Rev. Proc. 64-47

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to prescribe, pursuant to Section 10.7(a)(7) of Treasury Department Circular No. 230, Revised (31 CFR Part 10), page 877, this Bulletin, the standards of conduct, the extent of authority and the circumstances and conditions under which an individual preparer of tax returns may exercise without enrollment the privilege of limited practice as the taxpayer's representative before the Internal Revenue Service.

SEC. 2. APPLICABILITY.

.01 This Revenue Procedure, issued pursuant to Section 10.7(a)(7) of Circular 230, applies to all unenrolled individual preparers of returns who seek to represent taxpayers, within the United States, before revenue agents or examining officers in the Audit Division of an Office of a District Director of Internal Revenue or in the Office of International Operations. Any reference herein to the Office of the District Director or to the District Director will be construed, where appropriate, to include the Office of International Operations or the Director of International Operations.

.02 This Revenue Procedure does not apply to attorneys or agents who are enrolled to practice before the Internal Revenue Service. The rules governing the practice of such persons before the Service are contained in the provisions of Circular 230.

SEC. 3. SCOPE OF AUTHORITY.

.01 Any unenrolled individual who signs a return as its preparer may act as the taxpayer's representative if accompanied by the taxpayer, or by filing a written authorization from the taxpayer as provided herein in Section 5. Such representation is limited to practice before a revenue agent or examining officer in the Field Audit or Office Audit Branch in the Audit Division of an Office of a District Director of Internal Revenue, and may only encompass matters concerning the tax liability of the taxpayer for the taxable period covered by that return, subject to the limitations herein prescribed.

.02 The scope of authority includes representation of the taxpayer with respect to any tax return prepared by the unenrolled individual, except (1) an estate tax return; (2) a gift tax return; or (3) a corporation income tax return, unless the unenrolled individual who prepared the corporation income tax return also prepared an individual return for one or more of the corporate officers for the same taxable period, or part thereof, covered by such corporate return.

.03 An unenrolled individual who prepared a return which provides no space on the prescribed form for signature of the preparer, or who prepared a return with respect to which the instructions or regulations do not require that it be signed by the preparer, may appear as the taxpayer's representative, if properly authorized, as set forth in .01 above.

.04 If the unenrolled preparer appears before the revenue agent or examining officer without the taxpayer, written authorization from the taxpayer for such representation must be filed with the revenue agent or examining officer. The unenrolled preparer may also be required to furnish identification satisfactory to the revenue agent or examining officer.

.05 The unenrolled preparer will be expected to remain alert to questions, issues and factual situations of such difficulty as to require the assistance of an enrolled attorney or an enrolled agent and, when such assistance is required, to suggest to the taxpayer that he seek the advice or services of an enrolled attorney or agent. (Rules governing the authorization of an enrolled attorney or agent to represent a taxpayer are contained in Conference and Practice Requirements of the Statement of Procedural Rules, Subpart E, as amended, C.B. 1963-2, 736.)

.06 Where a carry-back or carry-forward, or both, are involved in a tax return, the unenrolled preparer will not be recognized as the taxpayer's representative with respect to the taxable year in which the carry-back or carry-forward arose unless he prepared and signed the return for such year or years.

.07 The privilege to practice as the taxpayer's representative in accordance with this Revenue Procedure shall not constitute enrollment nor a finding of eligibility for enrollment.

SEC. 4. LIMITATIONS OF THE PRIVILEGE OF LIMITED PRACTICE.

.01 The privilege of limited practice without enrollment afforded an individual preparer of returns is restricted to representation before the examining officers stated in Section 3. No unenrolled preparer shall represent or correspond as the taxpayer's representative at any other stage or level of proceedings. He may not appear as a taxpayer's representative at a District Conference in the Audit Division, District Director's Office (referred to in Section 10.7(a)(7) of Treasury Department Circular 230 as "Informal Conference"); nor as a taxpayer's representative before an Appellate Division; nor before officials in the National Office.

.02 In addition, the following acts on behalf of the taxpayer are beyond the scope of authority permitted an unenrolled preparer:

(a) Executing claims for refund.

(b) Receiving checks in payment of any refund of internal revenue taxes, penalties, or interest.

(c) Executing waivers or consents agreeing to a later assessment or collection of taxes than is provided by the applicable statute of limitations.

