An Ode to Circular 230

The basis for any practitioner who is going to practice before the Internal Revenue Service ("IRS") is Circular 230.  Simply put, it regulates those who practice before the IRS.  When I first began working for my current employer, which is a tax resolution company, I basically relied on my gut and legal training as a guide for ethical practice before the IRS. At a basic level, this worked for the simple cases that I was initially dealing with.  However, as I started working on more complicated issues, I had gut reactions about what was ethical and what was not but wanted something more concrete as to what my ethical duties were.  Blame it on the attorney in me.

Low and behold, I discovered Circular 230--the blue print for ethical practice before the IRS.  Now, I am not a Circular 230 expert by any means.  However, if I have an issue with something and want support for my gut reaction that something is unethical or "iffy", I start here.  I do not know about other practitioners, but just the ability to base my reasoning for acting in a certain way on something concrete makes me feel more confident about my decisions.



The following is a link to Circular 230 in PDF format: http://www.irs.gov/pub/irs-utl/pcir230.pdf.

One important section for my fellow attorneys who practice before the IRS is section 10.3(a).  This section gives an attorney who is not currently under suspension or disbarment the authority to practice before the IRS.  Yes, POWER!  (Just kidding. Maybe.)

Another important section is Subpart B--Duties and Restrictions Relating to Practice Before the Internal Revenue Service.  I repeat, THIS PART IS IMPORTANT!  Especially if you are fond of your legal license. This is pretty much the ABA Model Rules of Professional Conduct with an IRS twist.  This is why I and a lot of other attorneys get that initial gut wrench reaction when something is "iffy".  It is due to the hours we spent in our Ethics course in law school having the Model Rules and any state specific ethic rules drilled into our brains.

I am not going to go line by line through Subpart B with a detailed explanation; however, I will point out some nifty section titles such as "Information to be Furnished", "Knowledge of Client's Omissions", and "Diligence as to Accuracy".

Circular 230 is definitely becoming a staple on my tablet (which I am purchasing today) and will be consulted  first whenever I get that "iffy" feeling.

Keep Calm and Practice on!