Treasury Circular 230 (31 CFR Part 10) is the federal regulation that defines who may practice before the IRS and what ethical and professional standards govern that practice. For independent PTIN holders, EROs, and small tax offices, Circular 230 is the floor beneath every client engagement. The rules about due diligence, competence, client communication, and advertising are not aspirational; they carry real disciplinary consequences, including suspension and disbarment from IRS practice.
This guide is written for working practitioners, not for law school classrooms. It covers the statutory scope, the specific section duties most relevant to daily preparation work, the Office of Professional Responsibility (OPR) disciplinary process, the December 2024 proposed rulemaking on technological competence, continuing education ethics requirements by credential type, and a daily-practice compliance checklist. Every regulatory figure and section citation in this guide should be verified at the Electronic Code of Federal Regulations (eCFR) or IRS.gov before relying on it, as regulations are subject to amendment.
This guide is informational and does not constitute legal advice. For questions specific to your situation or a pending OPR matter, consult a qualified tax attorney or your credentialing body.
What Circular 230 Is and Who It Governs
Circular 230 is the Treasury Department's codification of the rules of practice before the IRS. It is not a publication or a policy statement; it is a regulation with the force of law, found at 31 CFR Part 10. The IRS Office of Professional Responsibility enforces it. Violations can result in censure, suspension, or disbarment from practice before the IRS.
"Practice before the IRS" is broader than preparation. Under 31 CFR Section 10.2(a)(4), it includes preparing and filing documents with the IRS, corresponding with the IRS on behalf of a taxpayer, and representing a taxpayer in IRS examinations, appeals, and collection proceedings. For most working preparers, the preparation and filing of returns is the central activity, but correspondence and responses to IRS notices are also covered.
The scope distinction: credentialed vs. non-credentialed preparers
Circular 230 covers several categories of practitioners, and the scope of practice rights differs significantly across them:
- Attorneys and CPAs licensed by the relevant state authority are recognized as practitioners with unlimited representation rights before the IRS under Subpart A of Circular 230, subject to good standing in their respective licensing jurisdiction.
- Enrolled Agents (EAs) are licensed directly by the IRS (through the Special Enrollment Examination or qualifying employment history) and have unlimited practice rights before the IRS, including examination, appeals, and collection. The EA credential is the highest credential available exclusively for tax practitioners and is governed entirely by Circular 230.
- Enrolled Retirement Plan Agents (ERPAs) and Enrolled Actuaries have limited practice rights scoped to specific plan-related matters.
- Registered Tax Return Preparers was a category created by IRS regulation in 2011 and struck down by the D.C. Circuit in Loving v. IRS (2014). This category no longer exists as a formal regulatory designation, but preparers in the Annual Filing Season Program (AFSP) operate under a limited practice right for returns they prepared.
- Non-credentialed preparers with a PTIN (those who do not hold an EA, CPA, or attorney credential) must still comply with certain Circular 230 conduct provisions that govern preparation and filing, including due diligence and prohibitions on certain conduct. However, they do not have representation rights before the IRS beyond the return they prepared, unless they are AFSP participants with a current Record of Completion. See the AFSP guide for those limited representation rights. See also the IRS representation rights comparison guide for a tier-by-tier breakdown of PTIN, AFSP, EA, CPA, and attorney representation scope.
Every paid preparer who signs a return is required to hold a current Preparer Tax Identification Number. As of 2026, the PTIN fee is $18.75 per year: $10.00 IRS user fee plus $8.75 contractor fee (verify the current fee at IRS.gov before applying, as these amounts are subject to change). See the PTIN guide for registration and renewal steps.
The Circular 230 categories that carry practice rights before the IRS (attorneys, CPAs, EAs, enrolled actuaries, and ERPAs) are the same categories that qualify as federally authorized tax practitioners for privilege purposes. For the confidentiality privilege that attaches to tax-advice communications with these credentialed practitioners, see the IRC 7525: FATP Privilege and Kovel Arrangements guide, covering privilege protections available to practitioners authorized under Circular 230, the noncriminal-matter and tax-shelter limitations, and Kovel arrangements.
