shall be filed with the Committee and served upon the respondent in the manner provided for by the rules of the Committee for the service of all papers other than the original notice and statement of charges.

(4) Failure of respondent to answer. If the respondent fails to file his answer in the form required by the rules in this part and within the time specified in the notice, or that specified by the Committee where the time has been extended, the Committee may, upon written application, accompanied by a copy of the answer desired to be filed, allow the respondent to answer whenever in such application the respondent sets forth facts which in the opinion of the Committee constitute a sufficient excuse for the failure to answer within the time specified. All such written applications shall be filed in duplicate and under oath.

(5) Notice of time and place of hearing. Written notice of the time and place of all hearings shall be given the respondent in the manner provided in the rules in this part for the service of papers. No hearing shall be held in less than 10 days from the date of service on the respondent of the notice of such hearing, except that the Committee may postpone or adjourn hearings when necessary or desirable, on notice to the respondent.

(6) Testimony. Testimony shall be taken as follows:

(i) Unless the Committee shall otherwise direct, the testimony of witnesses at all hearings will be taken under oath and stenographically recorded and transcribed.

(ii) Depositions for use at a hearing may, with the written approval of the Committee, be taken by either the attorney for the Government or the respondent, or their duly authorized representatives, upon oral or written interrogatories, before a member of the Committee, any officer duly authorized to administer an oath for general purposes, or an officer of the Internal Revenue Bureau authorized to administer an oath in internal revenue matters, upon not less than 10 days' written notice to the other party. Such notice shall state the names of the witnesses, and the time and place where such depositions are to be taken: Provided, That when depositions are taken as aforesaid, if both parties are present or represented at the time and place specified for the taking of the depositions, either party may, after the examination of the witnesses produced under the order of the Committee, be entitled to produce and examine other witnesses; but in such case 1 day's notice must be given to the other party or his duly authorized representative there present, unless such notice is waived: And provided further, That the parties or their duly authorized representatives may agree in writing upon a time when and place at which such depositions are to be taken, without formal notice. When a deposition is taken upon written interrogatories, any crossexamination shall be upon written interrogatories. Copies of such written interrogatories shall be served with the notice, and copies of any written cross-interrogatories shall be mailed or delivered to the opposing party or his duly authorized representative at least 5 days before the time of taking the depositions.

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(7) Withdrawal of exhibits. Whenever any book, document, or paper belonging to any individual, partnership, or corporation is introduced as an exhibit in a disbarment or suspension proceeding, the Committee may authorize, upon such conditions as it may deem proper, the withdrawal of such book, document, or paper upon the written request of the attorney for the Government, or of the respondent or his attorney.

(8) Variance. In the case of a variance between the allegations in the statement of charges and the evidence, the Committee shall have power to base its findings on any facts established by the evidence which are grounds for suspension or disbarment, and to order the amendment of the statement of charges to conform to the evidence: Provided, That the respondent has had or is given reasonable opportunity to present his defense to such amended charges, with such postponements of the hearing as may be reasonably necessary to permit the respondent to present such defense.

(9) Complaint proved in part. If the Committee or a majority thereof finds that a part of the charges in the statement of charges is not sufficiently proved but that the residue thereof is so proved, it may base its findings on any facts established by the evidence which are grounds for suspension or disbarment and which are substantially charged by the said residue of the statement of charges.

(10) Immaterial error. The Committee shall disregard an immaterial misnomer of a third person, an immaterial mistake in the description of any person, thing, or place or the ownership of any property, a failure to prove immaterial allegations in the description of the respondent's conduct, or any other immaterial mistake in the statement of charges.

(11) Conduct of hearings. Subject to the regulations in this part, the Committee may determine the time, place, and manner in which hearings shall be conducted; the form in which evidence shall be received; and may adopt rules of procedure and modify the same from time to time as occasion requires for the orderly disposition of suspension, disbarment, and reinstatement cases.

