Circular 230, power of attorney, penalties, collections, appeals and audit procedures.
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- What is Circular 230?
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Treasury Department regulations governing practice before the IRS- Who may practice before the IRS?
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CPAs, attorneys, enrolled agents, and other IRS-authorized persons- What form authorizes representation before the IRS?
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Form 2848, Power of Attorney and Declaration of Representative- Can an Enrolled Agent represent a client in an IRS audit?
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Yes, with a valid Form 2848 or other written authorization- What is a limited power of attorney?
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Authorization to represent a taxpayer only on specific matters or before specific IRS offices- What is required when a representative withdraws from representation?
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Written notice to both the taxpayer and the IRS- What penalty applies to practicing before the IRS without authorization?
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Criminal penalties and civil penalties, up to $1,000 for individuals- Are contingent fee arrangements generally permitted under Circular 230?
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No, except for amended returns or reconsiderations already submitted- What is a covered opinion under Circular 230?
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Written advice on tax matters that could affect tax liability- What confidence level threshold defines a covered opinion?
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Greater than 50 percent confidence that the tax treatment will be accepted- Can a representative practice if it creates a conflict of interest?
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No, a representative cannot practice when a conflict of interest exists- May a representative disclose client information to third parties?
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Only with client consent or as required by law or court order- What standard applies to tax return preparation?
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Representatives must exercise competence, diligence, and due care- What does best practices in tax advice require?
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Clear communication with clients and documented reasoning for positions- What penalty applies to aiding and abetting tax evasion?
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Willful violation penalties, up to $1,000, and potential imprisonment
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