Regulations governing practice before the IRS - from the CFR 2010 edition

Circular 230 - 2010

PART 10--PRACTICE BEFORE THE INTERNAL REVENUE SERVICE
Sec.  10.0  Scope of part.

    (a) This part contains rules governing the recognition of 
attorneys, certified public accountants, enrolled agents, enrolled 
retirement plan agents, registered tax return preparers, and other 
persons representing taxpayers before the Internal Revenue Service. 
Subpart A of this part sets forth rules relating to the authority to 
practice before the Internal Revenue Service; subpart B of this part 
prescribes the duties and restrictions relating to such practice; 
subpart C of this part prescribes the sanctions for violating the 
regulations; subpart D of this part contains the rules applicable to 
disciplinary proceedings; and subpart E of this part contains general 
provisions relating to the availability of official records.
    (b) Effective/applicability date. This section is applicable 
beginning August 2, 2011.

Sec.  10.1  Offices.

    (a) Establishment of office(s). The Commissioner shall establish 
the Office of Professional Responsibility and any other office(s) 
within the Internal Revenue Service necessary to administer and enforce 
this part. The Commissioner shall appoint the Director of the Office of 
Professional Responsibility and any other Internal Revenue official(s) 
to manage and direct any office(s) established to administer or enforce 
this part. Offices established under this part include, but are not 
limited to:
    (1) The Office of Professional Responsibility, which shall 
generally have responsibility for matters related to practitioner 
conduct and discipline, including disciplinary proceedings and 
sanctions; and
    (2) An office with responsibility for matters related to authority 
to practice before the Internal Revenue Service, including acting on 
applications for enrollment to practice before the Internal Revenue 
Service and administering competency testing and continuing education.
    (b) Officers and employees within any office established under this 
part may perform acts necessary or appropriate to carry out the 
responsibilities of their office(s) under this part or as otherwise 
prescribed by the Commissioner.
    (c) Acting. The Commissioner will designate an officer or employee 
of the Internal Revenue Service to perform the duties of an individual 
appointed under paragraph (a) of this section in the absence of that 
officer or employee or during a vacancy in that office.
    (d) Effective/applicability date. This section is applicable 
beginning August 2, 2011.


Sec.  10.2  Definitions.

    (a) * * *
    (4) Practice before the Internal Revenue Service comprehends all 
matters connected with a presentation to the Internal Revenue Service 
or any of its officers or employees relating to a taxpayer's rights, 
privileges, or liabilities under laws or regulations administered by 
the Internal Revenue Service. Such presentations include, but are not 
limited to, preparing documents; filing documents; corresponding and 
communicating with the Internal Revenue Service; rendering written 
advice with respect to any entity, transaction, plan or arrangement, or 
other plan or arrangement having a potential for tax avoidance or 
evasion; and representing a client at conferences, hearings, and 
meetings.
    (5) Practitioner means any individual described in paragraphs (a), 
(b), (c), (d), (e), or (f) of Sec.  10.3.
* * * * *
    (8) Tax return preparer means any individual within the meaning of 
section 7701(a)(36) and 26 CFR 301.7701-15.
    (b) Effective/applicability date. This section is applicable 
beginning August 2, 2011.


Sec.  10.3  Who may practice.

* * * * *
    (d) * * *
    (3) An individual who practices before the Internal Revenue Service 
pursuant to paragraph (d)(1) of this section is subject to the 
provisions of this part in the same manner as attorneys, certified 
public accountants, enrolled agents, enrolled retirement plan agents, 
and registered tax return preparers.
    (e) * * *
    (3) An individual who practices before the Internal Revenue Service 
pursuant to paragraph (e)(1) of this section is subject to the 
provisions of this part in the same manner as attorneys, certified 
public accountants, enrolled agents, enrolled actuaries, and registered 
tax return preparers.
    (f) Registered tax return preparers. (1) Any individual who is 
designated as a registered tax return preparer pursuant to Sec.  
10.4(c) of this part who is not currently under suspension or 
disbarment from practice before the Internal Revenue Service may 
practice before the Internal Revenue Service.
    (2) Practice as a registered tax return preparer is limited to 
preparing and signing tax returns and claims for refund, and other 
documents for submission to the Internal Revenue Service. A registered 
tax return preparer may prepare all or substantially all of a tax 
return or claim for refund of tax. The Internal Revenue Service will 
prescribe by forms, instructions, or other appropriate guidance the tax 
returns and claims for refund that a registered tax return preparer may 
prepare and sign.
    (3) A registered tax return preparer may represent taxpayers before 
revenue agents, customer service representatives, or similar officers 
and employees of the Internal Revenue Service (including the Taxpayer 
Advocate Service) during an examination if the registered tax return 
preparer signed the tax return or claim for refund for the taxable year 
or period under examination. Unless otherwise prescribed by regulation 
or notice, this right does not permit such individual to represent the 
taxpayer, regardless of the circumstances requiring representation, 
before appeals officers, revenue officers, Counsel or similar officers 
or employees of the Internal Revenue Service or the Treasury 
Department. A registered tax return preparer's authorization to 
practice under this part also does not include the authority to provide 
tax advice to a client or another person except as necessary to prepare 
a tax return, claim for refund, or other document intended to be 
submitted to the Internal Revenue Service.
    (4) An individual who practices before the Internal Revenue Service 
pursuant to paragraph (f)(1) of this section is subject to the 
provisions of this part in the same manner as attorneys, certified 
public accountants, enrolled agents, enrolled retirement plan agents, 
and enrolled actuaries.
* * * * *
    (j) Effective/applicability date. This section is generally 
applicable beginning August 2, 2011.



Sec.  10.4  Eligibility to become an enrolled agent, enrolled 
retirement plan agent, or registered tax return preparer.

    (a) Enrollment as an enrolled agent upon examination. The 
Commissioner, or delegate, will grant enrollment as an enrolled agent 
to an applicant eighteen years of age or older who demonstrates special 
competence in tax matters by written examination administered by, or 
administered under the oversight of, the Internal Revenue Service, who 
possesses a current or otherwise valid preparer tax identification 
number or other prescribed identifying number, and who has not engaged 
in any conduct that would justify the suspension or disbarment of any 
practitioner under the provisions of this part.
    (b) Enrollment as a retirement plan agent upon examination. The 
Commissioner, or delegate, will grant enrollment as an enrolled 
retirement plan agent to an applicant eighteen years of age or older 
who demonstrates special competence in qualified retirement plan 
matters by written examination administered by, or administered under 
the oversight of, the Internal Revenue Service, who possesses a current 
or otherwise valid preparer tax identification number or other 
prescribed identifying number, and who has not engaged in any conduct 
that would justify the suspension or disbarment of any practitioner 
under the provisions of this part.
    (c) Designation as a registered tax return preparer. The 
Commissioner, or delegate, may designate an individual eighteen years 
of age or older as a registered tax return preparer provided an 
applicant demonstrates competence in Federal tax return preparation 
matters by written examination administered by, or administered under 
the oversight of, the Internal Revenue Service, or otherwise meets the 
requisite standards prescribed by the Internal Revenue Service, 
possesses a current or otherwise valid preparer tax identification 
number or other prescribed identifying number, and has not engaged in 
any conduct that would justify the suspension or disbarment of any 
practitioner under the provisions of this part.
    (d) Enrollment of former Internal Revenue Service employees. The 
Commissioner, or delegate, may grant enrollment as an enrolled agent or 
enrolled retirement plan agent to an applicant who, by virtue of past 
service and technical experience in the Internal Revenue Service, has 
qualified for such enrollment and who has not engaged in any conduct 
that would justify the suspension or disbarment of any practitioner 
under the provisions of this part, under the following circumstances:
    (1) The former employee applies for enrollment on an Internal 
Revenue Service form and supplies the information requested on the form 
and such other information regarding the experience and training of the 
applicant as may be relevant.
    (2) The appropriate office of the Internal Revenue Service provides 
a detailed report of the nature and rating of the applicant's work 
while employed by the Internal Revenue Service and a recommendation 
whether such employment qualifies the applicant technically or 
otherwise for the desired authorization.
    (3) Enrollment as an enrolled agent based on an applicant's former 
employment with the Internal Revenue Service may be of unlimited scope 
or it may be limited to permit the presentation of matters only of the 
particular specialty or only before the particular unit or division of 
the Internal Revenue Service for which the applicant's former 
employment has qualified the applicant. Enrollment as an enrolled 
retirement plan agent based on an applicant's former employment with 
the Internal Revenue Service will be limited to permit the presentation 
of matters only with respect to qualified retirement plan matters.
    (4) Application for enrollment as an enrolled agent or enrolled 
retirement plan agent based on an applicant's former employment with 
the Internal Revenue Service must be made within three years from the 
date of separation from such employment.
    (5) An applicant for enrollment as an enrolled agent who is 
requesting such enrollment based on former employment with the Internal 
Revenue Service must have had a minimum of five years continuous 
employment with the Internal Revenue Service during which the applicant 
must have been regularly engaged in applying and interpreting the provisions of the 
Internal Revenue Code and the regulations relating to income, estate, 
gift, employment, or excise taxes.
    (6) An applicant for enrollment as an enrolled retirement plan 
agent who is requesting such enrollment based on former employment with 
the Internal Revenue Service must have had a minimum of five years 
continuous employment with the Internal Revenue Service during which 
the applicant must have been regularly engaged in applying and 
interpreting the provisions of the Internal Revenue Code and the 
regulations relating to qualified retirement plan matters.
    (7) For the purposes of paragraphs (d)(5) and (6) of this section, 
an aggregate of 10 or more years of employment in positions involving 
the application and interpretation of the provisions of the Internal 
Revenue Code, at least three of which occurred within the five years 
preceding the date of application, is the equivalent of five years 
continuous employment.
    (e) Natural persons. Enrollment or authorization to practice may be 
granted only to natural persons.
    (f) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.5  Application to become an enrolled agent, enrolled 
retirement plan agent, or registered tax return preparer.

