News & Tax Alerts: Tax Alerts – Federal

Circular 230 Regulations Finalized

Tuesday, July 8, 2014   (0 Comments)
On June 9, 2014, the Internal Revenue Service finalized revisions to Circular 230 regulations, which replaced the covered opinion rules with one standard for written advice under Circular 230 section 10.37.  

The IRS Office of Professional Responsibility will send letters asking practitioners to stop using Circular 230 disclaimers saying the disclaimer is required, OPR Director Karen Hawkins said June 17. 

Many practitioners continue to use the Circular 230 disclaimer in their emails even though the IRS finalized regulations that remove the covered opinion rules, Hawkins said on a Tax Talk Today webcast.  

"My only concern and my message is, if a disclaimer says 'The Internal Revenue Service says' or 'I am required under Circular 230,' I can promise you that you will get a letter from my office asking you to cease and desist using that kind of language because I don't want taxpayers to be misinformed," Hawkins said. "We do not require that language after last week."

Please review these new regulations as to how they affect your practice and any language you may be using in emails.

Members should also remember AICPA and State Board of CPAs of Louisiana ethical rules apply to emails and correspondence issued, and consult with your insurance carrier.  

Attribution and thanks are extended to Gerard H. Schreiber, Jr., CPA, who contributed content for this Alert.