(d) Executing closing agreements with respect to a tax liability or specific matter.

(e) Executing Form 870 or other appropriate agreement form in the event an agreement is reached at the conclusion of the examination.

(f) Receiving copies of correspondence addressed to the taxpayer.

SEC. 5. FORM OF AUTHORIZATION FROM TAXPAYER.

.01 Internal Revenue Service Form 3492, Authorization for Representation by an Unenrolled Individual Tax Return Preparer (or any other properly executed written authorization), will be accepted as the unenrolled preparer's authorization to appear without the taxpayer under this Revenue Procedure.

.02 Form 3492 may be obtained from the offices of District Directors.

.03 The authorization must be signed by the taxpayer and must be acknowledged before a notary public or, in lieu thereof, witnessed by two disinterested individuals. It may be revoked by the taxpayer at any time but such revocation shall not be effective so far as the Service is concerned prior to the receipt of written notification. The authorization may not include a power of substitution.

SEC. 6. ETHICS AND CONDUCT.

.01 An unenrolled preparer shall conduct himself in such manner as not to commit any act of disreputable conduct. (For examples of disreputable conduct, see section 10.51(b) of Circular No. 230.)

.02 An unenrolled preparer shall not charge a manifestly unreasonable fee and shall not enter into a wholly contingent fee agreement with a taxpayer for representation in any matter before a revenue agent or examining officer unless the taxpayer is financially unable to pay a reasonable fee on any other terms.

.03 An unenrolled preparer shall not 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 Service, unless the unenrolled preparer has reasonable grounds to believe, and does believe, that the request is of doubtful legality; and no such unenrolled preparer shall interfere, or attempt to interfere, with any proper and lawful efforts by the officers or employees of the Service to obtain information relative to any matter before the Service.

.04 An unenrolled preparer who knows that a client has not complied with the law, or that he 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 Service, shall advise the client promptly of the fact of such noncompliance, error or omission.

.05 An unenrolled preparer shall exercise due diligence in preparing or assisting in the preparation, approving, and filing of returns, documents, affidavits, and other papers relating to Internal Revenue Service matters. He shall also exercise due diligence in determining: (1) the correctness of representations made by him to the Service, and (2) the correctness of representations made by him to clients with reference to any matter administered by the Service.

.06 An unenrolled preparer shall not unreasonably delay the prompt disposition of any matter before the Internal Revenue Service.

.07 An unenrolled preparer, as a notary public, shall not take acknowledgments, administer oaths, certify papers, or perform any official act in connection with matters related to his client's tax liabilities, or in connection with any other matter in which he may in any way have given assistance or been employed. In addition, he may not take any acknowledgments, oath, or certification as a notary public relating to any tax return, protest, or other document which he has prepared or which he has assisted in preparing. (26 Op. Atty. Gen. 236.)

.08 An unenrolled preparer shall not 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.

SEC. 7. SOLICITATION AND ADVERTISING.

.01 An unenrolled preparer shall not, in any manner whatsoever not warranted by personal relations, directly or indirectly solicit employment in matters related to the Internal Revenue Service; nor shall he advertise that he is authorized to represent taxpayers before the Service.

.02 An unenrolled preparer shall not use, directly or indirectly, signs, printing or other written matter indicating some past or present connection with or relationship to the Treasury Department or 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 Department or Service. (This section does not prohibit the distribution by former officers or employees of the Government of professional cards briefly stating the fact of their former official status and announcing their new status or association. Such cards may be distributed under the following conditions: Only once; to personal or business acquaintances; within a reasonable time after the severance of his employment with the Government, and within 30 days after the creation of the new status or association.)

SEC. 8. PERSONS INELIGIBLE TO PRACTICE UNDER THIS REVENUE PROCEDURE.

