31 CFR Part 10 — Practice Before the Internal Revenue Service

PART 10—PRACTICE BEFORE THE INTERNAL REVENUE SERVICE Authority: Sec. 3, 23 Stat. 258, secs. 2-12, 60 Stat. 237 et seq.; Source: Department Circular 230, Revised, 31 FR 10773, Aug. 13, 1966, unless otherwise noted. Editorial Note: Nomenclature changes to part 10 appear by T.D. 9359, 72 FR 54544, Sept. 26, 2007. § 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. [T.D. 9527, 76 FR 32300, June 3, 2011] Subpart A—Rules Governing Authority to Practice Source: T.D. 9011, 67 FR 48765, July 26, 2002, unless otherwise noted. § 10.1 Offices. (a) Establishment of office(s). (1) The Office of Professional Responsibility, which shall generally have responsibility for matters related to practitioner conduct and shall have exclusive responsibility for 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. (d) Effective/applicability date. [T.D. 9527, 76 FR 32300, June 3, 2011, as amended by T.D. 9668, 79 FR 33692, June 12, 2014] § 10.2 Definitions. (a) As used in this part, except where the text provides otherwise— (1) Attorney (2) Certified public accountant (3) Commissioner (4) Practice before the Internal Revenue Service (5) Practitioner (6) A tax return (7) Service (8) Tax return preparer (b) Effective/applicability date. [T.D. 9359, 72 FR 54544, Sept. 26, 2007, as amended by T.D. 9527, 76 FR 32300, June 3, 2011] § 10.3 Who may practice. (a) Attorneys. (b) Certified public accountants. (c) Enrolled agents. (d) Enrolled actuaries. (2) Practice as an enrolled actuary is limited to representation with respect to issues involving the following statutory provisions in title 26 of the United States Code: sections 401 (relating to qualification of employee plans), 403(a) (relating to whether an annuity plan meets the requirements of section 404(a)(2)), 404 (relating to deductibility of employer contributions), 405 (relating to qualification of bond purchase plans), 412 (relating to funding requirements for certain employee plans), 413 (relating to application of qualification requirements to collectively bargained plans and to plans maintained by more than one employer), 414 (relating to definitions and special rules with respect to the employee plan area), 419 (relating to treatment of funded welfare benefits), 419A (relating to qualified asset accounts), 420 (relating to transfers of excess pension assets to retiree health accounts), 4971 (relating to excise taxes payable as a result of an accumulated funding deficiency under section 412), 4972 (relating to tax on nondeductible contributions to qualified employer plans), 4976 (relating to taxes with respect to funded welfare benefit plans), 4980 (relating to tax on reversion of qualified plan assets to employer), 6057 (relating to annual registration of plans), 6058 (relating to information required in connection with certain plans of deferred compensation), 6059 (relating to periodic report of actuary), 6652(e) (relating to the failure to file annual registration and other notifications by pension plan), 6652(f) (relating to the failure to file information required in connection with certain plans of deferred compensation), 6692 (relating to the failure to file actuarial report), 7805(b) (relating to the extent to which an Internal Revenue Service ruling or determination letter coming under the statutory provisions listed here will be applied without retroactive effect); and 29 U.S.C. 1083 (relating to the waiver of funding for nonqualified plans). (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) Enrolled Retirement Plan Agents (2) Practice as an enrolled retirement plan agent is limited to representation with respect to issues involving the following programs: Employee Plans Determination Letter program; Employee Plans Compliance Resolution System; and Employee Plans Master and Prototype and Volume Submitter program. In addition, enrolled retirement plan agents are generally permitted to represent taxpayers with respect to IRS forms under the 5300 and 5500 series which are filed by retirement plans and plan sponsors, but not with respect to actuarial forms or schedules. (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. (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. (g) Others. (h) Government officers and employees, and others. (i) State officers and employees. (j) Effective/applicability date. [T.D. 9011, 67 FR 48765, July 26, 2002, as amended by T.D. 9359, 72 FR 54545, Sept. 26, 2007; T.D. 9527, 76 FR 32300, June 3, 2011; T.D. 9668, 79 FR 33693, June 12, 2014] § 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. (b) Enrollment as a retirement plan agent upon examination. (c) Designation as a registered tax return preparer. (d) Enrollment of former Internal Revenue Service employees. (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. (f) Effective/applicability date. [T.D. 9527, 76 FR 32301, June 3, 2011] § 10.5 Application to become an enrolled agent, enrolled retirement plan agent, or registered tax return preparer. (a) Form; address. (b) Fee. (c) Additional information; examination. (d) Compliance and suitability checks. (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 § 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. (f) Protest of application denial. (g) Effective/applicability date. [T.D. 9527, 63 FR 32302, June 3, 2011, as amended at 76 FR 49650, Aug. 11, 2011] § 10.6 Term and renewal of status as an enrolled agent, enrolled retirement plan agent, or registered tax return preparer. (a) Term. (b) Enrollment or registration card or certificate. (c) Change of address. (d) Renewal In general. (2) Renewal period for enrolled agents. (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. (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. (5) Notification of renewal. (6) Fee. (7) Forms. b http://www.irs.gov (e) Condition for renewal: continuing education. (1) Definitions. (i) Enrollment year (ii) Enrollment cycle (iii) Registration year (iv) The effective date of renewal (2) For renewed enrollment as an enrolled agent or enrolled retirement plan agent Requirements for enrollment cycle. (ii) Requirements for enrollment year. (iii) Enrollment during enrollment cycle In general. (B) Ethics. (3) Requirements for renewal as a registered tax return preparer. (f) Qualifying continuing education General Enrolled agents. (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. (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. (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 Formal programs. (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 § 10.9. (ii) Correspondence or individual study programs (including taped programs). (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 § 10.9. (iii) Serving as an instructor, discussion leader or speaker. (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. (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. (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. (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. (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. (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. (l) Renewal while under