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Federal Ethics for the Tax Professional: Circular 230 and IRC §6694 2012 Edition The JW Group, LLC P.O. Box 507 Aptos, CA 95001-0507 (831) 435-3271 Federal Regulation of Tax Preparers - Overview Title 31 Code of Federal Regulations, Subtitle A, Part 10 – also known as Circular 230 – provides Federal regulations governing the practice before the Department of Treasury / Internal Revenue Service. The statutory authority for these regulations is 31 U.S.C. §330. General Scope of Circular 230 Pursuant to §10.0 of Circular 230, attorneys, certified public accountants, enrolled agents, enrolled retirement plan agents and registered tax return preparers are subject to the regulations set forth in Circular 230. In addition to those tax professionals listed above, other persons representing taxpayers before the Internal Revenue Service are also regulated by Circular 230 under certain circumstances. Office of Professional Responsibility (OPR) Under §10.1 of Circular 230 the Office of Professional Responsibility (OPR) is the primary section of the Internal Revenue Service that has the power to administer and enforce the regulations set forth in Circular 230. The OPR has the power to discipline tax practitioners for violations of the rules contained in Circular 230. What is Considered “Practicing” Before the IRS? §10.2(4) of Circular 230 states that practice before the Internal Revenue Service (IRS) comprehends all matters connected with a presentation to the IRS relating to a taxpayer’s rights, privileges, or liabilities under laws or regulations administered by the Internal Revenue Service. Such presentations include, but are not limited to: preparing documents; filing documents; corresponding and communicating with the IRS; rendering written advice with respect to any entity, transaction, plan or arrangement, or other plan or arrangement having a potential for tax avoidance or evasion; and representing a client at conferences, hearings, and meetings. Who May Practice Befor