Sections 10.21 to 10.37: Core Practitioner Duties
Subpart B of Circular 230 contains the specific duties and restrictions governing practice. Sections 10.21 through 10.37 are the core operating rules for daily practice. The sections most directly relevant to preparation work are summarized here; practitioners should read the full text at the eCFR (Title 31, Subtitle A, Part 10) for the current version.
Knowledge of client error
When a practitioner knows that a client has not complied with federal tax law, or has made an error or omission on a return or other document filed with the IRS, the practitioner must promptly advise the client of that fact and the consequences under the Code and regulations. Section 10.21 does not require the practitioner to report the error to the IRS; it requires notification to the client. But the duty to notify is not optional. Staying silent when you identify a prior-year error is a Circular 230 violation.
Due diligence (covered in detail below)
Section 10.22 requires practitioners to exercise due diligence in preparing documents submitted to the IRS and in all representations made to the Treasury Department. A practitioner who relies on information provided by a client does not need to verify every item independently, but cannot ignore obvious inconsistencies or warning signs. The standard is reasonable care, not perfection.
Prompt disposition of pending matters
Practitioners may not unreasonably delay the prompt disposition of any matter before the IRS. In practice, this provision governs situations where a practitioner has accepted engagement on a matter (a response to a notice, an examination, a collection appeal) and then fails to move it forward. Ignoring an IRS notice on a client's behalf while continuing to represent the client is the clearest violation. Preparers who take on representation work are the primary audience for this section.
Return of client records
A practitioner who is discharged or withdraws from representation must promptly return all records of the client necessary for compliance with federal tax obligations. This applies even if there is a fee dispute. A practitioner may retain copies of records they prepared, but may not hold original client records hostage to secure payment. The obligation to return original documents is unconditional.
Conflicts of interest
A practitioner may not represent a client before the IRS if the representation involves a conflict of interest, unless each affected client gives informed consent in writing. A conflict exists when the representation of one client is directly adverse to another client, or when there is a significant risk that the representation will be materially limited by the practitioner's responsibilities to another client, a third party, or the practitioner's own personal interests. Conflicts of interest are most common in multi-party situations, but can also arise when a preparer's own return is at issue in a matter involving a client.
Standards for tax returns and advice
Section 10.34 requires that a practitioner not sign a return that the practitioner knows contains an unreasonable position (generally, one that does not have at least a realistic possibility of being sustained if challenged). For positions that carry penalties under the tax code, the standard is heightened: the practitioner must have a reasonable basis for the position and must disclose it appropriately. This section is what gives force to "you cannot sign a return you know is wrong."
Procedures for firms and supervisory responsibilities
Section 10.36 requires that practitioners who have or share principal authority over a firm's practice ensure the firm has in place adequate procedures to comply with Circular 230 requirements. This applies specifically to supervisory and managing practitioners. If you run a small office with employees or contractors who prepare returns, this section means you are responsible for the compliance framework of the practice, not just your own returns. A firm-level failure to have adequate procedures is a violation even if no individual return is wrong.
Requirements for written advice
Section 10.37 governs written tax advice not covered by the covered opinion rules (see below). A practitioner must base written advice on reasonable factual and legal assumptions, not take into account the possibility that a tax return will not be audited, and not give advice that is based on unreasonable factual or legal positions. For ordinary return preparation, this section matters most when a practitioner provides a written explanation of a tax position to a client or in an engagement letter.
Section 10.22: What "Reasonable Care" Means in Daily Practice
Section 10.22 is the anchor of practitioner due diligence under Circular 230. It applies to every document prepared for submission to the IRS and to every representation made to the Treasury or the IRS on behalf of a client. The standard it imposes is due diligence, which the regulation operationalizes as the care that a competent practitioner in the same field would exercise under the same circumstances.
In practical terms, Section 10.22 means three things for return preparers:
Reliance on client information is permitted, within limits
A practitioner is generally not required to independently verify every item of information provided by a client. You may rely on client-provided W-2s, 1099s, and supporting statements without demanding original source documents. But the reliance must be reasonable. If an item appears inconsistent with other information on the return, seems implausible given what you know about the client's situation, or conflicts with information from a prior-year return, you have a duty to ask about the inconsistency before proceeding. Silence in the face of a red flag is not reasonable reliance; it is a Section 10.22 violation.
