Publication 947 - Practice Before The Irs And Power Of Attorney (Page 6 of 19) in pdf

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client promptly of the noncompliance, error, or omission,

Knowingly giving false or misleading information in

and the consequences of the noncompliance, error, or

connection with federal tax matters, or participating

omission.

in such activity.

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Soliciting employment by prohibited means as dis-

Due diligence. A practitioner must exercise due diligence

cussed in section 10.30 of Circular 230.

when performing the following duties.

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Willfully failing to file a federal tax return, evading or

Preparing or assisting in the preparing, approving,

attempting to evade any federal tax or payment, or

and filing of returns, documents, affidavits, and other

participating in such actions.

papers relating to IRS matters.

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Misappropriating, or failing to properly and promptly

Determining the correctness of oral or written repre-

remit, funds received from clients for payment of

sentations made by him or her to the Department of

taxes or other obligations due the United States.

the Treasury.

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Directly or indirectly attempting to influence the offi-

Determining the correctness of oral or written repre-

cial action of IRS employees by the use of threats,

sentations made by him or her to clients with refer-

false accusations, duress, or coercion, or by offering

ence to any matter administered by the IRS.

gifts, favors, or any special inducements.

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Being disbarred or suspended from practice as an

Restrictions

attorney, CPA, public accountant, or actuary, by the

District of Columbia or any state, possession, terri-

Practitioners are restricted from engaging in certain prac-

tory, commonwealth, or any federal court, or any

tices. The following paragraphs discuss some of these

federal agency, body, or board.

restricted practices.

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Knowingly aiding and abetting another person to

Delays. A practitioner must not unreasonably delay the

practice before the IRS during a period of suspen-

prompt disposition of any matter before the IRS.

sion, disbarment, or ineligibility of that other person.

Assistance from disbarred or suspended persons and

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Using abusive language, making false accusations

former IRS employees. A practitioner must not know-

and statements knowing them to be false, circulating

ingly, directly or indirectly, do the following.

or publishing malicious or libelous matter, or engag-

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ing in any contemptuous conduct in connection with

Accept assistance from, or assist, any person who is

practice before the IRS.

under disbarment or suspension from practice

before the IRS if the assistance relates to matters

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Giving a false opinion knowingly, recklessly, or

considered practice before the IRS.

through gross incompetence; or following a pattern

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of providing incompetent opinions in questions aris-

Accept assistance from any former government em-

ing under the federal tax laws.

ployee where provisions of Circular 230 or any fed-

eral law would be violated.

Censure, Disbarments, and Suspensions

Performance as a notary. A practitioner who is a notary

The Office of Professional Responsibility may censure or

public and is employed as counsel, attorney, or agent in a

institute proceedings to censure, suspend or disbar any

matter before the IRS, or has a material interest in the

attorney, CPA, or enrolled agent who has violated Circular

matter, cannot engage in any notary activities related to

230. A practitioner will be given the opportunity to demon-

that matter.

strate compliance with the rules before any disciplinary

Negotiations of taxpayer refund checks. Practitioners

action is taken.

must not endorse or otherwise negotiate (cash) any refund

check (including directing or accepting payment by any

means, electronic or otherwise, in an account owned or

Authorizing a Representative

controlled by the practitioner or any firm or other entity with

whom the practitioner is associated) issued to the tax-

You may either represent yourself, or you may authorize

payer.

an individual to represent you before the IRS. If you chose

to have someone represent you, your representative must

Incompetence and Disreputable Conduct

be a person eligible to practice before the IRS. See Who

Can Practice Before the IRS, earlier.

Any practitioner or unenrolled return preparer may be

disbarred or suspended from practice before the IRS, or

What Is a Power of Attorney?

censured, for incompetence or disreputable conduct. The

following list contains examples of conduct that is consid-

A power of attorney is your written authorization for an

ered disreputable.

individual to act on your behalf. If the authorization is not

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Being convicted of any criminal offense under the

limited, the individual generally can perform all acts that

revenue laws or of any offense involving dishonesty

you can perform. The authority granted to a registered tax

or breach of trust.

return preparer or an unenrolled preparer is limited. For

Page 6

Publication 947 (May 2012)

Publication 947 - Practice Before The Irs And Power Of Attorney Page 6

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