Friday, July 18, 2014

Use of Tax Advice Disclosure on Emails

Do you still have a disclaimer on your emails?  If so, you could be in violation of the latest version of IRS Circular 230.

IRS changed Circular 230 again.  One of the changes this time affects the “covered opinions.”  When an opinion did not include all of the necessary provisions to be a covered opinion, it was required to contain a disclosure that the tax advice could not be relied on to avoid penalties, etc.  Many tax professionals put this disclosure in the signature area of their emails so it automatically was included in every email.

The latest Circular 230 no longer requires such a provision.  This is where you may be violating Circular 230.  Having a phrase saying “IRS requires the following disclosure…” or something similar is where the violation occurs.  Saying IRS requires something when it doesn’t is the violation.

How soon will the Office of Professional Responsibility start going after tax professionals and assessing penalties for such a violation?  If you haven’t already removed this from your emails and other correspondence, it’s time.

This text has been shared with you courtesy of:  David & Mary Mellem, EAs & Ashwaubenon Tax Professionals, 920-496-1065 (920-496-9111).,,,

No comments:

Post a Comment