    (a) Form; address. An applicant to become an enrolled agent, 
enrolled retirement plan agent, or registered tax return preparer must 
apply as required by forms or procedures established and published by 
the Internal Revenue Service, including proper execution of required 
forms under oath or affirmation. The address on the application will be 
the address under which a successful applicant is enrolled or 
registered and is the address to which all correspondence concerning 
enrollment or registration will be sent.
    (b) Fee. A reasonable nonrefundable fee may be charged for each 
application to become an enrolled agent, enrolled retirement plan 
agent, or registered tax return preparer. See 26 CFR part 300.
    (c) Additional information; examination. The Internal Revenue 
Service may require the applicant, as a condition to consideration of 
an application, to file additional information and to submit to any 
written or oral examination under oath or otherwise. Upon the 
applicant's written request, the Internal Revenue Service will afford 
the applicant the opportunity to be heard with respect to the 
application.
    (d) Compliance and suitability checks. (1) As a condition to 
consideration of an application, the Internal Revenue Service may 
conduct a Federal tax compliance check and suitability check. The tax 
compliance check will be limited to an inquiry regarding whether an 
applicant has filed all required individual or business tax returns and 
whether the applicant has failed to pay, or make proper arrangements 
with the Internal Revenue Service for payment of, any Federal tax 
debts. The suitability check will be limited to an inquiry regarding 
whether an applicant has engaged in any conduct that would justify 
suspension or disbarment of any practitioner under the provisions of 
this part on the date the application is submitted, including whether 
the applicant has engaged in disreputable conduct as defined in Sec.  
10.51. The application will be denied only if the results of the 
compliance or suitability check are sufficient to establish that the 
practitioner engaged in conduct subject to sanctions under Sec. Sec.  
10.51 and 10.52.
    (2) If the applicant does not pass the tax compliance or 
suitability check, the applicant will not be issued an enrollment or 
registration card or certificate pursuant to Sec.  10.6(b) of this 
part. An applicant who is initially denied enrollment or registration 
for failure to pass a tax compliance check may reapply after the 
initial denial if the applicant becomes current with respect to the 
applicant's tax liabilities.
    (e) Temporary recognition. On receipt of a properly executed 
application, the Commissioner, or delegate, may grant the applicant 
temporary recognition to practice pending a determination as to whether 
status as an enrolled agent, enrolled retirement plan agent, or 
registered tax return preparer should be granted. Temporary recognition 
will be granted only in unusual circumstances and it will not be 
granted, in any circumstance, if the application is not regular on its 
face, if the information stated in the application, if true, is not 
sufficient to warrant granting the application to practice, or the 
Commissioner, or delegate, has information indicating that the 
statements in the application are untrue or that the applicant would 
not otherwise qualify to become an enrolled agent, enrolled retirement 
plan agent, or registered tax return preparer. Issuance of temporary 
recognition does not constitute either a designation or a finding of 
eligibility as an enrolled agent, enrolled retirement plan agent, or 
registered tax return preparer, and the temporary recognition may be 
withdrawn at any time.
    (f) Protest of application denial. The applicant will be informed 
in writing as to the reason(s) for any denial of an application. The 
applicant may, within 30 days after receipt of the notice of denial of 
the application, file a written protest of the denial as prescribed by 
the Internal Revenue Service in forms, guidance, or other appropriate 
guidance. A protest under this section is not governed by subpart D of 
this part.
    (g) Effective/applicability date. This section is applicable to 
applications received August 2, 2011.



Sec.  10.6  Term and renewal of status as an enrolled agent, enrolled 
retirement plan agent, or registered tax return preparer.

    (a) Term. Each individual authorized to practice before the 
Internal Revenue Service as an enrolled agent, enrolled retirement plan 
agent, or registered tax return preparer will be accorded active 
enrollment or registration status subject to renewal of enrollment or 
registration as provided in this part.
    (b) Enrollment or registration card or certificate. The Internal 
Revenue Service will issue an enrollment or registration card or 
certificate to each individual whose application to practice before the 
Internal Revenue Service is approved. Each card or certificate will be 
valid for the period stated on the card or certificate. An enrolled 
agent, enrolled retirement plan agent, or registered tax return 
preparer may not practice before the Internal Revenue Service if the 
card or certificate is not current or otherwise valid. The card or 
certificate is in addition to any notification that may be provided to 
each individual who obtains a preparer tax identification number.
    (c) Change of address. An enrolled agent, enrolled retirement plan 
agent, or registered tax return preparer must send notification of any 
change of address to the address specified by the Internal Revenue 
Service within 60 days of the change of address. This notification must 
include the enrolled agent's, enrolled retirement plan agent's, or 
registered tax return preparer's name, prior address, new address, tax 
identification number(s) (including preparer tax identification 
number), and the date the change of address is effective. Unless this 
notification is sent, the address for purposes of any correspondence 
from the appropriate Internal Revenue Service office responsible for 
administering this part shall be the address reflected on the 
practitioner's most recent application


