Publication 947 - Practice Before The Irs And Power Of Attorney (Page 5 of 19) in pdf

engaging in acts of disreputable conduct. For more infor-

order in the amount of the fee shown on Form 5434. To get

mation, see Incompetence and Disreputable Conduct

Form 5434, see How To Get Tax Help, later.

under What are the Rules of Practice, later.

Period of enrollment. An enrollment card will be issued

Practitioners who are suspended in a disciplinary pro-

to each individual whose enrollment application is ap-

ceeding are not allowed to practice before the IRS during

proved. The individual is enrolled until the expiration date

the period of suspension. See What Is Practice Before the

shown on the enrollment card or certificate. To continue

IRS, earlier.

practicing beyond the expiration date, the individual must

Practitioners who are disbarred in a disciplinary pro-

request renewal of the enrollment by filing Form 8554,

ceeding are not allowed to practice before the IRS. How-

Application for Renewal of Enrollment to Practice Before

ever, a practitioner can seek reinstatement from the Office

the Internal Revenue Service, or Form 8554-EP, Applica-

of Professional Responsibility five years after disbarment.

tion for Renewal of Enrollment to Practice Before the

If the practitioner seeks reinstatement, he or she may

Internal Revenue Service as an Enrolled Retirement Plan

not practice before the IRS until the Office of Professional

Agent (ERPA).

Responsibility authorizes reinstatement. The Office of Pro-

fessional Responsibility may reinstate the practitioner if it is

What Are the Rules of Practice?

determined that:

•

The practitioner’s future conduct is not likely to be in

The rules governing practice before the IRS are published

violation of the regulations, and

in the Code of Federal Regulations at 31 C.F.R. part 10

•

and reprinted in Treasury Department Circular No. 230

Granting the reinstatement would not be contrary to

(Circular 230). An attorney, CPA, enrolled agent, enrolled

the public interest.

retirement plan agent, registered tax return preparer, or

enrolled actuary authorized to practice before the IRS

(referred to hereafter as a practitioner) has the duty to

How Does an Individual Become

perform certain acts and is restricted from performing other

Enrolled?

acts. In addition, a practitioner cannot engage in disreputa-

ble conduct (discussed later). Any practitioner who does

The Return Preparer Office can grant enrollment to prac-

not comply with the rules of practice or engages in disrepu-

tice before the IRS to an applicant who demonstrates

table conduct is subject to disciplinary action. Also,

special competence in tax matters by passing a written

unenrolled preparers must comply with the rules of prac-

examination administered by the IRS. Enrollment also can

tice and conduct to exercise the privilege of limited practice

be granted to an applicant who qualifies because of past

before the IRS. See Publication 470 for a discussion of the

service and technical experience in the IRS. In either case,

special rules for limited practice by unenrolled preparers.

certain application forms, discussed next, must be filed.

Additionally, an applicant must not have engaged in any

Duties

conduct that would justify suspension or disbarment from

practice before the IRS. See Incompetence and Disreputa-

Practitioners must promptly submit records or information

ble Conduct, later.

requested by officers or employees of the IRS, except

when the practitioner believes on reasonable belief and

Form 2587. Applicants can apply to take the special en-

good faith that the information is privileged. Communica-

rollment examination by filing Form 2587, Application for

tions with respect to tax advice between a federally author-

Special Enrollment Examination. Form 2587 can be filed

ized tax practitioner and a taxpayer generally are

online, by mail, or by fax. For more information, see in-

confidential to the same extent that communication would

structions and fees listed on the form. To get Form 2587,

be privileged if it were between a taxpayer and an attorney

see How To Get Tax Help, later.

if the advice relates to:

Form 23 and Form 23-EP. Individuals who have passed

•

Noncriminal tax matters before the IRS, or

the examination or are applying on the basis of past serv-

•

ice and technical experience with the IRS can apply for

Noncriminal tax proceedings brought in federal court

enrollment by filing Form 23, Application for Enrollment to

by or against the United States.

Practice Before the Internal Revenue Service, or Form

Communications regarding corporate tax shelters.

23-EP, Application for Enrollment to Practice Before the

Internal Revenue Service as an Enrolled Retirement Plan

This protection of tax advice communications does not

Agent. The application must include a check or money

apply to any written communications between a federally

order in the amount of the fee shown on Form 23 or Form

authorized tax practitioner and any person, including a

23-EP. Alternatively, payment may be made electronically

director, shareholder, officer, employee, agent, or repre-

pursuant to instructions on the forms. To get Form 23 or

sentative of a corporation if the communication involves

Form 23-EP, see How To Get Tax Help, later.

the promotion of the direct or indirect participation of the

corporation in any tax shelter.

Form 5434. An individual may apply as an enrolled actu-

Duty to advise. A practitioner who knows that his or her

ary on the basis of past employment with the IRS and

technical experience by filing Form 5434, Application for

client has not complied with the revenue laws or has made

Enrollment, with the Joint Board for the Enrollment of

an error or omission in any return, document, affidavit, or

Actuaries. The application must include a check or money

other required paper, has the responsibility to advise the

Publication 947 (May 2012)

Page 5

Publication 947 - Practice Before The Irs And Power Of Attorney Page 5

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