbia, any Federal court of record or
Treasury or any officer or employee thereof, or to any any Federal agency, body or board.
tribunal authorized to pass upon Federal tax matters, (11) Knowingly aiding and abetting another
in connection with any matter pending or likely to be person to practice before the Internal Revenue
pending before them, knowing the information to be Service during a period of suspension, disbarment
false or misleading. Facts or other matters contained or ineligibility of such other person.
in testimony, Federal tax returns, financial statements, (12) Contemptuous conduct in connection
applications for enrollment, affidavits, declarations, with practice before the Internal Revenue Service,
and any other document or statement, written or oral, including the use of abusive language, making false
are included in the term “information.” accusations or statements, knowing them to be false,
(5) Solicitation of employment as prohibited or circulating or publishing malicious or libelous
under §10.30, the use of false or misleading matter.
representations with intent to deceive a client or (13) Giving a false opinion, knowingly,
prospective client in order to procure employment, recklessly, or through gross incompetence, including
or intimating that the practitioner is able improperly an opinion which is intentionally or recklessly
to obtain special consideration or action from the misleading, or engaging in a pattern of providing
Internal Revenue Service or any officer or employee incompetent opinions on questions arising under the
thereof. Federal tax laws. False opinions described in this
(6) Willfully failing to make a Federal tax return paragraph (a)(l3) include those which reflect or result
in violation of the Federal tax laws, or willfully from a knowing misstatement of fact or law, from an
evading, attempting to evade, or participating in any assertion of a position known to be unwarranted under
way in evading or attempting to evade any assessment existing law, from counseling or assisting in conduct
or payment of any Federal tax. known to be illegal or fraudulent, from concealing
(7) Willfully assisting, counseling, encouraging a matters required by law to be revealed, or from
client or prospective client in violating, or suggesting consciously disregarding information indicating that
to a client or prospective client to violate, any Federal material facts expressed in the opinion or offering
tax law, or knowingly counseling or suggesting to a material are false or misleading. For purposes
client or prospective client an illegal plan to evade of this paragraph (a)(13), reckless conduct is a
Federal taxes or payment thereof. highly unreasonable omission or misrepresentation
(8) Misappropriation of, or failure properly or involving an extreme departure from the standards
promptly to remit, funds received from a client for of ordinary care that a practitioner should observe
the purpose of payment of taxes or other obligations under the circumstances. A pattern of conduct is a
due the United States. factor that will be taken into account in determining
(9) Directly or indirectly attempting to influence, whether a practitioner acted knowingly, recklessly,
or offering or agreeing to attempt to influence, the or through gross incompetence. Gross incompetence
Treasury Department Circular No. 230 § 10.51 — Page 29
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includes conduct that reflects gross indifference, § 10.53 Receipt of information concerning
preparation which is grossly inadequate under the practitioner.
circumstances, and a consistent failure to perform
obligations to the client. (a) Officer or employee of the Internal Revenue
(14) Willfully failing to sign a tax return Service. If an officer or employee of the Internal
prepared by the practitioner when the practitioner’s Revenue Service has reason to believe a practitioner
signature is required by Federal tax laws unless the has violated any provision of this part, the officer
failure is due to reasonable cause and not due to or employee will promptly make a written report
willful neglect. of the suspected violation. The report will explain
(15) Willfully disclosing or otherwise using a the facts and reasons upon which the officer’s or
tax return or tax return information in a manner not employee’s belief rests and must be submitted
authorized by the Internal Revenue Code, contrary to the office(s) of the Internal Revenue Service
to the order of a court of competent jurisdiction, or responsible for administering or enforcing this part.
contrary to the order of an administrative law judge (b) Other persons. Any person other than an
in a proceeding instituted under §10.60. officer or employee of the Internal Revenue Service
(16) Willfully failing to file on magnetic or having information of a violation of any provision
other electronic media a tax return prepared by the of this part may make an oral or written report of
practitioner when the practitioner is required to do the alleged violation to the office(s) of the Internal
so by the Federal tax laws unless the failure is due Revenue Service responsible for administering or
to reasonable cause and not due to willful neglect. enforcing this part or any officer or employee of
(17) Willfully preparing all or substantially the Internal Revenue Service. If the report is made
all of, or signing, a tax return or claim for refund to an officer or employee of the Internal Revenue
when the practitioner does not possess a current or Service, the officer or employee will make a
otherwise valid preparer tax identification number written report of the suspected violation and submit
or other prescribed identifying number. the report to the office(s) of the Internal Revenue
(18) Willfully representing a taxpayer before Service responsible for administering or enforcing
an officer or employee of the Internal Revenue this part.
Service unless the practitioner is authorized to do so (c) Destruction of report. No report made
pursuant to this part. under paragraph (a) or (b) of this section shall
(b) Effective/applicability date. This section is be maintained unless retention of the report is
applicable beginning August 2, 2011. permissible under the applicable records control
schedule as approved by the National Archives
§ 10.52 Violations subject to sanction. and Records Administration and designated
in the Internal Revenue Manual. Reports must
(a) A practitioner may be sanctioned under §10.50 be destroyed as soon as permissible under the
if the practitioner — applicable records control schedule.
(1) Willfully violates any of the regulations (other (d) Effect on proceedings under subpart D. The
than §10.33) contained in this part; or destruction of any report will not bar any proceeding
(2) Recklessly or through gross incompetence under subpart D of this part, but will preclude the
(within the meaning of §10.51(a)(13)) violates §§ use of a copy of the report in a proceeding under
10.34, 10.35, 10.36 or 10.37. subpart D of this part.
(b) Effective/applicability date. This section is (e) Effective/applicability date. This section is
applicable to conduct occurring on or after September applicable beginning August 2, 2011.
26, 2007.
