Tax News

CCH (cch.taxgroup.com) reports:

  31 C.F.R. 10.7(c)(1)(viii) is a valid regulation that did not unlawfully and arbitrarily limit an unenrolled tax return preparer's right to represent taxpayers before the IRS. In a case of first impression, CA-11 determined that 31 C.F.R. 10.7(c) (1)(viii), which limits the scope of representation by an unenrolled representative, was a reasonable legislative regulation and was not arbitrary, capricious or manifestly contrary to the statute. The provision balances the need for a taxpayer to have affordable representation and to be able to choose his representative with the need for competent representation that protects the taxpayer, the IRS and the general public.

  Although Code Sec. 7521 permits practitioners and certain other persons to represent taxpayers before the IRS in the context of a taxpayer interview, it did not define the persons permitted to practice before the IRS. Furthermore, while Congress has not set out anything directly on the question of whether an unenrolled representative could represent the taxpayers before the IRS under 31 C.F.R. 10.7(c) (1)(viii), it expressly delegated authority to the IRS to promulgate regulations governing who could practice before the IRS. Finally, the preparer could acquire the ability to fully represent clients by becoming an enrolled agent.

  Affirming, per curiam , an unreported DC Fla. decision.

P.H. Wright v. M.W. Everson, CA-11, 2008-2 USTC ¶50,521

Other References:

 
Code Sec. 7521

  CCH Reference - 2008FED ¶42,791.035

  31 CFR Part 10

  CCH Reference - 2008FED ¶43,808.154

  Tax Research Consultant

  CCH Reference - TRC IRS: 3,204.20
CCH Reference - TRC IRS: 6,252.30