The Treasury Department and the Internal Revenue Service (IRS) have issued proposed regulations to modernize the rules governing tax professionals. These updates aim to reflect changes in the law and the evolving landscape of tax practice.
Key proposed changes include:
- Elimination of provisions related to registered tax return preparers: These rules will be removed as the registration program has been discontinued.
- Clarification of contingent fee arrangements: The use of certain contingent fee arrangements by practitioners will be classified as disreputable conduct.
- Emphasis on technological competency: Practitioners will be required to maintain technological competency as part of their practice before the IRS.
- Enhanced jurisdiction for OPR: The Office of Professional Responsibility (OPR) will retain jurisdiction over practitioners who have been suspended or disbarred from practice.
- New rules for appraisers: The regulations will include specific standards for appraiser disqualification.
These proposed regulations are intended to strengthen ethical standards and ensure that tax professionals maintain the highest levels of competence and integrity in their dealings with the IRS.