Page 30 —§ 10.51 Treasury Department Circular No. 230
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Subpart D — Rules Applicable to Disciplinary (b) Voluntary sanction —
Proceedings (1) In general. In lieu of a proceeding being
instituted or continued under §10.60(a), a practitioner
§ 10.60 Institution of proceeding. or appraiser (or employer, firm or other entity, if
applicable) may offer a consent to be sanctioned
(a) Whenever it is determined that a practitioner (or under §10.50.
employer, firm or other entity, if applicable) violated (2) Discretion; acceptance or declination. The
any provision of the laws governing practice before Commissioner, or delegate, may accept or decline
the Internal Revenue Service or the regulations in the offer described in paragraph (b)(1) of this
this part, the practitioner may be reprimanded or, in section. When the decision is to decline the offer,
accordance with §10.62, subject to a proceeding for the written notice of declination may state that the
sanctions described in §10.50. offer described in paragraph (b)(1) of this section
(b) Whenever a penalty has been assessed against would be accepted if it contained different terms.
an appraiser under the Internal Revenue Code and an The Commissioner, or delegate, has the discretion to
appropriate officer or employee in an office established accept or reject a revised offer submitted in response
to enforce this part determines that the appraiser acted to the declination or may counteroffer and act upon
willfully, recklessly, or through gross incompetence any accepted counteroffer.
with respect to the proscribed conduct, the appraiser (c) Effective/applicability date. This section is
may be reprimanded or, in accordance with §10.62, applicable beginning August 2, 2011.
subject to a proceeding for disqualification. A
proceeding for disqualification of an appraiser is § 10.62 Contents of complaint.
instituted by the filing of a complaint, the contents of
which are more fully described in §10.62. (a) Charges. A complaint must name the
(c) Except as provided in §10.82, a proceeding respondent, provide a clear and concise description
will not be instituted under this section unless the of the facts and law that constitute the basis for
proposed respondent previously has been advised the proceeding, and be signed by an authorized
in writing of the law, facts and conduct warranting representative of the Internal Revenue Service
such action and has been accorded an opportunity under §10.69(a)(1). A complaint is sufficient if
to dispute facts, assert additional facts, and make it fairly informs the respondent of the charges
arguments (including an explanation or description brought so that the respondent is able to prepare a
of mitigating circumstances). defense.
(d) Effective/applicability date. This section is (b) Specification of sanction. The complaint must
applicable beginning August 2, 2011. specify the sanction sought against the practitioner
or appraiser. If the sanction sought is a suspension,
§ 10.61 Conferences. the duration of the suspension sought must be
specified.
(a) In general. The Commissioner, or delegate, (c) Demand for answer. The respondent must
may confer with a practitioner, employer, firm or be notified in the complaint or in a separate paper
other entity, or an appraiser concerning allegations of attached to the complaint of the time for answering the
misconduct irrespective of whether a proceeding has complaint, which may not be less than 30 days from
been instituted. If the conference results in a stipulation the date of service of the complaint, the name and
in connection with an ongoing proceeding in which the address of the Administrative Law Judge with whom
practitioner, employer, firm or other entity, or appraiser the answer must be filed, the name and address of
is the respondent, the stipulation may be entered in the the person representing the Internal Revenue Service
record by either party to the proceeding. to whom a copy of the answer must be served, and
Treasury Department Circular No. 230 § 10.62 — Page 31
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that a decision by default may be rendered against as determined under section 6212 of the Internal
the respondent in the event an answer is not filed as Revenue Code and the regulations thereunder.
required. (ii) Service of the complaint may be made in
(d) Effective/applicability date. This section is person on, or by leaving the complaint at the office
applicable beginning August 2, 2011. or place of business of, the respondent. Service by
this method will be considered complete and proof
§ 10.63 Service of complaint; service of other of service will be a written statement, sworn or
papers; service of evidence in support of affirmed by the person who served the complaint,
complaint; filing of papers. identifying the manner of service, including the
recipient, relationship of recipient to respondent,
(a) Service of complaint. place, date and time of service.
(1) In general. The complaint or a copy of the (iii) Service may be made by any other means
complaint must be served on the respondent by any agreed to by the respondent. Proof of service will be
manner described in paragraphs (a) (2) or (3) of this a written statement, sworn or affirmed by the person
section. who served the complaint, identifying the manner
(2) Service by certified or first class mail. of service, including the recipient, relationship
(i) Service of the complaint may be made on of recipient to respondent, place, date and time of
the respondent by mailing the complaint by certified service.
mail to the last known address (as determined under (4) For purposes of this section, respondent
section 6212 of the Internal Revenue Code and the means the practitioner, employer, firm or other entity,
regulations thereunder) of the respondent. Where or appraiser named in the complaint or any other
service is by certified mail, the returned post office person having the authority to accept mail on behalf
receipt duly signed by the respondent will be proof of the practitioner, employer, firm or other entity or
of service. appraiser.
(ii) If the certified mail is not claimed (b) Service of papers other than complaint. Any
or accepted by the respondent, or is returned paper other than the complaint may be served on the
undelivered, service may be made on the respondent, respondent, or his or her authorized representative
by mailing the complaint to the respondent by first under §10.69(a)(2) by:
class mail. Service by this method will be considered (1) mailing the paper by first class mail to the last
complete upon mailing, provided the complaint is known address (as determined under section 6212
addressed to the respondent at the respondent’s last of the Internal Revenue Code and the regulations
known address as determined under section 6212 thereunder) of the respondent or the respondent’s
of the Internal Revenue Code and the regulations authorized representative,
thereunder. (2) delivery by a private delivery service
(3) Service by other than certified or first class designated pursuant to section 7502(f) of the
mail. Internal Revenue Code to the last known address
(i) Service of the complaint may be made on (as determined under section 6212 of the Internal
the respondent by delivery by a private delivery Revenue Code and the regulations thereunder)
service designated pursuant to section 7502(f) of the of the respondent or the respondent’s authorized
Internal Revenue Code to the last known address representative, or
(as determined under section 6212 of the Internal (3) as provided in paragraphs (a)(3)(ii) and (a)(3)
Revenue Code and the regulations there under) of the (iii) of this section.
respondent. Service by this method will be considered (c) Service of papers on the Internal Revenue
complete, provided the complaint is addressed to the Service. Whenever a paper is required or permitted
respondent at the respondent’s last known address to be served on the Internal Revenue Service in
Page 32 —§ 10.62 Treasury Department Circular No. 230
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connection with a proceeding under this part, the respondent is without sufficient information to
the paper will be served on the Internal Revenue admit or deny a specific allegation. The respondent,
Service’s authorized representative under §10.69(a) nevertheless, may not deny a material allegation in
(1) at the address designated in the complaint, or at the complaint that the respondent knows to be true,
an address provided in a notice of appearance. If no or state that the respondent is without sufficient
address is designated in the complaint or provided information to form a belief, when the respondent
in a notice of appearance, service will be made on possesses the required information. The respondent
the office(s) established to enforce this part under the also must state affirmatively any special matters of
authority of §10.1, Internal Revenue Service, 1111 defense on which he or she relies.
