OPR is delegated authority to regulate the representation activities of unlicensed return preparers
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OPR ResourcesCircular 230 Tax Professionals Circular No. 230 (Rev. 6-2014) |
Issue Number: 2014-05Inside This IssueOPR is Delegated Authority to Regulate the Representation Activities of Unlicensed Return Preparers Effective September 3, 2014, The Commissioner signed Delegation Order 25-16 (Rev. 1), which includes authority for the Office of Professional Responsibly (OPR) to receive and process referrals for misconduct by tax return preparers who engage in limited practice before the IRS under Revenue Procedure 81-38. OPR also was given authority for disciplinary actions in connection with the new Annual Filing Season Program under Rev. Proc. 2014-42. Rev. Proc. 81-38 contains the terms and conditions for representation of taxpayers before Examination, Customer Service, and the Taxpayer Advocate Service by unenrolled, unlicensed tax return preparers. Under the revenue procedure, which dates back to the late 1950’s, any unenrolled/unlicensed return preparer is generally eligible to act as a taxpayer’s representative so long as the preparer BOTH prepared and signed the return under examination. Restrictions exist if the preparer was convicted in the last five years of a federal tax crime, has had CAF privileges suspended previously, or has been suspended or disbarred from practice before the IRS. Additionally, Rev. Proc. 81-38 prescribes standards of ethical conduct and fitness to practice applicable to preparers who engage in representation, similar to provisions in Circular 230. Preparers who violate the standards are subject to loss of their limited practice privileges. The revenue procedure provides for notice to a preparer of the proposed termination of the preparer’s limited practice privileges, an opportunity to respond (and request a conference), and an administrative appeal of an initial adverse determination. Delegation Order 25-16 (Rev. 1) authorizes OPR to carry out these functions. OPR has developed a formal process, including standardized documents and operating procedures to implement this authority. OPR is also educating the Operating Divisions about Rev. Proc. 81-38 and encouraging compliance personnel who interact with unenrolled preparers appointed as representatives to make referrals to OPR in appropriate situations. Note that Rev. Proc. 2014-42, which becomes effective for all tax returns prepared after December 31, 2015 requires a successful applicant for the Annual Filing Season Program Record of Completion to agree to be governed by all of Subpart B of Circular 230 and Section 10.51 of Subpart C. Beginning January 1, 2016, unlicensed/unenrolled return preparers, who do not participate in the new Rev. Proc. 2014-42 program, will not be able to represent under any circumstances with respect to returns they prepare and sign on or after that date. Thank you for subscribing to the IRS Newswire, an IRS e-mail service. If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe. This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message. |