Amendments to Circular 230 (Part I) — footnotes

¹ Treasury Circular 230, Regulations Governing the Practice of Attorneys, Certified Public Accountants, Enrolled Agents, Enrolled Actuaries, and Appraisers Before the Internal Revenue Service (hereafter, “Circular 230”).

² REG-122379-02 (12/30/03).

³ TD 9165 (12/17/04).

⁴ The TEC is the AICPA’s senior standard-setting committee for tax matters.

⁵ The authors consulted numerous sources in developing their comments in this article. Some of the comments resulted from conversations with practitioners and from reading numerous articles. Especially helpful were the following: McCue, “Trust and Estate Counsel Comment on Changes to Circular 230,” 2005 TNT 71-30 (4/6/05); Blattmachr, Gans and Bentley, “The Application of Circular 230 in Estate Planning,” 107 Tax Notes 61 (4/4/05); Bailey and MacIvor, “New Circular 230 Regulations Impose Strict Standards for Tax Practitioners,” 107 Tax Notes 341 (4/18/05); Davidowitz, “NYC Bar Association Suggests Revisions to Circular 230 Regs,” 2005 TNT 101-26 (5/13/05); Davidowitz, “NYC Bar Association Supplements Circular 230 Comments,” 2005 TNT 119-20 (6/9/05); Blattmachr, Gans, Zeydel and Bentley, “Circular 230 Redux; Questions of Validity and Compliance Strategies,” 107 Tax Notes 1533 (6/22/05).

⁶ See Johnson, “Tales from the KPMG Skunk Works: The Basis-Shift Shelter,” 39 Tax Notes Int’l 435 (8/1/05).

⁷ In addition to the SOA, on July 14, 2005, the Financial Accounting Standards Board issued a draft interpretation of Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes, titled “Accounting for Uncertain Tax Positions.” For a discussion, see Guertin and Terpening, “FASB Exposure Draft on Uncertain Tax Positions,” 36 The Tax Adviser 612 (October 2005).

⁸ REG-111835-99 (1/12/01).

⁹ TD 9011 (7/27/02). For a discussion, see Gardner, Eide and Willey, “Circular 230 Final Regs.,” Part I, 34 The Tax Adviser 26 (January 2003) and Part II, 34 The Tax Adviser 96 (February 2003).

¹⁰ REG-122379-02, note 2 supra.

¹¹ TD 9165, note 3 supra.

¹² TD 9201 (5/18/05).

¹³ See Wolfman, Holden and Harris, Standards of Tax Practice (Tax Analysts, 6th ed., 2004), 105.1.5.4 and 107.

¹⁴ See 31 USC Section 330(b), as amended by AJCA Section 822.

¹⁵ AICPA Comments on Proposed Regulations, REG-122379-02 Regarding Modifications to Treasury Circular 230, approved by the Tax Executive Committee and submitted to the Internal Revenue Service, Feb. 12, 2004.

¹⁶ The regulations were issued prior to the AJCA’s complete revision of Sec. 6111 in 2004; see Secs. 6706A and 6662A.

¹⁷ See Dellinger, “Circular 230: A ‘Clarification’ that Muddies the Waters,” 107 Tax Notes 1439 (6/14/05).

¹⁸ See Notice 2005-47, IRB 2005-26, 1373, for a discussion of the definition of state and local bond opinions. Good commentary can also be found in Humble, “NABL Comments on Definition of ‘State or Local Bond Opinion,’” 2005 TNT 145-29 (7/29/05). See also proposed Section 10.39 on state or local bond opinions (which is being revised).

¹⁹ See TD 9201, note 12 supra.

²⁰ See Lipton, Walton and Dixon, “The World Changes: Broad Sweep of New Tax Shelter Rules in AJCA and Circular 230 Affect Everyone,” 102 J Tax’n 146 (March 2005).

²¹ See the discussion and examples of penalty legends in Stratton, “Circular 230 E-Mails, T-Shirts Attain ‘Legendary’ Status,” 2005 TNT 127-1 (7/5/05).

²² See Raby and Raby, “Penalty Protection for the Taxpayer: Circular 230 and the Code,” 2005 TNT 105-65 (6/2/05).

²³ Sheppard, “News Analysis: Shelter Penalties: Or Else What? Part 2,” 106 Tax Notes 141 (1/10/05).