for enrollment or registration, or application for renewal of 
enrollment or registration. A practitioner's change of address 
notification under this part will not constitute a change of the 
practitioner's last known address for purposes of section 6212 of the 
Internal Revenue Code and regulations thereunder.
    (d) Renewal--(1) In general. Enrolled agents, enrolled retirement 
plan agents, and registered tax return preparers must renew their 
status with the Internal Revenue Service to maintain eligibility to 
practice before the Internal Revenue Service. Failure to receive 
notification from the Internal Revenue Service of the renewal 
requirement will not be justification for the individual's failure to 
satisfy this requirement.
    (2) Renewal period for enrolled agents. (i) All enrolled agents 
must renew their preparer tax identification number as prescribed by 
forms, instructions, or other appropriate guidance.
    (ii) Enrolled agents who have a Social Security number or tax 
identification number that ends with the numbers 0, 1, 2, or 3, except 
for those individuals who received their initial enrollment after 
November 1, 2003, must apply for renewal between November 1, 2003, and 
January 31, 2004. The renewal will be effective April 1, 2004.
    (iii) Enrolled agents who have a social security number or tax 
identification number that ends with the numbers 4, 5, or 6, except for 
those individuals who received their initial enrollment after November 
1, 2004, must apply for renewal between November 1, 2004, and January 
31, 2005. The renewal will be effective April 1, 2005.
    (iv) Enrolled agents who have a social security number or tax 
identification number that ends with the numbers 7, 8, or 9, except for 
those individuals who received their initial enrollment after November 
1, 2005, must apply for renewal between November 1, 2005, and January 
31, 2006. The renewal will be effective April 1, 2006.
    (v) Thereafter, applications for renewal as an enrolled agent will 
be required between November 1 and January 31 of every subsequent third 
year as specified in paragraph (d)(2)(i), (d)(2)(ii), or (d)(2)(iii) of 
this section according to the last number of the individual's Social 
Security number or tax identification number. Those individuals who 
receive initial enrollment as an enrolled agent after November 1 and 
before April 2 of the applicable renewal period will not be required to 
renew their enrollment before the first full renewal period following 
the receipt of their initial enrollment.
    (3) Renewal period for enrolled retirement plan agents. (i) All 
enrolled retirement plan agents must renew their preparer tax 
identification number as prescribed by the Internal Revenue Service in 
forms, instructions, or other appropriate guidance.
    (ii) Enrolled retirement plan agents will be required to renew 
their status as enrolled retirement plan agents between April 1 and 
June 30 of every third year subsequent to their initial enrollment.
    (4) Renewal period for registered tax return preparers. Registered 
tax return preparers must renew their preparer tax identification 
number and their status as a registered tax return preparer as 
prescribed by the Internal Revenue Service in forms, instructions, or 
other appropriate guidance.
    (5) Notification of renewal. After review and approval, the 
Internal Revenue Service will notify the individual of the renewal and 
will issue the individual a card or certificate evidencing current 
status as an enrolled agent, enrolled retirement plan agent, or 
registered tax return preparer.
    (6) Fee. A reasonable nonrefundable fee may be charged for each 
application for renewal filed. See 26 CFR part 300.
    (7) Forms. Forms required for renewal may be obtained by sending a 
written request to the address specified by the Internal Revenue 
Service or from such other source as the Internal Revenue Service will 
publish in the Internal Revenue Bulletin (see 26 CFR 
601.601(d)(2)(ii)(b)) and on the Internal Revenue Service webpage 
(<a href="http://www.irs.gov">http://www.irs.gov</a>).
    (e) Condition for renewal: continuing education. In order to 
qualify for renewal as an enrolled agent, enrolled retirement plan 
agent, or registered tax return preparer, an individual must certify, 
in the manner prescribed by the Internal Revenue Service, that the 
individual has satisfied the requisite number of continuing education 
hours.
    (1) Definitions. For purposes of this section--
    (i) Enrollment year means January 1 to December 31 of each year of 
an enrollment cycle.
    (ii) Enrollment cycle means the three successive enrollment years 
preceding the effective date of renewal.
    (iii) Registration year means each 12-month period the registered 
tax return preparer is authorized to practice before the Internal 
Revenue Service.
    (iv) The effective date of renewal is the first day of the fourth 
month following the close of the period for renewal described in 
paragraph (d) of this section.
    (2) For renewed enrollment as an enrolled agent or enrolled 
retirement plan agent--(i) Requirements for enrollment cycle. A minimum 
of 72 hours of continuing education credit, including six hours of 
ethics or professional conduct, must be completed during each 
enrollment cycle.
    (ii) Requirements for enrollment year. A minimum of 16 hours of 
continuing education credit, including two hours of ethics or 
professional conduct, must be completed during each enrollment year of 
an enrollment cycle.
    (iii) Enrollment during enrollment cycle--(A) In general. Subject 
to paragraph (e)(2)(iii)(B) of this section, an individual who receives 
initial enrollment during an enrollment cycle must complete two hours 
of qualifying continuing education credit for each month enrolled 
during the enrollment cycle. Enrollment for any part of a month is 
considered enrollment for the entire month.
    (B) Ethics. An individual who receives initial enrollment during an 
enrollment cycle must complete two hours of ethics or professional 
conduct for each enrollment year during the enrollment cycle. 
Enrollment for any part of an enrollment year is considered enrollment 
for the entire year.
    (3) Requirements for renewal as a registered tax return preparer. A 
minimum of 15 hours of continuing education credit, including two hours 
of ethics or professional conduct, three hours of Federal tax law 
updates, and 10 hours of Federal tax law topics, must be completed 
during each registration year.
    (f) Qualifying continuing education--(1) General--(i) Enrolled 
agents. To qualify for continuing education credit for an enrolled 
agent, a course of learning must--
    (A) Be a qualifying continuing education program designed to 
enhance professional knowledge in Federal taxation or Federal tax 
related matters (programs comprised of current subject matter in 
Federal taxation or Federal tax related matters, including accounting, 
tax return preparation software, taxation, or ethics); and
    (B) Be a qualifying continuing education program consistent with 
the Internal Revenue Code and effective tax administration.
    (ii) Enrolled retirement plan agents. To qualify for continuing 
education credit for an enrolled retirement plan agent, a course of 
learning must--
    (A) Be a qualifying continuing education program designed to 
enhance professional knowledge in qualified retirement plan matters; 
and


