 |
 |
|
Circular 230 - What Is It and How Will It Affect Your Attorney-Client Relationship?
Written on October 11, 2007 On June 21, 2005, Circular 230 became effective. The Circular was issued by the United States Treasury Department. It sets forth rules that tax practitioners, including lawyers and certified public accountants, must follow in providing written statements about certain Federal tax issues. A Federal tax issue is a question concerning the Federal tax treatment of an item of income, gain, loss, deduction or credit, the existence or absence of a taxable transfer of property (such as whether a transfer to another is subject to Federal gift tax), or the value of property for Federal tax purposes. The Circular covers much more than formal legal opinions and may apply to any writing relating to any Internal Revenue Code matter, including e-mail messages. Practitioners who fail to comply with the Circular may be suspended or disbarred from practice before the Internal Revenue Service (preventing the practitioner from filing a return or participating in the audit of a United States tax return), be publicly censured or be fined. Unfortunately, we and many others anticipate that the Circular may increase the cost of delivering certain written materials to taxpayers. In addition, the Circular requires that certain written statements contain disclaimers or warnings. You will see new statements in some messages from us, including in e-mail messages. All responsible tax practitioners will follow the requirements of the Circular. It is our intention to continue to deliver the highest quality services to you and in a cost effective manner. Please call us if you have any question about how the Circular may affect our representation of you. Thank you. Written by: Lorren T. Johnston, Esq. |
