True North Compass

"Circular 230: The Four Sanctions That Can End Your Practice":

Act 1 — Executive Summary (~10 min): What Circular 230 is and why it exists; the five subparts; who may practice before the IRS (and AFSP limits); the four sanctions — disbarment, suspension, censure, monetary penalty — and how OPR publishes them; diligence as to accuracy (10.22); incompetence and disreputable conduct (10.51); standards for tax returns (10.34); Form 8867 due diligence and the 2026 penalty figures; proposed December 2024 updates including technological competency.

Act 2 — Deep Dive (~18 min): The why behind every rule and how a world-class firm operationalizes it — Subpart B as the employee handbook; the reliance rules as a scaling system; case studies (the debt-relief firm, Mr. K, Mr. W, Ms. S); the 10.51 eighteen in clusters; the reasonable-basis hierarchy; red-flag checklists; penalty disclosure as informed consent; the 8867 workflow as a firm system; firm-level liability under 10.36.

Note: Educational content for the True North team — general professional knowledge, not tax or legal advice.