(a) Roster. The Director of Practice shall maintain rosters of all attorneys and agents who are enrolled to practice, of all attorneys and agents who have been disbarred or suspended from practice before the Internal Revenue Service, and of persons whose applications for enrollment have been denied.

(b) Enrollment cards. The Director of Practice shall issue an enrollment card to each attorney or agent who is enrolled to practice before the Internal Revenue Service. Unless advised to the contrary by the Director of Practice, any officer or employee of the Internal Revenue Service may consider the holder of an unexpired enrollment card to be duly authorized to practice before the Internal Revenue Service.

(c) Period of enrollment card. Every enrollment card shall by its terms become void five years after the date of its issuance. A holder of a void card is not entitled to practice before the Internal Revenue Service.

(d) Application for renewal. Application for renewal of enrollment card may be made at any time during a twentyfour month period commencing twelve months before and ending twelve months after the expiration of an enrollment card. Such application shall be filed on Form 23A at such place or places as may be designated by the Director of Practice and there shall be annexed thereto the enrollment card last outstanding. Copies of Form 23A may be obtained from the Director of Practice and at the offices of District Directors of Internal Revenue. Each application shall be accompanied by a check or money order in the amount of $5.00, payable to the Treasurer of the United States, which amount shall constitute a fee which shall be charged each person who applies for issuance of a new enrollment card pursuant to the provisions of this paragraph.

(e) Expiration of enrollment. Unless application for a new enrollment card is filed with the Director of Practice within twelve months after the expiration date of an enrollment card, the enrollment of the holder of the card shall automatically terminate, his name shall be stricken from the roster of enrollees, and he shall not be authorized to practice before the Internal Revenue Service

except by filing a new application for enrollment, as provided by § 10.5, and obtaining authority to practice from the Director of Practice.

(Sec. 501, 65 Stat. 290; 5 U.S.C. 140)

§ 10.7 Practice without enrollment.

(a) In general. Individuals may appear on their own behalf, and individuals who are qualified, of good character and reputation, and are not under disbarment or suspension from practice before the Internal Revenue Service or from practice of their profession by any other authority, may be permitted to appear without enrollment, provided they present satisfactory identification, in the following classes of cases:

(1) An individual may represent another individual who is his regular fulltime employer, may represent a partnership of which he is a member or a regular full-time employee, or may represent without compensation a member of his immediate family.

(2) Corporations (including a parent, subsidiary or affiliated corporation), trusts, estates, associations, or organized groups may be represented by a bona fide officer or regular full-time employee.

(3) Trusts, receiverships, guardianships, or estates may be represented by their trustees, receivers, guardians, administrators or executors or their regular full-time employees.

(4) Any governmental unit, agency, or authority may be represented by an officer or regular employee in the course of his official duties.

(5) Unenrolled persons may participate in rule making as provided by section 4 of the Administrative Procedure Act, 60 Stat. 238 (5 U.S.C. 1003).

(6) Enrollment is not required for representation outside of the United States before personnel of the International Operations Division of the Internal Revenue Service.

(7) Any person who signs a return, other than an estate or gift tax return or an income tax or excess profits tax return of a corporation, as having prepared it for the taxpayer may appear, without enrollment, as the taxpayer's representative, with or without the taxpayer, before revenue agents and examining officers of the Audit Division in the offices of District Directors (but not at

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the Informal Conference in a District Director's office) with respect to the tax liability of the taxpayer for the taxable year or period covered by that return; provided that any person who prepared the income tax return of a corporation and the individual returns of any of the corporate officers for the same taxable year or period, or any part thereof, covered by such corporate return, may also so appear as the corporation's representative. Proper authorization from the taxpayer will be required. Any person who prepared a return with respect to which the instructions or regulations do not require that it be signed by the person who prepared the return for the taxpayer may likewise appear as the taxpayer's representative when properly authorized. Unless the taxpayer is present, such persons must present satisfactory identification. All such persons will be subject to such rules regarding standards of conduct, the extent of their authority, and other matters as the Director of Practice, with approval of the Commissioner of Internal Revenue, shall prescribe. Such persons will be permitted to represent taxpayers within those limits without enrollment.

(b) Special appearance. The Director of Practice, subject to such conditions as he deems appropriate, may authorize any person to represent another without enrollment for the purpose of a particular matter.

§ 10.8 Customhouse brokers.

Nothing contained in the regulations in this part shall be deemed to affect or limit the right of a customhouse broker, licensed as such by the Commissioner of Customs in accordance with the regulations prescribed therefor, in any customs district in which he is so licensed, at the office of the District Director of Internal Revenue or before the National Office of the Internal Revenue Service, to act as a representative in respect to any matters relating specifically to the importation or exportation of merchandise under the customs or internal revenue laws, for any person for whom he has acted as a customhouse broker.