This interacts directly with EITC and other refundable credit due diligence requirements. For returns claiming the EITC, Child Tax Credit, or AOTC, the Section 10.22 standard runs in parallel with the specific four-part due diligence requirements under IRC Section 6695(g). See the EITC due diligence and Form 8867 guide for those specific obligations.
Tax positions require a legal basis, not just client agreement
A client's belief that a position is correct is not itself sufficient to support the position under Section 10.22. The practitioner must be independently satisfied, through reasonable review of the applicable law and facts, that a tax position is not frivolous. "The client told me to" is not a defense to a Circular 230 violation when the position had no legal basis. A preparer who signs a return containing a position they know to be wrong, because the client insisted, has violated Section 10.22 (and likely Section 10.34 as well).
Supervisory instructions do not override the individual duty
Section 10.22 also provides that a practitioner who is supervised by another practitioner may not, in the performance of their own duties, take actions at the direction of the supervisor that the practitioner knows or should know are not in compliance with Circular 230. This is particularly relevant for preparers who work as employees in firms or service bureaus: an employer's instruction to take a position you know is improper does not give you cover. The individual practitioner remains responsible.
Section 10.30: Solicitation Rules and Credential Advertising
Section 10.30 governs how practitioners may advertise and solicit clients. The fundamental rule is that a practitioner may not use false, fraudulent, coercive, or deceptive advertising. For daily practice, the most consequential application of this section concerns credential claims.
A practitioner may not claim to hold a credential they do not hold, and may not imply that the credential grants practice rights or competencies that it does not grant. The specific prohibitions that generate the most violations:
- Describing yourself as an "enrolled agent" or using the EA designation when your enrollment has lapsed or has not been issued is a Section 10.30 violation. EA enrollment is renewable; a lapsed EA who markets themselves as an enrolled agent is advertising a false credential.
- Using credentials issued by non-IRS bodies (various private certification programs) in a manner that implies IRS recognition when the IRS does not recognize those credentials violates this section.
- Advertising that you can "represent" clients before the IRS when your credential (or lack of it) does not actually give you representation rights is a false advertising violation. Non-credentialed PTIN holders generally may not represent clients beyond the return they prepared, except in limited circumstances.
- Comparing fees or services in a manner that includes materially false statements about competitors is prohibited.
Section 10.30 also governs in-person solicitation. Uninvited in-person solicitation of clients is prohibited when the prospective client is in circumstances that make them vulnerable to undue influence. This includes soliciting taxpayers at IRS offices, collection proceedings, or during periods of acute tax distress, though the precise contours are fact-specific. If you have questions about a specific marketing practice, consulting a tax attorney before proceeding is advisable. For a deeper treatment of what Section 10.30 permits and prohibits in everyday advertising, from guaranteed-refund claims to social media and OPR enforcement, see the tax preparer marketing and advertising compliance guide.
Covered Opinions: Definition and When the Standard Applies
The covered opinion rules under Section 10.37 (and the prior Section 10.35 framework, which was substantially revised in 2014) govern written advice that is reasonably expected to be relied on by the recipient to minimize, avoid, or defer federal taxes. The practical significance for small offices and independent preparers is narrower than it is for large advisory firms, but it is not zero.
A "covered opinion" under the pre-2014 framework (Section 10.35) was written advice that related to one or more "listed transactions" or "principal purpose transactions." The 2014 revisions eliminated the Section 10.35 framework and replaced it with the broader written advice standards in Section 10.37, which apply to all written tax advice (not just formal legal opinions). Under the current framework, all written tax advice from a practitioner must:
- Be based on reasonable factual and legal assumptions, including assumptions about future events.
- Reasonably consider all relevant facts and circumstances the practitioner knows or should know.
- Not take into account the likelihood that a tax return will or will not be audited or that a matter will be resolved on audit.
- Not be based on an unreasonable factual or legal assumption, an unreasonable reliance on representations of the taxpayer or others, or the desire to avoid a negative tax consequence rather than accurate analysis of the law.