Constitution Avenue, NW, Washington, DC 20224. (c) Failure to deny or answer allegations in the
(d) Service of evidence in support of complaint. complaint. Every allegation in the complaint that is
Within 10 days of serving the complaint, copies of not denied in the answer is deemed admitted and will
the evidence in support of the complaint must be be considered proved; no further evidence in respect
served on the respondent in any manner described in of such allegation need be adduced at a hearing.
paragraphs (a)(2) and (3) of this section. (d) Default. Failure to file an answer within the time
(e) Filing of papers. Whenever the filing of a prescribed (or within the time for answer as extended
paper is required or permitted in connection with by the Administrative Law Judge), constitutes an
a proceeding under this part, the original paper, admission of the allegations of the complaint and
plus one additional copy, must be filed with the a waiver of hearing, and the Administrative Law
Administrative Law Judge at the address specified Judge may make the decision by default without a
in the complaint or at an address otherwise specified hearing or further procedure. A decision by default
by the Administrative Law Judge. All papers constitutes a decision under §10.76.
filed in connection with a proceeding under this (e) Signature. The answer must be signed by
part must be served on the other party, unless the the respondent or the respondent’s authorized
Administrative Law Judge directs otherwise. A representative under §10.69(a)(2) and must
certificate evidencing such must be attached to the include a statement directly above the signature
original paper filed with the Administrative Law acknowledging that the statements made in the
Judge. answer are true and correct and that knowing and
(f) Effective/applicability date. This section is willful false statements may be punishable under 18
applicable beginning August 2, 2011. U.S.C. §1001.
(f) Effective/applicability date. This section is
§ 10.64 Answer; default. applicable beginning August 2, 2011.
(a) Filing. The respondent’s answer must be filed § 10.65 Supplemental charges.
with the Administrative Law Judge, and served
on the Internal Revenue Service, within the time (a) In general. Supplemental charges may be filed
specified in the complaint unless, on request or against the respondent by amending the complaint
application of the respondent, the time is extended with the permission of the Administrative Law Judge
by the Administrative Law Judge. if, for example —
(b) Contents. The answer must be written and (1) It appears that the respondent, in the answer,
contain a statement of facts that constitute the falsely and in bad faith, denies a material allegation
respondent’s grounds of defense. General denials of fact in the complaint or states that the respondent
are not permitted. The respondent must specifically has insufficient knowledge to form a belief, when the
admit or deny each allegation set forth in the respondent possesses such information; or
complaint, except that the respondent may state that (2) It appears that the respondent has knowingly
Treasury Department Circular No. 230 § 10.65 — Page 33
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introduced false testimony during the proceedings (2) Summary adjudication. Either party may
against the respondent. move for a summary adjudication upon all or any
(b) Hearing. The supplemental charges may be part of the legal issues in controversy. If the non-
heard with other charges in the case, provided the moving party opposes summary adjudication in the
respondent is given due notice of the charges and moving party’s favor, the non-moving party must
is afforded a reasonable opportunity to prepare a file a written response within 30 days unless ordered
defense to the supplemental charges. otherwise by the Administrative Law Judge.
(c) Effective/applicability date. This section is (3) Good Faith. A party filing a motion for
applicable beginning August 2, 2011. extension of time, a motion for postponement of a
hearing, or any other non-dispositive or procedural
§ 10.66 Reply to answer. motion must first contact the other party to determine
whether there is any objection to the motion, and
(a) The Internal Revenue Service may file a reply must state in the motion whether the other party has
to the respondent’s answer, but unless otherwise an objection.
ordered by the Administrative Law Judge, no reply (b) Response. Unless otherwise ordered by the
to the respondent’s answer is required. If a reply is Administrative Law Judge, the nonmoving party
not filed, new matter in the answer is deemed denied. is not required to file a response to a motion. If
(b) Effective/applicability date. This section is the Administrative Law Judge does not order
applicable beginning August 2, 2011. the nonmoving party to file a response, and the
nonmoving party files no response, the nonmoving
§ 10.67 Proof; variance; amendment of pleadings. party is deemed to oppose the motion. If a nonmoving
party does not respond within 30 days of the filing
In the case of a variance between the allegations in of a motion for decision by default for failure to
pleadings and the evidence adduced in support of the file a timely answer or for failure to prosecute, the
pleadings, the Administrative Law Judge, at any time nonmoving party is deemed not to oppose the motion.
before decision, may order or authorize amendment (c) Oral motions; oral argument —
of the pleadings to conform to the evidence. The (1) The Administrative Law Judge may, for good
party who would otherwise be prejudiced by the cause and with notice to the parties, permit oral
amendment must be given a reasonable opportunity motions and oral opposition to motions.
to address the allegations of the pleadings as amended (2) The Administrative Law Judge may, within
and the Administrative Law Judge must make his or her discretion, permit oral argument on any
findings on any issue presented by the pleadings as motion.
amended. (d) Orders. The Administrative Law Judge should
issue written orders disposing of any motion or
§ 10.68 Motions and requests. request and any response thereto.
(e) Effective/applicability date. This section is
(a) Motions — applicable on September 26, 2007.
(1) In general. At any time after the filing of
the complaint, any party may file a motion with the Representation; ex parte communication.
§ 10.69
Administrative Law Judge. Unless otherwise ordered
by the Administrative Law Judge, motions must be
(a) Representation.
in writing and must be served on the opposing party
(1) The Internal Revenue Service may be
as provided in §10.63(b). A motion must concisely
represented in proceedings under this part by an
specify its grounds and the relief sought, and, if
attorney or other employee of the Internal Revenue
appropriate, must contain a memorandum of facts
Service. An attorney or an employee of the Internal
and law in support.