(12) Sufficiency of answer. The Committee shall pass upon the sufficiency of the answer and all other relevant papers filed by the respondent, and upon all issues of fact that may be raised. The respondent or his attorney may be heard upon the sufficiency of the answer filed by him whenever in the opinion of the Committee such a hearing is necessary or desirable.

(13) Preponderance of evidence. In making its findings of fact as to the truth of any charges which are duly put in issue by the papers in any case and upon which a hearing is had, the Committee shall be guided by a preponderance of the evidence. If at any hearing upon issues of fact raised by the papers in the case the respondent fails to put in any evidence, the Committee may base its findings upon the evidence submitted by the attorney for the Government.

(14) Proposed findings of fact. In the event that depositions are introduced on behalf of the Government at the hearing or in the event that oral testimony in support of the charges is produced by the Government at the hearing, the attorney for the Government,

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as soon as possible after the hearing, shall prepare and file with the Committee proposed findings of fact based upon all the evidence in the case. Upon receipt of such proposed findings of fact, the Committee shall forward to the respondent or his attorney a copy thereof together with a copy of the transcript of such oral testimony and depositions as may have been introduced. The respondent shall have not less than 10 days after receipt of such papers in which to submit in writing to the Committee his objections, if any, to such proposed findings of fact. Neither the respondent nor his attorney shall have the right to receive any copies of exhibits introduced at the hearing or at the taking of the depositions. The respondent or his attorney, however, shall have the right to examine all exhibits. Upon receipt of such objections, or after the time for filing such objections has expired if no such objections are filed, or after the hearing if no proposed findings of fact are required, the Committee shall make its findings of fact. The Committee shall have power to dismiss the charges when in its opinion such charges have not been proved. If, in the opinion of the Committee, suspension or disbarment should be recommended, it shall so report to the Secretary of the Treasury. Such report shall be signed by all members of the Committee agreeing thereto, and any member of the Committee dissenting therefrom shall submit a statement of his reasons for such dissent.

(d) Notice of suspension or disbarment. Upon the approval of such recommendation by the Secretary of the Treasury and the issuance of his order of suspension or disbarment of an attorney or agent, notice thereof shall be given by the Committee to the heads of all interested bureaus, offices, and divisions of the Treasury Department and to other interested departments and agencies of the Government in such manner as the Committee may determine. Such person will not thereafter be recognized during the period of suspension or disbarment as an attorney or agent in any matter before the Treasury Department. Notice in such manner as the Committee may determine may be given to the proper authorities in the State from which an enrolled attorney, certified public accountant, or public accountant derives his license to practice in the event that such attorney, certified public accountant, or public accountant is suspended or disbarred.

(e) Application for reinstatement. Any attorney or agent who has been suspended or disbarred may make written application to the Committee to have the order of suspension or disbarment vacated or modified upon the ground (1) of newly discovered evidence, or (2) that important evidence is now available which the applicant was unable to produce at the original hearing by the exercise of due diligence. Every application for reinstatement shall be filed with the Committee in triplicate. Such application must set forth specifically the precise character of the evidence to be relied upon in its support and shall state the reasons why the applicant was unable to produce it when the original charges were heard. If the Committee after due consideration of the application shall deem it sufficiently meritorious to warrant a hearing, it shall set a time and place for such hearing and give due notice thereof to the applicant. Upon the con

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clusion of the hearing the Committee shall submit its recommendation to the Secretary of the Treasury for his approval or disapproval.

In the event that the Secretary shall issue an order vacating or modifying the prior order of suspension or disbarment, notice thereof shall be given by the Committee to all those to whom notice of the original order of suspension or disbarment was sent.

