Category Archives: C

Circular 230

Circular 230

Circular 230 means: an U.S. Internal Revenue Service (IRS) publication that sets forth the requirements and responsibilities of professional preparers of tax returns. The statement details educational, ethical, and procedural guidelines.

Treasury Department Circular No. 230 – Regulations Governing the Practice of Attorneys, Certified Public Accountants, Enrolled Agents, Enrolled Actuaries, Enrolled Retirement Plan Agents, and Appraisers before the Internal Revenue Service.

Treasury Department Circular 230 (Rev. 8-2011)
Treasury Department Circular 230 (Rev. 4-2008)
Treasury Department Circular 230 (Rev. 6-2005) (previous version, for archival or historical purposes only)

Contents of the Treasury Department Circular 230 (Rev. 6-2005)

Important Note: This is the old circular 230.

Title 31 Code of Federal Regulations, Subtitle A, Part 10, revised as of June 20, 2005
PART 10 — PRACTICE BEFORE THE INTERNAL REVENUE SERVICE
Sec.
10.0 Scope of part
Subpart A — Rules Governing Authority to Practice
10.1 Director of Practice
10.2 Definitions
10.3 Who may practice
10.4 Eligibility for enrollment
10.5 Application for enrollment
10.6 Enrollment
10.7 Representing oneself; participating in rulemaking; limited practice; special appearances; and return preparation
10.8 Customhouse brokers
Subpart B — Duties and Restrictions Relating to Practice Before the Internal Revenue Service
10.20 Information to be furnished
10.21 Knowledge of client’s omission
10.22 Diligence as to accuracy
10.23 Prompt disposition of pending matters
10.24 Assistance from or to disbarred or suspended persons and former Internal Revenue Service employees
10.25 Practice by former Government employees, their partners and their associates
10.26 Notaries
10.27 Fees
10.28 Return of client’s records
10.29 Conflicting interests
10.30 Solicitation
10.31 Negotiation of taxpayer checks
10.32 Practice of law
10.33 Best practices for tax advisors
10.34 Standards for advising with respect to tax return positions and for preparing or signing returns
10.35 Requirements for covered opinions
10.36 Procedures to ensure compliance
10.37 Requirements for other written advice
10.38 Establishment of advisory committees
Subpart C — Sanctions for Violation of the Regulations
10.50 Sanctions
10.51 Incompetence and disreputable conduct
10.52 Violation of regulations
10.53 Receipt of information concerning practitioner
Subpart D — Rules Applicable to Disciplinary Proceedings
10.60 Institution of proceeding
10.61 Conferences
10.62 Contents of complaint
10.63 Service of complaint; service and filing of other papers
10.64 Answer; default
10.65 Supplemental charges
10.66 Reply to answer
10.67 Proof; variance; amendment of pleadings
10.68 Motions and requests
10.69 Representation; ex parte communication
10.70 Administrative Law Judge
10.71 Hearings
10.72 Evidence
10.73 Depositions
10.74 Transcript
10.75 Proposed findings and conclusions
10.76 Decision of Administrative Law Judge
10.77 Appeal of decision of Administrative Law Judge
10.78 Decision on appeal
10.79 Effect of disbarment, suspension, or censure
10.80 Notice of disbarment, suspension, censure or disqualification
10.81 Petition for reinstatement
10.82 Expedited suspension upon criminal conviction or loss of license for cause
Subpart E — General Provisions
10.90 Records
10.91 Saving Clause
10.92 Special Orders
10.93 Effective date
Addendum

Circular 230 Issue

You may find information about Circular 230 in this Tax Platform of the American Encyclopedia of Law.

Costs

Costs

Description and Definition of Transportation and Storage Costs

The costs of moving your household belongings, furniture, vehicles, and pets, to your new home, and the cost of in transit storage for up to 30 consecutive days. These are deductible moving expenses.

Resources

See Also

Further Reading

Capital Budget

Capital Budget

Description and Definition of Capital Budget

The estimated amount planned to be expended for capital items in a given fiscal period. Capital items are fixed assets such as facilities and equipment, the cost of which is normally written off over a number of fiscal periods. Shows plans for buying long-term assets, machinery and other items expected to last several years, and estimates the costs of those purchases.

Resources

See Also

Further Reading

Carryback

Carryback

Carryback means:
a process by which the deductions or credits of one taxable year that cannot be used to reduce tax liability in that year are applied against a tax liability in an earlier year or years. Former IRC (check if this IRC provision is current here) §1212.

See also other Tax Terms and Definitions in U.S.A.

carryover.

CARRYBACK – See: Carryover.

Description and Definition of Carryback

Applying a deduction or credit from the current tax year to a prior tax year. A business net operating loss, general business credit, and foreign tax credit may be carried back. A capital loss may not be carried back. Amounts not carried back may be carried forward to later years.

Resources

See Also

Further Reading

Capital Expenditure

Capital Expenditure

Capital Expenditure means:
an improvement (as distinguished from a repair) that will have a life of more than 1 year. Capital expenditures are generally depreciated or depleted over their useful life, as distinguished from repairs, which are subtracted from the income of the current year. Former IRC (check if this IRC provision is current here) §263. Example 1: Collins adds a new 25-room wing to her motel, at a cost of $250,000. The new wing is a capital expenditure. Example 2: Baker, a rancher, has a fence that is in such poor condition that it cannot be repaired. He makes a $50,000 capital expenditure to replace the fence.

In other words: The cost of a permanent improvement to property. Such expenses, such as adding central air conditioning or an addition to his or her home, increase the property's adjusted tax basis.

U.S. and other Developed Countries International Tax Meaning

Expenditure on improvement rather than repair. Where expenditure is more closely connected with the business income-earning structure than its income earning capacity, it is capital expenditure.

Description and Definition of Capital Expenditure

Costs that are not currently deductible and that are added to the basis of property. A capital expense generally increases the value of property or lengthens its useful life. Repairs, on the other hand, only maintain the property. When added to depreciable property, the cost is deductible over the life of the asset.

Resources

See Also

Further Reading