OPR: Frequently asked questions (FAQs)

On this page

• Basic: For taxpayers, as well as tax professionals who are new to the profession or whose knowledge in the subject matter is low to moderate.
• Advanced: For practitioners who have a basic understanding of Circular 230 and the OPR.

Basic

Q1. What is the Office of Professional Responsibility (OPR)? (updated March 5, 2025)

The OPR is the office within the IRS responsible for interpreting and applying the Regulations Governing Practice before the Internal Revenue Service (Treasury Department Circular No. 230 PDF) (see Q2). The OPR has oversight authority over the conduct of those who practice on behalf of taxpayers before the IRS and exclusive responsibility for overseeing practitioners’ compliance with Circular 230’s standards and prohibitions and for discipline, including instituting disciplinary proceedings and pursuing sanctions.

The office functions independently of the IRS organizations responsible for administering and enforcing the Internal Revenue Code.

Q2. What is Circular 230? (updated March 5, 2025)

Circular 230 is the common name given to the Department of Treasury regulations issued under the authority of a federal statute, which is section 330 of Title 31 of the United States Code (31 USC 330). The regulations and the statute are the source of the OPR’s authority described above (see Q1).

Circular 230 defines “practice” and who may practice before the IRS; describes practitioners’ duties and restrictions while practicing before the agency; authorizes sanctions for violations of the regulations; and specifies the procedures that apply to administrative proceedings to impose sanctions.

Q3. What does “practice before the IRS” mean and include? (updated March 5, 2025)

“Practice before the IRS” means all matters involving a presentation to the IRS, or any of its officers or employees, relating to a taxpayer’s rights, privileges, or liabilities under laws or regulations the IRS administers. Presentations include preparing documents and filing documents; corresponding and communicating with the IRS; giving oral or written tax advice; and representing a client at conferences, hearings and meetings with the IRS.

Q4. Who is subject to Circular 230? (updated March 5, 2025)

• Practitioners
  • Attorneys and certified public accountants (CPAs) in good standing with their state licensing authorities.
  • Individuals enrolled to practice before the IRS: enrolled agents, enrolled retirement plan agents, and enrolled actuaries.
• Appraisers who provide appraisals and property valuations for use in federal tax matters (e.g., charitable contribution deductions, reporting of estate and gift assets, fair market value for capital gain reporting, etc.).
• Individuals who are unenrolled and unlicensed (as attorneys, CPAs, or enrolled agents) and who represent taxpayers before IRS examination, customer service, and similar personnel, including the Taxpayer Advocate Service, in connection with tax returns they prepared and signed. For more information, see Annual Filing Season Program.

Q5. Does the OPR have a role in administering the preparer tax identification number (PTIN) program; continuing education requirements; the Annual Filing Season Program; or enrollment of enrolled agents, enrolled actuaries, or enrolled retirement plan agents? (updated March 5, 2025)

No, these programs are administered by the Return Preparer Office (RPO).

Q6. What sanctions are authorized by Circular 230 and to whom do they apply? (updated March 5, 2025)

Circular 230 sanctions are a censure (essentially a public reprimand), suspension from practice before the IRS, disbarment from practice before the IRS, monetary penalties, and “disqualification” as an appraiser.

• Suspensions may be for a fixed term or indefinite, and even if for a fixed term, a practitioner must petition and be granted reinstatement by the OPR before practice privileges are restored. When a practitioner is suspended for a fixed term, the individual may not petition to be reinstated to practice before the end of the term.
• Disbarment restricts any practice before the IRS for a minimum of five years. A disbarred practitioner may not petition for reinstatement for five years. (Petitions for reinstatement are subject to the requirements in section 10.81 of Circular 230.)
• Monetary penalties may be imposed on practitioners who engages in conduct subject to one of the other sanctions. A monetary penalty may be imposed against an individual practitioner or a firm (or other entity), or both, and can be in addition to any censure, suspension or disbarment. The amount of the penalty or penalties (if imposed on a practitioner and a firm) may be up to the amount of gross income derived or to be derived from the conduct giving rise to the penalty or penalties.
• Disqualification of an appraiser precludes the appraiser from submitting any further appraisals in connection with federal tax matters and from presenting evidence or testimony in any proceeding before the Treasury Department or the IRS. A taxpayer may not rely for federal tax purposes on an appraisal by a disqualified appraiser that was rendered after the disqualification.

