The U.S. Department of Treasury and the IRS have proposed updates to regulations affecting tax professionals who practice before the IRS. These proposed changes aim to amend Circular 230 Regulations Governing Practice Before the Internal Revenue Service, reflecting legal changes and evolving tax practices.
The proposal includes several significant adjustments. It seeks to remove or update provisions related to registered tax return preparers and classify certain contingent fee arrangements by practitioners as disreputable conduct. Additionally, it introduces new requirements for practitioners to maintain technological competency in their practice.
Clarifications are also part of the proposed regulations. They confirm that the IRS Office of Professional Responsibility will retain authority over suspended or disbarred practitioners. The rules would also address standards for appraisers, including criteria for disqualification.
Public comments on these proposals can be submitted until February 24 through the Federal eRulemaking Portal at https://www.regulations.gov. A public hearing is scheduled for March 6.
