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Part 1. Organization, Finance and Management

Chapter 1. Organization and Staffing

Section 20. Office of Professional Responsibility (OPR)

1.1.20  Office of Professional Responsibility (OPR)

1.1.20.1  (06-01-2007)
Introduction to the Office of Professional Responsibility (OPR)

  1. The Office of Professional Responsibility (OPR) administers the laws and regulations governing the practice of attorneys, certified public accounts, enrolled agents, enrolled actuaries and appraisers who represent taxpayers before the Department of Treasury and the Internal Revenue Service (31 U.S.C 330; 31 C.F.R., Part 10). The OPR:

    1. Reviews/investigates evidence of alleged misconduct by tax professionals (attorneys, certified public accountants, enrolled agents, enrolled actuaries and appraisers) who represent taxpayers before the Service.

    2. Initiates disciplinary proceedings for tax professionals (attorneys, certified public accountants, enrolled agents, enrolled actuaries, and appraisers) who represent taxpayers before the Service.

    3. Acts on appeals of unenrolled return preparers found ineligible to engage in limited practice.

    4. Provides a licensing and renewal process for enrolled agents and enrolled actuaries.

    5. Supports the Joint Board for the Enrollment of Actuaries, established by Section 3041 of the Employee Retirement Income Security Act of 1974 (ERISA).

    6. Interprets the Conference and Practice Requirements contained in 26 C.F.R Part 601, Subpart E.

    7. Facilitates communications between the tax professional community and the IRS regarding tax practice matters.

    8. Participates in internal IRS oversight and compliance initiatives for tax professionals.

1.1.20.2  (06-01-2007)
Office of Professional Responsibility

  1. The Office of Professional Responsibility was established in January 2003. The titles Director, Office of Professional Responsibility and the OPR shall encompass the regulatory title of the Director of Practice and the Office of the Director of Practice (ODP). Certain responsibilities of the Director of Practice and ODP have been replaced, and the Director of Professional Responsibility and OPR assume all of those responsibilities set by regulation. The restructuring displaces Treasury Order 150-02 which designates the role for the manager in the Office of the Senior Commissioner. The Deputy Commissioner for Services and Enforcement has assumed that role.

  2. The Director reports to the Deputy Commissioner for Services and Enforcement and has direct supervisory responsibility for the OPR, including oversight and control of its policy decisions.

  3. The mission of the Office of Professional Responsibility is to foster excellence in tax professional services to taxpayers by setting, communicating, and enforcing standards of competence, integrity and conduct. To accomplish the mission, the Director:

    1. Coordinates with operating divisions.

    2. Defines and communicates key OPR performance goals.

    3. Analyzes program trends to drive policy and outreach strategies.

    4. Develops clear standards in licensing, discipline and other program areas.

    5. Develops and maintains a close working relationship with tax professionals.

    6. Strengthens partnerships with tax professional organizations to educate their members and support effective compliance.

    7. Builds OPR management staff as leadership team.

    8. Directs the implementation of office procedures.

    9. Monitors performance goals.

    10. Provides technical guidance.

  4. The following managers report to the Director of Professional Responsibility:

    • Chief, Case Development and Licensure Branch

    • Chief, Enforcement and Oversight Branch 1

    • Chief, Enforcement and Oversight Branch 2

1.1.20.2.1  (06-01-2007)
Case Development and Licensure Branch

  1. The Chief, Case Development and Licensure Branch, reports to the Director, Office of Professional Responsibility.

  2. The mission of the Case Development and Licensure Branch is to develop, review and evaluate incoming referrals, correspondence and complaints and to ensure the basic competence and integrity of enrolled agents through licensing and continuing professional education. To accomplish its mission, the Chief, Case Development and Licensure Branch,:

    1. Engages in proactive liaison with state licensing authorities including state boards of accountancy and state bars to seek and obtain state disciplinary actions that have Treasury Department Circular 230 implications.

    2. Conducts liaison with other federal law enforcement agencies.

    3. Acts on referrals from state and federal agencies by instituting expedited proceedings pursuant to Circular 230 Section 10.82.