    (B) Be a qualifying continuing education program consistent with 
the Internal Revenue Code and effective tax administration.
    (iii) Registered tax return preparers. To qualify for continuing 
education credit for a registered tax return preparer, a course of 
learning must--
    (A) Be a qualifying continuing education program designed to 
enhance professional knowledge in Federal taxation or Federal tax 
related matters (programs comprised of current subject matter in 
Federal taxation or Federal tax related matters, including accounting, 
tax return preparation software, taxation, or ethics); and
    (B) Be a qualifying continuing education program consistent with 
the Internal Revenue Code and effective tax administration.
    (2) Qualifying programs--(i) Formal programs. A formal program 
qualifies as a continuing education program if it--
    (A) Requires attendance and provides each attendee with a 
certificate of attendance;
    (B) Is conducted by a qualified instructor, discussion leader, or 
speaker (in other words, a person whose background, training, 
education, and experience is appropriate for instructing or leading a 
discussion on the subject matter of the particular program);
    (C) Provides or requires a written outline, textbook, or suitable 
electronic educational materials; and
    (D) Satisfies the requirements established for a qualified 
continuing education program pursuant to Sec.  10.9.
    (ii) Correspondence or individual study programs (including taped 
programs). Qualifying continuing education programs include 
correspondence or individual study programs that are conducted by 
continuing education providers and completed on an individual basis by 
the enrolled individual. The allowable credit hours for such programs 
will be measured on a basis comparable to the measurement of a seminar 
or course for credit in an accredited educational institution. Such 
programs qualify as continuing education programs only if they--
    (A) Require registration of the participants by the continuing 
education provider;
    (B) Provide a means for measuring successful completion by the 
participants (for example, a written examination), including the 
issuance of a certificate of completion by the continuing education 
provider;
    (C) Provide a written outline, textbook, or suitable electronic 
educational materials; and
    (D) Satisfy the requirements established for a qualified continuing 
education program pursuant to Sec.  10.9.
    (iii) Serving as an instructor, discussion leader or speaker. (A) 
One hour of continuing education credit will be awarded for each 
contact hour completed as an instructor, discussion leader, or speaker 
at an educational program that meets the continuing education 
requirements of paragraph (f) of this section.
    (B) A maximum of two hours of continuing education credit will be 
awarded for actual subject preparation time for each contact hour 
completed as an instructor, discussion leader, or speaker at such 
programs. It is the responsibility of the individual claiming such 
credit to maintain records to verify preparation time.
    (C) The maximum continuing education credit for instruction and 
preparation may not exceed four hours annually for registered tax 
return preparers and six hours annually for enrolled agents and 
enrolled retirement plan agents.
    (D) An instructor, discussion leader, or speaker who makes more 
than one presentation on the same subject matter during an enrollment 
cycle or registration year will receive continuing education credit for 
only one such presentation for the enrollment cycle or registration 
year.
    (3) Periodic examination. Enrolled Agents and Enrolled Retirement 
Plan Agents may establish eligibility for renewal of enrollment for any 
enrollment cycle by--
    (i) Achieving a passing score on each part of the Special 
Enrollment Examination administered under this part during the three 
year period prior to renewal; and
    (ii) Completing a minimum of 16 hours of qualifying continuing education during the last year of an enrollment cycle.
    (g) Measurement of continuing education coursework. (1) All continuing education programs will be measured in terms of contact 
hours. The shortest recognized program will be one contact hour.
    (2) A contact hour is 50 minutes of continuous participation in a 
program. Credit is granted only for a full contact hour, which is 50 
minutes or multiples thereof. For example, a program lasting more than 
50 minutes but less than 100 minutes will count as only one contact 
hour.
    (3) Individual segments at continuous conferences, conventions and 
the like will be considered one total program. For example, two 90-
minute segments (180 minutes) at a continuous conference will count as 
three contact hours.
    (4) For university or college courses, each semester hour credit 
will equal 15 contact hours and a quarter hour credit will equal 10 
contact hours.
    (h) Recordkeeping requirements. (1) Each individual applying for 
renewal must retain for a period of four years following the date of 
renewal the information required with regard to qualifying continuing 
education credit hours. Such information includes--
    (i) The name of the sponsoring organization;
    (ii) The location of the program;
    (iii) The title of the program, qualified program number, and 
description of its content;
    (iv) Written outlines, course syllibi, textbook, and/or electronic 
materials provided or required for the course;
    (v) The dates attended;
    (vi) The credit hours claimed;
    (vii) The name(s) of the instructor(s), discussion leader(s), or 
speaker(s), if appropriate; and
    (viii) The certificate of completion and/or signed statement of the 
hours of attendance obtained from the continuing education provider.
    (2) To receive continuing education credit for service completed as 
an instructor, discussion leader, or speaker, the following information 
must be maintained for a period of four years following the date of 
renewal--
    (i) The name of the sponsoring organization;
    (ii) The location of the program;
    (iii) The title of the program and copy of its content;
    (iv) The dates of the program; and
    (v) The credit hours claimed.
    (i) Waivers. (1) Waiver from the continuing education requirements 
for a given period may be granted for the following reasons--
    (i) Health, which prevented compliance with the continuing 
education requirements;
    (ii) Extended active military duty;
    (iii) Absence from the United States for an extended period of time 
due to employment or other reasons, provided the individual does not 
practice before the Internal Revenue Service during such absence; and
    (iv) Other compelling reasons, which will be considered on a case-
by-case basis.
    (2) A request for waiver must be accompanied by appropriate 
documentation. The individual is required to furnish any additional 
documentation or explanation deemed necessary. Examples of appropriate 
documentation could be a medical certificate or military orders.
    (3) A request for waiver must be filed no later than the last day 
of the renewal application period.
    (4) If a request for waiver is not approved, the individual will be 
placed in inactive status. The individual will be notified that the 
waiver was not approved and that the individual has been placed on a 
roster of inactive enrolled agents, enrolled retirement plan agents, or 
registered tax return preparers.
    (5) If the request for waiver is not approved, the individual may 
file a protest as prescribed by the Internal Revenue Service in forms, 
instructions, or other appropriate guidance. A protest filed under this 
section is not governed by subpart D of this part.
    (6) If a request for waiver is approved, the individual will be 
notified and issued a card or certificate evidencing renewal.
    (7) Those who are granted waivers are required to file timely 
applications for renewal of enrollment or registration.
    (j) Failure to comply. (1) Compliance by an individual with the 
requirements of this part is determined by the Internal Revenue 
Service. The Internal Revenue Service will provide notice to any 
individual who fails to meet the continuing education and fee 
requirements of eligibility for renewal. The notice will state the 
basis for the determination of noncompliance and will provide the 
individual an opportunity to furnish the requested information in 
writing relating to the matter within 60 days of the date of the 
notice. Such information will be considered in making a final 
determination as to eligibility for renewal. The individual must be 
informed of the reason(s) for any denial of a renewal. The individual 
may, within 30 days after receipt of the notice of denial of renewal, 
file a written protest of the denial as prescribed by the Internal 
Revenue Service in forms, instructions, or other appropriate guidance. 
A protest under this section is not governed by subpart D of this part.
    (2) The continuing education records of an enrolled agent, enrolled 
retirement plan agent, or registered tax return preparer may be 
reviewed to determine compliance with the requirements and standards 
for renewal as provided in paragraph (f) of this section. As part of 
this review, the enrolled agent, enrolled retirement plan agent or 
registered tax return preparer may be required to provide the Internal 
Revenue Service with copies of any continuing education records 
required to be maintained under this part. If the enrolled agent, 
enrolled retirement plan agent or registered tax return preparer fails 
to comply with this requirement, any continuing education hours claimed 
may be disallowed.
    (3) An individual who has not filed a timely application for 
renewal, who has not made a timely response to the notice of 
noncompliance with the renewal requirements, or who has not satisfied 
the requirements of eligibility for renewal will be placed on a roster 
of inactive enrolled individuals or inactive registered individuals. 
During this time, the individual will be ineligible to practice before 
the Internal Revenue Service.
    (4) Individuals placed in inactive status and individuals 
ineligible to practice before the Internal Revenue Service may not 
state or imply that they are eligible to practice before the Internal 
Revenue Service, or use the terms enrolled agent, enrolled retirement 
plan agent, or registered tax return preparer, the designations ``EA'' 
or ``ERPA'' or other form of reference to eligibility to practice 
before the Internal Revenue Service.
    (5) An individual placed in inactive status may be reinstated to an 
active status by filing an application for renewal and providing 
evidence of the completion of all required continuing education hours 
for the enrollment cycle or registration year. Continuing education 
credit under this paragraph (j)(5) may not be used to satisfy the 
requirements of the enrollment cycle or registration year in which the 
individual has been placed back on the active roster.
    (6) An individual placed in inactive status must file an 
application for renewal and satisfy the requirements for renewal as set 
forth in this section within three years of being placed in inactive 
status. Otherwise, the name of such individual will be removed from the 
inactive status roster and the individual's status as an enrolled 
agent, enrolled retirement plan agent, or registered tax return 
preparer will terminate. Future eligibility for active status must then 
be reestablished by the individual as provided in this section.
    (7) Inactive status is not available to an individual who is the 
subject of a pending disciplinary matter before the Internal Revenue 
Service.
    (k) Inactive retirement status. An individual who no longer 
practices before the Internal Revenue Service may request to be placed 
in an inactive retirement status at any time and such individual will 
be placed in an inactive retirement status. The individual will be 
ineligible to practice before the Internal Revenue Service. An 
individual who is placed in an inactive retirement status may be 
reinstated to an active status by filing an application for renewal and 
providing evidence of the completion of the required continuing 
education hours for the enrollment cycle or registration year. Inactive 
retirement status is not available to an individual who is ineligible 
to practice before the Internal Revenue Service or an individual who is 
the subject of a pending disciplinary matter under this part.
    (l) Renewal while under suspension or disbarment. An individual who 
is ineligible to practice before the Internal Revenue Service by virtue 
of disciplinary action under this part is required to conform to the 
requirements for renewal of enrollment or registration before the 
individual's eligibility is restored.
    (m) Enrolled actuaries. The enrollment and renewal of enrollment of 
actuaries authorized to practice under paragraph (d) of Sec.  10.3 are 
governed by the regulations of the Joint Board for the Enrollment of 
Actuaries at 20 CFR 901.1 through 901.72.
    (n) Effective/applicability date. This section is applicable to 
enrollment or registration effective beginning August 2, 2011.



Sec.  10.7  Representing oneself; participating in rulemaking; limited 
practice; and special appearances.

