Tax Notes Article regarding IRS Regulation: "Proposed Regs Modify Circular 230 Rules on Contingent Fees"

Tax Notes has published an article regarding a regulatory modification posted by the Internal Revenue Service. The proposed regulations would modify Circular 230 rules regarding contingent fees. Circular 230 rules pertain to regulations governing the practice of attorneys, certified public accountants, enrolled agents,  and other individuals representing taxpayers before the IRS. In its original ruling, the IRS along with the U.S. Treasury Department generally prohibited a practitioner from filing a contingent fee for services provided before the IRS. Before filing this new regulation, the IRS and the Treasury Department provided interim guidance regarding contingent fees discussed in Circular 230. Under this provision, contingent fees can now be charged with respect to whistleblower claims; additionally the IRS no longer needs to furnish a written notice of examination to a tax payer as a precursor for a practitioner to charge a contingent fee. However, this interim guidance along with any new regulation will generally prohibit the charge of contingent fees in any case related to the IRS. Before any new regulations are put forward, a public hearing will take place on November 20, 2009. Any topics wished to be discussed as well as written or electronic comments must be submitted by September 10, 2009.