Page 34 — § 10.65 Treasury Department Circular No. 230
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Revenue Service representing the Internal Revenue hearing except in extraordinary circumstances and at
Service in a proceeding under this part may sign the the discretion of the Administrative Law Judge;
complaint or any document required to be filed in (3) Determine the time and place of hearing and
the proceeding on behalf of the Internal Revenue regulate its course and conduct;
Service. (4) Adopt rules of procedure and modify the
(2) A respondent may appear in person, be same from time to time as needed for the orderly
represented by a practitioner, or be represented by disposition of proceedings;
an attorney who has not filed a declaration with (5) Rule on offers of proof, receive relevant
the Internal Revenue Service pursuant to §10.3. A evidence, and examine witnesses;
practitioner or an attorney representing a respondent (6) Take or authorize the taking of depositions or
or proposed respondent may sign the answer or any answers to requests for admission;
document required to be filed in the proceeding on (7) Receive and consider oral or written argument
behalf of the respondent. on facts or law;
(b) Ex parte communication. The Internal Revenue (8) Hold or provide for the holding of conferences
Service, the respondent, and any representatives of for the settlement or simplification of the issues with
either party, may not attempt to initiate or participate the consent of the parties;
in ex parte discussions concerning a proceeding or (9) Perform such acts and take such measures as
potential proceeding with the Administrative Law are necessary or appropriate to the efficient conduct
Judge (or any person who is likely to advise the of any proceeding; and
Administrative Law Judge on a ruling or decision) (10) Make decisions.
in the proceeding before or during the pendency (c) Effective/applicability date. This section is
of the proceeding. Any memorandum, letter or applicable on September 26, 2007.
other communication concerning the merits of the
proceeding, addressed to the Administrative Law § 10.71 Discovery.
Judge, by or on behalf of any party shall be regarded
as an argument in the proceeding and shall be served (a) In general. Discovery may be permitted, at the
on the othe party. discretion of the Administrative Law Judge, only
(c) Effective/applicability date. This section is upon written motion demonstrating the relevance,
applicable beginning August 2, 2011. materiality and reasonableness of the requested
discovery and subject to the requirements of
§ 10.70 Administrative Law Judge. §10.72(d)(2) and (3). Within 10 days of receipt of
the answer, the Administrative Law Judge will notify
(a) Appointment. Proceedings on complaints for the the parties of the right to request discovery and the
sanction (as described in §10.50) of a practitioner, timeframe for filing a request. A request for discovery,
employer, firm or other entity, or appraiser will be and objections, must be filed in accordance with
conducted by an Administrative Law Judge appointed §10.68. In response to a request for discovery, the
as provided by 5 U.S.C. 3105. Administrative Law Judge may order —
(b) Powers of the Administrative Law Judge. The (1) Depositions upon oral examination; or
Administrative Law Judge, among other powers, (2) Answers to requests for admission.
has the authority, in connection with any proceeding (b) Depositions upon oral examination —
under §10.60 assigned or referred to him or her, to do (1) A deposition must be taken before an officer
the following: duly authorized to administer an oath for general
(1) Administer oaths and affirmations; purposes or before an officer or employee of the
(2) Make rulings on motions and requests, which Internal Revenue Service who is authorized to
rulings may not be appealed prior to the close of a administer an oath in Federal tax law matters.
Treasury Department Circular No. 230 § 10.71 — Page 35
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(2) In ordering a deposition, the Administrative (g) Effective/applicability date. This section
Law Judge will require reasonable notice to the is applicable to proceedings initiated on or after
opposing party as to the time and place of the September 26, 2007.
deposition. The opposing party, if attending, will be
provided the opportunity for full examination and § 10.72 Hearings.
cross-examination of any witness.
(3) Expenses in the reporting of depositions (a) In general —
shall be borne by the party at whose instance (1) Presiding officer. An Administrative Law
the deposition is taken. Travel expenses of the Judge will preside at the hearing on a complaint
deponent shall be borne by the party requesting the filed under §10.60 for the sanction of a practitioner,
deposition, unless otherwise authorized by Federal employer, firm or other entity, or appraiser.
law or regulation. (2) Time for hearing. Absent a determination by
(c) Requests for admission. Any party may serve the Administrative Law Judge that, in the interest
on any other party a written request for admission of of justice, a hearing must be held at a later time,
the truth of any matters which are not privileged and the Administrative Law Judge should, on notice
are relevant to the subject matter of this proceeding. sufficient to allow proper preparation, schedule the
Requests for admission shall not exceed a total of 30 hearing to occur no later than 180 days after the time
(including any subparts within a specific request) for filing the answer.
without the approval from the Administrative Law (3) Procedural requirements.
Judge. (i) Hearings will be stenographically recorded
(d) Limitations. Discovery shall not be authorized if — and transcribed and the testimony of witnesses will
(1) The request fails to meet any requirement set be taken under oath or affirmation.
forth in paragraph (a) of this section; (ii) Hearings will be conducted pursuant to
(2) It will unduly delay the proceeding; 5 U.S.C. 556.
(3) It will place an undue burden on the party (iii) A hearing in a proceeding requested under
required to produce the discovery sought; §10.82(g) will be conducted de novo.
