Practitioner Responsibilities Under Circular 230: A Q&A With IRS OPR
- Viktoriya Barsukova, EA, MBA
- Dec 17, 2025
- 3 min read
Introduction
During a live IRS Stakeholder Liaison session on professional conduct and tax practice, questions were addressed by Tom Curtin, a representative of the IRS Office of Professional Responsibility (OPR). OPR administers and enforces Circular 230, which governs practice before the Internal Revenue Service. The discussion focused on emerging issues, including artificial intelligence, jurisdiction, and taxpayer data security.
Below is a summarized Q&A reflecting the substance of that discussion.
Question 1: What ethical and compliance obligations under Circular 230 apply when tax practitioners use artificial intelligence tools?
Answer (Tom Curtin, IRS Office of Professional Responsibility):
Although Circular 230 does not explicitly reference artificial intelligence, its requirements fully apply when AI tools are used in tax preparation, advisory, or representation services. Practitioners remain entirely responsible for the accuracy, legality, and integrity of the work product.
Key Circular 230 provisions implicated include:
• Section 10.35 (Competence): Practitioners must be sufficiently knowledgeable to evaluate AI-generated output.
• Section 10.22 (Due Diligence): Practitioners must independently verify facts, law, and conclusions.
• Section 10.36 (Supervision): AI should be treated like staff or support tools; responsibility cannot be delegated.
Entering confidential taxpayer information into open-source or unsecured AI platforms raises serious confidentiality concerns and may result in violations related to unauthorized disclosure. Practitioners should not input taxpayer data into systems that do not guarantee privacy protections.
Question 2: How does OPR determine whether it has jurisdiction to investigate a tax practitioner?
Answer (Tom Curtin, IRS Office of Professional Responsibility):
OPR’s jurisdiction is based on whether an individual is engaged in “practice before the IRS” under Circular 230.
The primary indicator of jurisdiction is Form 2848, Power of Attorney and Declaration of Representative. Submission of a Form 2848 establishes representation before the IRS and subjects the individual to OPR oversight.
OPR also considers whether representation is recent and ongoing. A single Form 2848 submitted many years ago may not demonstrate current practice. Regular submission of Forms 2848 on behalf of clients generally reflects active practice and clear jurisdiction.
Question 3: Does Circular 230 impose professional obligations related to taxpayer data security?
Answer (Tom Curtin, IRS Office of Professional Responsibility):
Yes. While Circular 230 does not prescribe specific technical safeguards, it clearly imposes professional responsibility to protect confidential taxpayer information.
Relevant provisions include:
• Section 10.35 (Competence): Practitioners must understand data protection risks in their practice.
• Section 10.22 (Due Diligence): Reasonable care must be taken to prevent unauthorized access or disclosure.
• Section 10.36 (Supervision): Practitioners are responsible for ensuring staff and systems comply with data security standards.
• Section 10.51 and IRC §7216: Unauthorized disclosure or use of taxpayer information may result in discipline and penalties.
The IRS has issued guidance to assist practitioners, including:
• IRS Publication 5708: Written Information Security Plan (WISP) guidance and templates.
• IRS Publication 4557: Safeguarding Taxpayer Data, outlining baseline security expectations for tax professionals.
Practitioners are strongly encouraged to review and implement the safeguards described in these publications.
Conclusion
Circular 230 provides the regulatory foundation for practice before the IRS. It establishes professional standards, defines prohibited conduct, and sets forth the disciplinary framework enforced by the Office of Professional Responsibility.
As emphasized by OPR, its mission is not solely enforcement. Education, outreach, and prevention are central to protecting taxpayers and preserving trust in the tax system. Practitioners remain accountable for their conduct, tools, and data practices, regardless of technological advances.
Practitioner Responsibilities Under Circular 230 - Link to presentation:
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