Vince Nardone: Tax and Controversy

Internal Revenue Service, Office of Professional Responsibility Announces Recent Disciplinary Action

On December 18, 2009, the Internal Revenue Service, Office of Professional Responsibility (OPR), announced recent disciplinary sanctions involving attorneys, certified public accountants, enrolled agents, enrolled actuaries, enrolled retirement plan agents, and appraisers.  These individuals are subject to the regulations governing practice before the Internal Revenue Service, which are set out in Title 31, Code of Federal Regulations, Part 10, and which are published in pamphlet form as Treasury Department Circular No. 230. The regulations prescribe the duties and restrictions relating to such practice and prescribe the disciplinary sanctions for violating the regulations.

I have attached the actual announcement below.  Each and every time these announcements come out they should be a reminder to tax professionals that we must not cross the line.  We as tax professionals owe a duty to both our clients and the government to ensure that we follow the law.  I am certainly not suggesting that we advocate for less tax favorable positions, or give in to certain Internal Revenue Service positions that seem unreasonable or simply not supported by the law.  Rather, I follow the rule that we must interpret and apply the law in a reasonable and good faith manner that allows for the most tax efficient position a taxpayer may take, while avoiding any potential of civil tax penalties.  Over the years, unfortunately, there are certain professionals that simply go too far.

See the announcement below. Download December 2009 - OPR announcement's

Internal Revenue Service, Office of Professional Responsibility Announces Recent Disciplinary Action

On December 18, 2009, the Internal Revenue Service, Office of Professional Responsibility (OPR), announced recent disciplinary sanctions involving attorneys, certified public accountants, enrolled agents, enrolled actuaries, enrolled retirement plan agents, and appraisers.  These individuals are subject to the regulations governing practice before the Internal Revenue Service, which are set out in Title 31, Code of Federal Regulations, Part 10, and which are published in pamphlet form as Treasury Department Circular No. 230. The regulations prescribe the duties and restrictions relating to such practice and prescribe the disciplinary sanctions for violating the regulations.

I have attached the actual announcement below.  Each and every time these announcements come out they should be a reminder to tax professionals that we must not cross the line.  We as tax professionals owe a duty to both our clients and the government to ensure that we follow the law.  I am certainly not suggesting that we advocate for less tax favorable positions, or give in to certain Internal Revenue Service positions that seem unreasonable or simply not supported by the law.  Rather, I follow the rule that we must interpret and apply the law in a reasonable and good faith manner that allows for the most tax efficient position a taxpayer may take, while avoiding any potential of civil tax penalties.  Over the years, unfortunately, there are certain professionals that simply go too far.

See the announcement below. Download December 2009 - OPR announcement's