part1-16
- 1.1.20.1
Introduction to the Office of Professional Responsibility (OPR)
- 1.1.20.2
Office of Professional Responsibility - 1.1.20.3
Definition of Terms - 1.1.20.4
Resources - 1.1.20.5
Procedures
-
The Office of Professional Responsibility (OPR) administers the laws
and regulations governing the practice of attorneys, certified public accounts,
enrolled agents, enrolled actuaries and appraisers who represent taxpayers
before the Department of Treasury and the Internal Revenue Service (31 U.S.C
330; 31 C.F.R., Part 10). The OPR:-
Reviews/investigates evidence of alleged misconduct by tax professionals
(attorneys, certified public accountants, enrolled agents, enrolled actuaries
and appraisers) who represent taxpayers before the Service. -
Initiates disciplinary proceedings for tax professionals (attorneys, certified
public accountants, enrolled agents, enrolled actuaries, and appraisers) who
represent taxpayers before the Service. -
Acts on appeals of unenrolled return preparers found ineligible to engage
in limited practice. -
Provides a licensing and renewal process for enrolled agents and enrolled
actuaries. -
Supports the Joint Board for the Enrollment of Actuaries, established
by Section 3041 of the Employee Retirement Income Security Act of 1974 (ERISA). -
Interprets the Conference and Practice Requirements contained in 26 C.F.R
Part 601, Subpart E. -
Facilitates communications between the tax professional community and
the IRS regarding tax practice matters. -
Participates in internal IRS oversight and compliance initiatives for
tax professionals.
-
-
The Office of Professional Responsibility was established in January
2003. The titles Director, Office of Professional Responsibility and the OPR
shall encompass the regulatory title of the Director of Practice and the Office
of the Director of Practice (ODP). Certain responsibilities of the Director
of Practice and ODP have been replaced, and the Director of Professional Responsibility
and OPR assume all of those responsibilities set by regulation. The restructuring
displaces Treasury Order 150-02 which designates the role for the manager
in the Office of the Senior Commissioner. The Deputy Commissioner for Services
and Enforcement has assumed that role. -
The Director reports to the Deputy Commissioner for Services and Enforcement
and has direct supervisory responsibility for the OPR, including oversight
and control of its policy decisions. -
The mission of the Office of Professional Responsibility is to foster
excellence in tax professional services to taxpayers by setting, communicating,
and enforcing standards of competence, integrity and conduct. To accomplish
the mission, the Director:-
Coordinates with operating divisions.
-
Defines and communicates key OPR performance goals.
-
Analyzes program trends to drive policy and outreach strategies.
-
Develops clear standards in licensing, discipline and other program areas.
-
Develops and maintains a close working relationship with tax professionals.
-
Strengthens partnerships with tax professional organizations to educate
their members and support effective compliance. -
Builds OPR management staff as leadership team.
-
Directs the implementation of office procedures.
-
Monitors performance goals.
-
Provides technical guidance.
-
-
The following managers report to the Director of Professional Responsibility:
-
Chief, Case Development and Licensure Branch
-
Chief, Enforcement and Oversight Branch 1
-
Chief, Enforcement and Oversight Branch 2
-
-
The Chief, Case Development and Licensure Branch, reports to the Director,
Office of Professional Responsibility. -
The mission of the Case Development and Licensure Branch is to develop,
review and evaluate incoming referrals, correspondence and complaints and
to ensure the basic competence and integrity of enrolled agents through licensing
and continuing professional education. To accomplish its mission, the Chief,
Case Development and Licensure Branch,:-
Engages in proactive liaison with state licensing authorities including
state boards of accountancy and state bars to seek and obtain state disciplinary
actions that have Treasury Department Circular 230 implications. -
Conducts liaison with other federal law enforcement agencies.
