Intuit Accountants News Central

Circular 230 – How it Affects the Tax Professional

Article Post Date
January 31st 2012 by Megan Sonicksen

Circular 230 are the IRS rules for all individuals preparing tax returns or giving tax advice for compensation. The following are some of the rules included in Circular 230.

Paid tax preparers must:

Paid tax preparers cannot:

Also included in Circular 230 are rules that allow paid tax preparers to represent taxpayers before revenue agents, customer service representatives and other similar employees of the IRS including the Taxpayer Advocate Service during an examination.

According to Circular 230, Registered Tax Return Preparers (RTRPs) may not do the following:

Other paid tax preparers, such as CPAs, EAs and attorneys may assist clients in these manners.

RTRPs also have other limitations outlined in Circular 230, including certain items when advertising and solicitation:

All paid tax professionals must follow these guidelines when advertising and solicitation:

If a paid tax preparer does adhere to Circular 230, the IRS has the authority to censure, suspend and disbar. The IRS can also issue monetary penalties.

Editor’s Note: This is the third in a series four “hot topic” articles for tax preparers. Each one will be published on succeeding Tuesdays in January 2012, and links to the other articles will be provided as they publish.

First Article: Tax Return Preparer Requirements
Second Article: What is a Preparer Tax ID Number?
Third Article: What is a Registered Tax Return Preparer?

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  • About Megan Sonicksen

    Megan Sonicksen Born in Menomonee Falls, WI and currently resides in Oshkosh, WI. Works at National Association of Tax Professionals (NATP) as a Tax Communications Specialist. Develops publications that announces tax code updates and provides in-depth explanations of the industry's most imperative changes. Network tens of thousands of individual tax professionals, enrolled agents, certified public accountants, accountants, attorneys and financial planners through various social media venues. Create and implement a collection of resources and products to engage tax professional's clients and manage tax practice as efficiently as possible See all of Megan's articles…

    You can also visit Megan's Website

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