Knowledge of client's omission.

Motions and requests.

10.65 Examiner.

Representation.

10.66 Hearings.

10.67

Evidence.

10.68

10.69

Depositions.

Transcript.

10.70 Proposed findings and conclusion

10.71

10.72

10.73

10.74

Decision of the Examiner.

Appeal to the Secretary.

Decision of the Secretary.

Effect of disbarment or suspen

surrender of card.

10.75 Notice of disbarment or suspen

10.90

10.91

10.92

Subpart D-General Provisions

Official records.

Information, requests, and submi Effective date of regulations in thi part.

10.93 Saving clause.

AUTHORITY: The provisions of this Pa issued under R.S. 161, sec. 3, 23 Stat. 258, 2-12, 60 Stat. 237 et seq.; 5 U.S.C. 22, 1001-1011, Reorg. Plan No. 26 of 1950, 15 4935, 64 Stat. 1280, 3 CFR, 1949-1953 C except as otherwise noted.

SOURCE: The provisions of this Par contained in Department Circular 230 vised, 29 F.R. 9647, July 17, 1964, u otherwise noted.

§ 10.0 Scope of part.

This part contains rules governing recognition of attorneys, agents other persons representing clients fore the Internal Revenue Service. tomhouse brokers are licensed by Commissioner of Customs under regulations. See 19 CFR Part 31. par: A of this part sets forth rules r ing to authority to practice before Internal Revenue Service. Subpa prescribes the duties and restriction lating to enrolled practitioners. part C of this part contains rules rela to disciplinary proceedings. Subpa of this part contains general provis including provisions relating to a ability of official records.

of the Treasury the office of Director of Practice. The Director of Practice shall be appointed by the Secretary of the Treasury.

(b) Duties. The Director of Practice shall receive and act upon applications for enrollment to practice as attorneys or agents before the Internal Revenue Service; institute and provide for the conduct of disciplinary proceedings relating to enrolled attorneys and agents; make inquiries with respect to matters under his jurisdiction; and perform such other duties as are necessary or appropriate to carry out the provisions of this part or as are prescribed by the Secretary of the Treasury. Decisions of the Director of Practice in individual cases relating to enrollment, disbarment, or disciplinary measures shall not be subject to change by the Commissioner of Revenue.

Internal

(c) Acting Director. The Secretary of the Treasury will designate an officer or employee of the Treasury Department to act as Director of Practice in the event of the absence of the Director or of a vacancy in that office.

§ 10.2 Regulation of practice.

(a) In general. Except as provided by 10.7 or other sections of this part no person shall be recognized or permitted to practice before the Internal Revenue Service unless he is enrolled as an attorney or agent pursuant to this part. An enrollment card issued pursuant to the regulations superseded by this part will be recognized to evidence enrollment to practice pursuant to the regulations in this part and subject to the limitations specified by that card.

(b) Definition of practice. Practice before the Internal Revenue Service comprehends all matters connected with presentations to the Internal Revenue Service or any of its officers or employees relating to a client's rights, privileges or liabilities under laws or regulations administered by the Internal Revenue Service. Such presentations include the preparation and filing of necessary documents, correspondence with and communications to the Internal Revenue Service, and the representation of a client at conferences, hearings, and meetings. Neither the preparation of tax returns nor the furnishing of information at the request of the Internal Revenue Service or any of its officers or employees is considered practice before

the Service, and enrollment is not necessary for either of such activities.

§ 10.3 Eligibility for enrollment.

(a) In general. Persons applying for enrollment to practice before the Internal Revenue Service must show to the satisfaction of the Director of Practice that they are of good character and in good repute, possessed of the necessary qualifications to enable them to render valuable service to clients, and otherwise competent to advise and assist clients in the presentation of their interests to the Internal Revenue Service. Applicants for enrollment have the burden of establishing that they possess a good character and reputation, an adequate education, knowledge and understanding of the laws and regulations relating to tax matters and other subjects administered by the Internal Revenue Service, and a knowledge of the rules governing practice before the Internal Revenue Service.

(b) Character and reputation. Good character and good reputation are not identical requirements. The former is determined by the applicant's actual qualities; the latter depends upon the opinion entertained of the applicant by those who have had the opportunity of knowing him in the community in which he resides or in which he practices his profession. It follows that evidence of any act or omission which tends to establish lack of integrity or untrustworthiness or other qualities reprehensible in a professional man, is material as bearing upon the character of the applicant, notwithstanding there is clear proof that his reputation is good.

(c) Citizens; natural persons. Enrollment to practice may be granted only to natural persons who are citizens of the United States and who are over the age of 21 years.

(d) Attorneys and certified public accountants. If found to possess the qualifications provided for in this part, the Director of Practice may grant enrollment to practice before the Internal Revenue Service to persons of the following classes:

(1) Any attorney at law who is a member in good standing of the bar of the highest court of a State, Territory, or possession of the United States, or of the courts of the District of Columbia.

(2) Any certified public accountant who has duly qualified to practice as a

certified public accountant in a State, territory, possession of the United States, or in the District of Columbia.

(e) Persons not attorneys or certified public accountants. With respect to applicants other than attorneys or certified public accountants, the Director of Practice, in his discretion, may grant special enrollment to practice if the applicant demonstrates special competence by written examination or as provided in paragraph (f) of this section. Persons interested in obtaining special enrollment pursuant to this paragraph should apply to the Director of Practice for information as to requirements.

