Explain the concept of "limited practice without enrollment" under Circular 230 and list several of the special situations in which the IRS allows this type of representation

Answer 1

Under Section 10.7 of Circular 230, certain individuals are authorized to represent a taxpayer before the IRS without being an attorney, CPA, or enrolled agent. These special situations include the following types of representation:

• An individual may represent a member of his or her immediate family.

• A regular, full-time employee of an individual employer may represent the employer.

• A general partner or a regular, full-time employee of a partnership may represent the partnership.

• A bona fide officer or a regular, full-time employee of a corporation (including a parent, subsidiary, or other affiliated corporation), association, or organized group may represent the corporation, association, or organized group.

• A regular, full-time employee of a trust, receivership, guardianship, or estate may represent the trust, receivership, guardianship, or estate.

• An officer or a regular employee of a governmental unit, agency, or authority may represent the governmental unit, agency, or authority in the course of his or her official duties.

• An individual may represent any individual or entity who is outside the United States before personnel of the Internal Revenue Service when such representation takes place outside the United States.

• An individual who prepares and signs a taxpayer's tax return as the preparer, or who prepares a tax return but is not required (by the instructions to the tax return or regulations) to sign the tax return, may represent the taxpayer during an examination of the taxable year or period covered by that tax return, but this right does not permit such individual to represent the taxpayer before Appeals Officers, Revenue Officers, Counsel, or similar officers or employees of the Internal Revenue Service or the Department of Treasury.