November 21, 2011

Are you ready to increase your tax vocabulary? In addition to familiar terms like Section 179 and 401(k), another tax-related phrase to know is Circular 230.

Not familiar with Circular 230? It’s the IRS publication that spells out ethical standards for professional tax preparers. For instance, among other responsibilities, a preparer you pay to complete your tax return is required to sign the return, provide you with a copy, and give your records back to you.

Additional regulations cover conflicts of interest, such as those that can crop up when you’re going through a divorce, and standards for providing you with written advice about federal tax matters.

Though these rules have been in effect since 1921, the latest version of Circular 230 was issued this past summer to reflect changes that include newly required preparer identification numbers and the electronic filing of tax returns.

You may see a reference to Circular 230 in e-mails, letters, and other correspondence from us. If you have questions, we invite you to give us a call. We take our responsibilities to you seriously, and we welcome the opportunity to discuss the policies we have in place to ensure you receive the quality service you expect.

Contact Us if you would like more information or have any questions about Circular 230.