Sanctions and Disciplinary Proceedings
This issue covers the consequences of violating Circular 230. The Office of Professional Responsibility, commonly called OPR, administers and enforces standards of practitioner conduct.
Possible sanctions include censure, suspension, disbarment from practice before the IRS, and monetary penalties in appropriate cases. EA Part 3 questions frequently test whether a sanction is authorized and which conduct can trigger disciplinary action.
Key Study Points
- Know the difference among censure, suspension, and disbarment.
- Understand that monetary penalties may apply to practitioners and, in some circumstances, firms or employers.
- Recognize disreputable conduct and violations of Circular 230.
- Understand the general role of OPR in practitioner discipline.
Exam Focus: The IRS sample Part 3 questions specifically test Circular 230 sanctions, so this is a high-priority review area.
Official IRS Reference: IRS Office of Professional Responsibility FAQs
https://www.irs.gov/tax-professionals/frequently-asked-questions