Sanctions for Violating Circular 230
Circular 230, Regulations Governing Practice Before the Internal Revenue Service, sets forth the duties and responsibilities of practitioners, including tax return preparers. (Rules for Part A of Circular 230 are discussed in Chapter 39; rules for Part B of Circular 230 are discussed in Chapter 40.)
If the tax return preparer fails to comply with these duties and responsibilities, he or she may be subject to sanctions. Sanctions may result in monetary penalties or disciplinary action which may prevent the tax return preparer from operating as a practitioner.
The IRS has the authority to take disciplinary action against a tax return preparer for:
Disciplinary action can be: