First Published in the:
Journal of Tax Practice and Procedure
Circular 230 Best Practice, Tax Shelter Opinions and Other Written Advice Standards
In December 2003, the Treasury issued proposed changes to the Circular 230 regulations (which govern the conduct of those who represent taxpayers before the IRS) that provided for the establishment of “best practices” by representatives and their firms, or employer, and provided specific requirements and standards for the issuance of “tax shelter opinions.”
Not surprisingly, there was a great outcry among tax professionals (and attorneys, in particular) about overreach on the part of the IRS and the possibility that tax advisor/client relationships would be seriously, adversely impacted. An enormous volume of commentary was received at the IRS with respect to the proposals.
So, in December 2004, the Treasury revised the Circular 230 changes and issued “final” regulations that took effect June 20, 2005 (180 days after their December release).
Again, not surprisingly, there was perhaps an even greater outcry among tax professionals (and attorneys, in particular) about overreach on the part of the IRS and the possibility that tax advisor/client relationships would be seriously, adversely impacted. An enormous volume of commentary was received at the IRS with respect to the proposals and is still pouring in.
The Treasury responded by making certain additions and revisions to the proposals and, despite requests from countless tax professionals and organizations to delay the effective date of the new standards, the Circular 230 provisions went into effect as scheduled.
Read Circular 230: An Overview [PDF]*Dennis Brager, Esq., is a State Bar Certified Tax Specialist in Los Angeles. A former IRS senior trial attorney, Mr. Brager now devotes his efforts exclusively to helping clients resolve their tax problems with the IRS and California State tax agencies. Services include negotiating Tax Debts, Tax Fraud Representation, Tax Litigation, Tax Audit and Appeals Representation, Tax Preparer Penalty Mitigation, Payroll Tax Audits, and California Sales Tax Problems. He may be reached at 800.380.TAX LITIGATOR.
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