Part III - Administrative, Procedural, and Miscellaneous

Standards of Conduct for the Tax Return Preparer Community and Increased Taxpayer Compliance

PURPOSE

This notice invites public comments regarding the Internal Revenue Service’s

review of issues concerning tax return preparers. In June 2009, the Service announced

plans to propose a comprehensive set of recommendations by the end of 2009

regarding how the tax return preparer community can help increase taxpayer

compliance and how to ensure that tax return preparers meet both uniform and high

ethical standards of conduct. See IR-2009-57 (June 4, 2009). The Service is seeking

the input of tax preparers, the associated industry, consumer groups, and taxpayers

before any recommendations are made.

To assist in developing its proposals and to ensure that input is received from a

broad range of stakeholders, the Service has scheduled a number of meetings in

Washington, D.C., and around the country with constituent groups. See IR-2009-66

(July 14, 2009). In this Notice, the Service is requesting written comments from all

affected persons and entities. The information collected will assist the Service in

drafting recommendations.

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REQUESTS FOR PUBLIC COMMENT

The Service requests comments on 1) how the tax return preparer community

can assist in increasing taxpayer compliance and 2) how to ensure that tax return

preparers meet both uniform and high ethical standards of conduct. The Service is

particularly interested in any comments regarding:

• What types of individuals, entities, and professionals currently work as tax

return preparers? How are their tax return preparation services currently

monitored or regulated by professional organizations or the government? How

could this monitoring and regulation be improved?

• How do difference in regulation and oversight affect how the various groups of

tax return preparers interact with the Service and taxpayers?

• Is there a minimum level of education and training necessary to provide tax

return preparation services? If so, who should be responsible for ensuring that a

tax return preparer meets this minimum level and how should that be done?

• What, if any, service and outreach should be provided to tax return preparers

and taxpayers? Who should provide (and bear the costs for) these needed

services?

• Should tax return preparers be subject to a code of ethics, and, if so, what

specific behavior should that code promote or prohibit? How would that code of

ethics interact with existing ethical standards that may already be applicable?

• What, if any, responsibility should the firms or businesses that employ tax

return preparers have for the conduct of the individuals they employ?

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• What, if any, responsibility should tax return preparer professional

organizations have for the education, training, and conduct of their members?

• If tax return preparation services should be regulated, what, if any, special

regulatory provisions should be made for individuals who are already tax return

preparers, licensed attorneys, certified public accountants, enrolled agents, or

software providers?

• What, if any, additional legislative, regulatory, or administrative rules should the

Service consider recommending as part of its proposals with respect to the tax

return preparer community?

Written comments should be sent to: CCPA:LPD:PR (Notice 2009-60), Room

5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington,

D.C. 20044. Alternatively, comments may be hand delivered between the hours of 8:00

a.m. and 4:00 p.m. Monday to Friday to CC:PA:LPD:PR (Notice 2009-60), Courier’s

Desk, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, D.C.

Comments may also be transmitted electronically via the following e-mail address:

Notice.Comments@irscounsel.treas.gov. Please include “Notice 2009-60” in the

subject line of any electronic communications.

All comments will be available for public inspection and copying.

Because the Service intends to make recommendations by December 31, 2009,

comments, if any, must be received by August 31, 2009.

DRAFTING INFORMATION

The principal author of this notice is Richard S. Goldstein of the Office of

Associate Chief Counsel (Procedure & Administration). For further information

regarding this notice contact Richard S. Goldstein at (202) 622-3400 (not a toll free call).

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APPENDIX E

IRS Seeks Comments from Government Agencies at Upcoming Public Forum on Proposals to Advance Tax Preparer Performance Standards

IR-2009-74, Aug. 17, 2009

WASHINGTON — The Internal Revenue Service today announced the second in a series of public forums will be held on Wednesday, Sept. 2, in Washington, D.C., and feature a panel of federal and state officials, moderated by IRS Commissioner Doug Shulman.

The panel will include representatives from the Treasury Inspector General for Tax Administration (TIGTA) and the U.S. Governmental Accountability Office (GAO). Representatives from the states of California, Maryland, Oregon and New York will also participate on the panel.

Shulman announced a far-reaching review of paid preparers on June 4 to produce a comprehensive set of recommendations by the end of this year to boost taxpayer compliance and strengthen industry standards.

“This is the next important step in our open dialogue with interested parties in this effort,” Shulman said. “I’m very pleased with the quality of the feedback we’ve received so far. I’m confident these forums will ensure that all ideas are on the table when it’s time to form our recommendations.”

The forum will convene at 9 a.m. ET in the IRS Headquarters at 1111 Constitution Ave. NW, Washington, DC 20224. Anyone interested in attending should confirm attendance by sending an e-mail message to CL.NPL.Communications@irs.gov.