suspension or disbarment. (m) Enrolled actuaries. (n) Effective/applicability date. [T.D. 9527, 76 FR 32302, June 3, 2011] § 10.7 Representing oneself; participating in rulemaking; limited practice; and special appearances. (a) Representing oneself. (b) Participating in rulemaking. See (c) Limited practice In general. (i) An individual may represent a member of his or her immediate family. (ii) A regular full-time employee of an individual employer may represent the employer. (iii) A general partner or a regular full-time employee of a partnership may represent the partnership. (iv) A bona fide officer or a regular full-time employee of a corporation (including a parent, subsidiary, or other affiliated corporation), association, or organized group may represent the corporation, association, or organized group. (v) A regular full-time employee of a trust, receivership, guardianship, or estate may represent the trust, receivership, guardianship, or estate. (vi) An officer or a regular employee of a governmental unit, agency, or authority may represent the governmental unit, agency, or authority in the course of his or her official duties. (vii) An individual may represent any individual or entity, who is outside the United States, before personnel of the Internal Revenue Service when such representation takes place outside the United States. (2) Limitations. (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 § 10.50. (iii) An individual who represents a taxpayer under the authority of paragraph (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. (e) Fiduciaries. (f) Effective/applicability date. [T.D. 9011, 67 FR 48765, July 26, 2002, as amended by T.D. 9359, 72 FR 54544, 54547, Sept. 26, 2007; T.D. 9527, 76 FR 32305, June 3, 2011] § 10.8 Return preparation and application of rules to other individuals. (a) Preparing all or substantially all of a tax return. (b) Preparing a tax return and furnishing information. (c) Application of rules to other individuals. (d) Effective/applicability date. [T.D. 9527, 76 FR 32306, June 3, 2011] § 10.9 Continuing education providers and continuing education programs. (a) Continuing education providers In general. (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 § 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 § 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 In general. (ii) Renewal. (3) Requirements for qualified continuing education programs. (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 In general. (ii) Update programs. (iii) Change in existing law. (b) Failure to comply. (c) Effective/applicability date. [T.D. 9527, 76 FR 32306, June 3, 2011] Subpart B—Duties and Restrictions Relating to Practice Before the Internal Revenue Service Source: T.D. 9011, 67 FR 48771, July 26, 2002, unless otherwise noted. § 10.20 Information to be furnished. (a) To the Internal Revenue Service. (2) Where the requested records or information are not in the possession of, or subject to the control of, the practitioner or the practitioner's client, the practitioner must promptly notify the requesting Internal Revenue Service officer or employee and the practitioner must provide any information that the practitioner has regarding the identity of any person who the practitioner believes may have possession or control of the requested records or information. The practitioner must make reasonable inquiry of his or her client regarding the identity of any person who may have possession or control of the requested records or information, but the practitioner is not required to make inquiry of any other person or independently verify any information provided by the practitioner's client regarding the identity of such persons. (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. (c) Effective/applicability date. [T.D. 9011, 67 FR 48771, July 26, 2002, as amended by T.D. 9527, 76 FR 32307, June 3, 2011] § 10.21 Knowledge of client's omission. A practitioner who, having been retained by a client with respect to a matter administered by the Internal Revenue Service, knows that the client has not complied with the revenue laws of the United States or has made an error in or omission from any return, document, affidavit, or other paper which the client submitted or executed under the revenue laws of the United States, must advise the client promptly of the fact of such noncompliance, error, or omission. The practitioner must advise the client of the consequences as provided under the Code and regulations of such noncompliance, error, or omission. § 10.22 Diligence as to accuracy. (a) In general. (1) In preparing or assisting in the preparation of, approving, and filing tax returns, documents, affidavits, and other papers relating to Internal Revenue Service matters; (2) In determining the correctness of oral or written representations made by the practitioner to the Department of the Treasury; and (3) In determining the correctness of oral or written representations made by the practitioner to clients with reference to any matter administered by the Internal Revenue Service. (b) Reliance on others. (c) Effective/applicability date. [T.D. 9011, 67 FR 48765, July 26, 2002, as amended by T.D. 9359, 72 FR 54547, Sept. 26, 2007; T.D. 9668, 79 FR 33693, June 12, 2014] § 10.23 Prompt disposition of pending matters. A practitioner may not unreasonably delay the prompt disposition of any matter before the Internal Revenue Service. § 10.24 Assistance from or to disbarred or suspended persons and former Internal Revenue Service employees. A practitioner may not, knowingly and directly or indirectly: (a) Accept assistance from or assist any person who is under disbarment or suspension from practice before the Internal Revenue Service if the assistance relates to a matter or matters constituting practice before the Internal Revenue Service. (b) Accept assistance from any former government employee where the provisions of § 10.25 or any Federal law would be violated. § 10.25 Practice by former government employees, their partners and their associates. (a) Definitions. (1) Assist (2) Government employee (3) Member of a firm (4) Particular matter involving specific parties (5) Rule b (b) General rules. (2) No former Government employee who personally and substantially participated in a particular matter involving specific parties may, subsequent to Government employment, represent or knowingly assist, in that particular matter, any person who is or was a specific party to that particular matter. (3) A former Government employee who within a period of one year prior to the termination of Government employment had official responsibility for a particular matter involving specific parties may not, within two years after Government employment is ended, represent in that particular matter any person who is or was a specific party to that particular matter. (4) No former Government employee may, within one year after Government employment is ended, communicate with or appear before, with the intent to influence, any employee of the Treasury Department in connection with the publication, withdrawal, amendment, modification, or interpretation of a