Circular 230 FAQ

1.  What is Circular 230?

2.  What does the disclaimer you include in email messages, your web site, and other documents mean?

3.  Does this change the way you work or the accuracy of your opinions?
 

If you have any other questions, please contact us.

1.  What is Circular 230?

Circular 230 is a regulation that governs practice before the Internal Revenue Service.  The regulation applies to attorneys, accountants, and other tax professionals.  The final regulation was published on December 20, 2004, by the Department of the Treasury and became effective on June 20, 2005.

The Circular 230 regulations control the way tax professionals are allowed to give tax advice to clients, including specific requirements for the content of various types of written advice.

Specifically, the Circular 230 regulations set forth and define specific types of written advice that constitute “covered opinions.”  Including our disclaimer in the document you receive from us allows us to provide written advice without that written advice becoming a “covered opinion” under the final Circular 230 regulations.

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2.  What does the disclaimer you include in email messages, your web site, and other documents mean?

The disclaimer states that the content cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer by the Internal Revenue Service.

Any letter, e-mail, or other document that addresses a federal tax issue or issues and that includes this disclaimer may not be relied upon by a taxpayer to establish the reasonable cause and good faith defense to the accuracy-related penalties that may be imposed on that taxpayer by the Internal Revenue Service. The disclaimer is not intended to otherwise qualify or alter any of the advice or provisions in the applicable documents.

The purpose of the regulation is to keep a taxpayer from using opinions written by a tax professional in the normal course of business as a defense in arguing that they do not owe certain taxes or penalties.  The point the government is trying to make is that it is the taxpayer's responsibility to pay the taxes regardless of any advice they have received to the contrary. 

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3.  Does this change the way you work or the accuracy of your opinions?

No.  We continue to work to the best of our ability to provide you with accurate and appropriate advice.  The Circular 230 disclaimer is just one more regulation with which we must comply.

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