For everyday return preparers, this matters most in two contexts: when you provide a written explanation of a tax position to a client in an engagement letter or return transmittal, and when a client asks for a written memo on the tax treatment of a transaction. Any time your analysis goes beyond filling in lines on a form and into written explanation of tax law, Section 10.37 governs what you write. The key practical rule: do not write something you would not stand behind under audit.
OPR: What Triggers an Investigation and the Disciplinary Spectrum
The Office of Professional Responsibility is the Treasury office charged with interpreting and enforcing Circular 230. OPR investigates alleged violations, negotiates consent agreements, and prosecutes formal disciplinary proceedings. Its authority is broad, and its enforcement record is public: OPR publishes a list of disciplinary actions in the Internal Revenue Bulletin and on IRS.gov.
What typically triggers an OPR investigation
OPR investigations are generally triggered by one of the following (the list is not exhaustive, and individual cases vary):
- Referrals from IRS examination, criminal investigation, or appeals: When an examiner or revenue agent identifies conduct by a practitioner that appears to violate Circular 230, a referral to OPR follows. This is the most common trigger for practitioner investigations.
- Client complaints: A client who believes a practitioner mishandled their matter before the IRS can file a complaint directly with OPR. The complaint does not need to involve a formal legal claim; it only needs to allege conduct that would violate Circular 230.
- Criminal conviction or professional discipline: A practitioner convicted of a federal tax offense, or disciplined by a state bar or CPA licensing board, is generally referred to OPR automatically. OPR can impose its own sanctions independent of (and in addition to) the underlying discipline. When Circular 230 disciplinary exposure escalates to criminal tax referral, see the IRC 7201, 7202, and 7206 criminal tax statutes for civil practitioners guide, covering IRC 7201 evasion, 7202 willful payroll failure, and 7206 false-statement statutes.
- Failure to file personal returns: A practitioner who has not filed their own required federal tax returns is in violation of Circular 230 Section 10.51(a)(6), which lists failure to file as grounds for discipline. OPR identifies these cases through IRS return data matching.
- Preparer penalty assessments: When the IRS assesses tax preparer penalties against a practitioner and the underlying conduct also appears to violate Circular 230, a referral to OPR may accompany the penalty. For the mechanics of these assessments, see the IRC 6694 and 6695 preparer penalty framework.
The disciplinary spectrum
Circular 230 Section 10.50 establishes the range of sanctions OPR may impose. The spectrum, from least to most severe, is as follows (verify current section text at the eCFR):
- Private reprimand (censure): A non-public written reprimand. Not listed in OPR's public disciplinary actions. Generally reserved for technical or first-time violations without financial harm to clients or the government.
- Public censure: A public reprimand issued without suspension or disbarment. Published in the Internal Revenue Bulletin and on IRS.gov. The practitioner may continue to practice, but the public record affects reputation and, for licensed professionals, may trigger state board review.
- Suspension: A time-limited prohibition on practice before the IRS. The length varies with the severity of the violation and whether the practitioner has prior discipline. During a suspension, the practitioner may not represent any taxpayer before the IRS and may not prepare returns for compensation in a manner that would constitute practice before the IRS (the precise scope of activity prohibited during suspension can be fact-specific; consult a tax attorney if you are subject to a suspension order).
- Disbarment: Indefinite suspension from practice before the IRS. A disbarred practitioner may petition for reinstatement after five years. Disbarment is typically reserved for the most serious violations: fraud, repeated conduct after prior discipline, or criminal convictions involving tax matters.
- Monetary penalty: Under Section 10.50(c), OPR may impose a monetary penalty of the greater of: (1) the gross income derived (or to be derived) from the conduct giving rise to the penalty, or (2) $5,000 per act. Monetary penalties can be imposed alongside, or instead of, suspension or disbarment. This provision is used primarily in cases involving promoters of abusive tax schemes or practitioners who repeatedly violated Circular 230 for financial gain.
OPR's enforcement process typically follows a defined sequence: initial investigation, notification to the practitioner, opportunity for response, and (if the case proceeds) a formal administrative proceeding before an administrative law judge. Consent agreements, in which the practitioner agrees to discipline without a formal hearing, resolve the majority of OPR matters. Practitioners who receive an OPR inquiry should retain a tax attorney with Circular 230 experience before responding. For a step-by-step walkthrough of the process, from the initial soft letter through a Deferred Discipline Agreement and formal ALJ proceedings, see the IRS OPR investigation and Circular 230 disciplinary process guide.
