What is Circular 230?
Circular 230 is the set of Treasury Department rules, published as 31 CFR Part 10, that governs practice before the Internal Revenue Service. The IRS describes it as mandatory rules of conduct for tax professionals who deal with the IRS on a taxpayer's behalf. It also covers competency, diligence and discipline.
Who it covers
Section 10.3 lists who may practice before the IRS: attorneys, certified public accountants, enrolled agents, enrolled actuaries and enrolled retirement plan agents. Together these are "practitioners." Each may practice only while "not currently under suspension or disbarment."
The IRS says the Office of Professional Responsibility (OPR) also has jurisdiction over appraisers who support tax positions, and over preparers in the Annual Filing Season Program.
In Loving v. IRS (2014), a federal appeals court held that tax return preparers do not represent taxpayers before the IRS. Treasury says that as a result its 2011 rules for registered tax return preparers are no longer enforceable.
What "practice before the IRS" means
Section 10.2 defines it broadly: all matters connected with a presentation to the IRS about a taxpayer's rights, privileges or liabilities. That includes preparing and filing documents, corresponding with the IRS, giving certain written advice and representing a client at conferences, hearings and meetings.
The main duties
Subpart B (§§10.20 to 10.38) sets the duties. These are the ones people ask about most:
| Section | What it requires |
|---|---|
| §10.20 | On a proper and lawful IRS request, promptly submit records or information, unless you believe in good faith and on reasonable grounds they are privileged. Do not interfere with the IRS getting them, with the same privilege exception. |
| §10.21 | If you know a client has not complied with the revenue laws, or made an error or omission on a return, advise the client promptly of it and of the consequences. |
| §10.22 | Use due diligence in preparing and filing returns and in checking what you tell the Treasury and your clients. |
| §10.27 | No unconscionable fees. Contingent fees are barred except in the cases the section lists, such as work on an IRS exam of an original return. A 2014 court decision, Ridgely v. Lew, held that the IRS cannot bar contingent fees for ordinary refund claims. |
| §10.29 | Do not represent a client where there is a conflict of interest, unless you reasonably believe you can give each affected client competent and diligent representation, the law allows it, and each affected client gives informed consent, confirmed in writing. |
| §10.30 | No false, misleading or coercive advertising. EAs may not use the word "certified" to describe their designation. |
| §10.34 | Do not willfully, recklessly or through gross incompetence sign a return, or advise a position, that you know or reasonably should know lacks a reasonable basis or is unreasonable. |
| §10.35 | Have the knowledge, skill, thoroughness and preparation the matter needs. |
| §10.36 | If you lead a firm's tax practice, take reasonable steps to make sure the firm has adequate procedures to comply. |
| §10.37 | Written advice must rest on reasonable factual and legal assumptions, consider the relevant facts, and not assume the return won't be audited. |
Subpart B has more, including prompt handling of IRS matters (§10.23) and returning client records on request (§10.28).
What happens if someone breaks the rules
OPR has exclusive responsibility for discipline under §10.1. Under §10.50, the Treasury may censure, suspend or disbar a practitioner who is incompetent, disreputable or fails to comply with the rules. Censure is a public reprimand. The Treasury may also impose a monetary penalty, up to the gross income from the conduct. A penalty can fall on an employer or firm that knew or should have known of the conduct.
The IRS says OPR can also reach agreements with practitioners who consent to sanctions, and can bring formal disciplinary proceedings (Subparts C and D). Anyone under suspension or disbarment may not practice before the IRS. Enrolled agents also have renewal and continuing education duties.
About the text
The IRS publishes Circular 230 as a PDF marked Rev. 6-2014. This guide uses that copy, and the sections quoted here read the same in the current eCFR text, apart from punctuation. In December 2024 Treasury proposed changes that would, among other things, remove the registered tax return preparer rules and replace the contingent-fee rule in §10.27 with a ban on certain contingent fees as disreputable conduct. Proposed rules are not law until made final, so check the IRS page before you rely on a section.
Sources, checked November 3, 2026: IRS: Circular 230 (PDF, Rev. 6-2014) · IRS: Circular 230 tax professionals · IRS: Office of Professional Responsibility and Circular 230 · IRS: OPR at a glance · eCFR: 31 CFR Part 10 · Federal Register: proposed Circular 230 amendments (Dec. 26, 2024). This describes the rules and is not legal advice.