-
Acts on referrals from state and federal agencies by instituting expedited
proceedings pursuant to Circular 230 Section 10.82. -
Evaluates, investigates and acts on Applications for Enrollment to Practice
before the Internal Revenue Service. -
Evaluates information obtained from Criminal Investigation for Circular
230 implications. -
Maintains close relationships with the operating divisions and service
personnel to educate and encourage appropriate practitioner referrals. -
Monitors Servicewide enforcement activities and/or parallel investigations
and coordinates OPR’s involvement in those cases involving Circular
230 practitioners. -
Refers cases to Enforcement and Oversight Branch following the development
of preliminary leads of potential Circular 230 violations. -
Maintains a licensing process to qualify applicants through an examination
and criminal and tax history review. -
Establishes an audit system for continuing professional education requirements
for licensed tax professionals.
-
-
The Chief, Office of Practitioner Enrollment, reports to the Chief,
Case Development and Licensure Branch. -
The mission of the Office of Practitioner Enrollment is to process and
act upon applications seeking Enrolled Agent status and oversea the administrative
phase of the enrolled practitioner program. To accomplish this mission, the
Chief:-
Develops policy, procedures and guidance for the Enrolled Practitioner
Program. -
Monitors workload inventories and progress on attaining the objectives
and goals. -
Fosters a positive workgroup environment by promoting effective communication.
-
Works with the Programming Staff for systems development, enhancements,
functionality and maintenance. -
Monitors, reviews, and controls all workload inventories.
-
Implements and develops methods to streamline operations.
-
Maintains inventory tracking mechanisms to monitor processing cycles,
determines resource needs, and program objectives.
-
-
The Chief, Enforcement and Oversight Branch I, reports to the Director,
Office of Professional Responsibility. -
The mission of the Enforcement and Oversight Branch I is to review,
investigate, and effectively sanction violators of professional standards
of competence, conduct and integrity by tax professionals (attorneys, certified
public accountants and enrolled agents) who represent taxpayers before the
Service. To accomplish this mission, the Chief:-
Institutes proceedings for discipline of tax professionals subject to
OPRs jurisdiction for violating provisions of the law or regulations governing
practice before the IRS. -
Issues sanctions (reprimands, alternative settlements, censures, voluntary
suspensions, suspensions and disbarments) for tax professionals who have been
determined to be in violation of the law or regulations governing practice
before the IRS. -
Ensures processes, technology, and other mechanisms are in place to effectively
submit referrals and share information among operating divisions. -
Works closely with operating divisions to focus disciplinary actions on
significant program concerns, e.g., tax shelters (LMSB), trusts (SB/SE), income
tax credit (W&I) retirement plans and tax exempt bonds (TE/GE). -
Establishes a system of review to ensure internal decisions on cases are
consistent and fair.
-
-
The Chief, Enforcement and Oversight Branch II reports to the Director,
Office of Professional Responsibility. The Chief also serves as the Executive
Director of the Joint Board for the Enrollment of Actuaries. -
The mission of Enforcement and Oversight Branch II is to identify and
effectively sanction violators of alleged misconduct by Enrolled Actuaries
and Appraisers, and to support the work of the Joint Board for the Enrollment
of Actuaries in regulating the practice of Actuaries before the Departments
of Treasury and Labor. To accomplish this mission, the Executive Director:-
Ensures that procedures and technologies are in place to timely process
applications for enrolled actuary status, applications for renewal of enrolled
actuary status, and other correspondence. -
Ensures that accurate and up-to-date records are maintained for each enrolled
actuary and qualifying sponsor of continuing professional education. -
Provides administrative and technical support to the Advisory Committee
on Actuarial Examinations, which is responsible for preparing the Joint Board’s
examination. -
Ensures that the Advisory Committee on Actuarial Examinations is in compliance
with the Federal Advisory Committee Act. -
Investigates allegations of misconduct concerning enrolled actuaries and
appraisers, institutes disciplinary proceedings and imposes sanctions, as
appropriate. -
Works closely with officials of the Department of the Treasury, Department
of Labor, and the Pension Benefit Guaranty Corporation regarding areas of
mutual interest. -
Maintains liaison with various actuarial societies and appraiser professional
groups.