(4) It is frivolous or abusive; (iv) An evidentiary hearing must be held in all
(5) It is cumulative or duplicative; proceedings prior to the issuance of a decision by the
(6) The material sought is privileged or otherwise Administrative Law Judge unless —
protected from disclosure by law; (A) The Internal Revenue Service withdraws
(7) The material sought relates to mental the complaint;
impressions, conclusions, of legal theories of any (B) A decision is issued by default pursuant to
party, attorney, or other representative, or a party §10.64(d);
prepared in the anticipation of a proceeding; or (C) A decision is issued under §10.82 (e);
(8) The material sought is available generally (D) The respondent requests a decision on the
to the public, equally to the parties, or to the party written record without a hearing; or
seeking the discovery through another source. (E) The Administrative Law Judge issues a
(e) Failure to comply. Where a party fails to comply decision under §10.68(d) or rules on another motion
with an order of the Administrative Law Judge under that disposes of the case prior to the hearing.
this section, the Administrative Law Judge may, among (b) Cross-examination. A party is entitled to present
other things, infer that the information would be adverse his or her case or defense by oral or documentary
to the party failing to provide it, exclude the information evidence, to submit rebuttal evidence, and to
from evidence or issue a decision by default. conduct cross-examination, in the presence of the
(f) Other discovery. No discovery other than that Administrative Law Judge, as may be required
specifically provided for in this section is permitted. for a full and true disclosure of the facts. This
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paragraph (b) does not limit a party from presenting proceeding and only to the extent that the Secretary
evidence contained within a deposition when the of the Treasury, or delegate, determines that the
Administrative Law Judge determines that the returns or return information are or may be relevant
deposition has been obtained in compliance with the and material to the action or proceeding.
rules of this subpart D. (ii) Disclosure to officers and employees of
(c) Prehearing memorandum. Unless otherwise the Department of the Treasury. Pursuant to section
ordered by the Administrative Law Judge, each party 6103(l)(4)(B) of the Internal Revenue Code the
shall file, and serve on the opposing party or the Secretary of the Treasury, or delegate, may disclose
opposing party’s representative, prior to any hearing, returns and return information to officers and
a prehearing memorandum containing — employees ofthe Department of the Treasury for
(1) A list (together with a copy) of all proposed use in any action or proceeding under this subpart
exhibits to be used in the party’s case in chief; D, to the extent necessary to advance or protect the
(2) A list of proposed witnesses, including a interests of the United States.
synopsis of their expected testimony, or a statement (iii) Use of returns and return information.
that no witnesses will be called; Recipients of returns and return information under
(3) Identification of any proposed expert this paragraph (d)(3) may use the returns or return
witnesses, including a synopsis of their expected information solely in the action or proceeding, or
testimony and a copy of any report prepared by the in preparation for the action or proceeding, with
expert or at his or her direction; and respect to which the disclosure was made.
(4) A list of undisputed facts. (iv) Procedures for disclosure of returns and
(d) Publicity — return information. When providing returns or
(1) In general. All reports and decisions of the return information to the practitioner or appraiser,
Secretary of the Treasury, or delegate, including or authorized representative, the Secretary of the
any reports and decisions of the Administrative Treasury, or delegate, will —
Law Judge, under this subpart D are, subject to (A) Redact identifying information of any
the protective measures in paragraph (d)(4) of this third party taxpayers and replace it with a code;
section, public and open to inspection within 30 (B) Provide a key to the coded information;
days after the agency’s decision becomes final. and
(2) Request for additional publicity. The (C) Notify the practitioner or appraiser, or
Administrative Law Judge may grant a request by authorized representative, of the restrictions on
a practitioner or appraiser that all the pleadings and the use and disclosure of the returns and return
evidence of the disciplinary proceeding be made information, the applicable damages remedy
available for inspection where the parties stipulate under section 7431 of the Internal Revenue Code,
in advance to adopt the protective measures in and that unauthorized disclosure of information
paragraph (d)(4) of this section. provided by the Internal Revenue Service under
(3) Returns and return information — this paragraph (d)(3) is also a violation of this part.
(i) Disclosure to practitioner or appraiser. (4) Protective measures —
Pursuant to section 6103(l)(4) of the Internal (i) Mandatory protection order. If redaction of
Revenue Code, the Secretary of the Treasury, names, addresses, and other identifying information
or delegate, may disclose returns and return of third party taxpayers may still permit indirect
information to any practitioner or appraiser, or to identification of any third party taxpayer, the
the authorized representative of the practitioner Administrative Law Judge will issue a protective
or appraiser, whose rights are or may be affected order to ensure that the identifying information is
by an administrative action or proceeding under available to the parties and the Administrative Law
this subpart D, but solely for use in the action or Judge for purposes of the proceeding, but is not
Treasury Department Circular No. 230 § 10.72 — Page 37
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disclosed to, or open to inspection by, the public. § 10.73 Evidence.
(ii) Authorized orders.
(A) Upon motion by a party or any other (a) In general. The rules of evidence prevailing
affected person, and for good cause shown, the in courts of law and equity are not controlling in
Administrative Law Judge may make any order hearings or proceedings conducted under this part.
which justice requires to protect any person in the The Administrative Law Judge may, however,
event disclosure of information is prohibited by law, exclude evidence that is irrelevant, immaterial, or
privileged, confidential, or sensitive in some other unduly repetitious.
way, including, but not limited to, one or more of (b) Depositions. The deposition of any witness
the following — taken pursuant to §10.71 may be admitted into
(1) That disclosure of information be made evidence in any proceeding instituted under §10.60.
only on specified terms and conditions, including a (c) Requests for admission. Any matter admitted
designation of the time or place; in response to a request for admission under
(2) That a trade secret or other information §10.71 is conclusively established unless the
not be disclosed, or be disclosed only in a designated Administrative Law Judge on motion permits
way. withdrawal or modification of the admission. Any
(iii) Denials. If a motion for a protective order admission made by a party is for the purposes of
is denied in whole or in part, the Administrative the pending action only and is not an admission by
Law Judge may, on such terms or conditions as a party for any other purpose, nor may it be used
the Administrative Law Judge deems just, order against a party in any other proceeding.
any party or person to comply with, or respond in (d) Proof of documents. Official documents,
accordance with, the procedure involved. records, and papers of the Internal Revenue Service
(iv) Public inspection of documents. The and the Office of Professional Responsibility are
Secretary of the Treasury, or delegate, shall ensure admissible in evidence without the production of
that all names, addresses or other identifying details an officer or employee to authenticate them. Any
of third party taxpayers are redacted and replaced documents, records, and papers may be evidenced
with the code assigned to the corresponding taxpayer by a copy attested to or identified by an officer or
in all documents prior to public inspection of such employee of the Internal Revenue Service or the
documents. Treasury Department, as the case may be.