In all cases not covered by the foregoing provisions, a disbarred attorney or agent who desires to be restored to the roll must file a new application for enrollment and otherwise comply with the requirements of § 10.3.*†

10.8 Authority to prosecute claims. A power of attorney from the principal in proper form may be required of enrolled attorneys or agents in any case by heads of bureaus, offices, and divisions. In the prosecution of claims before the Bureau of Internal Revenue, involving the assertion of demands for payment of money by the United States, proper powers of attorney shall always be filed before an attorney or agent is recognized.*+

10.9 Substitution of attorneys or agents; revocation of authority-(a) Substitution of attorneys or agents. Where the power of attorney under which an enrolled attorney or agent is acting expressly confers the power of substitution, such attorney or agent may, by a duly executed instrument, substitute another enrolled attorney or agent in his stead: Provided, That such other attorney or agent will be recognized as such only after due notice in writing has been given the head of the bureau, office, unit, or division before which the matter is pending: And provided further, That where the enrolled attorney or agent designated in the power of attorney, with power of substitution, has himself by reason of his suspension or disbarment or his subsequent entry into Government service become ineligible further to represent before the Treasury Department the client who executed the power, the Treasury Department shall be under no obligation to recognize any substitute power of attorney executed at any time by such attorney or agent, authorizing some other enrolled attorney or agent to appear before the Department upon behalf of such client, and it will be necessary for such client to retain a new attorney or agent.

(b) Conflicting powers of attorney. Where there is a contest between members of a dissolved firm or between two or more attorneys or agents, acting under the same power of attorney, as to which one is entitled to prosecute a matter pending before the Treasury Department or to receive a draft, warrant, or check, the client only shall thereafter be recognized, unless the members or survivors of the dissolved firm, or the contesting attorneys or agents, file an agreement signed by all designating which of them shall be entitled to prosecute such matter or to receive the said draft, warrant, or check. In no case shall the delivery of a final draft, warrant, or check to the client be delayed more than 60 days by reason of failure to file such agreement.

(c) Revocation of powers. The revocation of an authority to represent a claimant before the Treasury Department shall in no case become effective, so far as the Department is concerned, until due notice in writing has been given the head of the bureau, office, or divi

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**For statutory and source citations, see note to § 10.1.

sion before which such matter is pending, and the filing of evidence of notification of the revocation to the attorney whose power has been revoked.**

10.10 Disreputable conduct. (a) The Secretary of the Treasury may after due notice and opportunity for hearing suspend, and disbar from further practice before the Treasury Department any attorney or agent shown to be incompetent, disreputable, or who refuses to comply with the rules and regulations in this part, or who shall with intent to defraud, in any manner wilfully and knowingly deceive, mislead, or threaten any claimant or prospective claimant, by word, circular, letter, or by advertisement.

(b) Among other forms of disreputable conduct the following are deemed to constitute such conduct:

(1) Conviction of a crime involving moral turpitude.

(2) Making false answers in the application for enrollment with knowledge that such answers are false.

(3) Preparing or filing for himself or another a false Federal income tax return or other statement on which Federal taxes may be based, knowing the same to be false.

(4) Suggesting to a client or a prospective client an illegal plan for evading payment of Federal taxes, knowing the same to be illegal.

(5) Giving false testimony in any proceeding before the Committee on Enrollment and Disbarment, or in any other proceeding before the Treasury Department, or before any tribunal authorized to pass upon Federal tax matters, knowing the same to be false.

(6) Filing any false or fraudulently altered document or affidavit in any case or other proceeding before the Treasury Department, or procuring the filing thereof, knowing the same to be false or fraudulently altered.

(7) Using, with intent to deceive, false or misleading representations to procure employment in any case or proceeding before the Treasury Department.

(8) Giving, with intent to deceive, false or misleading information relative to a matter pending before the Treasury Department to any officer or agent of the Department.

(9) Preparing a false financial statement for a corporation, partnership, association, or individual, or certifying the correctness of such false statement, knowing the same to be false.

(10) Imparting to a client false information relative to the progress of a case or other proceeding before the Treasury Department, knowing the same to be false.

(11) False representations by an enrolled agent that he is an attorney or a certified public accountant.

(12) Preparing or assisting in the preparation of, or filing, a false claim against the United States, knowing the same to be false.

(13) Approving, for filing, a false income tax return prepared by

some other person, knowing the same to be false.

(14) Misappropriation of sums received from clients for the purpose of payment of taxes or other obligations due the Government, or of funds or other property belonging to a client.

**For statutory and source citations, see note to § 10.1.

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