    4. Evaluates, investigates and acts on Applications for Enrollment to Practice before the Internal Revenue Service.

    5. Evaluates information obtained from Criminal Investigation for Circular 230 implications.

    6. Maintains close relationships with the operating divisions and service personnel to educate and encourage appropriate practitioner referrals.

    7. Monitors Servicewide enforcement activities and/or parallel investigations and coordinates OPR’s involvement in those cases involving Circular 230 practitioners.

    8. Refers cases to Enforcement and Oversight Branch following the development of preliminary leads of potential Circular 230 violations.

    9. Maintains a licensing process to qualify applicants through an examination and criminal and tax history review.

    10. Establishes an audit system for continuing professional education requirements for licensed tax professionals.

1.1.20.2.1.1  (06-01-2007)
Office of Practitioner Enrollment

  1. The Chief, Office of Practitioner Enrollment, reports to the Chief, Case Development and Licensure Branch.

  2. The mission of the Office of Practitioner Enrollment is to process and act upon applications seeking Enrolled Agent status and oversea the administrative phase of the enrolled practitioner program. To accomplish this mission, the Chief:

    1. Develops policy, procedures and guidance for the Enrolled Practitioner Program.

    2. Monitors workload inventories and progress on attaining the objectives and goals.

    3. Fosters a positive workgroup environment by promoting effective communication.

    4. Works with the Programming Staff for systems development, enhancements, functionality and maintenance.

    5. Monitors, reviews, and controls all workload inventories.

    6. Implements and develops methods to streamline operations.

    7. Maintains inventory tracking mechanisms to monitor processing cycles, determines resource needs, and program objectives.

1.1.20.2.2  (06-01-2007)
Chief, Enforcement and Oversight Branch I

  1. The Chief, Enforcement and Oversight Branch I, reports to the Director, Office of Professional Responsibility.

  2. The mission of the Enforcement and Oversight Branch I is to review, investigate, and effectively sanction violators of professional standards of competence, conduct and integrity by tax professionals (attorneys, certified public accountants and enrolled agents) who represent taxpayers before the Service. To accomplish this mission, the Chief:

    1. Institutes proceedings for discipline of tax professionals subject to OPR's jurisdiction for violating provisions of the law or regulations governing practice before the IRS.

    2. Issues sanctions (reprimands, alternative settlements, censures, voluntary suspensions, suspensions and disbarments) for tax professionals who have been determined to be in violation of the law or regulations governing practice before the IRS.

    3. Ensures processes, technology, and other mechanisms are in place to effectively submit referrals and share information among operating divisions.

    4. Works closely with operating divisions to focus disciplinary actions on significant program concerns, e.g., tax shelters (LMSB), trusts (SB/SE), income tax credit (W&I) retirement plans and tax exempt bonds (TE/GE).

    5. Establishes a system of review to ensure internal decisions on cases are consistent and fair.

1.1.20.2.3  (06-01-2007)
Chief, Enforcement and Oversight Branch II

  1. The Chief, Enforcement and Oversight Branch II reports to the Director, Office of Professional Responsibility. The Chief also serves as the Executive Director of the Joint Board for the Enrollment of Actuaries.

  2. The mission of Enforcement and Oversight Branch II is to identify and effectively sanction violators of alleged misconduct by Enrolled Actuaries and Appraisers, and to support the work of the Joint Board for the Enrollment of Actuaries in regulating the practice of Actuaries before the Departments of Treasury and Labor. To accomplish this mission, the Executive Director:

    1. Ensures that procedures and technologies are in place to timely process applications for enrolled actuary status, applications for renewal of enrolled actuary status, and other correspondence.

    2. Ensures that accurate and up-to-date records are maintained for each enrolled actuary and qualifying sponsor of continuing professional education.

    3. Provides administrative and technical support to the Advisory Committee on Actuarial Examinations, which is responsible for preparing the Joint Board’s examination.

    4. Ensures that the Advisory Committee on Actuarial Examinations is in compliance with the Federal Advisory Committee Act.

