Technological competency and outdated provisions are two areas refreshed by
The proposed regulations, if finalized, would amend Circular 230 "to account for changes in the law and the evolving nature of tax practice." Among other changes, the proposed regs would remove or update the parts of Circ. 230 related to registered tax preparers and return preparation, as well as contingent fees to reflect changes in the law since the prior amendments to Circ. 230 in 2011 and 2014. The proposed regulations would also revise or eliminate other provisions that are out of date.
The regulations would affect registered tax return preparers, CPAs, Enrolled Agents, enrolled retirement plan agents, enrolled actuaries, Annual Filing Season Program participants, attorneys, appraisers and other practitioners. These regulations propose to:
- Eliminate provisions related to registered tax preparers;
- Classify the use of certain contingent fee arrangements by practitioners as disreputable conduct;
- Establish new standards for appraisals and the disqualification of appraisers;
- Provide rules related to appraisers, including the standards for disqualification; and,
- Update certain provisions.
Additionally, the proposed regulations would incorporate new provisions that require practitioners to maintain technological competency and would clarify some provisions, such as confirming that the IRS Office of Professional Responsibility retains jurisdiction over practitioners who have been suspended or disbarred from practice.
The proposed regs are slated for publication in the Federal Register on Dec. 26.
