Comments Regarding Proposed Amendments to the Regulations
Governing Practice Before the Internal Revenue Service
(Title 31, Code of Federal Regulations, Subtitle A, Part 10)
April 23, 2001

Section 10.30  Solicitation.

The Proposed Amendments to section 10.30(a) expand the prohibition of deceptive solicitation practices to cover private, as well as public, solicitations. This provision uses the terms "public communications" and "private solicitations." This language implies that the drafters may have intended to create a distinction between a "communication" and a "solicitation." The Section does not believe that any such distinction was intended. Therefore, the regulation could be revised to read "A practitioner may not, with respect to any Internal Revenue Service matter, in any way use or participate in the use of any form of public or private communication containing a false, fraudulent, or coercive statement or claim;…" This language makes clear that false statements, both public and private, are prohibited. Alternatively, if the drafters did intend to create a distinction between a "communication" and a "solicitation," the rules need to be clarified.

This provision also specifies terms that may or may not be used in describing a practitioner’s professional designation as an enrolled agent. The proposed regulations add the term "licensed" to the list of prohibited descriptions. The Section disagrees with prohibiting the use of this term. While the Section appreciates the need to protect taxpayers from misleading designations, the term "licensed" does accurately describe the process one undertakes to become an enrolled agent. Webster’s defines "license" as "a permission granted by competent authority to engage in a business or occupation...." For example, those who wish to be enrolled agents must satisfy admission criteria including continuing education. They must file an application for enrollment along with a fee to the Director of Practice and, ultimately, be granted permission by the Director of Practice to practice before the Service. An individual must possess a valid enrollment card that includes periodic renewals (an accompanying fee) to practice before the Service. These elaborate procedures appear very much to be a licensing procedure even if not called such under the regulations. For these reasons, the designation "licensed" would not be any more misleading, false or harmful to prospective clients than the term "enrolled." Thus, the designation "licensed" should not prohibited.

Section 10.30(c) of the proposed regulations lists the acceptable modes of communicating fee information. Given the rapid pace of technological advances in communication methods, the regulation could be stated more broadly to anticipate such changes. The language could be modified as follows: "Fee information may be communicated in any available medium, including professional lists, telephone directories, print media, mailings, electronic mail, facsimile, hand delivered flyers, radio, television, and any other method." Furthermore, the requirement that copies of these communications be retained by the practitioner could also be broadened to anticipate communication media not yet available.