    5. Investigates allegations of misconduct concerning enrolled actuaries and appraisers, institutes disciplinary proceedings and imposes sanctions, as appropriate.

    6. Works closely with officials of the Department of the Treasury, Department of Labor, and the Pension Benefit Guaranty Corporation regarding areas of mutual interest.

    7. Maintains liaison with various actuarial societies and appraiser professional groups.

1.1.20.3  (06-01-2007)
Definition of Terms

  1. Attorney: Any person who is a member in good standing of the bar of the highest court of any State, territory or possession of the United States, including a Commonwealth, or the District of Columbia.

  2. Certified Public Accountant (CPA): Any person who is duly qualified to practice as a certified public accountant in any State, territory or possession of the United States, including a Commonwealth, or the District of Columbia.

  3. Enrolled Agent: A tax professional, who has demonstrated special competence in tax matters, applied for enrollment, and has been issued an enrollment card by the Office of Professional Responsibility.

  4. Enrolled Actuary: Any individual who is enrolled as an actuary by the Joint Board or the Enrollment of Actuaries pursuant to 29 U.S.C. 1242 who is not currently under suspension or disbarment from practice before the Internal Revenue Service may practice before the Internal Revenue Service by filing with the Internal Revenue Service a written declaration stating that he or she is currently qualified as an enrolled actuary and is authorized to represent the party or parties on whose behalf he or she acts.

  5. Unenrolled Preparer: An individual who prepares and signs a taxpayer’s tax return, as the preparer, or who prepares a tax return but is not required (by the instructions to the tax return or regulations) to sign the tax return, may represent the taxpayer before revenue agents, customer service representatives or similar officers or employees of the Internal Revenue Service during an examination of the taxable year or period covered by that tax return, but, unless otherwise prescribed by regulation or notice, this right does not permit such individual to represent the taxpayer, regardless of the circumstances requiring representation, before appeals officers, revenue officers, Counsel or similar officers or employees of the Internal Revenue Service or the Department of Treasury.

  6. Special Enrollment Examination (SEE): The Special Enrollment Examination (SEE) is a comprehensive examination administered by the Office of Professional Responsibility designed to test an applicant’s special competence in tax matters. Successful completion of the SEE is a prerequisite for applying for enrollment as an Enrolled Agent.

  7. Disreputable Conduct: Disreputable Conduct for which an Attorney, Certified Public Account, Enrolled Agent or Enrolled Actuary may be disbarred or suspended from practice before the Internal Revenue Service includes, but is not limited to:

    1. Conviction of any criminal offense under the revenue laws of the United States.

    2. Conviction of any criminal offense involving dishonesty or breach of trust.

    3. Conviction of any felony under the Federal or State law for which the conduct involved renders the practitioner unfit to practice before the Internal Revenue Service.

    4. Giving false or misleading information, or participating in any way in the giving of false or misleading information to the Department of the Treasury or any officer or employee thereof or to any tribunal authorized to pass upon Federal tax matters, in connection with any matter pending or likely to be pending before them, knowing such information to be false or misleading. Facts or other matters contained in testimony, Federal tax returns, financial statements, applications for enrollment, affidavits, declarations, or any other document or statement, written or oral, are included in the term "information " .

    5. Solicitation of employment as prohibited under § 10.30 C.F.R., the use of false or misleading representations with intent to deceive a client or prospective client in order to procure employment, or intimating that the practitioner is able improperly to obtain special consideration or action from the Internal Revenue Service or officer or employee thereof.

    6. Willfully failing to make a Federal tax return in violation of the revenue laws of the United Sates, willfully evading, attempting to evade, or participating in any way in evading or attempting to evade any assessment or payment of any Federal tax, or knowingly counseling or suggesting to a client or prospective client an illegal plan to evade Federal taxes or payment thereof.

    7. Misappropriation of, or failure properly and promptly to remit funds received from a client for the purpose of payment of taxes or other obligations due the United States.

    8. Directly or indirectly attempting to influence, or offering or agreeing to attempt to influence, the official action of any officer or employee of the Internal Revenue Service by the use of threats, false accusations, duress or coercion, by the offer of any special inducement or promise of advantage or by the bestowing of any gift, favor or thing of value.

