Circular 230

Circular 230 is the regulation that governs practice before the IRS. Its provisions are written with scopes, so the question is never simply what the rules require but who each provision reaches.

A scoped rule is not a rule about everyone

Several of these rules are written with a scope: they reach certain persons, certain conduct, or certain returns. The scope is part of the rule, so we state who a provision reaches rather than turning it into a rule about everyone.

What the authority says

The Secretary of the Treasury may regulate the practice of representatives of persons before the Department of the Treasury.
Before admitting a representative to practice, the Secretary may require that the representative demonstrate good character, good reputation, necessary qualifications and competency to advise and assist persons in presenting their cases.
The Secretary may suspend or disbar from practice a representative who is incompetent, disreputable, violates the regulations, or with intent to defraud wilfully and knowingly misleads or threatens the person being represented.
An attorney who is not currently under suspension or disbarment from practice before the Internal Revenue Service and who is a member in good standing of the bar of the highest court of any state, possession, territory, commonwealth or the District of Columbia may practice before the Internal Revenue Service.
A certified public accountant who is not currently under suspension or disbarment from practice before the Internal Revenue Service and who is duly qualified to practice as a certified public accountant in any state, possession, territory, commonwealth or the District of Columbia may practice before the Internal Revenue Service.
An individual enrolled as an agent under Part 10 and not currently under suspension or disbarment from practice before the Internal Revenue Service may practice before the Internal Revenue Service.
Enrolled actuaries and enrolled retirement plan agents may practice within the limits stated for those categories.
Each of these categories must file a written declaration of current qualification and of authorization to represent the party.
An individual may appear on his or her own behalf before the Internal Revenue Service.
An individual who is not a practitioner may represent a taxpayer before the Internal Revenue Service in the limited situations described in this section, and the Commissioner may prescribe rules for that limited practice.
Any individual may prepare a tax return, appear as a witness for the taxpayer, or furnish information at the request of the Internal Revenue Service.
Preparing a return does not by itself constitute practice before the Internal Revenue Service.
A practitioner must exercise due diligence in preparing or assisting in the preparation of, approving and filing tax returns, documents, affidavits and other papers relating to Internal Revenue Service matters.
A practitioner must exercise due diligence in determining the correctness of oral or written representations made to the Department of the Treasury and to clients.
A practitioner is presumed to have exercised due diligence if the practitioner relies on the work product of another person and used reasonable care in engaging, supervising, training and evaluating that person.
A practitioner must, at the request of a client, promptly return any and all records of the client that are necessary for the client to comply with his or her federal tax obligations.
The existence of a dispute over fees generally does not relieve the practitioner of this responsibility.
Where applicable state law allows a practitioner to retain a client's records in the case of a fee dispute, the practitioner need only return those records that must be attached to the taxpayer's return, and must provide the client reasonable access to review and copy additional records.
Records of the client do not include returns or other documents prepared by the practitioner that are being withheld pending the client's performance of a contractual obligation to pay fees.
A practitioner may not represent a client before the Internal Revenue Service if the representation involves a conflict of interest.
Notwithstanding the existence of a conflict, the practitioner may represent a client if the practitioner reasonably believes he or she will be able to provide competent and diligent representation, the representation is not prohibited by law, and each affected client gives informed consent confirmed in writing.
Copies of the written consents must be retained for at least 36 months from the date the representation concludes, and must be provided to any officer or employee of the Internal Revenue Service on request.
A practitioner may not wilfully, recklessly or through gross incompetence sign a tax return or claim for refund that the practitioner knows or reasonably should know contains a position that lacks a reasonable basis, is an unreasonable position as described in § 6694(a)(2), or is a wilful attempt to understate liability or a reckless or intentional disregard of rules or regulations as described in § 6694(b)(2).
A practitioner may not advise a client to take a frivolous position on a document submitted to the Internal Revenue Service.
A practitioner must inform a client of any penalties reasonably likely to apply to a position taken on a return the practitioner prepared or advised on, and of the opportunity to avoid such penalties by disclosure.
A practitioner generally may rely in good faith without verification on information furnished by the client, but may not ignore the implications of information actually known and must make reasonable inquiries if the information appears incorrect, inconsistent or incomplete.
A practitioner must possess the necessary competence to engage in practice before the Internal Revenue Service.
Competent practice requires the appropriate level of knowledge, skill, thoroughness and preparation necessary for the matter.
A practitioner may become competent through consultation with experts or study of the relevant law.
Any individual subject to Part 10 who has or shares principal authority and responsibility for overseeing a firm's practice governed by Part 10 must take reasonable steps to ensure the firm has adequate procedures in place for purposes of complying with Part 10.
Such an individual may be subject to discipline for failing to comply with this section where the individual knew or should have known that a pattern or practice of non-compliance existed and failed to take prompt action to correct it.
The Secretary may censure, suspend or disbar any practitioner from practice before the Internal Revenue Service if the practitioner is shown to be incompetent or disreputable, fails to comply with any regulation in Part 10, or with intent to defraud wilfully and knowingly misleads or threatens a client or prospective client.
A monetary penalty may be imposed on a practitioner, and on an employer, firm or other entity where the conduct was engaged in on its behalf and it knew or reasonably should have known of the conduct.

Every source on this page shows the body that issued it and the date we read it. The text behind this centre was last read on 2026-08-24.