(a) Professional ethics. Enrolled attorneys shall conduct themselves and their practice before the Internal Revenue Service in accordance with recognized ethical standards applicable to attorneys generally. Enrolled agents who are certified public accountants or public accountants shall conduct themselves and their practice before the Internal Revenue Service in accordance with recognized ethical standards applicable to certified public accountants or public accountants generally.

(b) Observance of regulations. Enrolled attorneys and agents shall conduct themselves and their practice before the Internal Revenue Service in such manner as not to commit any act of disreputable conduct referred to in § 10.51 or to violate any other provisions of this part.

§ 10.22 Information to be furnished.

(a) To the Internal Revenue Service generally. No enrolled attorney or agent shall neglect or refuse to submit records or information in any matter before the Internal Revenue Service, upon proper and lawful request by a duly authorized officer or employee of the Internal Revenue Service, unless the information or testimony is privileged or such attorney or agent has reasonable grounds to believe and does believe that the said demand is of doubtful legality; and no such attorney or agent shall interfere, or attempt to interfere, with any proper and lawful efforts by the Internal Revenue Service or its officers or employees to obtain information relative to any matter before the Internal Revenue Service.

(b) To Director of Practice. It shall be the duty of an enrolled attorney or

agent, when requested by the Director of Practice, to provide the Director with any information he may have concerning violation of the regulations in this part by any person, and to testify thereto in any proceeding instituted under this part for the disbarment or suspension of an enrolled attorney or agent, unless such information is privileged.

§ 10.23

Knowledge of client's omission.

Each enrolled attorney or agent who knows that a client has not complied with the law, or has made an error in or omission from any return, document, affidavit, or other paper which the client is required by law to execute in connection with any matter administered by the Internal Revenue Service, shall advise the client promptly of the fact of such noncompliance, error, or omission.

§ 10.24 Diligence as to accuracy.

(a) In general. Each enrolled attorney or agent shall exercise due diligence in preparing or assisting in the preparation of, approving, and filing returns, documents, affidavits, and other papers relating to Internal Revenue Service matters.

(b) Representations to service. Each enrolled attorney or agent shall exercise due diligence to determine the correctness of representations made by him to the Internal Revenue Service.

(c) Representations to clients. Each enrolled attorney or agent shall exercise due diligence to determine the correctness of representations made by him to clients with reference to any matter administered by the Internal Revenue Service.

§ 10.25 Moneys received from or for a client.

Each enrolled attorney or agent shall promptly pay over to the United States when due all sums received for the payment of any tax, duty, or other debt or obligation owing to the United States, and shall promptly account to a client for funds received for him from the United States, or received from a client in excess of the charges properly payable in respect of the client's business. § 10.26 Endorsement of client's checks.

No enrolled attorney or agent shall, without authority of his client, accept or endorse any Government draft, check, or warrant drawn to the order of such client.

No enrolled attorney or agent shall in any Internal Revenue Service matter knowingly and directly or indirectly:

(a) Employ or accept assistance from any unenrolled person who is disbarred from practice before the Internal Revenue Service or any other department or agency of the Federal Government or before any court of record; who is under suspension from practice before any such department, agency, or court; who has been deprived of his certificate as a certified public accountant or public accountant; or who to the knowledge of the enrolled attorney or agent solicits business, obtains clients, or otherwise conducts his practice in a manner forbidden under the regulations in this part to enrolled persons; or

(b) Accept employment as associate, correspondent, or sub-agent from, or share fees with, any such person, or any person who is not an attorney, a certified public accountant, or a public accountant. Nothing in this section shall be construed to authorize the acceptance of employment or the sharing of fees contrary to recognized ethical standards which are to be followed pursuant to § 10.21.

(a) Certain partnerships prohibited. No enrolled attorney or agent shall maintain a partnership for the practice of law, accountancy, or other related professional service with a person who is under disbarment from practice before the Internal Revenue Service or any other department or agency of the Federal Government, or with an unenrolled person who is neither an attorney legally practicing law nor a certified public accountant or a public accountant legally practicing accounting. Nothing in this section shall be construed to authorize the maintenance of a partnership contrary to recognized ethical standards which are to be followed pursuant to § 10.21.

§ 10.32

Practice by former Government employees.

(a) In general. No former officer or employee of the United States Government, of any independent agency of the United States, or of the District of Columbia, whether or not enrolled to practice before the Internal Revenue Service, shall represent anyone in any matter administered by the Internal Revenue Service if the representation would violate any of the laws of the United States.