Before any of these sanctions is imposed, the practitioner, firm‎, or appraiser is provided with:

1. notice and an opportunity to respond and provide supporting evidence,
2. an opportunity for a conference with the OPR, and
3. an opportunity for a formal disciplinary proceeding before an administrative law judge (ALJ). However, in the case of an expedited suspension (see Q7), the opportunity for a formal proceeding arises after the OPR has imposed the suspension.

If discipline is not appropriate (or possible), the OPR may issue a private reprimand or a cautionary “soft letter,” each of which closes the OPR’s case after the practitioner has been given due process. A reprimand is a letter informing the recipient that the OPR has concluded that they violated one or more sections of Circular 230 and admonishes the person for the misconduct and warns them not to engage in further violations. An initial “soft letter” advises a practitioner of the information referred to the OPR as potential Circular 230 misconduct and that the practitioner can submit a written response and any supporting documentation. A closing soft letter notifies the practitioner that the OPR is not taking any further action on the referral (including after consideration of any response to the initial letter) and that the matter is closed. Closures with a soft letter are also private, but unlike a reprimand letter, a closing soft letter does not reach a conclusion as to whether a violation was committed.

Q7. What is an expedited suspension? (updated March 5, 2025)

An expedited suspension is a suspension from practice that in appropriate cases can be imposed quickly to protect the interests of taxpayers and federal tax administration. Section 10.82 of Circular 230 authorizes the OPR’s Director to suspend a practitioner, after notice from the OPR and an opportunity to respond, when any of the following five is present:

• A suspension or revocation for cause by a licensing authority or a federal court of a practitioner’s license to practice as an attorney, CPA, or actuary.
• A conviction of any federal tax crime under the Internal Revenue Code, any crime involving dishonesty or breach of trust, or any felony involving conduct that renders the practitioner unfit to practice before the IRS.
• A violation of any conditions imposed on a practitioner (under section 10.79(d) of Circular 230) after having been sanctioned with a censure or suspension.
• A court-imposed sanction of a practitioner in a civil or criminal proceeding for:
  • Conducting a proceeding primarily for delay;
  • Advancing frivolous or groundless arguments; or
  • Failing to pursue available administrative remedies.
• A recurring failure to file required federal tax returns for four of the last five consecutive tax years, or failure to file returns required less than annually (e.g., quarterly) for five of the last seven consecutive tax periods.

The basis for the expedited suspension, such as a conviction or loss of license, must have occurred within five years of the OPR initiating the expedited suspension.

The OPR initiates the expedited suspension process by serving on a practitioner an order to show cause (OSC) why the practitioner should not be suspended from practice before the IRS. The practitioner has 30 days to submit a written response and request a conference with the OPR. If the practitioner shows that the basis for the OSC is incorrect or that, based on other good cause, the practitioner should not be suspended, the Director of OPR will not suspend the practitioner from practice and will notify the practitioner of that decision. If the practitioner fails to show adequate cause (or fails to respond), the Director will issue an order suspending the practitioner from practice.

The suspended practitioner has two years after the effective date of the suspension to demand a formal disciplinary proceeding before an administrative judge law (ALJ) to contest the suspension.

The suspension continues indefinitely until it is either lifted by the OPR, in response to a petition for reinstatement from the suspended practitioner or lifted or modified by an ALJ in a disciplinary proceeding.

Q8. Can sanctioned practitioners represent clients before IRS? (updated March 5, 2025)

It depends. A practitioner who was censured or upon whom a monetary penalty was imposed may continue to represent clients before the IRS, whereas a practitioner who is suspended or disbarred may not.

As mentioned in Q6, suspended and disbarred practitioners are prohibited from practicing before the IRS on behalf of clients until the end of the disbarment (five years) or term of suspension and the OPR reinstates the individual to practice in response to a petition for reinstatement. For a more detailed explanation of the effect of a suspension or disbarment on practice before the IRS, see Publication 6033, Guidance on Restrictions During Suspension or Disbarment from Practice Before the Internal Revenue Service PDF.