.01 The following persons shall be ineligible to exercise the privilege of limited practice before the Internal Revenue Service:

(a) Any individual who has been convicted of any criminal offense involving (1) provisions of the internal revenue laws or (2) moral turpitude;

(b) Any individual who is under disbarment or suspension from the practice of his profession by (1) any State authority or (2) any Federal Department or Agency;

(c) Any individual who has resigned, been disbarred or suspended from practice before the Internal Revenue Service;

(d) Any individual who is not of good character or reputation;

(e) Any individual whose application for enrollment to practice before the Internal Revenue Service has been denied;

(f) Any individual who refuses to comply with this Revenue Procedure;

(g) Any individual whose conduct or practices have been or are such as to constitute a violation of Section 6 or 7 of this Revenue Procedure;

(h) Any individual who is an officer or employee of the United States or of the District of Columbia; and

(i) Any individual who is an officer or employee of any State, or any subdivision thereof, whose duties authorize him to investigate, pass upon, or act with respect to tax matters of such State or subdivision, if such employment may make available to him facts or information applicable to Federal tax matters.

.02 In addition, corporations, associations, partnerships, or other business entities are ineligible to practice before the Internal Revenue Service.

SEC. 9. RULES GOVERNING RECOGNITION OF UNENROLLED PREPARERS.

.01 Any revenue agent, examining officer, or other Service officer or employee who has reason to believe that an unenrolled preparer's character, reputation, conduct, practices, or employment have been or are such as would render him ineligible to appear as the taxpayer's representative before the Internal Revenue Service, shall communicate such information to the District Director. Pending instructions, such Service employees may continue to recognize or, in the exercise of sound administrative discretion, may decline to recognize the unenrolled preparer as the taxpayer's representative.

.02 In administering this Revenue Procedure, each District Director exercises original jurisdiction in determining whether an unenrolled preparer is eligible to appear as a taxpayer's representative. Where the District Director receives information, either before or after an unenrolled preparer has been recognized, indicating that the preparer's character, reputation, conduct, practices, or employment have been or may be such as to render him ineligible to represent taxpayers, the District Director will issue a written notice to the unenrolled preparer of proposed determination of ineligibility. This notice will contain information sufficient to apprise the unenrolled preparer as to the basis for the proposed determination of ineligibility and will contain a request for a written reply within 30 days, and advice as to whether a conference is desired with the District Director or his delegate. If the unenrolled preparer fails to reply, or upon review if a reply is filed, or after a conference, if one is held, the District Director will notify the unenrolled preparer in writing of his final determination. Where warranted, this determination will state that the unenrolled preparer is ineligible to exercise the privilege of limited practice before the Service and that his determination may be appealed to the Director of Practice. A copy of each final determination of ineligibility issued by the District Director will be forwarded to the Director of Practice, together with copies of the notice of proposed determination of ineligibility, the unenrolled preparer's reply, if one is filed, and any other related papers or documents.

.03 An unenrolled preparer who wishes to appeal a District Director's final determination of ineligibility may, within 30 days of the receipt of such final determination, submit a signed written appeal, together with his reasons in support thereof, to the Director of Practice, Office of the Secretary, U.S. Treasury Department, Washington, D.C., 20009. Upon filing of the written appeal, and the reasons in support thereof, the unenrolled preparer, upon request, will be afforded the opportunity of a conference with the Director of Practice. A decision will then be rendered by the Director of Practice affirming, reversing, or modifying the decision of the District Director, upon such terms and conditions as seem warranted under the facts and circumstances of the particular appeal. The decision of the Director of Practice on such appeal will be final.

SEC. 10. SPECIAL ORDERS.

The Director of Practice may issue such special orders as he may deem proper in any matter within the purview of this Revenue Procedure, including an order that a notice of final determination of ineligibility issued for any reason or condition set forth in Section 8 may be rescinded or modified in a particular case where the unenrolled preparer has demonstrated and established his good character and reputation to the satisfaction of the Director of Practice.

SEC. 11. INQUIRIES.

.01 Inquiries from Service personnel regarding this Revenue Procedure should be addressed to the Director, Audit Division (CP:A), Internal Revenue Service, Washington, D.C., 20224.

.02 Inquiries from other persons should be addressed to the Director of Practice, Office of the Secretary, U.S. Treasury Department, Washington, D.C., 20009.

SEC. 12. EFFECT ON OTHER DOCUMENTS.

Revenue Procedure 59-3, C.B. 1959-1, 801, and Revenue Procedure 59-16, C.B. 1959-1, 825, are hereby superseded.

SEC. 13. EFFECTIVE DATE.

This Revenue Procedure shall be effective November 1, 1964.

                                   THOMAS J. REILLY,