rule the development of which the former Government employee participated in, or for which, within a period of one year prior to the termination of Government employment, the former government employee had official responsibility. This paragraph (b)(4) does not, however, preclude any former employee from appearing on one's own behalf or from representing a taxpayer before the Internal Revenue Service in connection with a particular matter involving specific parties involving the application or interpretation of a rule with respect to that particular matter, provided that the representation is otherwise consistent with the other provisions of this section and the former employee does not utilize or disclose any confidential information acquired by the former employee in the development of the rule. (c) Firm representation. (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. (d) Pending representation. (e) Effective/applicability date. [T.D. 9359, 72 FR 54548, Sept. 26, 2007, as amended by T.D. 9527, 76 FR 32307, June 3, 2011] § 10.26 Notaries. A practitioner may not take acknowledgments, administer oaths, certify papers, or perform any official act as a notary public with respect to any matter administered by the Internal Revenue Service and for which he or she is employed as counsel, attorney, or agent, or in which he or she may be in any way interested. § 10.27 Fees. (a) In general. (b) Contingent fees. (2) A practitioner may charge a contingent fee for services rendered in connection with the Service's examination of, or challenge to— (i) An original tax return; or (ii) An amended return or claim for refund or credit where the amended return or claim for refund or credit was filed within 120 days of the taxpayer receiving a written notice of the examination of, or a written challenge to the original tax return. (3) A practitioner may charge a contingent fee for services rendered in connection with a claim for credit or refund filed solely in connection with the determination of statutory interest or penalties assessed by the Internal Revenue Service. (4) A practitioner may charge a contingent fee for services rendered in connection with any judicial proceeding arising under the Internal Revenue Code. (c) Definitions. (1) Contingent fee (2) Matter before the Internal Revenue Service (d) Effective/applicability date. [T.D. 9359, 72 FR 54548, Sept. 26, 2007] § 10.28 Return of client's records. (a) In general, a practitioner must, at the request of a client, promptly return any and all records of the client that are necessary for the client to comply with his or her Federal tax obligations. The practitioner may retain copies of the records returned to a client. The existence of a dispute over fees generally does not relieve the practitioner of his or her responsibility under this section. Nevertheless, if applicable state law allows or permits the retention of a client's records by a practitioner in the case of a dispute over fees for services rendered, the practitioner need only return those records that must be attached to the taxpayer's return. The practitioner, however, must provide the client with reasonable access to review and copy any additional records of the client retained by the practitioner under state law that are necessary for the client to comply with his or her Federal tax obligations. (b) For purposes of this section, Records of the client § 10.29 Conflicting interests. (a) Except as provided by paragraph (b) of this section, a practitioner shall not represent a client before the Internal Revenue Service if the representation involves a conflict of interest. A conflict of interest exists if— (1) The representation of one client will be directly adverse to another client; or (2) There is a significant risk that the representation of one or more clients will be materially limited by the practitioner's responsibilities to another client, a former client or a third person, or by a personal interest of the practitioner. (b) Notwithstanding the existence of a conflict of interest under paragraph (a) of this section, the practitioner may represent a client if— (1) The practitioner reasonably believes that the practitioner will be able to provide competent and diligent representation to each affected client; (2) The representation is not prohibited by law; and (3) Each affected client waives the conflict of interest and gives informed consent, confirmed in writing by each affected client, at the time the existence of the conflict of interest is known by the practitioner. The confirmation may be made within a reasonable period after the informed consent, but in no event later than 30 days. (c) Copies of the written consents must be retained by the practitioner for at least 36 months from the date of the conclusion of the representation of the affected clients, and the written consents must be provided to any officer or employee of the Internal Revenue Service on request. (d) Effective/applicability date. [T.D. 9359, 72 FR 54549, Sept. 26, 2007] § 10.30 Solicitation. (a) Advertising and solicitation restrictions. (2) A practitioner may not make, directly or indirectly, an uninvited written or oral solicitation of employment in matters related to the Internal Revenue Service if the solicitation violates Federal or State law or other applicable rule, e.g., attorneys are precluded from making a solicitation that is prohibited by conduct rules applicable to all attorneys in their State(s) of licensure. Any lawful solicitation made by or on behalf of a practitioner eligible to practice before the Internal Revenue Service must, nevertheless, clearly identify the solicitation as such and, if applicable, identify the source of the information used in choosing the recipient. (b) Fee information. (A) Fixed fees for specific routine services. (B) Hourly rates. (C) Range of fees for particular services. (D) Fee charged for an initial consultation. (ii) Any statement of fee information concerning matters in which costs may be incurred must include a statement disclosing whether clients will be responsible for such costs. (2) A practitioner may charge no more than the rate(s) published under paragraph (b)(1) of this section for at least 30 calendar days after the last date on which the schedule of fees was published. (c) Communication of fee information. (d) Improper associations. (e) Effective/applicability date. (Approved by the Office of Management and Budget under Control No. 1545-1726) [T.D. 9011, 67 FR 48765, July 26, 2002, as amended by T.D. 9359, 72 FR 54549, Sept. 26, 2007; T.D. 9527, 76 FR 32307, June 3, 2011] § 10.31 Negotiation of taxpayer checks. (a) A practitioner may not endorse or otherwise negotiate any check (including directing or accepting payment by any means, electronic or otherwise, into an account owned or controlled by the practitioner or any firm or other entity with whom the practitioner is associated) issued to a client by the government in respect of a Federal tax liability. (b) Effective/applicability date. [T.D. 9668, 79 FR 33693, June 12, 2014] § 10.32 Practice of law. Nothing in the regulations in this part may be construed as