Where this comes from

31 U.S.C. § 330 — Practice before the DepartmentUnited States Code (GPO, govinfo). Read for: The Secretary of the Treasury may regulate the practice of representatives of persons before the Department of the Treasury. Read on 2026-08-16.
31 C.F.R. § 10.3 — Who may practiceElectronic Code of Federal Regulations. Read for: An attorney who is not currently under suspension or disbarment from practice before the Internal Revenue Service and who is a member in good standing of the bar of the highest court of any state, possession, territory, commonwealth or the District of Columbia may practice before the Internal Revenue Service. Read on 2026-08-16.
31 C.F.R. § 10.7 — Representing oneself; participating in rulemaking; limited practice; special appearances; and return preparationElectronic Code of Federal Regulations. Read for: An individual may appear on his or her own behalf before the Internal Revenue Service. Read on 2026-08-16.
31 C.F.R. § 10.22 — Diligence as to accuracyElectronic Code of Federal Regulations. Read for: A practitioner must exercise due diligence in preparing or assisting in the preparation of, approving and filing tax returns, documents, affidavits and other papers relating to Internal Revenue Service matters. Read on 2026-08-16.
31 C.F.R. § 10.28 — Return of client's recordsElectronic Code of Federal Regulations. Read for: A practitioner must, at the request of a client, promptly return any and all records of the client that are necessary for the client to comply with his or her federal tax obligations. Read on 2026-08-16.
31 C.F.R. § 10.29 — Conflicting interestsElectronic Code of Federal Regulations. Read for: A practitioner may not represent a client before the Internal Revenue Service if the representation involves a conflict of interest. Read on 2026-08-16.
31 C.F.R. § 10.34 — Standards with respect to tax returns and documents, affidavits and other papersElectronic Code of Federal Regulations. Read for: A practitioner may not wilfully, recklessly or through gross incompetence sign a tax return or claim for refund that the practitioner knows or reasonably should know contains a position that lacks a reasonable basis, is an unreasonable position as described in § 6694(a)(2), or is a wilful attempt to understate liability or a reckless or intentional disregard of rules or regulations as described in § 6694(b)(2). Read on 2026-08-16.
31 C.F.R. § 10.35 — CompetenceElectronic Code of Federal Regulations. Read for: A practitioner must possess the necessary competence to engage in practice before the Internal Revenue Service. Read on 2026-08-16.
31 C.F.R. § 10.36 — Procedures to ensure complianceElectronic Code of Federal Regulations. Read for: Any individual subject to Part 10 who has or shares principal authority and responsibility for overseeing a firm's practice governed by Part 10 must take reasonable steps to ensure the firm has adequate procedures in place for purposes of complying with Part 10. Read on 2026-08-16.
31 C.F.R. § 10.50 — SanctionsElectronic Code of Federal Regulations. Read for: The Secretary may censure, suspend or disbar any practitioner from practice before the Internal Revenue Service if the practitioner is shown to be incompetent or disreputable, fails to comply with any regulation in Part 10, or with intent to defraud wilfully and knowingly misleads or threatens a client or prospective client. Read on 2026-08-16.

What we are not saying here

Nothing on this page should be read as saying Authorises the regulations; the operative eligibility rules are in 31 C.F.R. Part 10.; Says nothing about who must obtain a PTIN or an EFIN.; Lists categories of persons eligible to practice. It does not rank them and creates no hierarchy among attorneys, CPAs and enrolled agents.; Eligibility is not authorization: a valid authorization from the taxpayer is separately required.; Does not address who prepares returns or who obtains identifiers.; Limited practice is bounded by the rules the Commissioner prescribes; the current programme conditions are stated in IRS material and Revenue Procedure 2014-42.; Confers nothing unrestricted on any non-practitioner.; Applies to practitioners as Part 10 defines them, not to every person who prepares a return.; This is professional diligence and is a different rule from the statutory due-diligence requirement of § 6695(g).; Applies to practitioners under Part 10.; Interacts with state law on retention in fee disputes; that interaction is a TP3 state question.; Applies to practitioners under Part 10, in representation matters.; A practitioner rule. Its overlap with § 6694 is deliberate but the two are separate authorities with separate consequences.; Reaches individuals with principal authority over a Part 10 practice, not every firm owner.; Firm responsibility as a standalone reader topic is deferred beyond V1.; Disciplinary posture only. Individual disciplinary case commentary is out of scope..

Where to go next

Whether the preparer definition reaches what I didConduct and compensation, in the order the text asks about them.
What a preparer identifying number isWhen the Code requires it, and what holding one does not settle.
How electronic filing participation worksA firm-level programme with a firm-level identifier.
Who may deal with the IRS for a taxpayerEligibility and authorization are two separate requirements.
What enrolled agent, CPA and attorney each meanSide by side, in the regulation's order, with no ranking.
How IRS discipline works, and how to check itThe three sanctions, the process behind them, and what a published record does and does not say.
What due diligence requiresThe professional standard and the statutory requirement are not one rule.
What each preparer penalty reachesTrigger, standard and defence, stated separately for each one.
When client information may be disclosed or usedDefined terms, consent, and the exceptions the rules state.
Where bookkeeping ends and preparation beginsWhat the federal definitions look at, which is not the job title.
How this centre works and where it stopsThe limits we hold ourselves to, including the state boundary.
The authority behind all of itEvery source, what it was read for, and the date it was read.

This is general education for people who work in tax, not legal or tax advice, and not a determination about anyone's status or obligations. Rules change and facts matter. For a decision about your own situation or your own practice, take advice from a licensed professional.