Sec. 307. Tax opinion standards for tax practitioners
193 words·~1 min read·
/bill/113/hr/1554/ih/section-307·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 330(d) of title 31, United States Code, is amended to read as follows: The Secretary of the Treasury shall impose standards applicable to the rendering of written advice with respect to any listed transaction or any entity, plan, arrangement, or other transaction which has a potential for tax avoidance or evasion. Such standards shall address, but not be limited to, the following issues: Independence of the practitioner issuing such written advice from persons promoting, marketing, or recommending the subject of the advice.
Collaboration among practitioners, or between a practitioner and other party, which could result in such collaborating parties having a joint financial interest in the subject of the advice. Avoidance of conflicts of interest which would impair auditor independence. For written advice issued by a firm, standards for reviewing the advice and ensuring the consensus support of the firm for positions taken. Reliance on reasonable factual representations by the taxpayer and other parties.
Appropriateness of the fees charged by the practitioner for the written advice. Preventing practitioners and firms from aiding or abetting the understatement of tax liability by clients. Banning the promotion of potentially abusive or illegal tax shelters. .