authorizing persons not members of the bar to practice law. § 10.33 Best practices for tax advisors. (a) Best practices. (1) Communicating clearly with the client regarding the terms of the engagement. For example, the advisor should determine the client's expected purpose for and use of the advice and should have a clear understanding with the client regarding the form and scope of the advice or assistance to be rendered. (2) Establishing the facts, determining which facts are relevant, evaluating the reasonableness of any assumptions or representations, relating the applicable law (including potentially applicable judicial doctrines) to the relevant facts, and arriving at a conclusion supported by the law and the facts. (3) Advising the client regarding the import of the conclusions reached, including, for example, whether a taxpayer may avoid accuracy-related penalties under the Internal Revenue Code if a taxpayer acts in reliance on the advice. (4) Acting fairly and with integrity in practice before the Internal Revenue Service. (b) Procedures to ensure best practices for tax advisors. (c) Applicability date. [T.D. 9011, 67 FR 48771, July 26, 2002, as amended by T.D. 9165, 69 FR 75841, Dec. 20, 2004] § 10.34 Standards with respect to tax returns and documents, affidavits and other papers. (a) Tax returns. (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 the Code (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. (b) Documents, affidavits and other papers. (2) A practitioner may not advise a client to submit a document, affidavit or other paper to the Internal Revenue Service— (i) The purpose of which is to delay or impede the administration of the Federal tax laws; (ii) That is frivolous; or (iii) That contains or omits information in a manner that demonstrates an intentional disregard of a rule or regulation unless the practitioner also advises the client to submit a document that evidences a good faith challenge to the rule or regulation. (c) Advising clients on potential penalties. (i) A position taken on a tax return if— (A) The practitioner advised the client with respect to the position; or (B) The practitioner prepared or signed the tax return; and (ii) Any document, affidavit or other paper submitted to the Internal Revenue Service. (2) The practitioner also must inform the client of any opportunity to avoid any such penalties by disclosure, if relevant, and of the requirements for adequate disclosure. (3) This paragraph (c) applies even if the practitioner is not subject to a penalty under the Internal Revenue Code with respect to the position or with respect to the document, affidavit or other paper submitted. (d) Relying on information furnished by clients. (e) Effective/applicability date. [T.D. 9359, 72 FR 54549, Sept. 26, 2007, as amended by T.D. 9527, 76 FR 32307, June 3, 2011] § 10.35 Competence. (a) A practitioner must possess the necessary competence to engage in practice before the Internal Revenue Service. Competent practice requires the appropriate level of knowledge, skill, thoroughness, and preparation necessary for the matter for which the practitioner is engaged. A practitioner may become competent for the matter for which the practitioner has been engaged through various methods, such as consulting with experts in the relevant area or studying the relevant law. (b) Effective/applicability date. [T.D. 9668, 79 FR 33693, June 12, 2014] § 10.36 Procedures to ensure compliance. (a) Any individual subject to the provisions of this part who has (or individuals who have or share) principal authority and responsibility for overseeing a firm's practice governed by this part, including the provision of advice concerning Federal tax matters and preparation of tax returns, claims for refund, 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 subparts A, B, and C of this part, as applicable. In the absence of a person or persons identified by the firm as having the principal authority and responsibility described in this paragraph, the Internal Revenue Service may identify one or more individuals subject to the provisions of this part responsible for compliance with the requirements of this section. (b) Any such individual who has (or such individuals who have or share) principal authority as described in paragraph (a) of this section will be subject to discipline for failing to comply with the requirements of this section if— (1) The individual through willfulness, recklessness, or gross incompetence does not take reasonable steps to ensure that the firm has adequate procedures to comply with this part, as applicable, 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 this part, as applicable; (2) The individual through willfulness, recklessness, or gross incompetence does not take reasonable steps to ensure that firm procedures in effect are properly followed, 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 this part, as applicable; or (3) The individual 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 this part, as applicable, and the individual, through willfulness, recklessness, or gross incompetence fails to take prompt action to correct the noncompliance. (c) Effective/applicability date. [T.D. 9668, 79 FR 33693, June 12, 2014] § 10.37 Requirements for written advice. (a) Requirements. (2) The practitioner must— (i) Base the written advice on reasonable factual and legal assumptions (including assumptions as to future events); (ii) Reasonably consider all relevant facts and circumstances that the practitioner knows or reasonably should know; (iii) Use reasonable efforts to identify and ascertain the facts relevant to written advice on each Federal tax matter; (iv) Not rely upon representations, statements, findings, or agreements (including projections, financial forecasts, or appraisals) of the taxpayer or any other person if reliance on them would be unreasonable; (v) Relate applicable law and authorities to facts; and (vi) Not, in evaluating a Federal tax matter, take into account the possibility that a tax return will not be audited or that a matter will not be raised on audit. (3) Reliance on representations, statements, findings, or agreements is unreasonable if the practitioner knows or reasonably should know that one or more representations or assumptions on which any representation is based are incorrect, incomplete, or inconsistent. (b) Reliance on advice of others. (1) The practitioner knows or reasonably should know that the opinion of the other person should not be relied on; (2) The practitioner knows or reasonably should know that the other person is not competent or lacks the necessary qualifications to provide the advice; or (3) The practitioner knows or reasonably should know that the other person has a conflict of interest in violation of the rules described in this part. (c) Standard of review. (2) In the case of an opinion the practitioner knows or has reason to know will be used or referred to by a person other than the practitioner (or a person who is a member of, associated with, or employed by the practitioner's firm) in promoting, marketing, or recommending to one or more taxpayers a