If a suspension or disbarment was based in whole or in part on loss of a license as a result of action by a state authority (typically a board of accountancy or state bar), reinstatement or restoration of the individual’s license in the state does not by itself permit them to practice before the IRS. In other words, the discussion in the first paragraph still applies. The same is true when a suspension or disbarment was based on a criminal conviction. Completion of the sentence imposed, such as a term of incarceration or probation, can be grounds to seek to once again practice before the IRS, but it is contingent on reinstatement by the OPR. The OPR will grant reinstatement only when the OPR determines that the petitioner is not likely to engage again in conduct in violation of the rules of practice and that reinstatement would not harm the public interest (see section 10.81 of Circular 230 and, for information about how the OPR evaluates petitions, see Q20).

Regardless of the restriction on their practice, a suspended or disbarred practitioner can submit to the IRS Form 8821, Tax Information Authorization, signed by a taxpayer, authorizing the suspended or disbarred practitioner to view and obtain copies of the taxpayer’s tax returns and transcripts of account from the IRS. If a taxpayer wants the practitioner designated on Form 8821 to accompany the taxpayer to a conference or meeting with the IRS, the individual may do so. However, the suspended or disbarred practitioner may only respond to questions and provide factual information and documents; the practitioner may not advocate for the taxpayer or argue the merits of any issue raised.

Q9. Are IRS employees required to refer suspected practitioner misconduct to the OPR? (updated March 5, 2025)

Yes. Any IRS employee who believes a practitioner has violated any provision in Circular 230 is required, under section 10.53 of Circular 230, to make a written report to the OPR.

Q10. How can I learn more about the OPR and Circular 230? (updated March 5, 2025)

In addition to these FAQs, there are other resources available on Office of Professional Responsibility and Circular 230.

Q11. How can I contact the OPR if I have questions? (updated March 7, 2025)

You may contact the OPR by eFax at 855-814-1722, or by mail at:

Internal Revenue Service
Office of Professional Responsibility
IR Room 7238
1111 Constitution Avenue NW
Washington, DC 20224

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Advanced

Q12. How can I ensure my compliance with Circular 230? (updated March 5, 2025)

Ways of being compliant with Circular 230 obligations and restrictions will differ for each practitioner, depending on the nature of a practitioner’s tax practice; years in practice; level of experience; knowledge of Circular 230 and other ethical rules or standards of professional conduct; any supervisory responsibility over others who practice before the IRS; understanding how IRS tax compliance and collection functions operate; and other factors.

Here are several general recommendations for all Circular 230 practitioners to remain compliant:

• Know and understand Circular 230, especially Subpart B’s duties and restrictions and the prohibitions on incompetence and disreputable conduct in section 10.51. Knowing these principles will help you apply them to your representation of taxpayers.
• If you have questions or need help understanding provisions of Circular 230, ask us, and a member of the OPR’s staff will assist you. Our contact information is in Q11.
• Subscribe to News and Updates from OPR, at Subscribe to news and updates from OPR. Familiarize yourself with, and use (as needed), OPR’s informational resources available at Office of Professional Responsibility and Circular 230.
• Consider attending IRS-sponsored or other presentations about Circular 230 and issues related to practice before the IRS. The OPR regularly conducts or participates in live (in-person and virtual) presentations, such as at the IRS Nationwide Tax Forums, and offers viewing of webinars with a live question-and-answer session. Your local IRS Stakeholder Liaison meetings also include Circular 230 presentations and topics. Video recordings of past presentations are available on OPR webinars.
• Stay current on the law and changes or developments related to your federal tax practice. Conduct legal and other research as needed. Circular 230 section 10.35 requires you to have “the appropriate level of knowledge, skill, thoroughness, and preparation necessary for” a client’s federal tax matter.
• Be fully tax compliant. Timely file all of your personal and business federal tax and information returns and timely pay all of your taxes, including estimated income tax and employment taxes if you are an employer. If you are unable to pay all taxes when due, promptly contact the IRS for collection alternatives, including submitting an Offer in Compromise if you qualify or arranging an installment agreement.
• If you have supervisory responsibility for the Circular 230 practice of individuals in your firm or business, establish and enforce procedures to ensure compliance with Circular 230 by all affected members. See section 10.36.

