31 U.S.C. § 330

Practice before the Department

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(a) Subject to section 500 of title 5, the Secretary of the Treasury may—(1) regulate the practice of representatives of persons before the Department of the Treasury; and(2) before admitting a representative to practice, require that the representative demonstrate—(A) good character;(B) good reputation;(C) necessary qualifications to enable the representative to provide to persons valuable service; and(D) competency to advise and assist persons in presenting their cases.(b) Any enrolled agents properly licensed to practice as required under rules promulgated under subsection (a) shall be allowed to use the credentials or designation of “enrolled agent”, “EA”, or “E.A.”.(c) After notice and opportunity for a proceeding, the Secretary may suspend or disbar from practice before the Department, or censure, a representative who—(1) is incompetent;(2) is disreputable;(3) violates regulations prescribed under this section; or(4) with intent to defraud, willfully and knowingly misleads or threatens the person being represented or a prospective person to be represented.The Secretary may impose a monetary penalty on any representative described in the preceding sentence. If the representative was acting on behalf of an employer or any firm or other entity in connection with the conduct giving rise to such penalty, the Secretary may impose a monetary penalty on such employer, firm, or entity if it knew, or reasonably should have known, of such conduct. Such penalty shall not exceed the gross income derived (or to be derived) from the conduct giving rise to the penalty and may be in addition to, or in lieu of, any suspension, disbarment, or censure of the representative.(d) After notice and opportunity for a hearing to any appraiser, the Secretary may—(1) provide that appraisals by such appraiser shall not have any probative effect in any administrative proceeding before the Department of the Treasury or the Internal Revenue Service, and(2) bar such appraiser from presenting evidence or testimony in any such proceeding.(e) Nothing in this section or in any other provision of law shall be construed to limit the authority of the Secretary of the Treasury to impose standards applicable to the rendering of written advice with respect to any entity, transaction plan or arrangement, or other plan or arrangement, which is of a type which the Secretary determines as having a potential for tax avoidance or evasion.(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 884; Pub. L. 98–369, div. A, title I, § 156(a), July 18, 1984, 98 Stat. 695; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 108–357, title VIII, § 822(a)(1), (b), Oct. 22, 2004, 118 Stat. 1586, 1587; Pub. L. 109–280, title XII, § 1219(d), Aug. 17, 2006, 120 Stat. 1085; Pub. L. 114–113, div. Q, title IV, § 410, Dec. 18, 2015, 129 Stat. 3121.)

Historical and Revision Notes
Revised Section	Source (U.S. Code	Source (Statutes at Large)
330(a)	31:1026(1st sentence).	July 7, 1884, ch. 334, § 3(proviso and sentence immediately after proviso under heading “War Department”), 23 Stat. 258.
330(b)	31:1026(last sentence).

In the section, the words “representatives of persons” are substituted for “agents, attorneys, or other persons representing claimants before his department” to eliminate unnecessary words.

In subsection (a), before clause (1), the words “Subject to section 500 of title 5” are added for clarity and to conform to title 5. In clause (1), the word “regulate” is substituted for “prescribe rules and regulations” to eliminate unnecessary words. The words “the practice” are substituted for “before being recognized” for consistency with other revised titles of the United States Code. In clause (2)(C), the words “possessed of the” are omitted because of the restatement.

In subsection (b), the word “proceeding” is substituted for “hearing” because of subchapter II of chapter 5 of title 5. In clause (3), the words “violates regulations prescribed under this section” are substituted for “who refuses to comply with said rules and regulations” to eliminate unnecessary words. In clause (4), the words “in any manner” are omitted as surplus. The word “deceive” is omitted as being included in the word “mislead”. The words “by word, circular, letter, or by advertisement” are omitted as unnecessary.

Editorial NotesAmendments

2015—Subsecs. (b) to (e). Pub. L. 114–113 added subsec. (b) and redesignated former subsecs. (b) to (d) as (c) to (e), respectively.

2006—Subsec. (c). Pub. L. 109–280 struck out “with respect to whom a penalty has been assessed under section 6701(a) of the Internal Revenue Code of 1986” after “any appraiser” in introductory provisions.

2004—Subsec. (b). Pub. L. 108–357, § 822(a)(1), inserted “, or censure,” after “Department” in introductory provisions and inserted at end “The Secretary may impose a monetary penalty on any representative described in the preceding sentence. If the representative was acting on behalf of an employer or any firm or other entity in connection with the conduct giving rise to such penalty, the Secretary may impose a monetary penalty on such employer, firm, or entity if it knew, or reasonably should have known, of such conduct. Such penalty shall not exceed the gross income derived (or to be derived) from the conduct giving rise to the penalty and may be in addition to, or in lieu of, any suspension, disbarment, or censure of the representative.”

Subsec. (d). Pub. L. 108–357, § 822(b), added subsec. (d).

1986—Subsec. (c). Pub. L. 99–514 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”.

1984—Subsec. (c). Pub. L. 98–369 added subsec. (c).

Statutory Notes and Related SubsidiariesEffective Date of 2006 Amendment

Amendment by Pub. L. 109–280 applicable to appraisals prepared with respect to returns or submissions filed after Aug. 17, 2006, see section 1219(e)(2) of Pub. L. 109–280, set out as a note under section 170 of Title 26, Internal Revenue Code.

Effective Date of 2004 Amendment

Pub. L. 108–357, title VIII, § 822(a)(2), Oct. 22, 2004, 118 Stat. 1587, provided that: “The amendments made by this subsection [amending this section] shall apply to actions taken after the date of the enactment of this Act [Oct. 22, 2004].”

Effective Date of 1984 Amendment

Pub. L. 98–369, div. A, title I, § 156(b), July 18, 1984, 98 Stat. 695, provided that: “The amendment made by subsection (a) [amending this section] shall apply to penalties assessed after the date of the enactment of this Act [July 18, 1984].”

Notes of Decisions

Cited in 35 cases (5 in the last 5 years), 1994–2026 · leading case: John Bowman, Jr. v. Kimberly Iddon, 848 F.3d 1034 (D.C. Cir. 2017).

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John Bowman, Jr. v. Kimberly Iddon, 848 F.3d 1034 (D.C. Cir. 2017). · cites it 6× “While working as a tax preparer in June 2005, he pleaded guilty to mail fraud, wire fraud, and money laundering, and was sentenced to fifty- seven months’ incarceration. He began serving his sentence in August 2005.”

Loving v. Internal Revenue Serv., 742 F.3d 1013 (D.C. Cir. 2014). · cites it 7× “As statutory authority for the new regulations, the IRS has relied on 31 U.S.C. § 330 . Originally enacted in 1884, that statute authorizes the IRS to “regulate the practice of representatives of persons before the Department of the Treasury.”

Wright v. Everson, 543 F.3d 649 (11th Cir. 2008). · cites it 13× “7 (c)(l)(viii) is valid, because it is a reasonable regulation promulgated by the IRS pursuant to an express delegation of authority from Congress under 31 U.S.C. § 330 (a)(1), and that it is not arbitrary, capricious, or manifestly contrary to the statute.”

United States v. Elsass, 978 F. Supp. 2d 901 (S.D. Ohio 2013). · cites it 5× “*912 Loving dealt with the Secretary of the Treasury’s authority to regulate tax return preparers involved only in preparing, signing, and submitting tax returns to the IRS under the authority granted by 31 U.S.C. § 330 , which authorizes the Secretary to regulate “the practice…”

Loving v. Internal Revenue Serv., 917 F. Supp. 2d 67 (D.D.C. 2013). · cites it 4× “Under 31 U.S.C. § 330 , originally enacted in 1884, the Treasury Secretary has authority to regulate people who practice before the Treasury Department.”

Robert Kenny v. United States, 489 F. App'x 628 (3rd Cir. 2012). · cites it 3× “§ 6103(h)(1), and authorizing disclosure to “officers and employees of the Department of the Treasury for use in any action or proceeding described in subparagraph (A) [concerning legal practice before the Department under 31 U.S.C. § 330 ] ... to the extent necessary to advance…”

Bradley Waterman v. IRS, 61 F.4th 152 (D.C. Cir. 2023). · cites it 2× “” 31 U.S.C. § 330 . Pursuant to this authority, the Office of Professional Responsibility (“OPR”) investigates allegations of practitioner misconduct before the Internal Revenue Service (“IRS”).”

Steele v. United States, 260 F. Supp. 3d 52 (D.D.C. 2017). · cites it 2× “Circuit addressed the regulations regarding the exam and education requirements, asking “whether the IRS’s statutory authority to ‘regulate the practice of representatives of persons before the Department of the Treasury5 [under 31 U.”

Ridgely, Jr v. Geithner, 55 F. Supp. 3d 89 (D.D.C. 2014). · cites it 3× “” 31 U.S.C. § 330 (a)(1). 3 As both parties recognize, however, Congress “nowhere defined the meaning or scope of the term ‘practice’ before the Treasury Department.”

Evergreen Trading, LLC ex rel. GN Investments, LLC v. United States, 80 Fed. Cl. 122 (Fed. Cl. 2007). “The term “federal authorized tax practitioner” is defined as “any individual who is authorized under Federal law to practice before the Internal Revenue Service,” to the extent that practice is regulated under 31 U.S.C. § 330 . Id. at § 7525(a)(3)(A).”

Am. Inst. of Certified Pub. Accountants v. Internal Revenue Serv., 804 F.3d 1193 (D.C. Cir. 2015). “” 31 U.S.C. § 330 (a). In Loving v. IRS, the district court agreed and permanently enjoined the IRS from enforcing the Rule against unenrolled preparers.”

Hubbard v. United States, 545 F. Supp. 2d 1 (D.D.C. 2008). · cites it 2× “§ 6012 (a)(1)(A) (requiring “[e]very individual having for the taxable year gross income which equals or exceeds the exemption amount” to pay income taxes). Equally well defined is the Secretary of the Treasury’s authority to “regulate the practice of representatives of persons…”

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— 31 U.S.C. § 330(a) — 1 case

Am. Inst. of Certified Pub. Accountants v. Internal Revenue Serv., 199 F. Supp. 3d 55 (D.D.C. 2016).

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