In NAEA’s comment letter on Regulations Governing Practice Before the Internal Revenue Service (Circular 230), President Twila Midwood noted that for over a decade, several issues in Circular 230 have been ambiguous and have needed clarity including items in the proposed rule that NAEA does not agree with and believe must be addressed. Primarily, Section 10.7, and the proposed changes to “limited practice.”

The expansion of rights includes allowing non-credentialed tax preparers to “represent a client before revenue agents, customer service representatives, or similar officers and employees of the Internal Revenue Service, including Taxpayer Advocate Service…,” Midwood said.

In testimony on Thursday at the IRS hearing on the proposed regulations, Jennifer MacMillan, NAEA President-Elect, said, “The proposed language in 10.7 is an extreme departure from the current rule and would allow tax preparers to practice without earning a credential. At this time, all tax preparers who voluntarily agree to abide by some sections of Circular 230 are allowed to represent their clients in audits of returns they prepared, but only in Office Examinations. The proposed changes to the rules in Circular 230, if finalized, would allow unlicensed tax preparers to hold even footing with enrolled agents in nearly all aspects of taxpayer representation.”

MacMillan asserted that, “This language goes too far and will likely result in inferior service to taxpayers when they need it most and violate their rights.”

In conclusion, she emphasized, “Enrolled agents deserve the status we have earned. We work hard to attain and maintain the EA designation. We feel the IRS and Treasury should acknowledge that and embrace and protect the high level of service and expertise that enrolled agents provide taxpayers.”

Listen to Jennifer MacMillan’s testimony.

Phyllis Jo Kubey also attended the hearing and spoke on behalf of the New York State Society of Enrolled Agents (NYSSEA). Listen to Phyllis Jo Kubey’s full statement.

Thank You to Our Members!

NAEA extends a heartfelt thank you to the 74 members who took the time to submit written comment letters to the IRS on the proposed Circular 230 regulations -especially during this busy tax season. Your voices are critical in shaping policies that impact the profession and the taxpayers we serve.