Q13. What are best practices, setting standards, etc.? (updated March 5, 2025)

Consistent with Circular 230 section 10.33, the OPR encourages every practitioner to adopt a set of best practices and operating standards suitable to their federal tax practice and, if applicable, their firm (when the practitioner is an owner or a principal with authority over how the firm operates). Best practices should include:

• Communicating regularly with clients and managing client expectations throughout the representation. It’s always good practice to discuss with a client all significant aspects of the representation: scope, terms, purposes or objectives, actions to be taken, etc.
  • At the outset, use a comprehensive engagement letter to the client or an engagement agreement signed by the client.
  • As the represented matter progresses, provide timely updates to the client (and maintain records of what you have done).
• Setting a well-defined policy for retention and disposition (including destruction) of client files and other records. Clearly communicate this policy to clients, such as with a written copy of the policy.
• Implementing a data security and privacy plan that complies with rules, requirements and guidelines applicable to your practice. For general information, see Publication 4557, Safeguarding Taxpayer Data: A Guide for Your Business PDF, and Publication 5293, Protect Your Clients; Protect Yourself - Data Security Resource Guide for Tax Professionals PDF. If you are an authorized IRS e-file provider, see Publication 1345, Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns PDF (including “Safeguarding IRS e-file” in Chapter 2).

Also:

• Stay informed on the latest aspects of data protection laws, at both the federal and state level.
• Follow any standards or guidance from your state licensing authority and professional organizations for practitioners.

Q14. What is a conflict of interest and how can I avoid one? (updated March 5, 2025)

What is a conflict of interest?

A conflict of interest is defined in section 10.29 of Circular 230 as when:

• A practitioner’s representation of one client before the IRS will be “directly adverse to another client” whom the practitioner represents, or
• “A significant risk” exists that the practitioner’s representation of one or more clients will be “materially limited by the practitioner’s responsibilities to another client, a former client or a third person, or by a personal interest of the practitioner.”

How can I avoid or otherwise manage a conflict?

A practitioner can avoid a conflict of interest by identifying a potential conflict before it arises. When a prospective or current client consults with a practitioner about engaging the practitioner to represent the person before the IRS in a new or additional matter, the practitioner should assess whether the representation is likely to be directly adverse to the practitioner’s representation of another client. If so, the practitioner may decide to decline the representation. In the same situation, if the practitioner determines that accepting the representation would likely pose a significant risk that the practitioner would be materially limited in effectively representing the client because of responsibilities to another client, for example, the practitioner should avoid the conflict by declining the representation or otherwise resolving the probable conflict. Alternatives to declining representation can include withdrawing from the representation of the other client to accept a new representation when withdrawal is not premature, would not harm the other client, and is appropriately handled (withdrawing from representation in a court case, for instance, may require the court’s permission).

Sometimes a practitioner may be able to avoid a conflict posed by the practitioner’s responsibilities to a third person by ending or temporarily suspending the practitioner’s relationship to the third person. This may be achievable for a fiduciary relationship (e.g., the practitioner recuses herself as the trustee of a trust and an alternate trustee assumes control of the trust). The same can apply to a positional relationship (e.g., the practitioner is an uncompensated officer of a charitable organization who resigns from the position to avoid a conflict if the practitioner takes on the representation).

When obligations to a former client raise a high risk that representation of a current client would be materially impaired, avoiding the conflict may be very difficult or impossible, especially if the practitioner has confidential information about the former client that would advance the current client’s interests in the represented matter. One possible way to avoid such a conflict is to limit, at the outset, the scope of the representation, so that the practitioner will represent the new client only for tax matters that do not overlap with matters handled for the former client. When the practitioner who would be conflicted out of the representation is a member of a firm of other practitioners, another possibility is for another member of the firm to represent the client before the IRS, with appropriate protective measures, including fully screening the first practitioner off from any involvement in the representation. (Conduct rules and ethics opinions of the relevant jurisdiction should be consulted.)

When a practitioner’s own personal interest is the source of the conflict, steps should be taken to prevent that interest from interfering with the practitioner’s duties of loyalty and fidelity to the represented client. If the interest is a financial one, practitioners can divest themselves of the interest through sale, transfer or donation to an unrelated third party. A practitioner, for instance, intends to represent a small business, whose main competitor is a company in which the practitioner, as an initial investor, owns several shares of stock. To avoid a conflict, the practitioner sells the competitor’s stock back to the majority owner. Other personal interests can at times be eliminated, as well (e.g., by terminating employment discussions with a firm or company that is suing the client you intend to represent before the IRS).

Can a practitioner ever represent a client or clients before the IRS if a conflict of interest in doing so cannot be prevented or managed away as discussed above?

In some cases, yes. A practitioner can conduct the representation when all three elements of section 10.29(b) are met:

1. The practitioner reasonably believes that the practitioner will be able to provide competent and diligent representation to each affected client;
2. The representation is not prohibited by law; and
3. Each affected client waives the conflict of interest and gives informed consent, confirmed in writing by each affected client, at the time the existence of the conflict of interest is known to the practitioner. The confirmation must be made within a reasonable period of time, not exceeding 30 days, after the informed consent.

If these requirements are not met, willfully representing a client in disregard of an unresolved conflict of interest is a violation of section 10.29, for which the practitioner can be sanctioned.

Q15. What advertising and commercial solicitation are permissible for practitioners to use? (updated March 7, 2025)

The regulations governing practice before the IRS permit practitioners to use a broad array of advertising and solicitation methods (mediums) and content. Practitioners, for example, can market—online, in print and elsewhere—their professional and educational credentials, employment history, years in practice, tax specialization(s) and experience, services offered, and fee information.

The applicable rules are provided in section 10.30 of Circular 230, the main one being that a practitioner may not use “any form of public communication or private solicitation” that contains a statement or claim that is “false, fraudulent, or coercive” or is “misleading or deceptive.”

A practitioner also may not solicit employment from a taxpayer through an uninvited written or oral communication if it would violate federal or state law or rules of professional conduct (sec. 10.30(a)(2)). All states regulate advertising and solicitation of business by attorneys and CPAs in multiple ways. Practitioners need to consider the statutes and rules that apply to their practices. For example (and as a small sampling):

• The American Bar Association’s (ABA) Model Rules of Professional Conduct, which all states have adopted with some jurisdiction-specific variations, have multiple rules on advertising and solicitation. They include prohibiting attorneys from stating or implying that they are certified as a specialist in a particular field of law, unless the attorney has been certified as a specialist by a state-approved organization or an ABA accredited organization and the certifying organization’s name is clearly identified in the communication (Rule 7.2(c)).
• California has a statute that prohibits an advertisement that contains a “guarantee or warranty regarding the outcome of a legal matter as a result of representation by” an attorney (Cal. Bus. & Prof. Code section 6157.2).
• Michigan’s Department of Licensing and Regulatory Affairs has adopted by reference in its rules applicable to accountancy several standards of practice (R 338.5102). These include standards of the American Institute of Certified Public Accounts (AICPA), under which certain “promotional efforts” of a member, such as creating an unjustified expectation of favorable results or the ability to influence a tribunal or agency, are prohibited as false, misleading or deceptive advertising or solicitation (see Rule 1.600.010, AICPA Code of Professional Conduct).
• Florida’s Board of Accountancy rules prohibit advertising by a CPA that, among other things, “Appeals primarily to a layperson’s fears, ignorance, or anxieties regarding his state of financial well-being” and require when using the term “specialty” or “specialist” a statement that the term is “a self-designation and is not sanctioned by the state or federal government” (R. 61H1-24.001).

Section 10.30 provides an additional special rule for EAs and ERPAs: they may not use the term “certified” or imply an employee-employer relationship with the IRS. Examples given in the section of acceptable descriptions are:

• For EAs
  • “enrolled to represent taxpayers before the Internal Revenue Service”;
  • “enrolled to practice before the Internal Revenue Service”; and
  • “admitted to practice before the Internal Revenue Service”
• For ERPAs
  • “enrolled to represent taxpayers before the Internal Revenue Service as a retirement plan agent”; and
  • “enrolled to practice before the Internal Revenue Service as a retirement plan agent”

Enrolled agents are permitted to refer to themselves as such or as EAs or E.A.s.