(e) Location. The location of the hearing will be (e) Withdrawal of exhibits. If any document,
determined by the agreement of the parties with the record, or other paper is introduced in evidence
approval of the Administrative Law Judge, but, in as an exhibit, the Administrative Law Judge may
the absence of such agreement and approval, the authorize the withdrawal of the exhibit subject to
hearing will be held in Washington, D.C. any conditions that he or she deems proper.
(f) Failure to appear. If either party to the (f) Objections. Objections to evidence are to be
proceeding fails to appear at the hearing, after made in short form, stating the grounds for the
notice of the proceeding has been sent to him or her, objection. Except as ordered by the Administrative
the party will be deemed to have waived the right Law Judge, argument on objections will not be
to a hearing and the Administrative Law Judge may recorded or transcribed. Rulings on objections
make his or her decision against the absent party by are to be a part of the record, but no exception to
default. a ruling is necessary to preserve the rights of the
(g) Effective/applicability date. This section is parties.
applicable beginning August 2, 2011. (g) Effective/applicability date. This section is
applicable on September 26, 2007.
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§ 10.74 Transcript. response, or if no written response is filed, within
90 days after the motion for summary adjudication
In cases where the hearing is stenographically is filed. A decision shall thereafter be rendered if
reported by a Government contract reporter, copies the pleadings, depositions, admissions, and any
of the transcript may be obtained from the reporter other admissible evidence show that there is no
at rates not to exceed the maximum rates fixed by genuine issue of material fact and that a decision
contract between the Government and the reporter. may be rendered as a matter of law. The decision
Where the hearing is stenographically reported by a must include a statement of conclusions, as well as
regular employee of the Internal Revenue Service, the reasons or basis for making such conclusions,
a copy will be supplied to the respondent either and an order of censure, suspension, disbarment,
without charge or upon the payment of a reasonable monetary penalty, disqualification, or dismissal of
fee. Copies of exhibits introduced at the hearing or the complaint.
at the taking of depositions will be supplied to the (3) Returns and return information. In the
parties upon the payment of a reasonable fee (Sec. decision, the Administrative Law Judge should
501, Public Law 82-137) (65 Stat. 290) (31 U.S.C. use the code assigned to third party taxpayers
§ 483a). (described in §10.72(d)).
(b) Standard of proof. If the sanction is censure or
§ 10.75 Proposed findings and conclusions. a suspension of less than six months’ duration, the
Administrative Law Judge, in rendering findings
Except in cases where the respondent has failed to and conclusions, will consider an allegation of fact
answer the complaint or where a party has failed to to be proven if it is established by the party who is
appear at the hearing, the parties must be afforded a alleging the fact by a preponderance of the evidence
reasonable opportunity to submit proposed findings in the record. If the sanction is a monetary penalty,
and conclusions and their supporting reasons to the disbarment or a suspension of six months or longer
Administrative Law Judge. duration, an allegation of fact that is necessary for
a finding against the practitioner must be proven
§ 10.76 Decision of Administrative Law Judge. by clear and convincing evidence in the record.
An allegation of fact that is necessary for a finding
(a) In general — of disqualification against an appraiser must be
(1) Hearings. Within 180 days after the proved by clear and convincing evidence in the
conclusion of a hearing and the receipt of any record.
proposed findings and conclusions timely (c) Copy of decision. The Administrative Law
submitted by the parties, the Administrative Law Judge will provide the decision to the Internal
Judge should enter a decision in the case. The Revenue Service’s authorized representative, and
decision must include a statement of findings a copy of the decision to the respondent or the
and conclusions, as well as the reasons or basis respondent’s authorized representative.
for making such findings and conclusions, and (d) When final. In the absence of an appeal to the
an order of censure, suspension, disbarment, Secretary of the Treasury or delegate, the decision
monetary penalty, disqualification, or dismissal of of the Administrative Law Judge will, without
the complaint. further proceedings, become the decision of the
(2) Summary adjudication. In the event that agency 30 days after the date of the Administrative
a motion for summary adjudication is filed, the Law Judge’s decision.
Administrative Law Judge should rule on the (e) Effective/applicability date. This section is
motion for summary adjudication within 60 applicable beginning August 2, 2011.
days after the party in opposition files a written
Treasury Department Circular No. 230 § 10.76 — Page 39
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§ 10.77 Appeal of decision of Administrative Law the Secretary of the Treasury, or delegate deciding
Judge. appeals.
(f) Effective/applicability date. This section is
(a) Appeal. Any party to the proceeding under applicable beginning August 2, 2011.
this subpart D may appeal the decision of the
Administrative Law Judge by filing a notice of § 10.78 Decision on review.
appeal with the Secretary of the Treasury, or delegate
deciding appeals. The notice of appeal must include (a) Decision on review. On appeal from or review
a brief that states exceptions to the decision of of the decision of the Administrative Law Judge, the
Administrative Law Judge and supporting reasons Secretary of the Treasury, or delegate, will make the
for such exceptions. agency decision. The Secretary of the Treasury, or
(b) Time and place for filing of appeal. The notice delegate, should make the agency decision within
of appeal and brief must be filed, in duplicate, with 180 days after receipt of the appeal
the Secretary of the Treasury, or delegate deciding (b) Standard of review. The decision of the
appeals, at an address for appeals that is identified Administrative Law Judge will not be reversed unless
to the parties with the decision of the Administrative the appellant establishes that the decision is clearly
Law Judge. The notice of appeal and brief must be erroneous in light of the evidence in the record and
filed within 30 days of the date that the decision applicable law. Issues that are exclusively matters of
of the Administrative Law Judge is served on the law will be reviewed de novo. In the event that the
parties. The appealing party must serve a copy Secretary of the Treasury, or delegate, determines
of the notice of appeal and the brief to any non that there are unresolved issues raised by the record,
appealing party or, if the party is represented, the the case may be remanded to the Administrative Law
non-appealing party’s representative. Judge to elicit additional testimony or evidence.
(c) Response. Within 30 days of receiving the (c) Copy of decision on review. The Secretary of
copy of the appellant’s brief, the other party the Treasury, or delegate, will provide copies of the
may file a response brief with the Secretary of agency decision to the authorized representative of
the Treasury, or delegate deciding appeals, using the Internal Revenue Service and the respondent or
the address identified for appeals. A copy of the the respondent’s authorized representative.
response brief must be served at the same time on (d) Effective/applicability date. This section is
the opposing party or, if the party is represented, applicable beginning August 2, 2011.
the opposing party’s representative.