(b) Personal and substantial participation. No former officer or employee of the executive branch of the United States Government, of any independent agency of the United States, or of the District of Columbia, whether or not enrolled to practice before the Internal Revenue Service, shall represent anyone in any matter administered by the Internal Revenue Service, involving a specific party or parties, in which he participated personally and substantially as an officer or employee. See 18 U.S.C. 207(a).

(c) Official responsibility. No former officer or employee of the executive branch of the United States Government, of any independent agency of the United States, or of the District of Columbia, whether or not enrolled to practice before the Internal Revenue Service, shall,

within one year after his employment has ceased, appear personally as agent or attorney for anyone before the Internal Revenue Service in any matter administered by the Internal Revenue Service, involving a specific party or parties, which was under his official responsibility as an officer or employee of the Government at any time within a period of one year prior to the termination of such responsibility. See 18 U.S.C. 207(b).

§ 10.33 Practice by former Internal Revenue Service employees.

(a) Form 901 Declaration. No former officer or employee of the Internal Revenue Service shall, within one year after the termination of his Internal Revenue Service employment, practice or in any manner act as attorney or agent or as the employee of an attorney or agent in any matter involving a specific party or parties which was pending in the Internal Revenue Service during the period of his employment therein, unless he shall first file a declaration stating that he did not participate personally and substantially in such matter and that he is not and will not knowingly be associated with any former officer or employee who participated personally and substantially in such matter while employed by the Internal Revenue Service and that his employment is not prohibited by law or by the regulations of the Internal Revenue Service. If the declarant desires to appear personally before the Internal Revenue Service, his declaration must also state that the matter was not under his official responsibility as an officer or employee of the Government at any time within a period of one year prior to the termination of such responsibility. Declarations shall be submitted on Form 901 and filed with the office of the Director of Practice. The declaration should state the declarant's former connection with the Internal Revenue Service, identify the matter in which he intends to act and specify whether or not he desires to appear personally in the matter before the Internal Revenue Service. The declarant will be advised whether or not investigation of the declaration has disclosed any information indicating that his representation in the matter would be violative of § 10.32. False statements on the Form 901 declaration shall be cause for suspension or disbarment.

In connection with any matter involving practice before the Internal Revenue Service, no enrolled attorney or agent shall knowingly assist, accept assistance from, or share fees with, any person who participated personally and substantially in the matter as a Government officer or employee, or knowingly assist, accept assistance from, or share fees with, any person appearing personally before the Internal Revenue Service within one year after his Government employment in any matter which was under his official responsibility within one year prior to the termination of such responsibility.

§ 10.35 Enrollees as notaries.

No enrolled attorney or agent as notary public shall take acknowledgments, administer oaths, certify papers, or perform any official act in connection with matters in which he is employed as counsel, attorney, or agent, or in which he may be in any way interested before the Internal Revenue Service. Under the provisions of this section an enrolled person who is a notary public is prohibited from taking any acknowledgment, oath, or certification as notary public in connection with any tax return, protest, or other document which he has prepared or in the preparation of which he has assisted. (26 Op. Atty. Gen. 236.)

a

§ 10.36 Attempting to obtain information.

No enrolled person shall procure, or attempt to procure, directly or indirectly, from Government records or other Government sources information of any kind which is not made available by proper authority.

(a) In general. An enrolled attorney or agent shall not charge a manifestly unreasonable fee for representation of a client in any matter before the Internal Revenue Service. The reasonableness of a fee is within limits a matter of judgment and depends upon all the facts and circumstances of the case, including its complexity and difficulty, the time and effort required, the amount involved, and the professional standing and experience of the enrolled attorney or agent.

(b) Contingent fees. An enrolled attorney or agent shall not enter into a wholly contingent fee agreement with a client for representation in any matter before the Internal Revenue Service unless the client is financially unable to pay a reasonable fee on any other terms. Partially contingent fee agreements are permissible where provision is made for the payment of a minimum, substantial in relation to the possible maximum fee, which minimum fee is to be paid and retained irrespective of the outcome of the proceeding.

§ 10.38 Solicitation and advertising.

(a) Solicitation. No enrolled attorney or agent shall, in any manner whatsoever not warranted by personal relations, directly indirectly solicit employment in matters related to the Internal Revenue Service.

or

(b) Advertising special relationships. No enrolled attorney or agent shall use, directly or indirectly, signs, printing or other written matter indicating some past or present connection with, or relationship to, the Internal Revenue Service, nor shall he represent in any manner that he possesses influence or a special relationship with officers or employees of the Internal Revenue Service.

(c) Letterheads and announcements. The following shall not be presumed to constitute a violation of this paragraph:

(1) Letterheads, professional cards, and the customary professional insertions in telephone, and city directories, or in newspapers, trade or professional journals, or other publications admitted to second-class mailing privileges, provided they set forth only the name and address of the attorney or agent, or the name of the firm of which