* * * * *
    (c) * * *
    (2) Limitations. (i) An individual who is under suspension or 
disbarment from practice before the Internal Revenue Service may not 
engage in limited practice before the Internal Revenue Service under 
paragraph (c)(1) of this section.
    (ii) The Commissioner, or delegate, may, after notice and 
opportunity for a conference, deny eligibility to engage in limited 
practice before the Internal Revenue Service under paragraph (c)(1) of 
this section to any individual who has engaged in conduct that would 
justify a sanction under Sec.  10.50.
    (iii) An individual who represents a taxpayer under the authority 
ofparagraph (c)(1) of this section is subject, to the extent of his or 
her authority, to such rules of general applicability regarding 
standards of conduct and other matters as prescribed by the Internal 
Revenue Service.
    (d) Special appearances. The Commissioner, or delegate, may, 
subject


to conditions deemed appropriate, authorize an individual who is not 
otherwise eligible to practice before the Internal Revenue Service to 
represent another person in a particular matter.
    (e) Fiduciaries. For purposes of this part, a fiduciary (for 
example, a trustee, receiver, guardian, personal representative, 
administrator, or executor) is considered to be the taxpayer and not a 
representative of the taxpayer.
    (f) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.8  Return preparation and application of rules to other 
individuals.

    (a) Preparing all or substantially all of a tax return. Any 
individual who for compensation prepares or assists with the 
preparation of all or substantially all of a tax return or claim for 
refund must have a preparer tax identification number. Except as 
otherwise prescribed in forms, instructions, or other appropriate 
guidance, an individual must be an attorney, certified public 
accountant, enrolled agent, or registered tax return preparer to obtain 
a preparer tax identification number. Any individual who for 
compensation prepares or assists with the preparation of all or 
substantially all of a tax return or claim for refund is subject to the 
duties and restrictions relating to practice in subpart B, as well as 
subject to the sanctions for violation of the regulations in subpart C.
    (b) Preparing a tax return and furnishing information. Any 
individual may for compensation prepare or assist with the preparation 
of a tax return or claim for refund (provided the individual prepares 
less than substantially all of the tax return or claim for refund), 
appear as a witness for the taxpayer before the Internal Revenue 
Service, or furnish information at the request of the Internal Revenue 
Service or any of its officers or employees.
    (c) Application of rules to other individuals. Any individual who 
for compensation prepares, or assists in the preparation of, all or a 
substantial portion of a document pertaining to any taxpayer's tax 
liability for submission to the Internal Revenue Service is subject to 
the duties and restrictions relating to practice in subpart B, as well 
as subject to the sanctions for violation of the regulations in subpart 
C. Unless otherwise a practitioner, however, an individual may not for 
compensation prepare, or assist in the preparation of, all or 
substantially all of a tax return or claim for refund, or sign tax 
returns and claims for refund. For purposes of this paragraph, an 
individual described in 26 CFR 301.7701-15(f) is not treated as having 
prepared all or a substantial portion of the document by reason of such 
assistance.
    (d) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.9  Continuing education providers and continuing education 
programs.

    (a) Continuing education providers--(1) In general. Continuing 
education providers are those responsible for presenting continuing 
education programs. A continuing education provider must--
    (i) Be an accredited educational institution;
    (ii) Be recognized for continuing education purposes by the 
licensing body of any State, territory, or possession of the United 
States, including a Commonwealth, or the District of Columbia;
    (iii) Be recognized and approved by a qualifying organization as a 
provider of continuing education on subject matters within Sec.  
10.6(f) of this part. The Internal Revenue Service may, at its 
discretion, identify a professional organization, society or business 
entity that maintains minimum education standards comparable to those 
set forth in this part as a qualifying organization for purposes of 
this part in appropriate forms, instructions, and other appropriate 
guidance; or
    (iv) Be recognized by the Internal Revenue Service as a 
professional organization, society, or business whose programs include 
offering continuing professional education opportunities in subject 
matters within Sec.  10.6(f) of this part. The Internal Revenue 
Service, at its discretion, may require such professional 
organizations, societies, or businesses to file an agreement and/or 
obtain Internal Revenue Service approval of each program as a qualified 
continuing education program in appropriate forms, instructions or 
other appropriate guidance.
    (2) Continuing education provider numbers--(i) In general. A 
continuing education provider is required to obtain a continuing 
education provider number and pay any applicable user fee.
    (ii) Renewal. A continuing education provider maintains its status 
as a continuing education provider during the continuing education 
provider cycle by renewing its continuing education provider number as 
prescribed by forms, instructions or other appropriate guidance and 
paying any applicable user fee.
    (3) Requirements for qualified continuing education programs. A 
continuing education provider must ensure the qualified continuing 
education program complies with all the following requirements--
    (i) Programs must be developed by individual(s) qualified in the 
subject matter;
    (ii) Program subject matter must be current;
    (iii) Instructors, discussion leaders, and speakers must be 
qualified with respect to program content;
    (iv) Programs must include some means for evaluation of the 
technical content and presentation to be evaluated;
    (v) Certificates of completion bearing a current qualified 
continuing education program number issued by the Internal Revenue 
Service must be provided to the participants who successfully complete 
the program; and
    (vi) Records must be maintained by the continuing education 
provider to verify the participants who attended and completed the 
program for a period of four years following completion of the program. 
In the case of continuous conferences, conventions, and the like, 
records must be maintained to verify completion of the program and 
attendance by each participant at each segment of the program.
    (4) Program numbers--(i) In general. Every continuing education 
provider is required to obtain a continuing education provider program 
number and pay any applicable user fee for each program offered. 
Program numbers shall be obtained as prescribed by forms, instructions 
or other appropriate guidance. Although, at the discretion of the 
Internal Revenue Service, a continuing education provider may be 
required to demonstrate that the program is designed to enhance 
professional knowledge in Federal taxation or Federal tax related 
matters (programs comprised of current subject matter in Federal 
taxation or Federal tax related matters, including accounting, tax 
return preparation software, taxation, or ethics) and complies with the 
requirements in paragraph (a)(2)of this section before a program number 
is issued.
    (ii) Update programs. Update programs may use the same number as 
the program subject to update. An update program is a program that 
instructs on a change of existing law occurring within one year of the 
update program offering. The qualifying education program subject to 
update must have been offered within the two


year time period prior to the change in existing law.
    (iii) Change in existing law. A change in existing law means the 
effective date of the statute or regulation, or date of entry of 
judicial decision, that is the subject of the update.
    (b) Failure to comply. Compliance by a continuing education 
provider with the requirements of this part is determined by the 
Internal Revenue Service. A continuing education provider who fails to 
meet the requirements of this part will be notified by the Internal 
Revenue Service. The notice will state the basis for the determination 
of noncompliance and will provide the continuing education provider an 
opportunity to furnish the requested information in writing relating to 
the matter within 60 days of the date of the notice. The continuing 
education provider may, within 30 days after receipt of the notice of 
denial, file a written protest as prescribed by the Internal Revenue 
Service in forms, instructions, or other appropriate guidance. A 
protest under this section is not governed by subpart D of this part.
    (c) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.20  Information to be furnished.

    (a) * * *
    (3) When a proper and lawful request is made by a duly authorized 
officer or employee of the Internal Revenue Service, concerning an 
inquiry into an alleged violation of the regulations in this part, a 
practitioner must provide any information the practitioner has 
concerning the alleged violation and testify regarding this information 
in any proceeding instituted under this part, unless the practitioner 
believes in good faith and on reasonable grounds that the information 
is privileged.
    (b) Interference with a proper and lawful request for records or 
information. A practitioner may not interfere, or attempt to interfere, 
with any proper and lawful effort by the Internal Revenue Service, its 
officers or employees, to obtain any record or information unless the 
practitioner believes in good faith and on reasonable grounds that the 
record or information is privileged.
    (c) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.25  Practice by former government employees, their partners 
and their associates.