(f) Special enrollment for former Internal Revenue Service employees. Former employees of the Internal Revenue Service may be granted special enrollment by the Director of Practice under paragraph (e) of this section, in cases where their service and technical experience in the Internal Revenue Service has qualified them for such enrollment, as follows:

(1) Application for special enrollment on account of former employment in the Internal Revenue Service shall be made to the Director of Practice. Each applicant will be supplied a form by the Director, which shall indicate the information required respecting the applicant's qualifications. In addition to the applicant's name, address, citizenship, age, educational experience, etc., such information shall specifically inIclude a detailed account of the applicant's employment in the Internal Revenue Service, which account shall show (i) positions held, (ii) date of each appointment and termination thereof, (iii) nature of services rendered in each position, with particular reference to the degree of technical experience involved, and (iv) name of supervisor in such positions, together with such other information regarding the experience and training of the applicant as may be relevant.

(2) Upon receipt of each such application, it shall be transmitted to the appropriate officer of the Internal Revenue Service with the request that a detailed report of the nature and rating of the applicant's services in the Internal Revenue Service, accompanied by the recommendation of the superior officer in the particular unit or division of the In

ternal Revenue Service that such employment does or does not qualify the applicant technically and otherwise for the desired authorization, be furnished to the Director of Practice. (Such report shall be requested in addition to the usual reports requested in cases of application for enrollment.)

(3) In examining the qualifications of an applicant for special enrollment on account of employment in the Internal Revenue Service, the Director of Practice will be governed by the following policies:

(i) Special enrollment on account of such employment may be of the same scope as enrollment granted pursuant to paragraph (d) (2) of this section or the scope may be limited to permit the presentation of matters only of the particular class or only before the particular unit or division of the Internal Revenue Service for which his former employment in the Internal Revenue Service has qualified the applicant.

(ii) In the case of employees separated from employment in the Internal Revenue Service, application for special enrollment on account of such employment must be made within 3 years after the termination thereof.

(iii) It shall be requisite for special enrollment on account of such employment for practice before the Internal Revenue Service that the applicant shall have had a minimum of 7 years continuous employment in the Internal Revenue Service during at least 5 years of which service he shall have been regularly engaged in applying and interpreting the provisions of the Internal Revenue Code and the regulations thereunder relating to income, estate, gift, employment, or excise taxes.

(iv) For the purposes of subdivision (iii) of this subparagraph, an aggregate of 10 or more years of employment, at least three of which occurred within the 5 years preceding the date of application, shall be deemed the equivalent of 7 years continuous employment.

Stat. 258 (5 U.S.C. 261) and the regulations contained in this part, or if such practice by him would be inconsistent with any of the laws of the United States.

(b) Particular grounds. Among the causes sufficient to justify denial of an application for enrollment are failure to show good character or reputation; any conduct or practices which would constitute a violation of any of the provisions of this part if the applicant were enrolled; any conduct which would be a ground for disbarment or suspension from practice pursuant to this part; and any conduct which would be deemed grossly improper in commercial transactions by accepted standards.

(c) Government officers and employees; judges. Officers and employees of the United States or of the District of Columbia, Members of Congress or a Delegate or Resident Commissioner thereto, and judges of the Tax Court or any courts of record, unless such judges are permitted by law to practice their profession, shall be ineligible for enrollment. Officers and employees of any State, or subdivision thereof, whose duties require them to pass upon, investigate, or deal with tax matters of such State or subdivision, shall be ineligible for enrollment, provided such employment may disclose facts or information applicable to Federal tax matters.

(d) [Reserved]

(e) Violation by Internal Revenue Service employee of tenure agreement. Application for enrollment may be denied in any case in which it appears that the applicant without reasonable cause has terminated his employment with the Internal Revenue Service in violation of an obligation assumed as a condition of employment to remain in the service of the Internal Revenue Service for a specified period or for a reasonable time.

(f) Oath of allegiance. No person shall be enrolled to practice if he is unable for any reason to take the oath of allegiance, and to support the Constitution of the United States, as required of persons prosecuting claims against the United States by section 3478 of the Revised Statutes (31 U.S.C. 204).

§ 10.5 Application for enrollment.

(a) Form; fee. An applicant for enrollment shall file with the District Director an application on Form 23, prop

erly executed under oath or affirmation. Such application shall be accompanied by a check or money order in the amount of $25.00, payable to the Treasurer of the United States, which amount shall constitute a fee which shall be charged to each applicant for enrollment. The fee shall be retained by the United States whether or not the applicant is granted enrollment. Attorneys at law shall apply for enrollment as attorneys, and all other applicants shall apply for enrollment as agents, except that an applicant who is qualified to enroll either as an attorney at law or as an agent may elect whether to apply as attorney or agent.

(b) Additional information; examination. The Director of Practice, as a condition to consideration of an application for enrollment, may require the applicant to file additional information and to submit to any written or oral examination under oath or otherwise. Upon request of the Director of Practice an applicant shall endeavor to stipulate with an officer or employee of the Department of the Treasury facts pertaining to the application to the fullest extent to which either complete or qualified agreement can be reached. The Director shall grant a hearing on an application at the applicant's written request.

Upon

(c) Temporary recognition. receipt of a properly executed application, the Director of Practice may grant the applicant temporary recognition to practice pending investigation of the applicant and a determination as to whether enrollment to practice should be granted. Such temporary recognition shall not be granted if the application is not regular on its face; if the information stated therein, if true, is not sufficient to warrant enrollment to practice; or if there is any information before the Director of Practice which indicates that the statements in the application are untrue or that the applicant is not of good character or reputation. Issuance of temporary recognition shall not constitute enrollment to practice or a finding of eligibility for enrollment, and the temporary recognition may be withdrawn at any time by the Director of Practice.

(d) Appeal from denial of application. Decisions of the Director of Practice denying enrollment to practice before the Internal Revenue Service may be appealed to the Secretary of the Treasury. (Sec. 501, 65 Stat. 290; 5 U.S.C. 140)