-
-
Attorney: Any person who is a member in good standing
of the bar of the highest court of any State, territory or possession of the
United States, including a Commonwealth, or the District of Columbia. -
Certified Public Accountant (CPA): Any person
who is duly qualified to practice as a certified public accountant in any
State, territory or possession of the United States, including a Commonwealth,
or the District of Columbia. -
Enrolled Agent: A tax professional, who has demonstrated
special competence in tax matters, applied for enrollment, and has been issued
an enrollment card by the Office of Professional Responsibility. -
Enrolled Actuary: Any individual who is enrolled
as an actuary by the Joint Board or the Enrollment of Actuaries pursuant to
29 U.S.C. 1242 who is not currently under suspension or disbarment from practice
before the Internal Revenue Service may practice before the Internal Revenue
Service by filing with the Internal Revenue Service a written declaration
stating that he or she is currently qualified as an enrolled actuary and is
authorized to represent the party or parties on whose behalf he or she acts. -
Unenrolled Preparer: An individual who prepares
and signs a taxpayer’s tax return, as the preparer, or who prepares
a tax return but is not required (by the instructions to the tax return or
regulations) to sign the tax return, may represent the taxpayer before revenue
agents, customer service representatives or similar officers or employees
of the Internal Revenue Service during an examination of the taxable year
or period covered by that tax return, but, unless otherwise prescribed by
regulation or notice, this right does not permit such individual to represent
the taxpayer, regardless of the circumstances requiring representation, before
appeals officers, revenue officers, Counsel or similar officers or employees
of the Internal Revenue Service or the Department of Treasury. -
Special Enrollment Examination (SEE): The Special
Enrollment Examination (SEE) is a comprehensive examination administered by
the Office of Professional Responsibility designed to test an applicant’s
special competence in tax matters. Successful completion of the SEE is a prerequisite
for applying for enrollment as an Enrolled Agent. -
Disreputable Conduct: Disreputable Conduct for
which an Attorney, Certified Public Account, Enrolled Agent or Enrolled Actuary
may be disbarred or suspended from practice before the Internal Revenue Service
includes, but is not limited to:-
Conviction of any criminal offense under the revenue laws of the United
States. -
Conviction of any criminal offense involving dishonesty or breach of trust.
-
Conviction of any felony under the Federal or State law for which the
conduct involved renders the practitioner unfit to practice before the Internal
Revenue Service. -
Giving false or misleading information, or participating in any way in
the giving of false or misleading information to the Department of the Treasury
or any officer or employee thereof or to any tribunal authorized to pass upon
Federal tax matters, in connection with any matter pending or likely to be
pending before them, knowing such information to be false or misleading. Facts
or other matters contained in testimony, Federal tax returns, financial statements,
applications for enrollment, affidavits, declarations, or any other document
or statement, written or oral, are included in the term “information
”
. -
Solicitation of employment as prohibited under § 10.30 C.F.R., the
use of false or misleading representations with intent to deceive a client
or prospective client in order to procure employment, or intimating that the
practitioner is able improperly to obtain special consideration or action
from the Internal Revenue Service or officer or employee thereof. -
Willfully failing to make a Federal tax return in violation of the revenue
laws of the United Sates, willfully evading, attempting to evade, or participating
in any way in evading or attempting to evade any assessment or payment of
any Federal tax, or knowingly counseling or suggesting to a client or prospective
client an illegal plan to evade Federal taxes or payment thereof. -
Misappropriation of, or failure properly and promptly to remit funds received
from a client for the purpose of payment of taxes or other obligations due
the United States. -
Directly or indirectly attempting to influence, or offering or agreeing
to attempt to influence, the official action of any officer or employee of
the Internal Revenue Service by the use of threats, false accusations, duress
or coercion, by the offer of any special inducement or promise of advantage
or by the bestowing of any gift, favor or thing of value. -
