IRS Pondering Update To Circular 230
On November 16, 2016, the Internal Revenue Service Advisory Council (IRSAC) issued its 2016 Public Report. In that report, the IRSAC made two recommendations related to the Office of Professional Responsibility(OPR). The IRSAC recommended that the Commissioner request Congress to enact legislation expressly affirming the Treasury Department’s authority under 31 USC 330 to establish and enforce professional standards for both paid tax return preparers and tax ‘practice’ broadly defined.
The IRSAC has made similar recommendations in its two previous reports. The IRSAC also made a series of recommendations for revisions to Treasury Circular 230, to delete obsolete references, provide authority to address some topics currently contained in Circular 230 through revenue procedures or other administrative guidance, add references to appraisers, and delete outdated language. OPR Director Stephen Whitlock thanked the IRSAC for its thorough analysis of these issues, and committed to work with IRS, Treasury and tax professional groups to determine whether additional topics should be addressed in a revision of Circular 230.