(d) No other briefs, responses or motions as of § 10.79 Effect of disbarment, suspension, or censure.
right. Other than the appeal brief and response
brief, the parties are not permitted to file any other (a) Disbarment. When the final decision in a case
briefs, responses or motions, except on a grant of is against the respondent (or the respondent has
leave to do so after a motion demonstrating sufficient offered his or her consent and such consent has been
cause, or unless otherwise ordered by the Secretary accepted by the Internal Revenue Service) and such
of the Treasury, or delegate deciding appeals. decision is for disbarment, the respondent will not
(e) Additional time for briefs and responses. be permitted to practice before the Internal Revenue
Notwithstanding the time for filing briefs and Service unless and until authorized to do so by the
responses provided in paragraphs (b) and (c) of this Internal Revenue Service pursuant to §10.81.
section, the Secretary of the Treasury, or delegate (b) Suspension. When the final decision in a case
deciding appeals, may, for good cause, authorize is against the respondent (or the respondent has
additional time for filing briefs and responses offered his or her consent and such consent has
upon a motion of a party or upon the initiative of been accepted by the Internal Revenue Service)
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and such decision is for suspension, the respondent determine the manner of giving notice to the proper
will not be permitted to practice before the Internal authorities of the State by which the censured,
Revenue Service during the period of suspension. suspended, or disbarred person was licensed to
For periods after the suspension, the practitioner’s practice.
future representations may be subject to conditions (b) Effective/applicability date. This section is
as authorized by paragraph (d) of this section. applicable beginning August 2, 2011.
(c) Censure. When the final decision in the case
is against the respondent (or the Internal Revenue § 10.81 Petition for reinstatement.
Service has accepted the respondent’s offer to
consent, if such offer was made) and such decision (a) In general. A practitioner disbarred or
is for censure, the respondent will be permitted to suspended under §10.60, or suspended under
practice before the Internal Revenue Service, but the §10.82, or a disqualified appraiser may petition
respondent’s future representations may be subject for reinstatement before the Internal Revenue
to conditions as authorized by paragraph (d) of this Service after the expiration of 5 years following
section. such disbarment, suspension, or disqualification
(d) Conditions. After being subject to the (or immediately following the expiration of the
sanction of either suspension or censure, the future suspension or disqualification period, if shorter than
representations of a practitioner so sanctioned 5 years). Reinstatement will not be granted unless
shall be subject to specified conditions designed the Internal Revenue Service is satisfied that the
to promote high standards of conduct. These petitioner is not likely to engage thereafter in conduct
conditions can be imposed for a reasonable contrary to the regulations in this part, and that
period in light of the gravity of the practitioner’s granting such reinstatement would not be contrary to
violations. For example, where a practitioner is the public interest.
censured because the practitioner failed to advise (b) Effective/applicability date. This section is
the practitioner’s clients about a potential conflict applicable beginning June 12, 2014.
of interest or failed to obtain the clients’ written
consents, the practitioner may be required to § 10.82 Expedited suspension.
provide the Internal Revenue Service with a copy
of all consents obtained by the practitioner for an (a) When applicable. Whenever the Commissioner,
appropriate period following censure, whether or or delegate, determines that a practitioner is
not such consents are specifically requested. described in paragraph (b) of this section, the
(e) Effective/applicability date. This section is expedited procedures described in this section may
applicable beginning August 2, 2011. be used to suspend the practitioner from practice
before the Internal Revenue Service.
§ 10.80 Notice of disbarment, suspension, censure, (b) To whom applicable. This section applies to
or disqualification. any practitioner who, within 5 years prior to the
date that a show cause order under this section’s
(a) In general. On the issuance of a final order expedited suspension procedures is served:
censuring, suspending, or disbarring a practitioner or (1) Has had a license to practice as an attorney,
a final order disqualifying an appraiser, notification certified public accountant, or actuary suspended or
of the censure, suspension, disbarment or revoked for cause (not including a failure to pay a
disqualification will be given to appropriate officers professional licensing fee) by any authority or court,
and employees of the Internal Revenue Service and agency, body, or board described in §10.51(a)(10).
interested departments and agencies of the Federal (2) Has, irrespective of whether an appeal has
government. The Internal Revenue Service may been taken, been convicted of any crime under title
Treasury Department Circular No. 230 § 10.82 — Page 41
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26 of the United States Code, any crime involving (1) Of the place and due date for filing a
dishonesty or breach of trust, or any felony for which response;
the conduct involved renders the practitioner unfit (2) That an expedited suspension decision by
to practice before the Internal Revenue Service. default may be rendered if the respondent fails to
(3) Has violated conditions imposed on the file a response as required;
practitioner pursuant to §10.79(d). (3) That the respondent may request a conference
(4) Has been sanctioned by a court of competent to address the merits of the show cause order and
jurisdiction, whether in a civil or criminal that any such request must be made in the response;
proceeding (including suits for injunctive relief), and
relating to any taxpayer’s tax liability or relating to (4) That the respondent may be suspended
the practitioner’s own tax liability, for — either immediately following the expiration of the
(i) Instituting or maintaining proceedings period within which a response must be filed or, if a
primarily for delay; conference is requested, immediately following the
(ii) Advancing frivolous or groundless conference.
arguments; or
(d) Response. The response to the show cause order
(iii) Failing to pursue available administrative
described in this section must be filed no later than
remedies.
