10.36—Procedures to ensure compliance.
(a)
Requirements for covered
opinions. Any practitioner who has (or
practitioners who have or share) principal
authority and responsibility for overseeing a
firm's practice of providing advice concerning
Federal tax issues must take reasonable steps to
ensure that the firm has adequate procedures in
effect for all members, associates, and employees
for purposes of complying with § 10.35. Any such
practitioner will be subject to discipline for
failing to comply with the requirements of this
paragraph if—
(1)
The practitioner through willfulness,
recklessness, or gross incompetence does not take
reasonable steps to ensure that the firm has
adequate procedures to comply with § 10.35, and
one or more individuals who are members of,
associated with, or employed by, the firm are, or
have, engaged in a pattern or practice, in
connection with their practice with the firm, of
failing to comply with § 10.35; or
(2)
The practitioner knows or should know that
one or more individuals who are members of,
associated with, or employed by,
the firm are, or have, engaged in a pattern or
practice, in connection with their practice with
the firm, that does not comply with § 10.35 and
the practitioner, through willfulness,
recklessness, or gross incompetence, fails to take
prompt action to correct the noncompliance.
(b) Effective date.
This section
is applicable after June 20, 2005.
Code of Federal Regulations
[T.D. 9011, 67 FR 48771, July 26, 2002, as
amended by T.D. 9165, 69 FR 75842, Dec. 20,
2004]
Code of Federal Regulations
Effective Date Note:
At 76 FR 32308, June 3, 2011, § 10.36 was
amended by redesignating paragraph (b) as
paragraph (c); adding new paragraph (b), and
revising newly designated paragraph (c), effective
Aug. 2, 2011. For the convenience of the user, the
added and revised text is set forth as
follows:
§ 10.36
Procedures to ensure
compliance.
(b) Requirements for tax returns and
other documents. Any practitioner who has (or
practitioners who have or share) principal
authority and responsibility for overseeing a
firm's practice of preparing tax returns, claims
for refunds, or other documents for submission to
the Internal Revenue Service must take reasonable
steps to ensure that the firm has adequate
procedures in effect for all members, associates,
and employees for purposes of complying with
Circular 230. Any practitioner who has (or
practitioners who have or share) this principal
authority will be subject to discipline for
failing to comply with the requirements of this
paragraph if—
(1) The practitioner through willfulness,
recklessness, or gross incompetence does not take
reasonable steps to ensure that the firm has
adequate procedures to comply with Circular 230,
and one or more individuals who are members of,
associated with, or employed by, the firm are, or
have, engaged in a pattern or practice, in
connection with their practice with the firm, of
failing to comply with Circular 230; or
(2) The practitioner knows or should know that
one or more individuals who are members of,
associated with, or employed by, the firm are, or
have, engaged in a pattern or practice, in
connection with their practice with the firm, that
does not comply with Circular 230, and the
practitioner, through willfulness, recklessness,
or gross incompetence fails to take prompt action
to correct the noncompliance.
(c) Effective/applicability date.
This section is applicable beginning August 2,
2011.