IRS releases final circular 230 regulation amendments. (IRS News).

The IRS has published final regulations regarding amendments to Circular 230 involving non-tax shelter related practice before the IRS.

Over the next few months, the IRS is expected to re-propose 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.

The major provisions of the final regulations include:

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

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

* Sec. 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.

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

These final regulations (TD 9011) are published in the Aug. 19 Internal Revenue Bulletin (IRB 2002-33, 356) and available online at www.irs.gov/bus_info/bullet.html. Select Internal Revenue Bulletin 2002-3 3 Weekly, then click Retrieve Selected Files.

If you have any questions, contact CalCPA's Accounting and Auditing Answerline at [phone], ext. 2355.