Department
of the
Treasury
Internal
Revenue
Service

Publication 470 (Rev. 1-82)
Cat. No. 46538V

                                                  Office of International Operations or the           taxable year in which the carryback or
                                                  Director of International Operations.               carryforward arose unless that person
Limited                                                .02 This revenue procedure does not apply      prepared and signed a return for that year or
                                                  to attorneys, certified public accountants, or      years.
Practice                                          agents who are enrolled to practice before the           .07 The privilege to practice as a taxpayer's
                                                  Internal Revenue Service. The rules governing       representative in accordance with this
                                                  the practice of such persons before the Service     revenue's procedure shall not constitute
                                                                                                      enrollment nor a finding of eligibility for
Without                                           are contained in the provisions of Circular 230.    enrollment.
                                                  Sec. 4. Scope of Authority                          Sec. 5. Limitations of the Privilege of
Enrollment                                                                                            Limited  Practice
                                                       .01 An unenrolled individual who signs a
                                                  return as its preparer may act as the taxpayer's         .01 Privilege of limited practice without
26 CFR 601.502: Requirements for                  representative if accompanied by the taxpayer,      enrollment afforded an individual preparer of
conference-recognition to practice                or by filing a written authorization from the       returns is restricted to representation before
and, in certain cases, power of                   taxpayer as provided herein in section 6.           the examining officer stated in section 4.04. No
attorney or tax information                       Such representation is limited to practice          unenrolled preparer shall represent or
                                                  before examining officers of the                    correspond as the taxpayer's representative
                                                                                                      before the Appeals offices nor before the
authorization. (Also 31 CFR Part 10,              Examination Division in the offices of              officials in the National Office.
Section 10.7: Limited practice without            District Directors and in the Office of                  .02 In addition, the following acts on behalf
enrollment.)                                      International Operations, and may only              of the taxpayer are beyond the scope of
                                                  encompass matters concerning the tax liability      authority permitted an unenrolled preparer:
                                                  of the taxpayer for the taxable year covered by          (a) Executing claims for refund;
Rev. Proc. 81-38                                  that return, subject to the limitations herein           (b) Receiving checks in payment of any
                                                  prescribed.                                                    refund of Internal Revenue taxes,
Section 1. Purpose                                     .02 Privilege of limited practice before the              penalties, or interest;
                                                  Internal Revenue Service is limited to any               (c) Executing consents to extend the
     The purpose of this revenue procedure is to  person who is not under disbarment or                          statutory period for assessment or
prescribe the standards of conduct, the scope     suspension from practice before the Internal                   collection of a tax;
                                                                                                           (d) Executing closing agreements with
of authority, and the circumstances and           Revenue Service or from practice of the                        respect to a tax liability or specific
conditions under which an individual preparer of  person's profession by any other authority (in                 matter; and
tax returns may exercise, without enrollment,     the case of attorneys, certified public                  (e) Executing waivers of restriction on
the privilege of limited practice as a taxpayer's accountants, public accountants, or actuaries).                assessment or collection of a deficiency
representative before the Internal Revenue             .03 An unenrolled individual who prepared a               in tax.
Service, pursuant to section 10.7(a)(7) of        return that provides no space on the
Treasury Department Circular No. 230, [1966-2     prescribed form for signature of the preparer,      Sec. 6. Form of Authorization From the
C.B. 1171] (31 CFR Part 10).                      or who prepared a return with respect to which      Taxpayer and Declaration by the
                                                  the instructions or regulations do not require      Representative
Sec. 2. Changes                                   that it be signed by the preparer, may appear            .01 Internal Revenue Service Form 2848-D,
                                                  as the taxpayer's representative, if properly       Authorization and Declaration, which can be
     This revenue procedure modifies Rev. Proc.   authorized, as set forth in section 4.01.           obtained from local Internal Revenue Service
68-20, 1968-1 C.B. 812, to reflect changes in          .04 If  the unenrolled preparer appears        offices, may be used in meeting the
titles based on the Internal Revenue Service's    before the examining officers without the           authorization and declaration requirements in
reorganization effective July 2, 1978, and        taxpayer, written authorization from the            section 4.04 of this revenue procedure. Part I
applicable revisions to Treasury Department       taxpayer for such representation as provided in     of Form 2848-D is the taxpayer's authorization
Circular No. 230, [19671-C.B. 433; 1970-2 C.B.    section 6 must be filed with the examining          for the representative to receive and inspect
644] relating to practice before the Internal     officer along with a declaration that he or she is  confidential tax information and act as the
Revenue Service.                                  not currently under suspension or disbarment        taxpayer's representative before the Internal
                                                  from practice before the Internal Revenue           Revenue Service and to make written or oral
Sec. 3. Applicability                             Service. The unenrolled preparer may also be        presentations of fact or argument on behalf of
                                                                                                      the taxpayer for the specified tax matter(s).