The first public forum was held on July 30 in Washington, D.C., and featured a panel of consumer groups and another panel of tax professional organizations. A third forum will be held in Chicago on Sept. 30 featuring independent return preparers and software industry representatives.

The IRS issued Notice 2009-60 on July 24 as an added call for public comments to ensure that all interested individuals and entities have the opportunity to contribute ideas.

Written comments must be received by Aug. 31, 2009. They should be submitted to CCPA:LPD:PR (Notice 2009-60), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, D.C. 20044.

Comments may also be e-mailed to Notice.Comments@irscounsel.treas.gov. Please include “Notice 2009-60” in the subject line of any e-mail messages. More details can be found in the notice.

Related information

• IR-2009-57

• IR-2009-66

• IR-2009-68

• Notice 2009-60

• Comments from July 30 Forum

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APPENDIX F

Welcome Doug Shulman, Commissioner

Consumer Panel Mark Ernst, Deputy Commissioner,Operations Support

( Moderator)

Introduction of Panel Members

• National Community Tax Coalition-Robin McKinney, Director of the Maryland

CASH Campaign

• Center on Budget and Policy Priorities – John Wancheck, EITC Campaign

Coordinator

• American Association of Retired Persons – Bonnie Speedy, National Director,

AARP Tax-Aide

• Consumer Federation of America – Jean Ann Fox, Director of Financial

Services

• Low Income Tax Clinic – Paul Harrison, Clinic Coordinator, Community

Tax Law Project

5 Minute Statements

Discussion

Wrap Up Mark Ernst, Deputy Commissioner, Operations Support Karen L. Hawkins, Director, Office of Professional Responsibility Doug Shulman, Commissioner

15 Minute Break

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Preparer Panel Karen L. Hawkins, Director, Office of Professional Responsibility

(Moderator)

Introduction of Panel Members

• National Association Enrolled Agents – Frank Degen, Chair, Government

Relations Committee

• The American Institute of Certified Public Accountants –

Mike Dolan, Chair, IRS Practice and Procedure Committee of the

AICPA

• American Bar Association – Armando Gomez, Vice Chair, Government

Relations

• National Society of Accountants – Jim Nolen, President

• National Association of Tax Professionals – Larry Gray, Government Affairs

Liaison

5 Minute Statements

Discussion

Wrap Up Karen L. Hawkins, Director, Office of Professional Responsibility Mark Ernst, Deputy Commissioner, Operations Support Doug Shulman, Commissioner

Closing Doug Shulman, Commissioner

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APPENDIX G

Welcome Doug Shulman, Commissioner

Introduction of Panel Members Mark Ernst, Deputy Commissioner,Operations Support

(Moderator)

Karen L. Hawkins, Director, Office of Professional Responsibility (Moderator)

• U.S. Government Accountability Office (GAO) - Michael Brostek, Director, Strategic

Issues

• Treasury Inspector General for Tax Administration (TIGTA) – Mike McKenney,

Assistant Inspector General for Audit

• California Tax Education Council (CTEC) – Celeste Heritage, CTEC Administrator

• California Franchise Tax Board – Ruth Moore, Manager, Fraud & Discovery Section,

Filing Compliance Bureau

• Maryland – Wallace A. Eddleman, Assistant Director-Legal, Comptroller of Maryland,

Revenue Administration Division

• New York – Jamie Woodward, Acting Commissioner, Department of Taxation and

Finance

• Oregon – Ron A. Wagner, Executive Director, State Board of Tax Practitioners

5 Minute Statements

Discussion

Closing Doug Shulman, Commissioner

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APPENDIX H

Welcome

Software Industry Panel Mark Ernst, Deputy Commissioner,Operations Support (Moderator)

Introduction of Panel Members

• Council for Electronic Revenue Communication Advancement (CERCA)

Michael F. Cavanagh, Executive Director

• CCH Small Firm Services – Leonard Holt, Vice President, Business

Development

• Drake Software – John Sapp, Vice President, Sales & Marketing

• Intuit, Inc. – Dan Maurer, Senior Vice President and General Manager,

Consumer Group

5 Minute Statements

Discussion

15 Minute Break

Independent Preparer Panel Karen L. Hawkins, Director, Office of Professional

Responsibility (Moderator)

Introduction of Panel Members

• H&R Block – Amy McAnarney, Executive Director, The Tax Institute

• H&R Block Franchisee – Antonio (Tony) Zabaneh

• Jackson Hewitt Franchisee – Marianne Moe

• Empire Accounting & Tax Service – Cynthia MacIntosh

• Independent Preparer - Raymond W. Heinen

5 Minute Statements

Discussion

Closing Mark Ernst/Karen L. Hawkins

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APPENDIX I

Competency Examination Content

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Publication 4832 (Rev. 12-2009) Catalog Number 54419P Department of the Treasury Internal Revenue Service www.irs.gov