30 calendar days following the date the show cause
(5) Has demonstrated a pattern of willful
order is served, unless the time for filing is extended.
disreputable conduct by—
The response must be filed in accordance with the
(i) Failing to make an annual Federal tax return,
rules set forth for answers to a complaint in §10.64,
in violation of the Federal tax laws, during 4 of the
except as otherwise provided in this section. The
5 tax years immediately preceding the institution of
response must include a request for a conference, if
a proceeding under paragraph (c) of this section and
a conference is desired. The respondent is entitled
remains noncompliant with any of the practitioner’s
to the conference only if the request is made in a
Federal tax filing obligations at the time the notice
timely filed response.
of suspension is issued under paragraph (f) of this
section; or (e) Conference. An authorized representative
(ii) Failing to make a return required more of the Internal Revenue Service will preside
frequently than annually, in violation of the at a conference described in this section. The
Federal tax laws, during 5 of the 7 tax periods conference will be held at a place and time selected
immediately preceding the institution of a by the Internal Revenue Service, but no sooner
proceeding under paragraph (c) of this section and than 14 calendar days after the date by which the
remains noncompliant with any of the practitioner’s response must be filed with the Internal Revenue
Federal tax filing obligations at the time the notice Service, unless the respondent agrees to an earlier
of suspension is issued under paragraph (f) of this date. An authorized representative may represent
section. the respondent at the conference.
(c) Expedited suspension procedures. A suspension (f) Suspension—
under this section will be proposed by a show cause (1) In general. The Commissioner, or delegate,
order that names the respondent, is signed by an may suspend the respondent from practice before
authorized representative of the Internal Revenue the Internal Revenue Service by a written notice of
Service under §10.69(a)(1), and served according expedited suspension immediately following:
to the rules set forth in §10.63(a). The show cause (i) The expiration of the period within which a
order must give a plain and concise description response to a show cause order must be filed if the
of the allegations that constitute the basis for the respondent does not file a response as required by
proposed suspension. The show cause order must paragraph (d) of this section;
notify the respondent —
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(ii) The conference described in paragraph (e) Subpart E — General Provisions
of this section if the Internal Revenue Service finds
that the respondent is described in paragraph (b) of § 10.90 Records.
this section; or
(iii) The respondent’s failure to appear, either (a) Roster. The Internal Revenue Service will
personally or through an authorized representative, maintain and make available for public inspection
at a conference scheduled by the Internal Revenue in the time and manner prescribed by the Secretary,
Service under paragraph (e) of this section. or delegate, the following rosters —
(2) Duration of suspension. A suspension under
(1) Individuals (and employers, firms, or other
this section will commence on the date that the
entities, if applicable) censured, suspended, or
written notice of expedited suspension is served
disbarred from practice before the Internal Revenue
on the practitioner, either personally or through
Service or upon whom a monetary penalty was
an authorized representative. The suspension will
imposed.
remain effective until the earlier of:
(2) Enrolled agents, including individuals —
(i) The date the Internal Revenue Service lifts
(i) Granted active enrollment to practice;
the suspension after determining that the practitioner
(ii) Whose enrollment has been placed in
is no longer described in paragraph (b) of this section
or for any other reason; or inactive status for failure to meet the requirements
(ii) The date the suspension is lifted or for renewal of enrollment;
otherwise modified by an Administrative Law Judge (iii) Whose enrollment has been placed in
or the Secretary of the Treasury, or delegate deciding inactive retirement status; and
appeals, in a proceeding referred to in paragraph (g) (iv) Whose offer of consent to resign from
of this section and instituted under §10.60. enrollment has been accepted by the Internal
(g) Practitioner demand for §10.60 proceeding. If Revenue Service under §10.61.
the Internal Revenue Service suspends a practitioner (3) Enrolled retirement plan agents, including
under the expedited suspension procedures described individuals —
in this section, the practitioner may demand that (i) Granted active enrollment to practice;
the Internal Revenue Service institute a proceeding (ii) Whose enrollment has been placed in
under §10.60 and issue the complaint described in inactive status for failure to meet the requirements
§10.62. The demand must be in writing, specifically for renewal of enrollment;
reference the suspension action under §10.82, and (iii) Whose enrollment has been placed in
be made within 2 years from the date on which the
inactive retirement status; and
practitioner’s suspension commenced. The Internal
(iv) Whose offer of consent to resign from
Revenue Service must issue a complaint demanded
enrollment has been accepted under §10.61.
under this paragraph (g) within 60 calendar days
(4) Registered tax return preparers, including
of receiving the demand. If the Internal Revenue
individuals —
Service does not issue such complaint within 60 days
(i) Authorized to prepare all or substantially all
of receiving the demand, the suspension is lifted
of a tax return or claim for refund;
automatically. The preceding sentence does not,
(ii) Who have been placed in inactive status for
however, preclude the Commissioner, or delegate,
from instituting a regular proceeding under §10.60 failure to meet the requirements for renewal;
of this part. (iii) Who have been placed in inactive
(h) Effective/applicability date. This section is retirement status; and
generally applicable beginning June 12, 2014, (iv) Whose offer of consent to resign from
except that paragraphs (b)(1) through (4) of this their status as a registered tax return preparer has
section are applicable beginning August 2, 2011. been accepted by the Internal Revenue Service
under §10.61.
Treasury Department Circular No. 230 § 10.90 — Page 43
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(5) Disqualified appraisers. § 10.92 Special orders.
(6) Qualified continuing education providers,
including providers — The Secretary of the Treasury reserves the power to
(i) Who have obtained a qualifying continuing issue such special orders as he or she deems proper
education provider number; and in any cases within the purview of this part.
(ii) Whose qualifying continuing education
number has been revoked for failure to comply with § 10.93 Effective date.
the requirements of this part.
(b) Other records. Other records of the Director Except as otherwise provided in each section and
of the Office of Professional Responsibility may be Subject to §10.91, Part 10 is applicable on July 26,
disclosed upon specific request, in accordance with 2002.
the applicable law.
(c) Effective/applicability date. This section is John Dalrymple,
applicable beginning August 2, 2011. Deputy Commissioner for Services and Enforcement
§ 10.91 Saving provision. Approved: June 3, 2014
Christopher J. Meade,
Any proceeding instituted under this part prior to General Counsel
June 12, 2014, for which a final decision has not been
reached or for which judicial review is still available [FR Doc. 2014-13739 Filed 06/09/2014 at 4:15 pm;
is not affected by these revisions. Any proceeding Publication Date: 06/12/2014]
under this part based on conduct engaged in prior to
June 12, 2014, which is instituted after that date, will
apply subpart D and E of this part as revised, but
the conduct engaged in prior to the effective date of
these revisions will be judged by the regulations in
effect at the time the conduct occurred.
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