December 2024 Proposed Rulemaking: Technological Competence Duty
On December 26, 2024, Treasury published a notice of proposed rulemaking in the Federal Register that would, among other things, add a technological competence duty to Circular 230 under a revised Section 10.35 (RIN 1545-BQ68). As of June 2026, this proposed rule has not been finalized. The discussion below describes the proposal as published; it does not describe current law.
The proposed rule would require practitioners to maintain competence in the technology they use in connection with practice before the IRS. This duty would be modeled partly on the ABA Model Rules of Professional Conduct Rule 1.1, which the comments to that rule (following the 2012 amendment) extended to include competence in the use of technology. Applied to Circular 230, the proposed duty would mean:
- Understanding how the tax preparation software and transmission systems a practitioner uses work at a sufficient level to identify errors, recognize when a system is producing incorrect output, and understand how client data is being handled.
- Understanding the privacy and data security implications of technology tools used in practice, including cloud storage, e-signature platforms, and AI-assisted preparation tools, to the extent they affect client information governed by federal tax confidentiality rules.
- Not delegating judgment about a tax position to a software tool in a manner that results in positions the practitioner does not independently understand or endorse.
The comment period for RIN 1545-BQ68 closed in early 2025. As of June 2026, Treasury has not issued a final rule. Practitioners should monitor the Federal Register and IRS.gov for updates. Even before finalization, the direction of this rulemaking is consistent with existing OPR interpretive guidance suggesting that practitioners bear responsibility for the accuracy of output produced by tools they use, and that ignorance of how a tool works is not a defense to a Circular 230 violation.
For practical purposes, this means that data security practices are not purely an IT matter; they are a Circular 230 matter. The IRS requires independent preparers and EROs to maintain a Written Information Security Plan (WISP). See the WISP data security guide for the specific IRS requirements and how to build a compliant plan.
CE Ethics Credits: Requirements by Credential
Circular 230 ethics training is a required component of continuing education for enrolled agents and Annual Filing Season Program participants. The requirement ensures that practitioners who maintain IRS-recognized credentials are periodically updated on their practice obligations. Ethics hours must cover the rules of practice under Circular 230 to qualify; a general ethics or professional conduct course covering a different regulatory framework does not satisfy this requirement.
Enrolled Agents: 16 hours per year, 2 ethics hours required
Under 31 CFR Section 10.6(e)(1) (verify at eCFR for current requirements), enrolled agents are required to complete 72 hours of continuing education per three-year enrollment cycle, with a minimum of 16 hours per year. Of those hours, at least 2 per year (and at least 6 per three-year cycle, under some interpretations; confirm with IRS.gov) must cover ethics or professional conduct specifically related to Circular 230.
The 72-hour cycle requirement is enforced through the IRS Continuing Education (CE) tracking system. CE providers must be IRS-approved to offer qualifying hours. When selecting ethics CE, verify that the course is approved by the IRS CE provider system and that the content specifically covers Circular 230 rules of practice. General professional ethics or state board ethics hours do not satisfy the Circular 230-specific requirement unless approved by the IRS CE system for that purpose.
EAs who fail to complete the required CE by the end of their enrollment cycle are subject to non-renewal of their enrollment. Failure to renew while continuing to hold out as an enrolled agent is a Section 10.30 credential advertising violation as well as a lapse in authorization. The enrolled agent exam and credential guide covers the full enrollment lifecycle, including renewal.
Annual Filing Season Program: 18 or 15 hours, 2 ethics hours required
Non-credentialed preparers who participate in the IRS Annual Filing Season Program (AFSP) are required to complete continuing education each calendar year to earn a Record of Completion. The hour requirements differ by exemption status:
- Non-exempt participants (those who do not hold an exempt credential such as a CPA, EA, or attorney license) must complete 18 hours of qualifying CE per year, including 2 hours of ethics, 6 hours of federal tax law updates, and 10 hours of federal tax topics.
- Exempt participants (those who hold a credential that already requires CE, such as a state-licensed CPA who participates in AFSP in addition to state CE requirements) must complete 15 hours of qualifying CE per year, including 2 hours of ethics, 3 hours of federal tax law updates, and 10 hours of federal tax topics.
