Attorneys
An attorney is any person who is a member in good standing of the bar of the highest court of any state, territory, or possession of the United States, including a Commonwealth, or the District of Columbia. An attorney, not currently under suspension or disbarment from practice before the IRS, is eligible to practice before the IRS. In order to practice, an attorney must generally file with the IRS a written declaration that the attorney is currently qualified as an attorney and is authorized to represent the party or parties on whose behalf he or she acts; however, no declaration is required before rendering written tax advice covered under section 10.35 or section 10.37, but the rendering of this advice is practice before the IRS as defined in section 10.2(a)(4).
The requirement for the attorney’s declaration stems from title 5, United States Code, section 500. A properly completed Form 2848, Power of Attorney and Declaration of Representative, will satisfy the requirement for the declaration.
An attorney in other than active status as an attorney in his/her licensing state has the burden of establishing that he or she in nevertheless in good standing with the bar of the highest court of the licensing jurisdiction. Good standing means current eligibility to practice before the court.
A license to practice law issued in, or by, a foreign jurisdiction does not confer eligibility to practice before the IRS.
If an attorney is eligible to practice before the IRS, he or she may represent taxpayers located in any United States jurisdiction with respect to all matters administered by the IRS.
Certified public accountants
A certified public accountant is any person who is duly licensed to practice as a certified public accountant in any state, territory, or possession of the United States, including a Commonwealth, or the District of Columbia. A license to practice accountancy as a public or registered accountant, or some other title not conferring “certified public accountant” status, issued under the laws of any United States jurisdiction does not necessarily confer eligibility to practice before the IRS.
A certified public accountant, not currently under suspension or disbarment from practice before the IRS, is eligible to practice before the IRS. In order to practice, a certified pubic accountant must generally file with the IRS a written declaration that the certified public accountant is currently qualified as a certified public accountant and is authorized to represent the party or parties on whose behalf he or she acts; however, no declaration is required before rendering written advice covered under section 10.35 or section 10.37, but the rendering of this advice is practice before the IRS as defined in section 10.2(a)(4).
The requirement for the certified public accountant’s declaration stems from title 5, United States Code, section 500. A properly completed Form 2848, Power of Attorney and Declaration of Representative, will satisfy the requirement for the declaration.
A certified public accountant who is duly qualified is an individual who is currently eligible to exercise all rights conferred by a license to practice as a certified public accountant. A certified public accountant in other than active status as a certified public accountant has the burden of establishing that he or she is nevertheless duly qualified.
A license to practice accountancy issued in, or by, a foreign jurisdiction does not confer eligibility to practice before the IRS.
If a certified public accountant is eligible to practice before the IRS, he or she may represent taxpayers located in any United States jurisdiction with respect to all matters administered by the IRS.
Enrolled agents
Any individual enrolled as an agent pursuant to Circular 230 who is not currently under suspension or disbarment from practice before the IRS may practice before the IRS to the extent granted by the Director. A former IRS employee who seeks to obtain enrolled agent status by virtue of his or her former employment with that agency, may be limited in the extent of practice before the Examination, Collection, Appeals, or Criminal Investigation pursuant to Circular 230, section 10.4(c).
An enrolled agent will not be recognized as a representative unless he or she is appointed as an attorney-in-fact on a power of attorney and files the declaration required by title 26, Code of Federal Regulations, section 601.502. A properly completed Form 2848, Power of Attorney and Declaration of Representative, will satisfy the Section 601.502 requirements. No declaration is required before rendering written advice covered under section 10.35 or section 10.37, but the rendering of this advice is practice before the IRS as defined in section 10.2(a)(4).
Only enrolled agents in active status are eligible to practice before the IRS.
If an enrolled agent is eligible to practice before the IRS, he or she may represent taxpayers located in any United States jurisdiction with respect to all matters administered by the IRS, subject to any limitations imposed by the Director under Circular 230, section 10.4(c).
Enrolled actuaries
Any individual who is enrolled as an actuary by the Joint Board for the Enrollment of Actuaries pursuant to title 29, United States Code, section 1242, and who is not currently under suspension or disbarment from practice before the IRS may practice before the IRS by filing with the IRS a written declaration stating that he or she is currently qualified as an enrolled actuary and is authorized to represent the party or parties on whose behalf he or she acts. A properly completed Form 2848, Power of Attorney and Declaration of Representative, will satisfy the requirement for the declaration. The practice of enrolled actuaries before the IRS is limited to certain statutory provisions concerning employee plans.