partnership or other entity, investment plan or arrangement a significant purpose of which is the avoidance or evasion of any tax imposed by the Internal Revenue Code, the Commissioner, or delegate, will apply a reasonable practitioner standard, considering all facts and circumstances, with emphasis given to the additional risk caused by the practitioner's lack of knowledge of the taxpayer's particular circumstances, when determining whether a practitioner has failed to comply with this section. (d) Federal tax matter. (1) A revenue provision as defined in section 6110(i)(1)(B) of the Internal Revenue Code; (2) Any provision of law impacting a person's obligations under the internal revenue laws and regulations, including but not limited to the person's liability to pay tax or obligation to file returns; or (3) Any other law or regulation administered by the Internal Revenue Service. (e) Effective/applicability date. [T.D. 9668, 79 FR 33693, June 12, 2014] § 10.38 Establishment of advisory committees. (a) Advisory committees. (b) Effective/applicability date. [T.D. 9527, 76 FR 32308, June 3, 2011] Subpart C—Sanctions for Violation of the Regulations Source: T.D. 9011, 67 FR 48774, July 26, 2002, unless otherwise noted. § 10.50 Sanctions. (a) Authority to censure, suspend, or disbar. (b) Authority to disqualify. (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 § 10.81, regardless of whether the evidence or testimony would pertain to an appraisal made prior to or after the effective date of disqualification. (2) Any appraisal made by a disqualified appraiser after the effective date of disqualification will not have any probative effect in any administrative proceeding before the Department of the Treasury or the Internal Revenue Service. An appraisal otherwise barred from admission into evidence pursuant to this section may be admitted into evidence solely for the purpose of determining the taxpayer's reliance in good faith on such appraisal. (c) Authority to impose monetary penalty In general. (ii) If the practitioner described in paragraph (c)(1)(i) of this section was acting on behalf of an employer or any firm or other entity in connection with the conduct giving rise to the penalty, the Secretary of the Treasury, or delegate, may impose a monetary penalty on the employer, firm, or entity if it knew, or reasonably should have known, of such conduct. (2) Amount of penalty. (3) Coordination with other sanctions. (i) Any monetary penalty imposed on a practitioner under this paragraph (c) may be in addition to or in lieu of any suspension, disbarment or censure and may be in addition to a penalty imposed on an employer, firm or other entity under paragraph (c)(1)(ii) of this section. (ii) Any monetary penalty imposed on an employer, firm or other entity may be in addition to or in lieu of penalties imposed under paragraph (c)(1)(i) of this section. (d) Authority to accept a practitioner's consent to sanction. (e) Sanctions to be imposed. (f) Effective/applicability date. [T.D. 9359, 72 FR 54549, Sept. 26, 2007, as amended by T.D. 9527, 76 FR 32308, June 3, 2011] § 10.51 Incompetence and disreputable conduct. (a) Incompetence and disreputable conduct. (1) Conviction of any criminal offense under the Federal tax laws. (2) Conviction of any criminal offense involving dishonesty or breach of trust. (3) Conviction of any felony under Federal or State law for which the conduct involved renders the practitioner unfit to practice before the Internal Revenue Service. (4) Giving false or misleading information, or participating in any way in the giving of false or misleading information to the Department of the Treasury or any officer or employee thereof, or to any tribunal authorized to pass upon Federal tax matters, in connection with any matter pending or likely to be pending before them, knowing the information to be false or misleading. Facts or other matters contained in testimony, Federal tax returns, financial statements, applications for enrollment, affidavits, declarations, and any other document or statement, written or oral, are included in the term “information.” (5) Solicitation of employment as prohibited under § 10.30, the use of false or misleading representations with intent to deceive a client or prospective client in order to procure employment, or intimating that the practitioner is able improperly to obtain special consideration or action from the Internal Revenue Service or any officer or employee thereof. (6) Willfully failing to make a Federal tax return in violation of the Federal tax laws, or willfully evading, attempting to evade, or participating in any way in evading or attempting to evade any assessment or payment of any Federal tax. (7) Willfully assisting, counseling, encouraging a client or prospective client in violating, or suggesting to a client or prospective client to violate, any Federal tax law, or knowingly counseling or suggesting to a client or prospective client an illegal plan to evade Federal taxes or payment thereof. (8) Misappropriation of, or failure properly or promptly to remit, funds received from a client for the purpose of payment of taxes or other obligations due the United States. (9) Directly or indirectly attempting to influence, or offering or agreeing to attempt to influence, the official action of any officer or employee of the Internal Revenue Service by the use of threats, false accusations, duress or coercion, by the offer of any special inducement or promise of an advantage, or by the bestowing of any gift, favor or thing of value. (10) Disbarment or suspension from practice as an attorney, certified public accountant, public accountant or actuary by any duly constituted authority of any State, territory, or possession of the United States, including a Commonwealth, or the District of Columbia, any Federal court of record or any Federal agency, body or board. (11) Knowingly aiding and abetting another person to practice before the Internal Revenue Service during a period of suspension, disbarment or ineligibility of such other person. (12) Contemptuous conduct in connection with practice before the Internal Revenue Service, including the use of abusive language, making false accusations or statements, knowing them to be false or circulating or publishing malicious or libelous matter. (13) Giving a false opinion, knowingly, recklessly, or through gross incompetence, including an opinion which is intentionally or recklessly misleading, or engaging in a pattern of providing incompetent opinions on questions arising under the Federal tax laws. False opinions described in this paragraph (a)(13) include those which reflect or result from a knowing misstatement of fact or law, from an assertion of a position known to be unwarranted under existing law, from counseling or assisting in conduct known to be illegal or fraudulent, from concealing matters required by law to be revealed, or from consciously disregarding information indicating that material facts expressed in the opinion or offering material are false or misleading. For purposes of this paragraph (a)(13), reckless conduct is a highly unreasonable omission