* * * * *
    (c) * * *
    (2) When isolation of a former Government employee is required 
under paragraph (c)(1) of this section, a statement affirming the fact 
of such isolation must be executed under oath by the former Government 
employee and by another member of the firm acting on behalf of the 
firm. The statement must clearly identify the firm, the former 
Government employee, and the particular matter(s) requiring isolation. 
The statement must be retained by the firm and, upon request, provided 
to the office(s) of the Internal Revenue Service administering or 
enforcing this part.
* * * * *
    (e) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.30  Solicitation.

    (a) Advertising and solicitation restrictions. (1) A practitioner 
may not, with respect to any Internal Revenue Service matter, in any 
way use or participate in the use of any form of public communication 
or private solicitation containing a false, fraudulent, or coercive 
statement or claim; or a misleading or deceptive statement or claim. 
Enrolled agents, enrolled retirement plan agents, or registered tax 
return preparers, in describing their professional designation, may not 
utilize the term ``certified'' or imply an employer/employee 
relationship with the Internal Revenue Service. Examples of acceptable 
descriptions for enrolled agents are ``enrolled to represent taxpayers 
before the Internal Revenue Service,'' ``enrolled to practice before 
the Internal Revenue Service,'' and ``admitted to practice before the 
Internal Revenue Service.'' Similarly, examples of acceptable 
descriptions for enrolled retirement plan agents are ``enrolled to 
represent taxpayers before the Internal Revenue Service as a retirement 
plan agent'' and ``enrolled to practice before the Internal Revenue 
Service as a retirement plan agent.'' An example of an acceptable 
description for registered tax return preparers is ``designated as a 
registered tax return preparer by the Internal Revenue Service.''
* * * * *
    (e) Effective/applicability date. This section is applicable 
beginning August 2, 2011.
* * * * *



Sec.  10.34  Standards with respect to tax returns and documents, 
affidavits and other papers.

    (a) Tax returns. (1) A practitioner may not willfully, recklessly, 
or through gross incompetence--
    (i) Sign a tax return or claim for refund that the practitioner 
knows or reasonably should know contains a position that--
    (A) Lacks a reasonable basis;
    (B) Is an unreasonable position as described in section 6694(a)(2) 
of the Internal Revenue code (Code) (including the related regulations 
and other published guidance); or
    (C) Is a willful attempted by the practitioner to understate the 
liability for tax or a reckless or intentional disregard of rules or 
regulations by the practitioner as described in section 6694(b)(2) of 
the Code (including the related regulations and other published 
guidance).
    (ii) Advise a client to take a position on a tax return or claim 
for refund, or prepare a portion off a tax return or claim for refund 
containing a position, that--
    (A) Lacks a reasonable basis;
    (B) Is an unreasonable position as described in section 6694(a)(2) 
of theCode (including the related regulations and other published 
guidance); or
    (C) Is a willful attempt by the practitioner to understate the 
liability for tax or a reckless or intentional disregard of rules or 
regulations by the practitioner as described in section 6694(b)(2) of 
the Code (including the related regulations and other published 
guidance).
    (2) A pattern of conduct is a factor that will be taken into 
account in determining whether a practitioner acted willfully, 
recklessly, or through gross incompetence.
* * * * *
    (e) Effective/applicability date. Paragraph (a) of this section is


applicable for returns or claims for refund filed, or advice provided, 
beginning August 2, 2011. Paragraphs (b) through (d) of this section 
are applicable to tax returns, documents, affidavits, and other papers 
filed on or after September 26, 2007.



Sec.  10.36  Procedures to ensure compliance.

* * * * *
    (b) Requirements for tax returns and other documents. Any 
practitioner who has (or practitioners who have or share) principal 
authority and responsibility for overseeing a firm's practice of 
preparing tax returns, claims for refunds, or other documents for 
submission to the Internal Revenue Service must take reasonable steps 
to ensure that the firm has adequate procedures in effect for all 
members, associates, and employees for purposes of complying with 
Circular 230. Any practitioner who has (or practitioners who have or 
share) this principal authority will be subject to discipline for 
failing to comply with the requirements of this paragraph if--
    (1) The practitioner through willfulness, recklessness, or gross 
incompetence does not take reasonable steps to ensure that the firm has 
adequate procedures to comply with Circular 230, and one or more 
individuals who are members of, associated with, or employed by, the 
firm are, or have, engaged in a pattern or practice, in connection with 
their practice with the firm, of failing to comply with Circular 230; 
or
    (2) The practitioner knows or should know that one or more 
individuals who are members of, associated with, or employed by, the 
firm are, or have, engaged in a pattern or practice, in connection with 
their practice with the firm, that does not comply with Circular 230, 
and the practitioner, through willfulness, recklessness, or gross 
incompetence fails to take prompt action to correct the noncompliance.
    (c) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.38  Establishment of advisory committees.

    (a) Advisory committees. To promote and maintain the public's 
confidence in tax advisors, the Internal Revenue Service is authorized 
to establish one or more advisory committees composed of at least six 
individuals authorized to practice before the Internal Revenue Service. 
Membership of an advisory committee must be balanced among those who 
practice as attorneys, accountants, enrolled agents, enrolled 
actuaries, enrolled retirement plan agents, and registered tax return 
preparers. Under procedures prescribed by the Internal Revenue Service, 
an advisory committee may review and make general recommendations 
regarding the practices, procedures, and policies of the offices 
described in Sec.  10.1.
    (b) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.50  Sanctions.

* * * * *
    (b) * * *
    (1) If any appraiser is disqualified pursuant to this subpart C, 
the appraiser is barred from presenting evidence or testimony in any 
administrative proceeding before the Department of Treasury or the 
Internal Revenue Service, unless and until authorized to do so by the 
Internal Revenue Service pursuant to Sec.  10.81, regardless of whether 
the evidence or testimony would pertain to an appraisal made prior to 
or after the effective date of disqualification.
* * * * *
    (d) Authority to accept a practitioner's consent to sanction. The 
Internal Revenue Service may accept a practitioner's offer of consent 
to be sanctioned under Sec.  10.50 in lieu of instituting or continuing 
a proceeding under Sec.  10.60(a).
* * * * *
    (f) Effective/applicability date. This section is applicable to 
conduct occurring on or after August 2, 2011, except that paragraphs 
(a), (b)(2), and (e) apply to conduct occurring on or after September 
26, 2007, and paragraph (c) applies to prohibited conduct that occurs 
after October 22, 2004.



Sec.  10.51  Incompetence and disreputable conduct.

    (a) * * *
    (16) Willfully failing to file on magnetic or other electronic 
media a tax return prepared by the practitioner when the practitioner 
is required to do so by the Federal tax laws unless the failure is due 
to reasonable cause and not due to willful neglect.
    (17) Willfully preparing all or substantially all of, or signing, a 
tax return or claim for refund when the practitioner does not possess a 
current or otherwise valid preparer tax identification number or other 
prescribed identifying number.
    (18) Willfully representing a taxpayer before an officer or 
employee of the Internal Revenue Service unless the practitioner is 
authorized to do so pursuant to this part.
    (b) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.53  Receipt of information concerning practitioner.

    (a) Officer or employee of the Internal Revenue Service. If an 
officer or employee of the Internal Revenue Service has reason to 
believe a practitioner has violated any provision of this part, the 
officer or employee will promptly make a written report of the 
suspected violation. The report will explain the facts and reasons upon 
which the officer's or employee's belief rests and must be submitted to 
the office(s) of the Internal Revenue Service responsible for 
administering or enforcing this part.
    (b) Other persons. Any person other than an officer or employee of 
the Internal Revenue Service having information of a violation of any 
provision of this part may make an oral or written report of the 
alleged violation to the office(s) of the Internal Revenue Service 
responsible for administering or enforcing this part or any officer or 
employee of the Internal Revenue Service. If the report is made to an 
officer or employee of the Internal Revenue Service, the officer or 
employee will make a written report of the suspected violation and 
submit the report to the office(s) of the Internal Revenue Service 
responsible for administering or enforcing this part.
    (c) Destruction of report. No report made under paragraph (a) or 
(b) of this section shall be maintained unless retention of the report 
is permissible under the applicable records control schedule as 
approved by the National Archives and Records Administration


and designated in the Internal Revenue Manual. Reports must be 
destroyed as soon as permissible under the applicable records control 
schedule.
    (d) Effect on proceedings under subpart D. The destruction of any 
report will not bar any proceeding under subpart D of this part, but 
will preclude the use of a copy of the report in a proceeding under 
subpart D of this part.
    (e) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.60  Institution of proceeding.

