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 10.7  Representing oneself; participating in rulemaking; limited practice; special appearances; and return preparation.

Section 10.7(c)(viii) provides that an individual who prepares and signs a taxpayer’s return may represent the taxpayer before revenue agents, customer service representatives, and other similar employees of the Service. This provision allows a tax return preparer, who may not be a practitioner and who may not be subject to the regulations in Circular 230, to handle a taxpayer’s examination. The Section does not believe that it is appropriate to allow a tax return preparer who has not demonstrated any knowledge of tax law or procedure to represent a taxpayer during an examination simply because the preparer has signed a return.

The Section is aware that taxpayers have complained that the practice of requiring a power of attorney before anyone can represent the taxpayer before the Service is too cumbersome for minor inquiries. Accordingly, the Section supports a recent amendment to Form 1040 that allows taxpayers to authorize their return preparer to exchange information with the Service by checking a box on the form. The Section believes that it is appropriate to allow return preparers to engage in the limited conduct of exchanging information if the taxpayer has authorized such activity. A corresponding amendment to this rule would be appropriate.