Taxation & Regulation (REG)

Treasury Department regulations (31 CFR Part 10) governing practice before the IRS — the duties and restrictions on attorneys, CPAs, enrolled agents, enrolled actuaries, enrolled retirement plan agents, and other practitioners, plus the sanctions for violations.

Attorneys, CPAs, enrolled agents (EAs), enrolled actuaries, and enrolled retirement plan agents have full practice rights. Annual filing season program participants and certain unenrolled preparers have limited rights (only for returns they prepared).

Communicating with the IRS on a taxpayer's behalf, representing a taxpayer at conferences/hearings/meetings, preparing and filing documents, and rendering written tax advice. Merely preparing a return is generally not, by itself, 'practice,' though it makes one subject to Circular 230.

Promptly advise the client of the noncompliance, error, or omission and explain the consequences (including penalties) under the Code and regulations. The practitioner is not required to notify the IRS, but must inform the client.

A practitioner may generally rely in good faith, without verification, on information furnished by the client. However, the practitioner must make reasonable inquiries if the information appears incorrect, inconsistent, or incomplete.

The practitioner must promptly submit records or information unless they believe in good faith and on reasonable grounds that the request is privileged. A practitioner may not interfere with a lawful IRS effort to obtain records.