    (a) Whenever it is determined that a practitioner (or employer, 
firm or other entity, if applicable) violated any provision of the laws 
governing practice before the Internal Revenue Service or the 
regulations in this part, the practitioner may be reprimanded in 
accordance with Sec.  10.62, or subject to a proceeding for sanctions 
described in Sec.  10.50.
    (b) Whenever a penalty has been assessed against an appraiser under 
the Internal Revenue Code and an appropriate officer or employee in an 
office established to enforce this part determines that the appraiser 
acted willfully, recklessly, or through gross incompetence with respect 
to the proscribed conduct, the appraiser may be reprimanded in 
accordance with Sec.  10.62 or subject to a proceeding for 
disqualification. A proceeding for disqualification of an appraiser is 
instituted by the filing of a complaint, the contents of which are more 
fully described in Sec.  10.62.
* * * * *
    (d) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.61  Conferences.

    (a) In general. The Commissioner, or delegate, may confer with a 
practitioner, employer, firm or other entity, or an appraiser 
concerning allegations of misconduct irrespective of whether a 
proceeding has been instituted. If the conference results in a 
stipulation in connection with an ongoing proceeding in which the 
practitioner, employer, firm or other entity, or appraiser is the 
respondent, the stipulation may be entered in the record by either 
party to the proceeding.
    (b) * * *
    (2) Discretion; acceptance or declination. The Commissioner, or 
delegate, may accept or decline the offer described in paragraph (b)(1) 
of this section. When the decision is to decline the offer, the written 
notice of declination may state that the offer described in paragraph 
(b)(1) of this section would be accepted if it contained different 
terms. The Commissioner, or delegate, has the discretion to accept or 
reject a revised offer submitted in response to the declination or may 
counteroffer and act upon any accepted counteroffer.
    (c) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.62  Contents of complaint.

    (a) Charges. A complaint must name the respondent, provide a clear 
and concise description of the facts and law that constitute the basis 
for the proceeding, and be signed by an authorized representative of 
the Internal Revenue Service under Sec.  10.69(a)(1). A complaint is 
sufficient if it fairly informs the respondent of the charges brought 
so that the respondent is able to prepare a defense.
    (b) Specification of sanction. The complaint must specify the 
sanction sought against the practitioner or appraiser. If the sanction 
sought is a suspension, the duration of the suspension sought must be 
specified.
    (c) Demand for answer. The respondent must be notified in the 
complaint or in a separate paper attached to the complaint of the time 
for answering the complaint, which may not be less than 30 days from 
the date of service of the complaint, the name and address of the 
Administrative Law Judge with whom the answer must be filed, the name 
and address of the person representing the Internal Revenue Service to 
whom a copy of the answer must be served, and that a decision by 
default may be rendered against the respondent in the event an answer 
is not filed as required.
    (d) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.63  Service of complaint; service of other papers; service of 
evidence in support of complaint; filing of papers.

* * * * *
    (c) Service of papers on the Internal Revenue Service. Whenever a 
paper is required or permitted to be served on the Internal Revenue 
Service in connection with a proceeding under this part, the paper will 
be served on the Internal Revenue Service's authorized representative 
under Sec.  10.69(a)(1) at the address designated in the complaint, or 
at an address provided in a notice of appearance. If no address is 
designated in the complaint or provided in a notice of appearance, 
service will be made on the office(s) established to enforce this part 
under the authority of Sec.  10.1, Internal Revenue Service, 1111 
Constitution Avenue, NW., Washington, DC 20224.
* * * * *
    (f) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.64  Answer; default.

    (a) Filing. The respondent's answer must be filed with the 
Administrative Law Judge, and served on the Internal Revenue Service, 
within the time specified in the complaint unless, on request or 
application of the respondent, the time is extended by the 
Administrative Law Judge.
* * * * *
    (f) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.66  Reply to answer.

    (a) The Internal Revenue Service may file a reply to the 
respondent's answer, but unless otherwise ordered by the Administrative 
Law Judge, no reply to the respondent's answer is required. If a reply 
is not filed, new matter in the answer is deemed denied.


    (b) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.69  Representation; ex parte communication.

    (a) Representation. The Internal Revenue Service may be represented 
in proceedings under this part by an attorney or other employee of the 
Internal Revenue Service. An attorney or an employee of the Internal 
Revenue Service representing the Internal Revenue Service in a 
proceeding under this part may sign the complaint or any document 
required to be filed in the proceeding on behalf of the Internal 
Revenue Service.
    (b) Ex parte communication. The Internal Revenue Service, the 
respondent, and any representatives of either party, may not attempt to 
initiate or participate in ex parte discussions concerning a proceeding 
or potential proceeding with the Administrative Law Judge (or any 
person who is likely to advise the Administrative Law Judge on a ruling 
or decision) in the proceeding before or during the pendency of the 
proceeding. Any memorandum, letter or other communication concerning 
the merits of the proceeding, addressed to the Administrative Law 
Judge, by or on behalf of any party shall be regarded as an argument in 
the proceeding and shall be served on the other party.
    (c) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.72  Hearings.

    (a) * * *
    (3) * * *
    (iv) * * *
    (A) The Internal Revenue Service withdraws the complaint;
* * * * *
    (d) Publicity--(1) In general. All reports and decisions of the 
Secretary of the Treasury, or delegate, including any reports and 
decisions of the Administrative Law Judge, under this subpart D are, 
subject to the protective measures in paragraph (d)(4) of this section, 
public and open to inspection within 30 days after the agency's 
decision becomes final.
* * * * *
    (g) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.76  Decision of Administrative Law Judge.

* * * * *
    (c) Copy of decision. The Administrative Law Judge will provide the 
decision to the Internal Revenue Service's authorized representative, 
and a copy of the decision to the respondent or the respondent's 
authorized representative.
* * * * *
    (e) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.77  Appeal of decision of Administrative Law Judge.

    (a) Appeal. Any party to the proceeding under this subpart D may 
appeal the decision of the Administrative Law Judge by filing a notice 
of appeal with the Secretary of the Treasury, or delegate deciding 
appeals. The notice of appeal must include a brief that states 
exceptions to the decision of Administrative Law Judge and supporting 
reasons for such exceptions.
    (b) Time and place for filing of appeal. The notice of appeal and 
brief must be filed, in duplicate, with the Secretary of the Treasury, 
or delegate deciding appeals, at an address for appeals that is 
identified to the parties with the decision of the Administrative Law 
Judge. The notice of appeal and brief must be filed within 30 days of 
the date that the decision of the Administrative Law Judge is served on 
the parties. The appealing party must serve a copy of the notice of 
appeal and the brief to any non-appealing party or, if the party is 
represented, the non-appealing party's representative.
    (c) Response. Within 30 days of receiving the copy of the 
appellant's brief, the other party may file a response brief with the 
Secretary of the Treasury, or delegate deciding appeals, using the 
address identified for appeals. A copy of the response brief must be 
served at the same time on the opposing party or, if the party is 
represented, the opposing party's representative.
    (d) No other briefs, responses or motions as of right. Other than 
the appeal brief and response brief, the parties are not permitted to 
file any other briefs, responses or motions, except on a grant of leave 
to do so after a motion demonstrating sufficient cause, or unless 
otherwise ordered by the Secretary of the Treasury, or delegate 
deciding appeals.
    (e) Additional time for briefs and responses. Notwithstanding the 
time for filing briefs and responses provided in paragraphs (b) and (c) 
of this section, the Secretary of the Treasury, or delegate deciding 
appeals, may, for good cause, authorize additional time for filing 
briefs and responses upon a motion of a party or upon the initiative of 
the Secretary of the Treasury, or delegate deciding appeals.
    (f) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.78  Decision on review.

