Circular 230—Paper #1
Write a 2-page paper (Times-New Roman 12 point—double spaced) addressing the following issues.
1.
What entity promulgates the rules and regulations of Circular 230?
2.
What authority does this entity have to enforce these rules?
3.
Provide an overview of the key provisions. You do not need to provide detailed analysis of these provisions.
4.
How might these rules impact the tax practice of a CPA? Use one specific rule to support your argument.
Your paper should be written in complete sentences and paragraphs (as opposed to a series of bullet points). Your objective in this paper is to convince me that you have a solid understanding of why Circular 230 is an important guideline for tax practitioners.
Circular 230 rubric Rubric for 2-page Ethics Paper Addressing Circular 230 Total PointsPoints Awarded 1Identified the entity that promulgated Circular 2301 2Explained the enforcement authority for Cir. 2301 3Explained the key provisions of Circular 2303 4Described the important of Circular 230 in tax practice of CPAs.3 5Paper was well-written and presented a logical argument.2 Total Points100 AICPA SSTS Rubric Rubric for 2-page Ethics Paper Addressing Circular 230 Total PointsPoints Awarded 1Identified the entity that promulgated the AICPA SSTS1 2Explained the enforcement authority of the AICPA SSTS1 3Explained the key provisions of the AICPA SSTS.3 4Described the important of the AICPA SSTS in tax practice of CPAs.3 5Paper was well-written and presented a logical argument.2 Total Points100 Treasury Department Circular No. 230 (Rev. 6-2014) Treasury Department Regulations Governing Practice before the Internal Revenue Service Circular No. 230 (Rev. 6-2014) Catalog Number 16586R www.irs.gov Department of the Treasury Title 31 Code of Federal Regulations, Subtitle A, Part 10, published (June 12, 2014) Internal Revenue Service http://www.irs.gov 31 U.S.C. §330. Practice before the Department (a) Subject to section 500 of title 5, the Secretary of the Treasury may — (1) regulate the practice of representatives of persons before the Department of the Treasury; and (2) before admitting a representative to practice, require that the representative demonstrate — (A) good character; (B) good reputation; (C) necessary qualifications to enable the representative to provide to persons valuable service; and (D) competency to advise and assist persons in presenting their cases. (b) After notice and opportunity for a proceeding, the Secretary may suspend or disbar from practice before the Department, or censure, a representative who — (1) is incompetent; (2) is disreputable; (3) violates regulations prescribed under this section; or (4) with intent to defraud, willfully and knowingly misleads or threatens the person being represented or a prospective person to be represented. The Secretary may impose a monetary penalty on any representative described in the preceding sentence. If the representative was acting on behalf of an employer or any firm or other entity in connection with the conduct giving rise to such penalty, the Secretary may impose a monetary penalty on such employer, firm, or entity if it knew, or reasonably should have known, of such conduct. Such penalty shall not exceed the gross income derived (or to be derived) from the conduct giving rise to the penalty and may be in addition to, or in lieu of, any suspension, disbarment, or censure of the representative. (c) After notice and opportunity for a hearing to any appraiser, the Secretary may — (1) provide that appraisals by such appraiser shall not have any probative effect in any administrative proceeding before the Department of the Treasury or the Internal Revenue Service, and (2) bar such appraiser from presenting evidence or testimony in any such proceeding. (d) Nothing in this section or in any other provision of law shall be construed to limit the authority of the Secretary of the Treasury to impose standards applicable to the rendering of written advice with respect to any entity, transaction plan or arrangement, or other plan or arrangement, which is of a type which the Secretary determines as having a potential for tax avoidance or evasion. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 884; Pub. L. 98–369, div. A, title I, §156(a), July 18, 1984, 98 Stat. 695; Pub. L. 99–514, §2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 108–357, title VIII, §822(a)(1), (b), Oct. 22, 2004, 118 Stat. 1586, 1587; Pub. L. 109–280, title XII, §1219(d), Aug. 17, 2006, 120 Stat. 1085.) Page 2 Treasury Department Circular No. 230 Table of Contents Paragraph 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 § 10.0 Scope of part. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Subpart A — Rules Governing Authority to Practice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 10.1 Offices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 § 10.2 Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 § § 10.3 Who may practice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 § 10.4 Eligibility to become an enrolled agent, enrolled retirement plan agent, or registered tax return preparer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 § 10.5 Application to become an enrolled agent, enrolled retirement plan agent, or registered tax return preparer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 § 10.6 Term and renewal of status as an enrolled agent, enrolled retirement plan agent, or registered tax return preparer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 § 10.7 Representing oneself; participating in rulemaking; limited practice; and special appearances. . . 16 § 10.8 Return preparation and application of rules to other individuals. . . . . . . . . . . . . . . . . . . . . . . . . . . 17 § 10.9 Continuing education providers and continuing education programs. . . . . . . . . . . . . . . . . . . . . . . . 17 Subpart B — Duties and Restrictions Relating to Practice Before the Internal Revenue Service . . . . . . . 19 10.20 Information to be furnished. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 § § 10.21 Knowledge of client’s omission. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .