IRS releases final Circular 230 regulation amendments; tax-shelter related amendments to be issued later.

• Position: Tax info

The Internal Revenue Service has published final regulations regarding amendments to Circular 230 involving non-tax-shelter related practice before the IRS. The IRS is expected to re-propose (over the next few months) amendments to Circular 230 involving tax-shelter related practice matters.

Circular 230 governs the right of CPAs, attorneys, enrolled agents and enrolled actuaries to practice before the IRS. A brief summary of some of the major provisions of the final regulations follows:

* First, Section 10.20 requires (under certain limited conditions) that a practitioner provide information to the IRS regarding the identity of persons who may have possession or control of requested documents.

* Second, in addition to a requirement to notify a client about any noncompliance, error or omission on a client's part, Section 10.21 generally provides that a practitioner must advise the client of the consequences of such noncompliance, error or omission.

* Third, Section 10.27 clarifies the rules governing the prohibition on practitioners receiving a contingent fee for positions taken or to be taken on an original tax return.

* Finally, the new regulations also address such issues as (a) the return of a client's records, (b) matters involving practitioner advertising and solicitations, (c) the disreputable conduct of a tax practitioner, and (d) IRS disciplinary proceedings.

The AICPA began...