The AFSP Record of Completion gives non-credentialed preparers a limited right to represent clients before the IRS (examination, customer service, and collection matters) for returns they prepared. Without a Record of Completion, a PTIN holder has no representation rights beyond the return itself. See the AFSP guide for the full annual filing requirements and the list of IRS-approved CE providers.
All CE hour figures in this section should be verified with the IRS CE Provider system at IRS.gov before each renewal period, as requirements are subject to change. ATP's partnership with Golden State Tax Training Institute (GSTTI) gives ATP customers access to IRS CE-approved continuing education courses, including ethics hours. See the CE courses page for current availability.
Daily-Practice Compliance Checklist: 8 Circular 230 Rules
Most OPR violations by independent preparers do not involve fraud. They involve process failures, documentation gaps, and credential lapse. The following eight rules translate the most common Circular 230 violation triggers into daily-practice habits. Each item maps to a specific Circular 230 provision.
Confirm your PTIN and credential status before the filing season opens
Your PTIN must be current for every return you sign. If you hold an EA designation, confirm your enrollment is active and your CE is complete before you begin preparing returns for compensation. An expired PTIN or lapsed enrollment creates both a signing prohibition and a credential advertising problem under Sections 10.30 and 10.51. The 2026 PTIN fee is $18.75 ($10.00 IRS plus $8.75 contractor fee; verify at IRS.gov). Renew by December 31 each year. (Source: IRS.gov PTIN information center; 31 CFR Part 10.)
Sign only returns you have reviewed
Section 10.34 prohibits signing a return containing an unreasonable position you know to be wrong. The obligation is personal: you cannot delegate the review to software output alone, or to a client's assurance. Before signing, confirm that the entries reflect information you gathered, reviewed, and determined to be consistent with the applicable law. TaxWise's integrated diagnostic and error-checking workflow supports this review, but the practitioner's sign-off is not mechanical; it is a professional certification. (Source: 31 CFR Section 10.34.)
Ask follow-up questions when something does not add up
Reasonable reliance on client information has limits. When income figures are implausible given stated living circumstances, when dependent claims involve inconsistencies, or when a new item appears on a return with no prior history and no explanation, Section 10.22 requires inquiry. Document the question and the client's answer. A short written note in the client file at the time of preparation is your primary defense against a knowledge-standard allegation. This applies across the return, not just to EITC or refundable credit items. (Source: 31 CFR Section 10.22.)
Notify clients promptly when you identify a prior error
If you discover that a client's previously filed return contains an error (whether you prepared it or not), you must advise the client promptly under Section 10.21. You are not required to report it to the IRS on the client's behalf, and you are not required to continue representing a client who refuses to correct a known error -- but you cannot simply stay silent. Document the notification: note in writing when you told the client, what the error was, and what you advised them to do. (Source: 31 CFR Section 10.21.)
Advertise only credentials you currently hold
Every public-facing claim you make about your credential status is governed by Section 10.30. If you hold an EA designation, confirm the enrollment is active before using that designation in advertising. If you use the AFSP designation, confirm your current-year Record of Completion is in place. Do not imply representation rights you do not have. Do not use trade designations from private certification programs in a way that implies IRS recognition. Review your website, business cards, email signature, and directory listings annually. (Source: 31 CFR Section 10.30.)
File your own returns on time, every year
Circular 230 Section 10.51(a)(6) identifies failure to timely file federal tax returns as grounds for discipline. OPR has brought actions against practitioners who prepared hundreds of client returns without filing their own. The irony does not reduce the exposure. Set a calendar reminder in early January. If you are in a complicated situation that makes timely filing difficult (extension, complex business interest, etc.), that complexity makes early action more important, not less. (Source: 31 CFR Section 10.51.)
Maintain required records and return client documents promptly on termination
Keep due diligence records for at least three years after each return's due date or filing date, whichever is later. Retain copies of the documents used to prepare each return. When a client relationship ends, return original client records promptly and unconditionally. Under Section 10.28, a fee dispute is not grounds to hold original documents. You may retain your own work product, but your client's underlying records belong to the client. Build record retention into your practice system, not just your end-of-year habits. (Source: 31 CFR Sections 10.28 and 10.22; IRC Section 6695(g) for EITC-specific records.)