or misrepresentation involving an extreme departure from the standards of ordinary care that a practitioner should observe under the circumstances. A pattern of conduct is a factor that will be taken into account in determining whether a practitioner acted knowingly, recklessly, or through gross incompetence. Gross incompetence includes conduct that reflects gross indifference, preparation which is grossly inadequate under the circumstances, and a consistent failure to perform obligations to the client. (14) Willfully failing to sign a tax return prepared by the practitioner when the practitioner's signature is required by the Federal tax laws unless the failure is due to reasonable cause and not due to willful neglect. (15) Willfully disclosing or otherwise using a tax return or tax return information in a manner not authorized by the Internal Revenue Code, contrary to the order of a court of competent jurisdiction, or contrary to the order of an administrative law judge in a proceeding instituted under § 10.60. (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. [T.D. 9359, 72 FR 54550, Sept. 26, 2007, as amended by T.D. 9527, 76 FR 32308, June 3, 2011] § 10.52 Violations subject to sanction. (a) A practitioner may be sanctioned under § 10.50 if the practitioner— (1) Willfully violates any of the regulations (other than § 10.33) contained in this part; or (2) Recklessly or through gross incompetence (within the meaning of § 10.51(a)(13)) violates § 10.34, § 10.35, § 10.36 or § 10.37. (b) Effective/applicability date. [T.D. 9359, 72 FR 54551, Sept. 26, 2007] § 10.53 Receipt of information concerning practitioner. (a) Officer or employee of the Internal Revenue Service. (b) Other persons. (c) Destruction of report. (d) Effect on proceedings under subpart D. (e) Effective/applicability date. [T.D. 9527, 76 FR 32308, June 3, 2011] Subpart D—Rules Applicable to Disciplinary Proceedings Source: T.D. 9011, 67 FR 48774, July 26, 2002, unless otherwise noted. § 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 or, in accordance with § 10.62, subject to a proceeding for sanctions described in § 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 or, in accordance with § 10.62, 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 § 10.62. (c) Except as provided in § 10.82, a proceeding will not be instituted under this section unless the proposed respondent previously has been advised in writing of the law, facts and conduct warranting such action and has been accorded an opportunity to dispute facts, assert additional facts, and make arguments (including an explanation or description of mitigating circumstances). (d) Effective/applicability date. [T.D. 9011, 67 FR 48765, July 26, 2002, as amended by T.D. 9359, 72 FR 54544, 54551, Sept. 26, 2007; T.D. 9527, 76 FR 32309, June 3, 2011; 76 FR 49650, Aug. 11, 2011] § 10.61 Conferences. (a) In general. (b) Voluntary sanction In general. (2) Discretion; acceptance or declination. (c) Effective/applicability date. [T.D. 9359, 72 FR 54551, Sept. 26, 2007, as amended by T.D. 9527, 76 FR 32309, June 3, 2011] § 10.62 Contents of complaint. (a) Charges. (b) Specification of sanction. (c) Demand for answer. (d) Effective/applicability date. [T.D. 9527, 76 FR 32309, June 3, 2011] § 10.63 Service of complaint; service of other papers; service of evidence in support of complaint; filing of papers. (a) Service of complaint In general. (2) Service by certified or first class mail. (ii) If the certified mail is not claimed or accepted by the respondent, or is returned undelivered, service may be made on the respondent, by mailing the complaint to the respondent by first class mail. Service by this method will be considered complete upon mailing, provided the complaint is addressed to the respondent at the respondent's last known address as determined under section 6212 of the Internal Revenue Code and the regulations thereunder. (3) Service by other than certified or first class mail. (ii) Service of the complaint may be made in person on, or by leaving the complaint at the office or place of business of, the respondent. Service by this method will be considered complete and proof of service will be a written statement, sworn or affirmed by the person who served the complaint, identifying the manner of service, including the recipient, relationship of recipient to respondent, place, date and time of service. (iii) Service may be made by any other means agreed to by the respondent. Proof of service will be a written statement, sworn or affirmed by the person who served the complaint, identifying the manner of service, including the recipient, relationship of recipient to respondent, place, date and time of service. (4) For purposes of this section, respondent (b) Service of papers other than complaint. (1) Mailing the paper by first class mail to the last known address (as determined under section 6212 of the Internal Revenue Code and the regulations thereunder) of the respondent or the respondent's authorized representative, (2) Delivery by a private delivery service designated pursuant to section 7502(f) of the Internal Revenue Code to the last known address (as determined under section 6212 of the Internal Revenue Code and the regulations thereunder) of the respondent or the respondent's authorized representative, or (3) As provided in paragraphs (a)(3)(ii) and (a)(3)(iii) of this section. (c) Service of papers on the Internal Revenue Service. (d) Service of evidence in support of complaint. (e) Filing of papers. (f) Effective/applicability date. [T.D. 9011, 67 FR 48765, July 26, 2002, as amended by T.D. 9359, 72 FR 54544, 54552, Sept. 26, 2007; T.D. 9527, 76 FR 32309, June 3, 2011] § 10.64 Answer; default. (a) Filing. (b) Contents. (c) Failure to deny or answer allegations in the complaint. (d) Default. (e) Signature. (f) Effective/applicability date. [T.D. 9011, 67 FR 48774, July 26, 2002, as amended by T.D. 9527, 76 FR 32309, June 3, 2011] § 10.65 Supplemental charges. (a) In general. (1) It appears that the respondent, in the answer, falsely and in bad faith, denies a material allegation of fact in the complaint or states that the respondent has insufficient knowledge to form a belief, when the respondent possesses such information; or (2) It appears that the respondent has knowingly introduced false testimony during the proceedings against the respondent. (b) Hearing. (c) Effective/applicability date. [T.D. 9359, 72 FR 54552, Sept. 26, 2007, as amended by T.D. 9527, 76 FR 32309, June 3, 2011] § 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. [T.D. 9527, 76 FR 32309, June 3, 2011] § 10.67 Proof; variance; amendment of pleadings. In the case of a variance between the allegations in pleadings and the evidence adduced in support of the pleadings, the Administrative Law Judge, at any time before decision, may order or authorize amendment of the pleadings to conform to the evidence. The party who would otherwise be prejudiced by the amendment must be given a reasonable opportunity to address the allegations of the pleadings as amended and the Administrative Law Judge must make findings on any issue presented by the