Simplified Rules Proposed for Written Advice to Clients Under Circular 230

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IRS proposes regulations that are likely to give tax professionals new flexibility in providing written advice to clients and end the need for tax professionals to use Circular 230 disclaimers on emails. The proposed rules (REG-138367-06) would erase the current—and often criticized—requirements under Circular 230 Section 10.35, which governs “covered opinions” provided to clients. The new proposed rules would also allow tax professionals to advise their clients in writing when there is a possibility that a federal tax issue could be resolved through a settlement—advice that is currently prohibited under Treasury Department regulations.

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