The US Treasury Department and the Internal Revenue Service (IRS) have proposed regulations to modernise the rules governing tax professionals.

This proposed regulation would the affect certain tax professionals, who can practice before the IRS, encapsulated in Treasury Department Circular 230.

The proposed amendments reflect legal changes and the dynamic nature of tax practice.

The IRS Office of Professional Responsibility, tasked with overseeing practitioner conduct and discipline, would see Circular 230 revised to eliminate outdated sections.

Some of the rule updates include registered tax return preparers, tax return preparation, and contingent fees, aligning with legal developments since previous amendments in 2011 and 2014.

Further proposed changes aim to ensure Circular 230 mirrors the contemporary practice environment.

This includes mandating practitioners to uphold technological competency. Additionally, the regulations seek to clarify the Office of Professional Responsibility’s jurisdiction over suspended or disbarred practitioners.

The regulations also suggest new rules for appraisers and setting standards for disqualification.

The proposed updates would impact a range of tax professionals, including enrolled agents, enrolled retirement plan agents, registered tax return preparers, enrolled actuaries, attorneys, Annual Filing Season Program participants, certified public accountants (CPAs), appraisers, and other practitioners.

The public hearing for the proposal is scheduled on 6 March 2025.

In October 2024, the American Institute of CPAs (AICPA) urged the Financial Crimes Enforcement Network (FinCEN) to establish a policy to automatically extend the filing deadlines for various reports following major disasters.

This includes reporting of Foreign Bank and Financial Accounts (FBAR) and Beneficial Ownership Information (BOI) reports for victims of significant disasters.