EAs, ERPAs and all other practitioners are prohibited under federal law from using any signage, symbol, graphic, design, etc., that resembles those of the IRS or the United States, such as the official IRS seal or the Great Seal (or official seal) of the United States, which appears on U.S. currency and certain documents, such as passports (see 18 USC 333, 701, 713).

Q16. How do the investigative and disciplinary processes work? (updated March 5, 2025)

The investigations the OPR conducts typically begin with information sent to the OPR about a practitioner’s conduct. Referrals to the OPR alleging violations of Circular 230 are received from both internal (IRS) and external referents and are the primary source of the office’s casework; secondarily, the OPR initiates certain cases on its own.

When a referral is received, the OPR independently evaluates and determines, based on all available pertinent facts and circumstances, whether the alleged conduct is a potential violation or violations of Circular 230 and whether the conduct calls into question a practitioner’s fitness to continue to practice. If the OPR determines that an alleged violation warrants investigation or inquiry, the OPR sends the practitioner an initial contact letter, with the information obtained by the office, and informs the practitioner that the OPR has initiated an investigation (followed by additional letters and communications as needed). The correspondence gives the practitioner an opportunity to provide a written response and any evidence or documentation that the practitioner believes is relevant to the OPR’s determination. The practitioner, or the practitioner’s authorized representative, may also have a conference with the OPR.

After a thorough investigation and analysis of the facts and consideration of any aggravating and mitigating circumstances, the OPR decides how to resolve the investigation and whether the office will seek corrective action, including a possible disciplinary sanction.

Due process protections are incorporated throughout the process. During an investigation, the practitioner may propose a resolution of the matter, which may include a sanction or a non-disciplinary outcome. If the OPR and the practitioner cannot agree on a resolution, and the OPR believes a sanction is appropriate, a disciplinary proceeding may be commenced against the practitioner (see Q18).

Disciplinary proceedings are governed by Subpart D of Circular 230, “Rules Applicable to Disciplinary Proceedings” (particularly, sections 10.60 through 10.78 of Circular 230), which conform to requirements of the Administrative Procedure Act (APA). In general, a proceeding begins with a complaint filed against a practitioner, an appraiser, and sometimes a firm or other entity associated with the practitioner. The complaint is filed with an administrative law judge (ALJ), who presides over and decides the case, after which the parties are entitled to administrative appeal of the decision. If no appeal is filed, the ALJ’s decision, including any sanction(s), becomes final. Otherwise, a final administrative decision will result after the process of appellate review is exhausted. Once final, any sanction that has been ordered becomes effective.

At that point, a practitioner who is not satisfied with the outcome may file a complaint in U.S. District Court to contest it. The case is subject to review under the APA, in which the district judge will review findings of facts and conclusions of law based on the administrative record and will set aside the agency decision if found to be arbitrary or capricious, contrary to law, or an abuse of discretion (see section 706 of Title 5 of the U.S. Code (5 USC 706)).

Q17. What documents are required for practitioners who choose to be represented during a Circular 230 investigation or inquiry? (updated March 5, 2025)

A practitioner who receives an allegation or other investigative letter from the OPR, may decide to appoint a representative to act on the practitioner’s behalf with the OPR. If so, then the practitioner or the chosen representative must provide the OPR with a valid authorization for the representation. Practitioners under investigation or inquiry and their representatives should use Form 2848, Power of Attorney and Declaration of Representative, and enter in the “Description of Matter” column on Line 3 of the form an appropriate description, such as “Circular 230 investigation or proceeding,” and check the specific use box on Line 4.

Alternatively, the OPR will accept a substitute power of attorney and declaration of representative or a letter of representation that contains the essential elements of Form 2848.

