Treasury and IRS propose regulations to update rules for tax professionals who can practice before the IRS

[Elrod]

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued proposed regulations to update the rules for certain tax professionals who can practice before the IRS; these rules are contained in Treasury Department Circular 230.

https://www.irs.gov/newsroom/treasury-and-irs-propose-regulations-to-update-rules-for-tax-professionals-who-can-practice-before-the-irs

[BrewOne]

I've charged contingency fees on amended returns (when my usual fee would wipe out a significant portion of the benefit); that may be out under the new regulations.

[Lee B]

What caught my attention, was changes to assure "Technical Competence"?

[jklcpa]

3 hours ago, Lee B said:

to assure "Technical Competence"

It actually said "technological" competency. It may be that this part of the proposal is attempting to incorporate the rules regarding safeguarding clients' and our information into Circ 230 and possibly expand on that, but I don't know that IRS has the authority to regulate tax preparers' technological competence. The statement is too broad and general to know what it means. 

 

For those that don't like links, here is the proposal:

Quote

IR-2024-315, Dec. 20, 2024

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued proposed regulations to update the rules for certain tax professionals who can practice before the IRS; these rules are contained in Treasury Department Circular 230.

The IRS Office of Professional Responsibility generally has responsibility for matters related to practitioner conduct, and exclusive responsibility for discipline, including disciplinary proceedings and sanctions. The proposed regulations, if finalized, would amend Circular 230 in various ways to account for changes in the law and the evolving nature of tax practice.

Among other changes, the proposed regulations would remove or update the parts of Circular 230 related to registered tax return preparers and tax return preparation, as well as contingent fees to reflect changes in the law since the prior amendments to Circular 230 in 2011 and 2014. The proposed regulations would also revise or eliminate other provisions that are out of date.

Additionally, the proposed regulations would incorporate new provisions that better align Circular 230 with the current practice environment, such as requiring that practitioners maintain technological competency as part of their practice before the IRS. The proposed regulations would also clarify some provisions, such as confirming that OPR retains jurisdiction over practitioners who have been suspended or disbarred from practice.

Finally, the proposed regulations would provide rules related to appraisers, including the standards for disqualification.

 

[Lee B]

There were 849,531 PTINs issued for 2024.

464,293 were for tax preparers that were not subject to Circular 230.

[BulldogTom]

21 hours ago, Lee B said:

There were 849,531 PTINs issued for 2024.

464,293 were for tax preparers that were not subject to Circular 230.

If IRS keeps this crap up, there will be 100% of preparers not subject to circular 230.   We can all just hang a shingle and forget professional certification.   Buy a copy of turdo tax and off we go.

Tom
Longview, TX