Changes to Circular 230 resulted in a lengthy IRS webinar at http://www.irsvideos.gov/Circular230Overview_June_25_2014/player/frame-flv.htm
You can catch up on your e-mail and listen in the background. Alternatively, you can just listen to those parts that interest you. For that reason I have given an outline of the webinar with some comments below. It is 2 hours and 12 miuntes.
First four minutes: History of Office of Professional Responsibility and Circular 230
4 – 6 minutes: history of enrolled agents
Karen Hawkins, Director of the Office of Professional Responsibility Starts to talk
6 – 13 minutes: History of Circular 230
13 minutes: When you sign an IRS form 2848, Power of Attorney and Declaration of Representative, you are representing that you know Circular 230. (I don’t think that is true of the 2014 version, but Karen Hawkins, the Director of Professional Responsibility said it. I think it says that you are subject to Circular 230. It might be a good idea to know the law you are subject to, especially since she thinks ignorance of the law is no excuse, but I do not think we are stating, at least on the 2014 revision of form 2848, that we know what is in them, so signing this form itself is not wrong.)
14- 15 minutes: Office of Professional Responsibility
16 – 19 minutes: Practice before the IRS is broader for this purpose than the definition in the Internal Revenue Code.
19 – 22 minutes: Responsibility to educate employees about Circular 230 and their responsibility, 10.35(b). This was the first part when I said, hmmmmm ... never thought of that. Maybe I need to change something.
22-40 minutes: Disciplinary process for individuals and firms including new fines
40 – 42 minutes: Continuing education credits
42 minutes: What she will cover
43 – 49 minutes: Accuracy, including due diligence, reasonable representations, when can rely on others, 10.72
49 – 54 minutes: When one can sign a tax return, reasonable basis, 10.34(a)
54 – 59 minutes: Standards for documents, 10.34(b)
59 minutes – 1:09: Responsibilities to tell clients about potential penalties and need for disclosure, 10.34(c). If you are new to this area, worth listening to. If you are experienced, not a bad refresher.
1:09 – 1:11: Ban on negotiating refund checks, 10.31
1:11 – 1:13: Reasonable fees and limitations on contingent fees, 10.27. But you may want to also review recently decided Ridgely v. Lew, D.C. District Court, Civil Action No. 1:12 CV 00505
1:13 – 1:15 Disreputable conduct, 10.51(a)(4)
1:15 – 1:20 Assisting in an illegal plan. Scary comments about collection cases. 10.51(a)(7)
1:20 – 1:28 Conflict of interest. Resembles our Michigan Rules of Professional Conduct, except for conflict between lawyer and client when the client has issues because he followed you advice and you are worried about IRC 6694 or a referral to OPC.
Q&A
1:28 – 1:30 What she is going to talk about
1:30 - 1:50 2014 revisions to Circular 230
1:30 – 1:35 Why she will talk about what she will talk about.
1:35 – 1:38 “Covered opinion letter” guidance is gone. Disclaimers are not needed and are inaccurate. New 10.35 deals with competence. You are ok if what you did was reasonable under the circumstances. I think that this sounds good, but I liked not being responsible as long as I had a disclaimer better.
1:38 – 1:41 Employee behavior and respondeat superior. Why does she keep bringing this up? Apparently people show up and say, "My employee made a mistake, not me." Reponse is, "You are wrong for not properly supervising your employee,"
1:41 – 1:46 The new principles approach on written advice which dies include e-mail. She implies that e-mail tax advice is dangerous.
1:46 – 1:49 Expedited suspension procedure
1:49 – 1:51 What are the most important changes, STATRTING WITH CHANGE YOUR E-MAIL
Real Q&A that I found interesting (as opposed to somebody has a problem and I do not have that problem):
1:51 Karen Hawkins opinion on the holding of Loving v. Commisioner, 742 F3d 1013 (D.C. Cir. 2014) which is that it only did away with the PTIN education requirement and other language was mere musings by the bench.
1:56 Tax resolutions firm issues, including those of employees of tax resolution firms.
2:08 TAKE THOSE DISCLAIMERS OFF YOUR E-MAILS
If you practice in this area and are not uncomfortable once between 43 minutes and 1 hour and 28 minutes, then you did not listen closely. If you are not up to date on the 2014 revisions then 1 hour and 30 minutes to 1 hour and 46 minutes would be useful. If you are representing someone going through an OPR investigation, minutes 22 – 40 and 1 hour and 46 minutes to 1 hour and 49 minutes would interest you.
At the time of the broadcast Ridgely was pending and Steele, et all, had not been filed.
Another Webinar is coming from Karen Hawkins: Practicing Before the IRS - Circular 230 A to Z - October 29, 2014 .
If you got this far, was this useful? Either way, I would like to know.