    9. Disbarment or suspension from practice as an attorney, certified public accountant, public accountant, or actuary by any duly constituted authority of any State, territory, possession of the United States, including a Commonwealth, or the District of Columbia, any Federal court of record or any Federal agency, body or board.

    10. Knowingly aiding and abetting another person to practice before the Internal Revenue Service during a period of suspension, disbarment, or ineligibility of such other person.

    11. Contemptuous conduct in connection with practice before the Internal Revenue Service, including the use of abusive language, making false accusations and statements, knowing them to be false, or circulating or publishing malicious or libelous matter.

    12. Giving a false opinion, knowingly, recklessly, or through gross incompetence, including an opinion which is intentionally or recklessly misleading, or engaging in a pattern of providing incompetent opinions on questions arising under the Federal tax laws. False opinions described in this paragraph (l) include those which reflect or result from a knowing misstatement of fact or law, from an assertion of a position known to be unwarranted under existing law, from counseling or assisting in conduct known to be illegal or fraudulent, from concealing matters required by law to be revealed, or from consciously disregarding information indicating that material facts expressed in the tax opinion or offering material are false or misleading. For purposes of this paragraph (l), reckless conduct is a highly unreasonable omission or misrepresentation involving an extreme departure from the standards of ordinary care that a practitioner should observe under the circumstances. A pattern of conduct is a factor that will be taken into account in determining whether a practitioner acted knowingly, recklessly, or through gross incompetence. Gross incompetence includes conduct that reflects gross indifference, preparation which is grossly inadequate under the circumstances, and a consistent failure to perform obligations to the client.

1.1.20.4  (06-01-2007)
Resources

  1. OPR Website: http://nhq.no.irs.gov/OPR/.

  2. Treasury Department Circular 230, Title 31 Code of Federal Regulations, Subtitle A, Part 10, revised as of June 20, 2005.

  3. Title 26 Code of Federal Regulations, Part 601, Subpart E.

  4. Title 29 United States Code Section 1242 .

  5. Section 3041 of the Employee Retirement Income Security Act of 1974 (ERISA).

  6. Revenue Procedure 81-38.

1.1.20.5  (06-01-2007)
Procedures

  1. Reporting Practitioner Misconduct - Referrals should be made to OPR as soon as it appears that a practitioner may be in violation of Circular 230. Circular 230, Section 10.53 (a) specifies, "If an officer or employee of the Internal Revenue Service has reason to believe that a practitioner has violated any provision of this part, the officer or employee will promptly make a written report to the Office of Professional Responsibility of the suspected violation." Since the Area Return Preparer Coordinator (RPC) may be aware of other information regarding the subject of the referral, it is recommended that a copy of the referral be provided to the Area RPC. Form 8484, Report of Suspected Practitioner Misconduct, may be used to make a referral to OPR. Use of this form is optional; however, a written report made in any other format must contain all of the information required by the form and its instructions including the name, address, telephone number, and if relevant, the practitioner’s taxpayer identification number or employer identification number. Also, the written report should include a summary of the suspected misconduct that provides as much detail as possible regarding the misconduct in question and supporting documentation (if available). The information should be mailed to:

    IRS Office of Professional Responsibility
    SE:OPR, Room 7238
    1111 Constitution Avenue N.W.
    Washington, DC 20224

    Note:

    Form 8484, along with additional information concerning OPR activities, may be found on OPR’s website at: http://nhq.no.irs.gov/OPR/.

  2. Applying to Become an Enrolled Agent - An individual becomes an enrolled agent by passing the Special Enrollment Examination (SEE) or presents evidence of qualifying experience as an IRS employee. Those who successfully complete the SEE or qualified IRS employees must submit Form 23, Application for Enrollment to Practice Before the Internal Revenue Service. A background check including a review of the applicant’s tax compliance is conducted.

  3. Former employees requesting enrollment based on his/her employment with IRS, generally, must have a minimum of 5 years continuous employment with the IRS, during which he/she must have been regularly engaged in applying and interpreting the Internal Revenue Code.


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