                                                  required to furnish satisfactory identification.    Part II  is the representative's declaration that
     .01 This revenue procedure, issued pursuant       .05 The unenrolled preparer will be            the representative is not currently under
to section 10.7(a)(7) of Circular 230, applies to expected to recognize questions, issues and         suspension or disbarment from practice before
all unenrolled individual preparers of returns    factual situations of such difficulty as to require the Internal Revenue Service and is authorized
who seek to represent taxpayers, within the       additional expert assistance and to suggest to      to represent the taxpayer as a certified public
United States, before examining officers in       the taxpayer that the taxpayer seek such            accountant, attorney, enrolled agent,
the Examination Division of an Office of a        assistance.                                         unenrolled return preparer, etc.
District Director of Internal Revenue or in the        .06 If a carryback or carryfoward, or both,         .02 The use of technical language in the
Office of International Operations. Any           are involved in a tax return, the unenrolled        preparation of an authorization is not
reference herein to the District Director will be preparer will not be recognized as the              necessary, but the instrument must clearly
construed, where appropriate, to include the      taxpayer's representative with respect to the       indicate that the designated unenrolled
                                                                                                      preparer is authorized to represent the
                                                                                                      taxpayer before the Internal Revenue Service

 and specify the return prepared to which the            Sec. 8. Solicitation and Advertising                         (e) Any individual who refuses or has
 authority relates. The authorization must also                                                                           refused to comply with this revenue
 clearly set forth the taxpayer's name and                    .01 An unenrolled preparer shall not make,                  procedure;
 address, the name and mailing address of the            directly or indirectly, an uninvited solicitation of         (f)  Any individual whose conduct or
 unenrolled preparer and must be signed by the           employment, except as noted below, in matters                    practices have been or are such as to
 taxpayer or taxpayers.                                  relating to the Internal Revenue Service.                        constitute a violation of SEC.7 or 8 of
                                                         Solicitation includes, but is not limited to, in-person          this revenue procedure;
 Sec. 7. Ethics and Conduct                              contacts, telephone communications, and                      (g) Any individual who is an officer or
                                                         personal mailings directed to the specific                       employee of the United States or of
      .01 An unenrolled preparer shall act in such       circumstances unique to the recipient. This                      the District of Columbia; and
 manner as not to commit any act of disreputable         restriction does not apply to (1) seeking new                (h) Any individual who is an officer or
 conduct. Disreputable conduct includes, but is          business from an existing or former client in a                  employee of any state or any subdivision
 not limited to, the items contained in section          related matter or (2) solicitation by mailings, the              thereof, whose duties authorize such
 10.51 of Circular 230.                                  contents of which are designed for the general                   individual to investigate, pass upon, or
      .02 An unenrolled preparer shall not charge        public.                                                          act with respect to tax matters of that
 an unconscionable fee for representation of a                .02 No unenrolled preparer shall, with respect              state or subdivision, if such employment
 client in any matter before the Internal Revenue        to any Internal Revenue Service matter, in any                   may make or makes available to the
 Service.                                                way use or participate in the use of any form of                 individual facts or information applicable
      .03 An unenrolled preparer shall not neglect or    public communication containing false, fraudulent,               to federal tax matters.
 refuse to submit records or information in any          misleading, deceptive, unduly influencing,                   .02 In addition, corporations, associations,
 matter before the Internal Revenue Service upon         coercive, or unfair statement or claim. This            partnerships, or other business entities are
 proper and lawful request by a duly authorized          prohibition includes, but is not limited to,            ineligible to practice before the Internal
 officer or employee of the Service; and the             statements pertaining to the quality of services        Revenue Service.
