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Circular 230 § 10.34

Standards with respect to tax returns and documents, affidavits and other papers.
CFR 2011 annual edition (revised as of 2011-07-01) · superseded Jul 1, 2013 · last amended by T.D. 9359, 72 FR 54549, Sept. 26, 2007
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Historical text in effect Jul 1, 2011 through Jun 30, 2013. View current · Compare with current
Link to an amendment published at 76 FR 32307, June 3, 2011.
(a) [Reserved]
(b) Documents, affidavits and other papers
(1) A practitioner may not advise a client to take a position on a document, affidavit or other paper submitted to the Internal Revenue Service unless the position is not frivolous.
(2) A practitioner may not advise a client to submit a document, affidavit or other paper to the Internal Revenue Service—
(i) The purpose of which is to delay or impede the administration of the Federal tax laws;
(ii) That is frivolous; or
(iii) That contains or omits information in a manner that demonstrates an intentional disregard of a rule or regulation unless the practitioner also advises the client to submit a document that evidences a good faith challenge to the rule or regulation.
(c) Advising clients on potential penalties
(1) A practitioner must inform a client of any penalties that are reasonably likely to apply to the client with respect to—
(i) A position taken on a tax return if—
(A) The practitioner advised the client with respect to the position; or
(B) The practitioner prepared or signed the tax return; and
(ii) Any document, affidavit or other paper submitted to the Internal Revenue Service.
(2) The practitioner also must inform the client of any opportunity to avoid any such penalties by disclosure, if relevant, and of the requirements for adequate disclosure.
(3) This paragraph (c) applies even if the practitioner is not subject to a penalty under the Internal Revenue Code with respect to the position or with respect to the document, affidavit or other paper submitted.
(d) Relying on information furnished by clients. A practitioner advising a client to take a position on a tax return, document, affidavit or other paper submitted to the Internal Revenue Service, or preparing or signing a tax return as a preparer, generally may rely in good faith without verification upon information furnished by the client. The practitioner may not, however, ignore the implications of information furnished to, or actually known by, the practitioner, and must make reasonable inquiries if the information as furnished appears to be incorrect, inconsistent with an important fact or another factual assumption, or incomplete.
(e) [Reserved]
(f) Effective/applicability date. Section 10.34 is applicable to tax returns, documents, affidavits and other papers filed on or after September 26, 2007.

Effective Date Note:

At 76 FR 32307, June 3, 2011, § 10.34 was amended by adding paragraph (a), redesignating paragraph (f) as paragraph (e), and revising newly designated paragraph (e), effective Aug. 2, 2011. For the convenience of the user, the added and revised text is set forth as follows:

§ 10.34 Standards with respect to tax returns and documents, affidavits and other papers.

(a) Tax returns. (1) A practitioner may not willfully, recklessly, or through gross incompetence—

(i) Sign a tax return or claim for refund that the practitioner knows or reasonably should know contains a position that—

(A) Lacks a reasonable basis;

(B) Is an unreasonable position as described in section 6694(a)(2) of the Internal Revenue code (Code) (including the related regulations and other published guidance); or

(C) Is a willful attempted by the practitioner to understate the liability for tax or a reckless or intentional disregard of rules or regulations by the practitioner as described in section 6694(b)(2) of the Code (including the related regulations and other published guidance).

(ii) Advise a client to take a position on a tax return or claim for refund, or prepare a portion off a tax return or claimfor refund containing a position, that—

(A) Lacks a reasonable basis;

(B) Is an unreasonable position as described in section 6694(a)(2) of theCode (including the related regulations and other published guidance); or

(C) Is a willful attempt by the practitioner to understate the liability for tax or a reckless or intentional disregard of rules or regulations by the practitioner as described in section 6694(b)(2) of the Code (including the related regulations and other published guidance).

(2) A pattern of conduct is a factor that will be taken into account in determining whether a practitioner acted willfully, recklessly, or through gross incompetence.

(e) Effective/applicability date. Paragraph (a) of this section is applicable for returns or claims for refund filed, or advice provided, beginning August 2, 2011. Paragraphs (b) through (d) of this section are applicable to tax returns, documents, affidavits, and other papers filed on or after September 26, 2007.

Source credit, amendments & notes

[T.D. 9359, 72 FR 54549, Sept. 26, 2007]

Circular 230 § 10.34 — Standards with respect to tax returns and documents, affidavits and other papers. · CFR 2011 annual edition (revised as of 2011-07-01) · https://pensionresource.website/EAMain?content=EAMain.Law&id=cfr31-10.34&asof=2011-07-01 · printed Oct 16, 2026
On this page
  • (a) (a) [Reserved]
  • (b) Documents, affidavits and other papers
  • (c) Advising clients on potential penalties
  • (d) Relying on information furnished by clients.
  • (e) (e) [Reserved]
  • (f) Effective/applicability date.
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Each row is a version of the text as published by the official source. Code dates are the edition/release point that first reflected the change; regulation dates are eCFR effective dates. The library checks the official sources automatically, so new versions appear here on their own; “run” opens the sync that recorded a version.

EffectiveThroughSourceAmended by
Jul 1, 1997Jun 30, 2003CFR 2001 annual edition (revised as of 2001-07-01) run 12759 FR 31527, June 20, 1994View
Jul 1, 2003Jun 30, 2008CFR 2007 annual edition (revised as of 2007-07-01) run 127View · Redline (sign in)
Jul 1, 2008Jun 30, 2011CFR 2010 annual edition (revised as of 2010-07-01) run 127T.D. 9359, 72 FR 54549, Sept. 26, 2007View · Redline (sign in)
Jul 1, 2011Jun 30, 2013CFR 2011 annual edition (revised as of 2011-07-01) run 127T.D. 9359, 72 FR 54549, Sept. 26, 2007View · Redline (sign in)
Jul 1, 2013Dec 29, 2016CFR 2016 annual edition (revised as of 2016-07-01) run 127T.D. 9527, 76 FR 32307, June 3, 2011View · Redline (sign in)
Dec 30, 2016Nov 14, 2019eCFR amendment effective 2016-12-30 run 26T.D. 9527, 76 FR 32307, June 3, 2011View · Redline (sign in)
Nov 15, 2019currenteCFR editorial change effective 2019-11-15T.D. 9527, 76 FR 32307, June 3, 2011View · Redline (sign in)
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