Complete required ethics CE before your renewal deadline
EAs: 16 hours per year, including 2 hours of Circular 230 ethics, as part of the 72-hour three-year cycle. AFSP participants: 18 hours (non-exempt) or 15 hours (exempt) per year, including 2 ethics hours. Verify current requirements at IRS.gov before each renewal period. Use only IRS-approved CE providers; an unapproved course will not count toward your requirement regardless of how much you paid for it. An active EFIN for e-file transmission, combined with current CE and a current PTIN, is the credential baseline for a compliant practice. (Source: 31 CFR Section 10.6; IRS.gov CE provider system.)
Claims Flagged for Verification
The following figures and regulatory citations in this guide should be independently verified before relying on them: (1) PTIN fee: $18.75 for 2026, comprising $10.00 IRS user fee and $8.75 contractor fee (source: IRS.gov PTIN information center); (2) EA CE requirement: 72 hours per three-year cycle, 16 hours per year minimum, 2 ethics hours per year (source: 31 CFR Section 10.6(e)(1); verify at eCFR); (3) AFSP CE requirement: 18 hours non-exempt, 15 hours exempt, 2 ethics hours (source: IRS.gov AFSP program page; verify annually); (4) OPR monetary penalty: greater of gross income derived or $5,000 per violation (source: 31 CFR Section 10.50(c); verify at eCFR); (5) RIN 1545-BQ68 proposed rulemaking status: as of June 2026, this proposed rule has not been finalized (source: Federal Register, December 26, 2024; verify at regulations.gov). All section citations refer to 31 CFR Part 10 as currently in force; verify at the eCFR before relying on any citation. This guide is informational and does not constitute legal or tax advice.
Frequently Asked Questions
Who does Circular 230 apply to?
Circular 230 (31 CFR Part 10) governs all practitioners who practice before the IRS. This includes attorneys, CPAs, enrolled agents, enrolled retirement plan agents, and enrolled actuaries. Non-credentialed preparers who hold a PTIN but do not hold an EA, CPA, or attorney credential are subject to a more limited subset of Circular 230 provisions covering conduct, but do not have unlimited representation rights. Verify the current scope at IRS.gov or the Electronic Code of Federal Regulations.
What is the due diligence standard under Circular 230 Section 10.22?
Section 10.22 requires practitioners to exercise due diligence in preparing documents submitted to the IRS and in all representations made to Treasury and the IRS on behalf of a client. A practitioner who relies on information provided by a client without independent reason to doubt it generally satisfies the standard, provided that reliance is reasonable given all the facts available. The standard is reasonable care, not strict liability. Ignoring obvious inconsistencies or warning signs does not satisfy reasonable care and can result in a Section 10.22 violation.
What can the Office of Professional Responsibility do to a tax preparer?
OPR can impose a range of disciplinary sanctions under 31 CFR Part 10: private censure, public censure, suspension from practice before the IRS for a defined period, and disbarment (indefinite suspension). For certain conduct, OPR can also impose a monetary penalty equal to the gross income derived from the conduct, or $5,000 per violation, whichever is greater. Practitioners who are censured, suspended, or disbarred are generally listed in OPR's public disciplinary record in the Internal Revenue Bulletin.
How many CE ethics hours does an Enrolled Agent need?
Enrolled agents are required to complete 72 hours of continuing education per three-year enrollment cycle (16 hours per year minimum), with at least 2 hours of ethics or professional conduct per year. The ethics requirement specifically covers the rules of practice under Circular 230. Verify current requirements at IRS.gov or with your CE provider before each renewal period, as requirements are subject to change.
Is the technological competence duty under Circular 230 final?
No. As of June 2026, the proposed rulemaking (RIN 1545-BQ68) published in the Federal Register on December 26, 2024, which would add a technological competence duty to Circular 230, has not been finalized. It remains a proposal. Practitioners should monitor the Federal Register and IRS.gov for updates. Even before finalization, existing OPR interpretive positions suggest that practitioners bear responsibility for the accuracy of output produced by technology tools they use in practice.