IRS Issues Final Regulations Concerning Circular 230

The IRS finalized proposed regulations issued in August of last year by issuing final regulations TD 9527. The final regulations revise Circular 230 and employ components of the IRS’s attempt to regulate and register all paid preparers of tax returns.

The new regulations require paid prepares of almost all tax returns and claims to register with the IRS by passing a tax compliance suitability check and by obtaining a PTIN (preparer tax identification number). Prepares other than CPAs, enrolled agents, and attorney must additionally pass a competency exam and complete continuing education requirements. The regulations adopt the term “registered tax return preparer” and provide express requirements and procedures for renewing the designation.

For more information on the final regulations, see IRS Finalizes Circular 230 Regulations, The Journal of Accountancy, August 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.