Question

r the IRS is to look under Treasury Department Circular No. 230, "Regulations Governing Practice before the Internal Revenue Service". How does this area apply to being a CPA and completing tax returns for clients? How does this apply to our question this week?

Answer 1

This area applies to being a CPA and completing tax returns for clients as it contains rules that govern the recognition of certified public accountants (CPA). Besides CPAs it also governs the recognition of registered tax return preparers and other persons who represent tax payers before the IRS.

The Circular no. 230 outline the rules governing authority to practice, and duties and restrictions to practice relating to practice before the IRS.

Practice before IRS comprehends all matters that are connected with a presentation to the IRS or any of its officers or employees relating to a taxpayer’s rights and privileges under regulations that are administered by IRS. Examples of such presentations are preparing documents, filing the documents, and corresponding with the IRS.