10.50—Sanctions.
(a)
Authority to censure, suspend, or
disbar. The Secretary of the Treasury, or
delegate, after notice and an opportunity for a
proceeding, may censure, suspend, or disbar any
practitioner from practice before the Internal
Revenue Service if the practitioner is shown to be
incompetent or disreputable (within the meaning of
§ 10.51 ), fails to comply with any regulation in
this part (under the prohibited conduct standards
of § 10.52 ), or with intent to defraud, willfully
and knowingly misleads or threatens a client or
prospective client. Censure is a public
reprimand.
(b) Authority to disqualify.
The
Secretary of the Treasury, or delegate, after due
notice and opportunity for hearing, may disqualify
any appraiser for a violation of these rules as
applicable to appraisers.
(1)
If any appraiser is disqualified pursuant
to this subpart C, the appraiser is barred from
presenting evidence or testimony in any
administrative proceeding before the Department of
the Treasury or the Internal Revenue Service,
unless and until authorized to do so by the
Director of the Office of Professional
Responsibility pursuant to § 10.81, regardless of
whether the evidence or testimony would pertain to
an appraisal made prior to or after the effective
date of disqualification.
(2)
Any appraisal made by a disqualified
appraiser after the effective date of
disqualification will not have any probative
effect in any administrative proceeding before the
Department of the Treasury or the Internal Revenue
Service. An appraisal otherwise barred from
admission into evidence pursuant to this section
may be admitted into evidence solely for the
purpose of determining the taxpayer's reliance in
good faith on such appraisal.
(c)
Authority to impose monetary
penalty —(1) In general. (i) The
Secretary of the Treasury, or delegate, after
notice and an opportunity for a proceeding, may
impose a monetary penalty on any practitioner who
engages in conduct subject to sanction under
paragraph (a) of this section.
(ii)
(c)
practitioner described in paragraph
(c)(1)(i) of this section was acting on behalf of
an employer or any firm or other entity in
connection with the conduct giving rise to the
penalty, the Secretary of the Treasury, or
delegate, may impose a monetary penalty on the
employer, firm, or entity if it knew, or reasonably should have known, of such
conduct.
(2) Amount of penalty.
The amount
of the penalty shall not exceed the gross income
derived (or to be derived) from the conduct giving
rise to the penalty.
(i)
Any monetary penalty imposed on a
practitioner under this paragraph (c) may be in
addition to or in lieu of any suspension,
disbarment or censure and may be in addition to a
penalty imposed on an employer, firm or other
entity under paragraph (c)(1)(ii) of this
section.
(ii)
(c)
etary penalty imposed on an
employer, firm or other entity may be in addition
to or in lieu of penalties imposed under paragraph
(c)(1)(i) of this section.
(d) Sanctions to be imposed.
The
sanctions imposed by this section shall take into
account all relevant facts and circumstances.
(e) Effective/applicability date.
This section is applicable to conduct occurring on
or after September 26, 2007, except paragraph (c)
which applies to prohibited conduct that occurs
after October 22, 2004.