* * * * *
    (c) Copy of decision on review. The Secretary of the Treasury, or 
delegate, will provide copies of the agency decision to the authorized 
representative of the Internal Revenue Service and the respondent or 
the respondent's authorized representative.
    (d) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.79  Effect of disbarment, suspension, or censure.

    (a) Disbarment. When the final decision in a case is against the 
respondent (or the respondent has offered his or her consent and such 
consent has been accepted by the Internal Revenue Service) and such 
decision is for disbarment, the respondent will not be permitted to 
practice before the Internal Revenue Service unless and until 
authorized to do so by the Internal Revenue Service pursuant to Sec.  
10.81.
    (b) Suspension. When the final decision in a case is against the 
respondent (or the respondent has offered his or her consent and such 
consent has been accepted by the Internal Revenue Service) and such 
decision is for suspension, the respondent will not be permitted to 
practice before the Internal Revenue Service during the period of 
suspension. For periods after the suspension, the practitioner's future 
representations may be subject to conditions as authorized by paragraph 
(d) of this section.
    (c) Censure. When the final decision in the case is against the 
respondent (or the Internal Revenue Service has accepted the 
respondent's offer to consent, if such offer was made) and such 
decision is for censure, the respondent will be permitted to practice 
before the Internal Revenue Service, but the respondent's future 
representations may be subject to conditions as


authorized by paragraph (d) of this section.
    (d) Conditions. After being subject to the sanction of either 
suspension or censure, the future representations of a practitioner so 
sanctioned shall be subject to specified conditions designed to promote 
high standards of conduct. These conditions can be imposed for a 
reasonable period in light of the gravity of the practitioner's 
violations. For example, where a practitioner is censured because the 
practitioner failed to advise the practitioner's clients about a 
potential conflict of interest or failed to obtain the clients' written 
consents, the practitioner may be required to provide the Internal 
Revenue Service with a copy of all consents obtained by the 
practitioner for an appropriate period following censure, whether or 
not such consents are specifically requested.
    (e) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.80  Notice of disbarment, suspension, censure, or 
disqualification.

    (a) In general. On the issuance of a final order censuring, 
suspending, or disbarring a practitioner or a final order disqualifying 
an appraiser, notification of the censure, suspension, disbarment or 
disqualification will be given to appropriate officers and employees of 
the Internal Revenue Service and interested departments and agencies of 
the Federal government. The Internal Revenue Service may determine the 
manner of giving notice to the proper authorities of the State by which 
the censured, suspended, or disbarred person was licensed to practice.
    (b) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.81  Petition for reinstatement.

    (a) In general. A disbarred practitioner or a disqualified 
appraiser may petition for reinstatement before the Internal Revenue 
Service after the expiration of 5 years following such disbarment or 
disqualification. Reinstatement will not be granted unless the Internal 
Revenue Service is satisfied that the petitioner is not likely to 
conduct himself, thereafter, contrary to the regulations in this part, 
and that granting such reinstatement would not be contrary to the 
public interest.
    (b) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.82  Expedited suspension.

    (a) When applicable. Whenever the Commissioner, or delegate, 
determines that a practitioner is described in paragraph (b) of this 
section, proceedings may be instituted under this section to suspend 
the practitioner from practice before the Internal Revenue Service.
* * * * *
    (c) Instituting a proceeding. A proceeding under this section will 
be instituted by a complaint that names the respondent, is signed by an 
authorized representative of the Internal Revenue Service under Sec.  
10.69(a)(1), and is filed and served according to the rules set forth 
in paragraph (a) of Sec.  10.63. The complaint must give a plain and 
concise description of the allegations that constitute the basis for 
the proceeding. The complaint must notify the respondent--
* * * * *
    (3) That the respondent may request a conference to address the 
merits of the complaint and that any such request must be made in the 
answer; and
* * * * *
    (d) Answer. The answer to a complaint described in this section 
must be filed no later than 30 calendar days following the date the 
complaint is served, unless the time for filing is extended. The answer 
must be filed in accordance with the rules set forth in Sec.  10.64, 
except as otherwise provided in this section. A respondent is entitled 
to a conference only if the conference is requested in a timely filed 
answer. If a request for a conference is not made in the answer or the 
answer is not timely filed, the respondent will be deemed to have 
waived the right to a conference and may be suspended at any time 
following the date on which the answer was due.
    (e) Conference. An authorized representative of the Internal 
Revenue Service will preside at a conference described in this section. 
The conference will be held at a place and time selected by the 
Internal Revenue Service, but no sooner than 14 calendar days after the 
date by which the answer must be filed with the Internal Revenue 
Service, unless the respondent agrees to an earlier date. An authorized 
representative may represent the respondent at the conference. 
Following the conference, upon a finding that the respondent is 
described in paragraph (b) of this section, or upon the respondent's 
failure to appear at the conference either personally or through an 
authorized representative, the respondent may be immediately suspended 
from practice before the Internal Revenue Service.
    (f) Duration of suspension. A suspension under this section will 
commence on the date that written notice of the suspension is issued. 
The suspension will remain effective until the earlier of the 
following:
    (1) The Internal Revenue Service lifts the suspension after 
determining that the practitioner is no longer described in paragraph 
(b) of this section or for any other reason; or
    (2) The suspension is lifted by an Administrative Law Judge or the 
Secretary of the Treasury in a proceeding referred to in paragraph (g) 
of this section and instituted under Sec.  10.60.
    (g) Proceeding instituted under Sec.  10.60. If the Internal 
Revenue Service suspended a practitioner under this section, the 
practitioner may ask the Internal Revenue Service to issue a complaint 
under Sec.  10.60. The request must be made in writing within 2 years 
from the date on which the practitioner's suspension commences. The 
Internal Revenue Service must issue a complaint requested under this 
paragraph within 30 calendar days of receiving the request.
    (h) Effective/applicability date. This section is applicable 
beginning August 2, 2011.



Sec.  10.90  Records.

    (a) Roster. The Internal Revenue Service will maintain and make 
available for public inspection in the time and manner prescribed by 
the Secretary, or delegate, the following rosters--
    (1) Individuals (and employers, firms, or other entities, if 
applicable) censured, suspended, or disbarred from practice before the 
Internal Revenue Service or upon whom a monetary penalty was imposed.
    (2) Enrolled agents, including individuals--
    (i) Granted active enrollment to practice;
    (ii) Whose enrollment has been placed in inactive status for 
failure to meet the requirements for renewal of enrollment;
    (iii) Whose enrollment has been placed in inactive retirement 
status; and
    (iv) Whose offer of consent to resign from enrollment has been 
accepted by


the Internal Revenue Service under Sec.  10.61.
    (3) Enrolled retirement plan agents, including individuals--
    (i) Granted active enrollment to practice;
    (ii) Whose enrollment has been placed in inactive status for 
failure to meet the requirements for renewal of enrollment;
    (iii) Whose enrollment has been placed in inactive retirement 
status; and
    (iv) Whose offer of consent to resign from enrollment has been 
accepted under Sec.  10.61.
    (4) Registered tax return preparers, including individuals--
    (i) Authorized to prepare all or substantially all of a tax return 
or claim for refund;
    (ii) Who have been placed in inactive status for failure to meet 
the requirements for renewal;
    (iii) Who have been placed in inactive retirement status; and
    (iv) Whose offer of consent to resign from their status as a 
registered tax return preparer has been accepted by the Internal 
Revenue Service under Sec.  10.61.
    (5) Disqualified appraisers.
    (6) Qualified continuing education providers, including providers--
    (i) Who have obtain a qualifying continuing education provider 
number
    (ii) Whose qualifying continuing education number has been revoked 
for failure to comply with the requirements of this part.
* * * * *
    (c) Effective/applicability date. This section is applicable 
beginning August 2, 2011.

Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
    Approved: May 20, 2011.

George Madison,
General Counsel, Office of the Secretary.