Free Site Registration


NSA Calls for Fast Change to Circ. 230 Regarding Tax Advice

Print
Email
Reprints
Washington, D.C. (November 30, 2012)

By Jeff Stimpson

The National Society of Accountants has called on the IRS to immediately revise the Circular 230 provision that states that tax preparers may not give tax advice that is not directly related to prepared tax returns.

“Although we are firmly supportive of the changes proposed to be made by this rulemaking, we are extremely disappointed that no changes are proposed to be made to §10.3(f)(3),” NSA President Harlan Rose wrote in a November 16 letter to IRS Acting Commissioner Steven T. Miller. The provision, included in Circ. 230 in 2010 after a comment period and hearing on the matter, provides that an RTRP’s authorization to practice under this part also “does not include the authority to provide tax advice to a client or another person.”

“Many NSA members meet with clients over the course of the year to discuss various matters that may have tax implications,” the letter continued. “These matters may involve pre-transaction advice … or matters as mundane as ensuring compliance with existing tax laws. Yet, on the face of it, §10.3(f)(3) would say that a registered tax return preparer does not have the authority to provide this tax advice because, strictly speaking, it is not necessary to prepare a tax return.”

“We are mindful that the preamble to the current regulations provides that this provision was inserted to make clear that the tax preparation privilege under §7525 of the Code does not apply to communications between a taxpayer and a registered tax return preparer because advice provided by a registered tax return preparer is intended to be reflected on a tax return and is not intended to be confidential or privileged. With all respect, the sentence in §10.3(f)(3) does not address the confidential or privileged nature of any advice. Rather, it states that registered tax return preparers do not have ‘the authority to provide tax advice to a client.’”

“This is unfair, unreasonable, and should be modified now, not in the next iteration of Circular 230,” Rose wrote.

Added NSA executive vice president John Ams, “They ask preparers to pay to register and take a test but they can’t give [such] advice? Let’s fix this now.”

Ams also added that NSA has received no response from the IRS yet, but anticipates that there will be dialog with the service soon.

0 Comments

Be the first to comment on this post using the section below.

Add Your Comments...

Already Registered?

If you have already registered to Accounting Today, please use the form below to login. When completed you will immeditely be directed to post a comment.

 

Follow Accounting Today
Advertisement
Advertisement

What's the Biggest Threat or Challenge Facing Accountants?

May 22, 2013

Attendees at Accounting Today's Meet the Editors Dinner at Keens Steakhouse in New York discuss the top issues confronting accountants.

Women in Accounting: Breaking the Mold

May 21, 2013

A continued conversation with Marcum’s Nanette Lee Miller and Janis Cowhey McDonagh about the obstacles women in the accounting profession face when trying to make their way into leadership positions.

Advertisement

SLIDE SHOW

Tax Season by the Numbers

May 22, 2013

The IRS recently released statistics covering the year to May 10, 2013.

Top 10 Tech Initiatives -- 2013

May 5, 2013

The AICPA's annual list of IT priorities for accounting firms.

Tax Stats: May 2013

April 30, 2013

Our monthly collection of statistics from the world of tax.

10 Biggest Estate Planning Mistakes

April 29, 2013

Help your clients avoid these common pitfalls.

Common E-mail Security Mistakes

April 23, 2013

These five bad habits can make your confidential information -- and that of your clients -- easy to steal.

Advertisement
Advertisement
Advertisement