WASHINGTON, D.C. — The Department of the Treasury and the Internal Revenue Service recently unveiled proposed regulations to modernize Circular 230, the set of rules governing tax professionals authorized to practice before the IRS. These updates aim to align regulations with changes in law and the evolving landscape of tax practices.
If finalized, the proposed changes would amend several provisions of Circular 230 to ensure relevance and efficiency. Key updates include the removal or revision of obsolete rules related to registered tax return preparers and tax return preparation, as well as changes to contingent fee regulations to reflect legislative updates since the prior amendments in 2011 and 2014. Other outdated provisions would also be eliminated or revised.
Among the significant updates is a proposed requirement for tax practitioners to maintain technological competency, recognizing the increasing reliance on digital tools in tax services. Additionally, the regulations confirm the Office of Professional Responsibility’s (OPR) continued jurisdiction over practitioners who have been suspended or disbarred, ensuring enforcement measures remain robust.
For appraisers, the proposed regulations introduce updated standards and disqualification rules to enhance accountability and compliance in property valuation practices.
The proposed revisions represent a comprehensive effort to modernize Circular 230 and address current challenges in tax practice while preserving professional integrity and taxpayer protection. Public comments on the draft regulations are encouraged before they are finalized.
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