How Far Does Circular 230 Exceed Treasury’s Statutory Authority?

Treasury regulations defining the duties of those practicing before the IRS, commonly called Circular 230, are a cornerstone of federal tax practice. Recent judicial decisions, however, raise the genuine possibility that substantial portions of Circular 230 may be invalidated if challenged. This possibility began to be taken seriously as a result of the 2013 opinion in Loving v. IRS, the 2014 affirmation of that judgment, and the government’s decision not to seek en banc or Supreme Court review. The concerns intensified with the July 2014 decision in Ridgely v. Lew. They may intensify further – or be deflated – by pending and future challenges to portions of Circular 230. I and others have written about Loving. Here, I carry the work forward by exploring post-Loving developments and their possible effect on the Circular 230 regulations