IRS releases final Circular 230 regulation amendments; tax-shelter related amendments to be issued later. (tax info).The Internal Revenue Service has published final regulations regarding amendments to Circular 230 involving non-tax-shelter related practice before the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. . 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 An Enrolled Agent (or EA) is a tax professional recognized by the United States federal government to represent taxpayers in dealings with the Internal Revenue Service. The profession has been regulated by Congress since 1884. and enrolled actuaries An Enrolled Actuary (or EA) is an actuary who has been licensed by a Joint Board of the Department of the Treasury and the Department of Labor to perform a variety of actuarial tasks required of pension plans in the U.S. 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 noncompliance failure of the owner to follow instructions, particularly in administering medication as prescribed; a cause of a less than expected response to treatment. 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 Payment to an attorney for legal services that depends, or is contingent, upon there being some recovery or award in the case. The payment is then a percentage of the amount recovered—such as 25 percent if the matter is settled, or 30 percent if it proceeds to trial. 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 dis·rep·u·ta·ble adj. Lacking respectability, as in character, behavior, or appearance. dis·rep conduct of a tax practitioner, and (d) IRS disciplinary proceedings. The AICPA AICPA See American Institute of Certified Public Accountants (AICPA). began discussing with the IRS recommendations for amendments to Circular 230 before the IRS released its proposed amendments in Jan. 2001. The AICPA filed comprehensive comments on the proposed Circular 230 amendments in Apr. 2001, and has met on several occasions since then with IRS officials, as well as filed supplemental comments on specific issues under Circular 230. These final regulations (TD 9011) are published in the Internal Revenue Bulletin (IRB IRB See: Industrial Revenue Bond 2002-33, 356) dated Aug. 19, 2002, and online at www.irs.gov/bus_info/bullet.html. On that Web page, select "Internal Revenue Bulletin 2002-33 Weekly," then click "Retrieve Selected Files." If you have any questions, call Benson Goldstein, Technical Manager, at 202/434-9279 or send an e-mail to bgoldstein@aicpa.org. Where to Turn for Member Services Address changes/membership information (Member Satisfaction Center) * memsat@aicpa.org ** 800/362-5066 *** 888/777-7077 *** Voice Mail Box comments, 888/999-9252 |
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