Circular 230

To kind of go along with my last post, I wanted to inform everyone about the rules that the Internal Revenue Service has in place for all of the tax professionals out there. Each person who hires a tax firm, attorney or tax preparer to either resolve their tax issues or just prepare a tax return, should review to rules and regulations laid out in Circular 230.

Who does the Circular 230 apply to you might ask- anyone who gives out tax advice. Whether you are an Enrolled Agent, tax attorney, tax preparer or just happen to work in a tax resolution firm make sure the advice you give is correct to the best of your knowledge.

Any person can be sanctioned for several reasons by the Office of Professional Responsibility if he/she does any of the following:

1. Knowingly omits information and does not correct the taxpayer and inform them of the consequences
2.Exercise due diligence
3. Does not give accurate advice
4. Does not promptly submit documents to the IRS after they have been requested

And for many other reasons as well. Circular 230 lists out the consequences for not meeting the requirements listed, including disbarment or worse.

Every tax payer should no their rights- and every tax professional should understand their responsibility- not only to their clients- but also to the IRS.