Ethics: Discipline Under Circular 230: The Collateral Impact on Employers, Partners and Associates

Under section 10.79 of Circular 230, an individual is not permitted to practice before the IRS during the period of time imposed for suspension (1-59 months) or disbarment (five years). Likewise, an individual who is indefinitely suspended pursuant to the Expedited Suspension Procedures contained in section 10.82 is precluded from practicing before the IRS during the period of suspension. 1 It is well-settled law after S. Loving that the mere preparation of tax returns is not practice before the IRS. So, suspension or disbarment will not preclude a practitioner from continuing to prepare tax returns; but that disciplined practitioner will no longer be able to communicate with the IRS on behalf of a taxpayer with respect to an examination of a tax, any collection matter, a protest of a proposed assessment, a request for a private letter ruling, or any other matter which requires a power of attorney be on file.