TXCPA Committee Responds to Proposed Circular 230 Regulations

TXCPA’s Federal Tax Policy Committee supports Treasury’s efforts on IRS practice rules but raises concerns about requiring practitioners to ensure tax return corrections and broad contingent fee restrictions.

Internal Revenue Service

February 20, 2025

TXCPA’s Federal Tax Policy Committee recently issued comments on proposed rulemaking regarding regulations governing practice before the IRS (REG-11610-20). While the committee supports Treasury’s efforts to balance effective taxpayer representation with enforcement, it has concerns regarding certain provisions, including the proposal that the practitioner is required to ensure corrective actions are taken on an incorrect tax return and the broad restrictions on contingent fees. The committee urges Treasury to provide necessary clarifications and modifications to ensure taxpayer rights and access to competent representation remain protected.

Read comments letter: Regulations Governing Practice Before the IRS

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