Comments Would Limit Circular 230 Proposed Regulations

On December 26, 2024, the IRS published proposed regulations on Circular 230, which governs the conduct of practitioners who practice before the IRS. The New York State Bar Association Tax Section (NYSBA) has submitted extensive comments on these proposed regulations.

Knowledge of Error or Omission

The proposed regulations would require that a practitioner who represents a client in a matter before the IRS must promptly advise the client of the consequences of any noncompliance with, error in, or omission from any return, document, affidavit or other paper that a client submits or executes under the US tax laws, and should request the client's agreement before disclosing such noncompliance, error or omission to the IRS. The NYSBA agrees that the new obligations are good practice, but notes that practitioners should also advise clients of the potential consequences of making such disclosure to the IRS and their rights and privileges related to such disclosure. The