Q18. How are disciplinary proceedings conducted? (updated March 5, 2025)

The OPR drafts a formal “complaint” and refers the case to the IRS Office of Chief Counsel, specifically, the Office of the Associate Chief Counsel for General Legal Services (GLS), to institute the disciplinary proceeding. GLS first sends a letter to the practitioner offering a final opportunity to settle the matter without a formal proceeding. If settlement is not reached, GLS files the complaint commencing the proceeding against the practitioner (the “respondent”) before an ALJ. As mentioned in Q16, the ALJ controls the proceeding and, if necessary, decides the merits of the case. The practitioner has 30 days, unless extended, to file an answer to the complaint or a default decision may be entered against the practitioner. After the filing of the initial pleadings, the parties may, at the ALJ’s discretion, engage in discovery, and the parties may file motions, such as a motion for summary adjudication (equivalent to summary judgment in courts of law). The ALJ may order a hearing to be held, during which the OPR and the practitioner can present their evidence and arguments; otherwise, the ALJ decides the case based on the pleadings and any motions.

Although rare, even at the stage of a disciplinary proceeding, a case may be settled, by concurrence of both parties at any time prior to a decision. If so, the case will be dismissed without a decision.

If a hearing is conducted, and after post-hearing briefs are submitted, the ALJ issues an Initial Decision and Order. The ALJ may find the OPR has proven the allegations of the complaint and conclude the practitioner committed violations of Circular 230 for which the practitioner should be sanctioned. The ALJ may then go on to impose the ‎sanction that the OPR proposed. Alternatively, the ALJ may rule in the OPR's favor on the facts and law but increase or reduce the recommended sanction. Or, finally, the ALJ may reject both the OPR’s version of events and its recommendation of a sanction, and thus enter a decision dismissing the case.

Following the ALJ’s Decision and Order, either party may appeal to the Treasury Appellate Authority. If neither party appeals within 30 days, the ALJ’s Initial Decision and Order becomes the Final Agency Decision. If either party appeals, the Treasury Appellate Authority will, after receiving briefs from both parties and reviewing the record, render the Final Agency Decision. For the OPR, a decision by the Appellate Authority is a final determination in the case, while the practitioner may pursue judicial review (see Q16).

Q19. What is the OPR’s burden of proof? (updated March 5, 2025)

For the OPR to prevail in a disciplinary proceeding, the OPR generally must prove by “clear and convincing evidence” that a practitioner willfully violated one or more sections of Circular 230. Willfulness is defined as a voluntary, intentional violation of a known legal duty. The OPR can also prove violations of sections 10.34, 10.35, or 10.36 by establishing that the practitioner acted recklessly or with gross incompetence.

Q20. What criteria does the OPR use in evaluating a petition for reinstatement and what facts and circumstances does the OPR consider? (updated March 5, 2025)

As mentioned in Q8, section 10.81 provides a very broad standard for reinstatement to practice before the IRS. The standard has two parts:

1. a determination that the petitioning practitioner is unlikely to engage in more conduct that violates the regulations governing practice and
2. a determination that granting reinstatement “would not be contrary to the public interest.”

The OPR applies this two-part standard using several criteria, including:

• The severity and extent of the conduct that resulted in suspension or disbarment, including the number of Circular 230 violations;
• The length of time, in the case of an expedited suspension, that has elapsed since the indefinite suspension went into effect;
• The petitioner’s completion of any reinstatement conditions included in a settlement agreement between the OPR and the practitioner in which the practitioner consented to a suspension or disbarment;
• The current status of the practitioner’s compliance with personal and business federal tax obligations and the practitioner’s recent compliance history, including the presence or absence of instalment agreements or other arrangements with the IRS for payment of unpaid taxes and any default of an agreement;
• The practitioner’s compliance with the prohibition on practice
  • Whether the OPR received any credible reports or uncovered that the individual represented or attempted to represent a taxpayer while under suspension or disbarment and any action taken by the OPR (typically, a warning or cease-and-desist letter), or
  • Whether there is other evidence of practice (e.g., providing any written tax under section 10.37); and
• The practitioner’s commission of any conduct post-suspension or disbarment that violates Circular 230, including disreputable conduct under section 10.51, such as a conviction of a federal tax crime or discipline imposed by a court or state licensing authority.

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