Disbarment or suspension from practice as an attorney, certified public
accountant, public accountant, or actuary by any duly constituted authority
of any State, territory, possession of the United States, including a Commonwealth,
or the District of Columbia, any Federal court of record or any Federal agency,
body or board. -
Knowingly aiding and abetting another person to practice before the Internal
Revenue Service during a period of suspension, disbarment, or ineligibility
of such other person. -
Contemptuous conduct in connection with practice before the Internal Revenue
Service, including the use of abusive language, making false accusations and
statements, knowing them to be false, or circulating or publishing malicious
or libelous matter. -
Giving a false opinion, knowingly, recklessly, or through gross incompetence,
including an opinion which is intentionally or recklessly misleading, or engaging
in a pattern of providing incompetent opinions on questions arising under
the Federal tax laws. False opinions described in this paragraph (l) include
those which reflect or result from a knowing misstatement of fact or law,
from an assertion of a position known to be unwarranted under existing law,
from counseling or assisting in conduct known to be illegal or fraudulent,
from concealing matters required by law to be revealed, or from consciously
disregarding information indicating that material facts expressed in the tax
opinion or offering material are false or misleading. For purposes of this
paragraph (l), reckless conduct is a highly unreasonable omission or misrepresentation
involving an extreme departure from the standards of ordinary care that a
practitioner should observe under the circumstances. A pattern of conduct
is a factor that will be taken into account in determining whether a practitioner
acted knowingly, recklessly, or through gross incompetence. Gross incompetence
includes conduct that reflects gross indifference, preparation which is grossly
inadequate under the circumstances, and a consistent failure to perform obligations
to the client.
-
-
OPR Website:
http://nhq.no.irs.gov/OPR/.
-
Treasury Department Circular 230, Title 31 Code of Federal Regulations,
Subtitle A, Part 10, revised as of June 20, 2005. -
Title 26 Code of Federal Regulations, Part 601, Subpart E.
-
Title 29 United States Code Section 1242 .
-
Section 3041 of the Employee Retirement Income Security Act of 1974
(ERISA). -
Revenue Procedure 81-38.
-
Reporting Practitioner Misconduct - Referrals
should be made to OPR as soon as it appears that a practitioner may be in
violation of Circular 230. Circular 230, Section 10.53 (a) specifies, “If an officer or employee of the Internal Revenue Service
has reason
to believe that a practitioner has violated any provision of this part, the
officer or employee will promptly make a written report to the Office of Professional
Responsibility of the suspected violation.”
Since the Area Return Preparer
Coordinator (RPC) may be aware of other information regarding the subject
of the referral, it is recommended that a copy of the referral be provided
to the Area RPC. Form 8484, Report of Suspected Practitioner
Misconduct, may be used to make a referral to OPR. Use of this form
is optional; however, a written report made in any other format must contain
all of the information required by the form and its instructions including
the name, address, telephone number, and if relevant, the practitioner’s
taxpayer identification number or employer identification number. Also, the
written report should include a summary of the suspected misconduct that provides
as much detail as possible regarding the misconduct in question and supporting
documentation (if available). The information should be mailed to:IRS Office of Professional Responsibility
SE:OPR, Room 7238
1111
Constitution Avenue N.W.
Washington, DC 20224Note:
Form 8484, along with additional information concerning OPR
activities, may be found on OPR’s website at: http://nhq.no.irs.gov/OPR/. -
Applying to Become an Enrolled Agent - An individual
becomes an enrolled agent by passing the Special Enrollment Examination (SEE)
or presents evidence of qualifying experience as an IRS employee. Those who
successfully complete the SEE or qualified IRS employees must submit Form
23, Application for Enrollment to Practice Before the Internal
Revenue Service. A background check including a review of the applicant’s
tax compliance is conducted. -
Former employees requesting enrollment based on his/her employment with
IRS, generally, must have a minimum of 5 years continuous employment with
the IRS, during which he/she must have been regularly engaged in applying
and interpreting the Internal Revenue Code.
