Ensuring that tax professionals adhere to professional standards and follow the law is one of the top four enforcement goals for the IRS. The proposed revisions to Circular 230 would modify (1) the definition of practice, (2) eligibility for enrollment, (3) unenrolled practice, and (4) the rules concerning contingent fees, conflicts of interest, standards with respect to tax returns and documents, affidavits and other papers, sanctions, discovery, publicity, and appeals.

The proposed regulations also would replace certain terminology to conform to the terminology used in 18 U.S.C. 207, and 5 C.F.R. parts 2637 and 2641 (or superseding regulations). The proposed regulations do not address the standards for written tax advice that were the subject of final amendments to the regulations issued in December 2004 and modified in May 2005. 

The Treasury Department and the IRS are requesting comments on the proposed regulations by April 7, 2006. A hearing on the proposed regulations is scheduled for Wednesday, June 21, 2006, at 10 a.m., in the IRS auditorium.