 unenrolled preparer shall not interfere, or attempt     rendered unless subject to factual verification,
 to interfere, with any proper and lawful efforts by     claims of specialized expertise not authorized by       Sec. 10. Rules Governing Recognition of
 the officers of employees of the Service to obtain      state or federal agencies having jurisdiction over      Unenrolled Preparers
 information, unless the preparer believes in good       the preparer, and the statements or suggestions
 faith and on reasonable grounds that the request        that the ingenuity and/or prior record of a                  .01 Any examining officer, or other Service
 for, or effort to obtain, such record or information    representative rather than the merit of the matter      officer or employee who has reason to believe
 is of doubtful legality.                                are principal factors likely to determine the result    that an unenrolled preparer's conduct has been
      .04 Any unenrolled preparer who knows that         of the matter.                                          or is such as would render the preparer
 the client has not complied with the revenue law,            .03 An unenrolled preparer may, in a dignified     ineligible to appear as the taxpayer's
 or that the client has made an error in or              manner, publish, use, or broadcast through any          representative before the Internal Revenue
 omission from any return, document, affidavit, or       means of communication:                                 Service, shall communicate this information to
 other paper that the client is required by law to            (a) The name, address, telephone number            the District Director of the taxpayer.
 execute in connection with any matter                             and office hours of the preparer or firm;          .02 In administering this revenue procedure,
 administered by the Service, shall advise the                (b) The names of individuals associated            each District Director exercises original
 client promptly of the fact of the noncompliance,                 with the firm;                                jurisdiction in determining whether an
 error, or omission.                                          (c) A factual description of the services          unenrolled preparer is eligible to appear as a
      .05 An unenrolled preparer shall exercise due                offered;                                      taxpayer's representative. When the District
 diligence in preparing or assisting in the                   (d) That certain credit cards and other            Director receives information, either before or
 preparation, approving, and filing of returns,                    credit arrangements will be accepted;         after an unenrolled preparer has been
 documents, affidavits, or other papers relating to           (e) Foreign language ability;                      recognized, indicating that the preparer's
 Internal Revenue Service matters. The preparer               (f) Appropriate fee information; and               conduct , practice, or employment has been or
 shall also exercise due diligence in determining             (g) Other facts relevant to the selection of       may be such as to render the preparer
 (1) the correctness of oral and written                           an unenrolled preparer, which are not         ineligible to represent taxpayers, the District
 representations made by the preparer to the                       prohibited by the provisions of this revenue  Director will issue a written notice to the
 Service, and (2) the correctness of                               procedure.                                    unenrolled preparer of proposed determination
 representations made by the preparer to the             Sec. 9. Persons Ineligible To Practice Under            of ineligibility. This notice will contain
 client with reference to any matter administered        This Revenue Procedure                                  information sufficient to apprise the unenrolled
 by the Service.                                               .01 The following persons shall be ineligible to  preparer of the basis for the proposed
      .06 An unenrolled preparer shall not               exercise the privilege of limited practices before      determination of ineligibility and will contain a
 unreasonably delay the prompt disposition of            the Internal Revenue Service:                           request for a written reply within 30 days, and
 any matter before the Internal Revenue Service.              (a) Any individual who has been convicted          advise as to whether a conference is desired
      .07 An unenrolled preparer, as a Notary                      of any criminal offense under the Revenue     with the District Director of the District
 Public, shall not take acknowledgements,                          Laws of the United States or any offense      Director's delegate. if the unenrolled preparer
 administer oaths, certify papers, or perform any                  involving dishonesty or breach of trust       fails to reply, or upon review if a reply is filed,
 official act in connection with matters relating to               within 5 years of the date of attempt to      or after a conference if one is held, the District
 the client's tax liabilities, or in connection with any           exercise the privilege. Individuals who have  Director will notify the unenrolled preparer in
 other matter in which the preparer may in any                     been so convicted more than 5 years before    writing of the District Director's final
 way have given assistance or been employed. In                    the date of attempt to exercise the privilege determination. When warranted, the
 addition, the preparer may not take any                           may be permitted to practice upon showing     determination will state the unenrolled preparer
 acknowledgements, oaths, or certification as a                    of evidence of rehabilitation satisfactory to is ineligible to exercise the privilege of limited
 Notary Public relating to any tax return, protest,                the Director of the Examination Division;     practice before the Service and that the District
 or other document that the preparer has prepared             (b) Any individual who is under disbarment or      Director's determination may be appealed to
 or that the preparer has assisted in preparing. (26               suspension from practice as an attorney,      the Director, Examination Division. A copy of
 OP. Atty. Gen. 236.)                                              certified public accountant, public           each final determination of ineligibility issued
      .08 An unenrolled preparer shall not procure,                accountant, or actuary by any duly            by the District Director will be fowarded to the
 or attempt to procure, directly or indirectly, from               constituted authority of any state,           Director, Examination Division, National Office,
 Government records or Government sources,                         possession, territory, Commonwealth, the      Internal Revenue Service, together with copies
 information of any kind that is not made available                District of Columbia, any federal court of    of the notice of proposed determination of
 by proper authority.                                              record, or any federal agency, body or        ineligibility, the unenrolled prepare's reply, if
      .09 An unenrolled preparer shall not represent               board;                                        one is filed, and any other related papers or
 conflicting interests in the preparer's limited              (c) Any individual who is disbarred or             documents.
