Amendments & Penalties to Circular 230: What You Need to Know LIVE Webcast
IRS Circular 230 now affects a wide variety of professionals including: attorneys, certified public accountants, enrolled agents, enrolled retirement plan agents, registered tax return preparers, and other persons representing taxpayers.
This program will discuss recently adopted amendment to Circular 230, which bring all tax return preparers within the regulatory and disciplinary authority of the IRS.
Some of the key areas addressed in this webcast:
• Categories of practitioners and preparers under the new PTIN rules
• Circular 230 amendments regulating return preparers
• New return preparation standards
• Statute of limitations for bringing disciplinary proceedings under Circular 230
• Tips for complying with Circular 230 and other rules of conduct, avoiding client and preparer penalties
Joseph M. Persinger, Of Counsel,
Milbank, Tweed, Hadley & McCloy LLP
** Speaker Talking Points to be added soon.. **
Annette Nellen, JD, CPA, Professor, Graduate Tax Program,
San José State University
- Categories of practitioners and preparers after the amendments
- comparison chart
- what is a Registered Tax Return Preparer and how and why to become one?
- rights and obligations of RTRPs versus attorneys, CPAs and Enrolled Agents
- Tips for complying with Circular 230 and other rules of conduct and avoiding client and preparer penalties
- how to create and adopt firm policies to better ensure compliance with rules
- other key rules and penalties
- Policy Considerations
- why IRS made changes for tax compliance
- challenges for the IRS
- relevance for compliance and administration
Linda Galler, JD, LLM, Professor,
Maurice A. Deane School of Law at Hofstra University
- PTINS – final rules adopted
- New office (RPO) separate from OPR
- Waiver of continuing education requirements for lawyers, CPAs and enrolled agents
- Circular 230 amendments re return preparers
- Any individual who is paid to prepare all or substantially all of a document regarding a taxpayer’s liabilities for submission to the IRS is engaged in practice and subject to the provisions of Circular 230.
- The section allows OPR to look at the business practices of companies offering tax debt services.
- Because return preparation now constitutes practice before the IRS, suspended or disbarred preparers will be prohibited from preparing returns for compensation.
Circular 230 amendments re return preparation standards
- Circular 230 § 10.34(a). A practitioner may not “willfully, recklessly, or through gross incompetence” advise a client to take a position on a tax return or claim for refund that:
- lacks a “reasonable basis”,
- is an unreasonable position as described in IRC § 6694(a)(2), or
- is a (i) willful attempt by the practitioner to understate the tax liability or (ii) reckless or intentional disregard of rules or regulations as described in IRC § 6694(b)(2).
- A violation of IRC § 6694 will not result in a mandatory violation of Circular 230 § 10.34(a).
- A pattern of conduct is a factor that will be taken into account in determining whether a practitioner acted “willfully, recklessly, or through gross incompetence.”
Broad language in Circular 230 amendments giving the Commissioner (rather than OPR) the authority to initiate disciplinary proceedings 5. (Circular 230 related) Statute of limitations for bringing disciplinary proceedings is five years under 28 U.S.C. § 2462. Begins to run on due date for filing returns (including extensions) or payment of tax, as the case may be.
- Director, OPR v. Hernandez, 2011 TNT 116-22 (May 2011)
- Director, OPR v. Coston, 2011 TNT 205-67 (Oct. 2011)
- Director, OPR v. Craft, 2011 TNT 203-14 (Oct. 2011)
(Circular 230 related) Guidance on Restrictions During Suspension or Disbarment from Practice Before the Internal Revenue Service (Aug. 2011)
- Prohibited acts: prepare or file documents (including tax returns) or other correspondence with the IRS; render written advice with respect to any entity, transaction, plan or arrangement, or other plan or arrangement having a potential for tax avoidance or evasion; represent a client at conferences, hearings, and meetings; execute waivers, consents, or closing agreements; receive a taxpayer’s refund check; sign a tax return on behalf of a taxpayer; file powers of attorney with the IRS; accept assistance from another person (or request assistance) or assist another person (or offer assistance) if the assistance relates to a matter constituting practice before the IRS, or enlist another person for the purpose of aiding and abetting practice before the IRS; state or imply that he or she is eligible to practice before the IRS.
