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Glossary/Circular 230

What is Circular 230?

In short

Circular 230 is the set of Treasury regulations governing practice before the Internal Revenue Service by attorneys, certified public accountants, enrolled agents and others.

Key takeaways

  • A practitioner who learns of a client's error or omission must tell the client promptly and explain the consequences.
  • Contingent fees are generally prohibited, with limited exceptions.
  • Sanctions include censure, suspension, disbarment and monetary penalties.

Where it's tested

REG: Circular 230 & Practitioner Ethics — study notes, a five-minute revision sheet and practice questions.

Practise: 3 questions

Question 1 of 3 · 0 answered

A CPA discovers that a client's previously filed return contains a material error. Under Circular 230, what must the CPA do?

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