Revised Corporate Tax Shelter Discussion Draft
February 14, 2001

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VI. Section 330(b): Regulation of Individuals Practicing before the Department of Treasury

The Draft authorizes the Treasury Secretary to impose a monetary penalty on any representative described in existing Section 330(b) (31 U.S.C. § 330) (i.e., a representative who is incompetent or disreputable, violates regulations prescribed under section 330, or, with intent to defraud, willfully and knowingly misleads or threatens the person being represented or a prospective person to be represented). While we support the addition of monetary penalties to the punishment of suspension or disbarment, we believe that section 330(b) monetary penalties should be limited to tax shelter-related conduct. In addition, we believe that the section 330(b) monetary penalties should not be duplicative of the aiding and abetting penalty.

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