Only enrolled actuaries in active status as an enrolled actuary are eligible to practice before the IRS. Enrolled actuaries in inactive status or individuals’ whose enrollment as an enrolled actuary has been terminated by the Joint Board are not eligible to practice before the IRS.
Enrolled actuaries who practice before the IRS must observe the rules of conduct in Circular 230 and are subject to the disciplinary jurisdiction of both the Joint Board and the Office of Professional Responsibility.
If an enrolled actuary is eligible to practice before the IRS, he or she may represent taxpayers located in any United States jurisdiction but only with respect to certain statutory provisions concerning employee plans.
Enrolled retirement plan agents
Any individual enrolled as a retirement plan agent pursuant to Circular 230 who is not currently under suspension or disbarment from practice before the IRS may practice before the IRS. However, an enrolled retirement plan agent will not be recognized as a representative unless he or she is appointed as an attorney-in-fact on a power of attorney and files the declaration required by title 26 Code of Federal Regulations, section 601.502. A properly completed Form 2848, Power of Attorney and Declaration of Representative, will satisfy the section 601.502 requirements. The practice of enrolled retirement plan agents before the IRS is limited to certain issues involving retirement plans.
Only enrolled retirement plan agents in active status are eligible to practice before the IRS.
If an enrolled retirement plan agent is eligible to practice before the IRS, he or she may represent taxpayers located in any United States jurisdiction but only with respect to those matters specifically involving retirement plans.
Appraisers – Presentation of evidence or testimony
Appraiser may present evidence or testimony in administrative proceeding before the Department of the Treasury or the IRS. An individual’s status as an appraiser does not confer eligibility to practice before the IRS as that term is defined in section 10.2.
Circular 230 authorizes the Office of Professional Responsibility (OPR) to institute a proceeding for disqualification against an appraiser who has been assessed a penalty under section 6701(a) of the Internal Revenue Code. If an appraiser is disqualified, the appraiser is barred from presenting evidence or testimony in administrative proceedings, unless and until requalified to do so by the Director of OPR pursuant to Circular 230, section 10.81, regardless of whether the evidence or testimony would pertain to an appraisal made prior to or after the effective date of disqualification.
An appraisal made by a disqualified appraiser after the effective date of disqualification will not have any probative effect in any administrative proceedings. An appraisal otherwise barred from admission into evidence may be admitted into evidences solely for the purpose of determining the taxpayer’s reliance in good faith on such appraisal.
Unenrolled return preparers – Limited practice before the IRS (Pre-2011 Provisions)
An individual who prepares and signs a taxpayer’s tax return as the preparer, or who prepares a tax return but is not required by the instructions to the tax return or regulations to sign the tax return, may represent the taxpayer, with respect to the prepared return, before revenue agents, customer service representatives, or similar officers and employees of the IRS during an examination of the taxable year or period covered by that tax return. However, unless otherwise prescribed by regulation or notice, this right does not permit such individual to represent the taxpayer, regardless of the circumstances requiring representation, before appeals officers, revenue officers, Chief Counsel personnel, or similar officers or employees of the IRS or the Department of the Treasury. Such representation is known as “limited practice.”
An individual who is under suspension or disbarment from practice before the IRS in some other capacity before the IRS may not engage in limited practice.
An individual who engages in limited practice will not be recognized as a representative unless he or she is appointed as an attorney-in-fact on a power of attorney and files the declaration required by Title 26, Code of Federal Regulations, section 601.502. A properly completed Form 2848, Power of Attorney and Declaration of Representative, will satisfy the section 601.502 requirements. In any particular situation, only one individual will be eligible to engage in limited practice; therefore in such situations, only one such individual can be named as a representative on the Form 2848.
An individual who engages in limited practice is subject to the standards of conduct set out in Revenue Procedure 81-38, which is reprinted in pamphlet form as Publication 470, Limited Practice Without Enrollment). Under Revenue Procedure 81-38, Area Directors have the authority to issue final determinations of ineligibility to engage in limited practice, and the Office of Professional Responsibility has the authority to decide appeals from such determinations. An individual who exhibits conduct which would otherwise be subject to discipline under section 10.50 may be denied limited practice rights.
If an individual is eligible to engage in limited practice before the IRS, he or she may represent the taxpayer within the scope of limited practice regardless of the taxpayer’s location.
Public accountants
The IRS Chief Counsel has determined that certain public accountants (e.g., Licensed Public Accountants, Registered Public Accountants, Public Accountants) in some states are eligible to practice before the IRS. Counsel’s position is being updated in the context of the planned regulation of all tax return preparers beginning in 2011.
Circular 230
Eligibility to Practice before the IRS |