pleadings as amended. § 10.68 Motions and requests. (a) Motions In general. (2) Summary adjudication. (3) Good Faith. (b) Response. (c) Oral motions; oral argument. (2) The Administrative Law Judge may, within his or her discretion, permit oral argument on any motion. (d) Orders. (e) Effective/applicability date. [T.D. 9359, 72 FR 54552, Sept. 26, 2007] § 10.69 Representation; ex parte communication. (a) Representation. (2) A respondent may appear in person, be represented by a practitioner, or be represented by an attorney who has not filed a declaration with the Internal Revenue Service pursuant to § 10.3. A practitioner or an attorney representing a respondent or proposed respondent may sign the answer or any document required to be filed in the proceeding on behalf of the respondent. (b) Ex parte communication. (c) Effective/applicability date. [T.D. 9527, 76 FR 32310, June 3, 2011, as amended by 76 FR 49650, Aug. 11, 2011] § 10.70 Administrative Law Judge. (a) Appointment. (b) Powers of the Administrative Law Judge. (1) Administer oaths and affirmations; (2) Make rulings on motions and requests, which rulings may not be appealed prior to the close of a hearing except in extraordinary circumstances and at the discretion of the Administrative Law Judge; (3) Determine the time and place of hearing and regulate its course and conduct; (4) Adopt rules of procedure and modify the same from time to time as needed for the orderly disposition of proceedings; (5) Rule on offers of proof, receive relevant evidence, and examine witnesses; (6) Take or authorize the taking of depositions or answers to requests for admission; (7) Receive and consider oral or written argument on facts or law; (8) Hold or provide for the holding of conferences for the settlement or simplification of the issues with the consent of the parties; (9) Perform such acts and take such measures as are necessary or appropriate to the efficient conduct of any proceeding; and (10) Make decisions. (c) Effective/applicability date. [T.D. 9011, 67 FR 48765, July 26, 2002, as amended by T.D. 9359, 72 FR 54552, Sept. 26, 2007] § 10.71 Discovery. (a) In general. (1) Depositions upon oral examination; or (2) Answers to requests for admission. (b) Depositions upon oral examination (2) In ordering a deposition, the Administrative Law Judge will require reasonable notice to the opposing party as to the time and place of the deposition. The opposing party, if attending, will be provided the opportunity for full examination and cross-examination of any witness. (3) Expenses in the reporting of depositions shall be borne by the party at whose instance the deposition is taken. Travel expenses of the deponent shall be borne by the party requesting the deposition, unless otherwise authorized by Federal law or regulation. (c) Requests for admission. (d) Limitations. (1) The request fails to meet any requirement set forth in paragraph (a) of this section; (2) It will unduly delay the proceeding; (3) It will place an undue burden on the party required to produce the discovery sought; (4) It is frivolous or abusive; (5) It is cumulative or duplicative; (6) The material sought is privileged or otherwise protected from disclosure by law; (7) The material sought relates to mental impressions, conclusions, or legal theories of any party, attorney, or other representative, of a party prepared in anticipation of a proceeding; or (8) The material sought is available generally to the public, equally to the parties, or to the party seeking the discovery through another source. (e) Failure to comply. (f) Other discovery. (g) Effective/applicability date. [T.D. 9359, 72 FR 54552, Sept. 26, 2007] § 10.72 Hearings. (a) In general Presiding officer. (2) Time for hearing. (3) Procedural requirements. (ii) Hearings will be conducted pursuant to 5 U.S.C. 556. (iii) A hearing in a proceeding requested under § 10.82(g) will be conducted de novo. (iv) An evidentiary hearing must be held in all proceedings prior to the issuance of a decision by the Administrative Law Judge unless— (A) The Internal Revenue Service withdraws the complaint; (B) A decision is issued by default pursuant to § 10.64(d); (C) A decision is issued under § 10.82(e); (D) The respondent requests a decision on the written record without a hearing; or (E) The Administrative Law Judge issues a decision under § 10.68(d) or rules on another motion that disposes of the case prior to the hearing. (b) Cross-examination. (c) Prehearing memorandum. (1) A list (together with a copy) of all proposed exhibits to be used in the party's case in chief; (2) A list of proposed witnesses, including a synopsis of their expected testimony, or a statement that no witnesses will be called; (3) Identification of any proposed expert witnesses, including a synopsis of their expected testimony and a copy of any report prepared by the expert or at his or her direction; and (4) A list of undisputed facts. (d) Publicity In general. (2) Request for additional publicity. (3) Returns and return information Disclosure to practitioner or appraiser. (ii) Disclosure to officers and employees of the Department of the Treasury. (iii) Use of returns and return information. (iv) Procedures for disclosure of returns and return information. (A) Redact identifying information of any third party taxpayers and replace it with a code; (B) Provide a key to the coded information; and (C) Notify the practitioner or appraiser, or authorized representative, of the restrictions on the use and disclosure of the returns and return information, the applicable damages remedy under section 7431 of the Internal Revenue Code, and that unauthorized disclosure of information provided by the Internal Revenue Service under this paragraph (d)(3) is also a violation of this part. (4) Protective measures Mandatory protective order. (ii) Authorized orders. ( 1 ( 2 (iii) Denials. (iv) Public inspection of documents. (e) Location. (f) Failure to appear. (g) Effective/applicability date. [T.D. 9011, 67 FR 48765, July 26, 2002. Redesignated and amended by T.D. 9359, 72 FR 54552, 54553, Sept. 26, 2007; T.D. 9527, 76 FR 32310, June 3, 2011] § 10.73 Evidence. (a) In general. (b) Depositions. (c) Requests for admission. (d) Proof of documents. (e) Withdrawal of exhibits. (f) Objections. (g) Effective/applicability date. [T.D. 9011, 67 FR 48765, July 26, 2002. Redesignated and amended by T.D. 9359, 72 FR 54552, 54554, Sept. 26, 2007] § 10.74 Transcript. In cases where the hearing is stenographically reported by a Government contract reporter, copies of the transcript may be obtained from the reporter at rates not to exceed the maximum rates fixed by contract between the Government and the reporter. Where the hearing is stenographically reported by a regular employee of the Internal Revenue Service, a copy will be supplied to the respondent either without charge or upon the payment of a reasonable fee. Copies of exhibits introduced at the hearing or at the taking of depositions will be supplied to the parties upon the payment of a reasonable fee (Sec. 501, Public Law 82-137)(65 Stat. 290)(31 U.S.C. 483a). § 10.75 Proposed findings and conclusions. Except