The vast majority of federal individual income tax return s are prepared by paid tax return preparers or by taxpayers using consumer tax preparation software. Circular 230 governs practice before the Service by attorneys, certified public accountants, enrolled agents, enrolled actuaries, and enrolled retirement plan agents (collectively, "practitioners" ). Circular 230, however, has not applied to paid tax return preparers who did not fall within any of the categories of practitioners. Various observers, including the National Taxpayer Advocate and consumer advocacy groups, have expressed significant concerns about the lack of regulation of such unenrolled tax return preparers. 1n June 2009, Commissioner Shulman launched a review to help accomplish the Service's goal of ensuring that all tax practitioners and tax return preparers adhere to professional standards. The results of that review are described in Publication 4832 (Rev. 12-2009), Return Preparer Review.

As a result of the review, the Service has now proposed amendments to Circular 230 to regulate tax return preparers not previously subject to Circular 230 's requirements. The proposed amendments identify "registered tax return preparers" as a new category of practitioners governed by Circular 230. Registered tax return preparers are required to pass appropriate competency examinations and satisfy continuing education requirements. The examination and continuing education requirements do not apply to CPAs and attorneys. The proposed amendments also establish standards for positions taken on tax returns that are applicable to all practitioners.