 practice before the Service, except by express                    suspended from practice before the Internal        .03 An unenrolled preparer who wishes to
 consent of all directly interested parties after full             Revenue Service;                              appeal a District Director's final determination
 disclosure has been made.                                    (d) Any individual whose application for
                                                                   enrollment to practice before the Internal
                                                                   Revenue Service has been denied;
2

of ineligibility may, within 30 days of receipt of      .04 Whenever an unenrolled preparer's or     the Internal Revenue Service may request, after
the final determination, submit a signed, written  conduct has been or is such as would render       1 year following the notice of final determination
appeal together with the preparer's reasons in     the preparer ineligible to appear as the          of ineligibility or decision on appeal, that the
support of it, addressed to the Internal Revenue   taxpayer's representative before the Internal     preparer's eligibility for limited practice be
Service, Assistant Commissioner (Compliance),      Revenue Service, Service employees will           reinstated. Requests for reinstatement will be
Director, Examination Division, Attention:         continue to recognize the representative until a  made to the District Director who may modify or
CP:E:E:C,[*] 1111 Constitution Avenue, N.W.,       final determination of ineligibility has been     revoke any previous determination. The District
Washington, D.C. 20224. Upon filing of the         issued by the District Director, and either the   Director will consider the nature of the violation
written appeal, and the reasons in support of it,  time for appeal has expired, or all appeals have  that resulted in ineligilbitly, the period of
the unenrolled preparer, upon request, will be     been exhausted. However, recognition will not     ineligibility, and the preparer's current
afforded the opportunity of a conference with      be continued where Service employees              adherence to the standards of ethics and
the Director, Examination Division or the          determine, or receive instructions from the       conduct established by this revenue procedure
Director's designee. A decision will then be       District Director or the District Director's      in evaluating the request for reinstatement to
rendered by the Director, Examination Division     designee, that the representative should not be   limited practice. The consideration of a request
or the Director's designee affirming, reversing,   recognized because significant rights or          for reinstatement will not be a reevaluation of
or modifying the decision of the District Director interests of the taxpayer or Internal Revenue     any original determination of ineligibilty.
upon such terms and conditions as seem             Service could be substantially harmed by
warranted under the facts and circumstances of     continued recognition.                            Sec.12. Inquiries
the particular appeal. The decision of the
Director, Examination Division or the Director's   Sec. 11. Special Orders
designee on this appeal will be final.                                                                    Inquiries from unenrolled preparers and
                                                        .01 The Director, Examination Division may   Service personnel regarding this revenue
                                                   issue such special orders as the Director may     procedure should be addressed to the Internal
                                                   deem proper in any matter within the purview of   Revenue Service, Assistant Commissioner
                                                   this revenue procedure,                           (Compliance), Director, Examination Division,
                                                        .02 The unenrolled preparer who has been     Attention: CP:E:E:C, [*] 1111 Constitution
                                                   determined ineligible for limited practice before Avenue, N.W., Washington, D.C., 20224.
                                                                                                     Sec.13. Effect on Other Documents
                                                                                                          Rev. Proc. 68-20 is modified and, as
                                                                                                     modified, is superseded.
                                                                                                     *Now designated as CP:E:E:S

(Reprinted from Internal Revenue Bulletin No. 1981-35, dated August 31, 1981)

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