in cases where the respondent has failed to answer the complaint or where a party has failed to appear at the hearing, the parties must be afforded a reasonable opportunity to submit proposed findings and conclusions and their supporting reasons to the Administrative Law Judge. § 10.76 Decision of Administrative Law Judge. (a) In general Hearings. (2) Summary adjudication. (3) Returns and return information. (b) Standard of proof. (c) Copy of decision. (d) When final. (e) Effective/applicability date. [T.D. 9359, 72 FR 54554, Sept. 26, 2007, as amended by T.D. 9527, 76 FR 32310, June 3, 2011] § 10.77 Appeal of decision of Administrative Law Judge. (a) Appeal. (b) Time and place for filing of appeal. (c) Response. (d) No other briefs, responses or motions as of right. (e) Additional time for briefs and responses. (f) Effective/applicability date. [T.D. 9527, 76 FR 32310, June 3, 2011] § 10.78 Decision on review. (a) Decision on review. (b) Standard of review. (c) Copy of decision on review. (d) Effective/applicability date. [T.D. 9359, 72 FR 54555, Sept. 26, 2007, as amended by T.D. 9527, 76 FR 32310, June 3, 2011] § 10.79 Effect of disbarment, suspension, or censure. (a) Disbarment. (b) Suspension. (c) Censure. (d) Conditions. (e) Effective/applicability date. [T.D. 9527, 76 FR 32310, June 3, 2011] § 10.80 Notice of disbarment, suspension, censure, or disqualification. (a) In general. (b) Effective/applicability date. [T.D. 9527, 76 FR 32311, June 3, 2011] § 10.81 Petition for reinstatement. (a) In general. (b) Effective/applicability date. [T.D. 9668, 79 FR 33694, June 12, 2014] § 10.82 Expedited suspension. (a) When applicable. (b) To whom applicable. (1) Has had a license to practice as an attorney, certified public accountant, or actuary suspended or revoked for cause (not including failure to pay a professional licensing fee) by any authority or court, agency, body, or board described in § 10.51(a)(10). (2) Has, irrespective of whether an appeal has been taken, been convicted of any crime under title 26 of the United States Code, any crime involving dishonesty or breach of trust, or any felony for which the conduct involved renders the practitioner unfit to practice before the Internal Revenue Service. (3) Has violated conditions imposed on the practitioner pursuant to § 10.79(d). (4) Has been sanctioned by a court of competent jurisdiction, whether in a civil or criminal proceeding (including suits for injunctive relief), relating to any taxpayer's tax liability or relating to the practitioner's own tax liability, for— (i) Instituting or maintaining proceedings primarily for delay; (ii) Advancing frivolous or groundless arguments; or (iii) Failing to pursue available administrative remedies. (5) Has demonstrated a pattern of willful disreputable conduct by— (i) Failing to make an annual Federal tax return, in violation of the Federal tax laws, during 4 of the 5 tax years immediately preceding the institution of a proceeding under paragraph (c) of this section and remains noncompliant with any of the practitioner's Federal tax filing obligations at the time the notice of suspension is issued under paragraph (f) of this section; or (ii) Failing to make a return required more frequently than annually, in violation of the Federal tax laws, during 5 of the 7 tax periods immediately preceding the institution of a proceeding under paragraph (c) of this section and remains noncompliant with any of the practitioner's Federal tax filing obligations at the time the notice of suspension is issued under paragraph (f) of this section. (c) Expedited suspension procedures. (1) Of the place and due date for filing a response; (2) That an expedited suspension decision by default may be rendered if the respondent fails to file a response as required; (3) That the respondent may request a conference to address the merits of the show cause order and that any such request must be made in the response; and (4) That the respondent may be suspended either immediately following the expiration of the period within which a response must be filed or, if a conference is requested, immediately following the conference. (d) Response. (e) Conference. (f) Suspension In general. (i) The expiration of the period within which a response to a show cause order must be filed if the respondent does not file a response as required by paragraph (d) of this section; (ii) The conference described in paragraph (e) of this section if the Internal Revenue Service finds that the respondent is described in paragraph (b) of this section; or (iii) The respondent's failure to appear, either personally or through an authorized representative, at a conference scheduled by the Internal Revenue Service under paragraph (e) of this section. (2) Duration of suspension. (i) The date 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 (ii) The date the suspension is lifted or otherwise modified by an Administrative Law Judge or the Secretary of the Treasury, or delegate deciding appeals, in a proceeding referred to in paragraph (g) of this section and instituted under § 10.60. (g) Practitioner demand for § 10.60 proceeding. (h) Effective/applicability date. [T.D. 9011, 67 FR 48774, July 26, 2002, as amended by T.D. 9359, 72 FR 54555, Sept. 26, 2007; T.D. 9527, 76 FR 32311, June 3, 2011; T.D. 9668, 79 FR 33694, June 12, 2014] Subpart E—General Provisions Source: T.D. 9011, 67 FR 48774, July 26, 2002, unless otherwise noted. § 10.90 Records. (a) Roster. (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 § 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 § 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 § 10.61. (5) Disqualified appraisers. (6) Qualified continuing education providers, including providers— (i) Who have obtained a qualifying continuing education provider number; and (ii) Whose qualifying continuing education number has been revoked for failure to comply with the requirements of this part. (b) Other records. (c) Effective/applicability date. [T.D. 9359, 72 FR 54555, Sept. 26, 2007, as amended by T.D. 9527, 76 FR 32311, June 3, 2011; 76 FR 49650, Aug. 11, 2011] § 10.91 Saving provision. Any proceeding instituted under this part prior to June 12, 2014, for which a final decision has not been reached or for which judicial review is still available is not affected by these revisions. Any proceeding under this part based on conduct engaged in prior to June 12, 2014, which is instituted after that date, will apply subpart D and E of this part as revised, but the conduct engaged in prior to the effective date of these revisions will be judged by the regulations in effect at the time the conduct occurred. [T.D. 9668, 79 FR 33695, June 12, 2014] § 10.92 Special orders. The Secretary of the Treasury reserves the power to issue such special orders as he or she deems proper in any cases within the purview of this part. § 10.93 Effective date. Except as otherwise provided in each section and subject to § 10.91, Part 10 is applicable on July 26, 2002. [T.D. 9011, 67 FR 48771, July 26, 2002, as amended by T.D. 9165, 69 FR 75845, Dec. 20, 2004]

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