Circular 230 revised: written tax advice.The IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. and Treasury Department have issued revisions to the Circular 230 standards for written tax advice that were announced late last year. The revisions clarify several areas of the new standards, including: * Advice from in-house tax professionals to their employers; * Situations in which the advice is provided after the client files the relevant tax return; and * "Negative advice," wherein where·in adv. In what way; how: Wherein have we sinned? conj. 1. In which location; where: the country wherein those people live. 2. an adviser tells a client a transaction will not provide the purported pur·port·ed adj. Assumed to be such; supposed: the purported author of the story. pur·port  ed·ly adv. tax benefit. The revised standards also provide a definition of "the principal purpose" of tax avoidance The process whereby an individual plans his or her finances so as to apply all exemptions and deductions provided by tax laws to reduce taxable income. Through tax avoidance, an individual takes advantage of all legal opportunities to minimize his or her state or federal , and relax specific requirements for the format of disclosures that are required for certain written tax advice. [ILLUSTRATION OMITTED] The written opinion standards and the changes will apply to written advice rendered after June 20, 2005. For more information, visit www.irs.gov/newsroom/article/0,,id=138998,00.html. |
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