- Permitted acts: represent himself or herself; appear before the IRS as a trustee, receiver, guardian, administrator, executor, or other fiduciary if duly qualified/authorized under the law of the relevant jurisdiction;appear as a witness for the taxpayer;furnish information at the request of the IRS or any of its officers or employees; receive information concerning a taxpayer from the IRS pursuant to a valid tax information authorization.
Who Should Attend:
- Enrolled Agents
- Enrolled Retirement Plan Agents
- Registered Tax Return Prepares
- Other Persons Representing Taxpayers
Joe Persinger is of counsel in the Special Products Group of Milbank, Tweed, Hadley & McCloy LLP. For two decades, the SPG has been the industry leader in a confidential, specialized service (our Tax Account Analysis and Recovery Services, Milbank TAARS®) for large US corporations. Milbank TAARS® determines whether the corporation is entitled to any refunds of interest or penalties in connection with its federal and state taxes.
Mr. Persinger’s practice also includes federal, state and city tax controversies. He has handled audit issues, administrative appeals, tax litigation and collection matters involving public corporations, individuals and tax-exempt organizations.
Before entering private practice, Mr. Persinger served as a trial attorney in the Tax Division of the US Department of Justice. He holds an undergraduate degree from Xavier University (Ohio) and a J.D. and an LL.M. in Taxation from Georgetown University Law Center.
Joe Persinger is of counsel in the Special Products Group of Milbank, Tweed, Hadley & McCloy LLP. For two decades, …
ANNETTE NELLEN, CPA, ESQ., is a professor in and director of San Jose State University’s graduate tax program (MST), teaching courses in tax research, accounting methods, property transactions, state taxation, employment tax, ethics, tax policy, tax reform, and high technology tax issues. Annette chairs the AICPA Individual Taxation Technical Resource Panel and is a member of the Executive Committee of the Tax Section of the California Bar. Annette is a regular contributor to the AICPA Tax Insider and Corporate Taxation Insider e-newsletters. Annette has testified before the House Ways & Means Committee, Senate Finance Committee, California Assembly Revenue & Taxation Committee, and tax reform commissions on various aspects of tax reform. She maintains the 21st Century Taxation website and blog www.21stcenturytaxation.com Prior to joining SJSU, Annette was with Ernst & Young and the IRS.
ANNETTE NELLEN, CPA, ESQ., is a professor in and director of San Jose State University’s graduate tax program (MST), teaching …
Linda Galler is Professor of Law at the Maurice A. Deane School of Law at Hofstra University. She teaches courses in individual income taxation, corporate taxation, international taxation, tax policy and ethics in federal tax practice. Prior to joining the Hofstra faculty, Professor Galler practiced tax law with Shearman & Sterling and Milbank, Tweed, Hadley & McCloy in New York City. She currently consults with Curtis, Mallet-Prevost, Colt & Mosle in the areas of international taxation, corporate taxation, administrative practice, and court procedure.
Professor Galler is a frequent speaker on tax ethics and is co-author of “Regulation of Tax Practice,” published by LexisNexis as part of its Graduate Tax Series. She has chaired the Standards of the Tax Practice Committee and the Teaching Taxation Committee of the ABA Section of Taxation. Professor Galler is a member of the Academic Advisory Board of The Theodore Tannenwald, Jr. Foundation for Excellence in Tax Scholarship.
Linda Galler is Professor of Law at the Maurice A. Deane School of Law at Hofstra University. She teaches courses …
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About San Jos
San José State University is located in the heart of Silicon Valley with a student population of 30,000. Its Master of Science in Taxation program offers over 25 required and elective courses designed to help working professionals deepen their understanding of taxation to help advance their careers and offers students planning to enter tax careers, a strong foundation.
About Maurice A. Deane School of Law at Hofstra University
The Maurice A. Deane School of Law at Hofstra University prepares passionate students to make an impact in their communities and beyond. Accredited by the American Bar Association and ranked in the top 100 law schools nationwide, Hofstra Law is located on the campus of Hofstra University in Hempstead, New York. Along with a Juris Doctor (J.D.) degree program, the Law School offers Master of Laws (LL.M.) degree programs in American Legal Studies (for foreign law graduates) and Family Law.