Well, here is a draft of the memorandum which summarizes my thoughts on where we are with Circular 230 and the inconsistent privileges which seem to have given to the EA's under circumstances that are no longer warranted. Why consider what I have to say..well I am sure someone is brighter than I am and could do better, the point is they haven't

1. To: Research File Matter # 6026.1
From: Jordan S Zoot, CPA
Date: August 14, 2015
Subject: Legislative Modification To 31 USC 330 to Harmonize with Current IRS Hiring Practice
The current statutory provision 31 US 330(a)(1) which provides Treasury with the authority
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31 U.S.C. United States Code, 2011 Edition Title 31 ­ MONEY AND FINANCE SUBTITLE I ­
GENERAL CHAPTER 3 ­ DEPARTMENT OF THE TREASURY SUBCHAPTER II ­
ADMINISTRATIVE Sec. 330 ­ Practice before the Department From the U.S. Government Printing
Office, www.gpo.gov
§330. Practice before the Department
(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) 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

2. 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.
(c) 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.
(d) 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.)
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

3. issue and enforce Circular 230, the document providing the structure for the registration,
monitoring and discipline was originally enacted in 1884. The statute has been amended
numerous times, and has a number of holes in it that ought be corrected. There is good reason to
shore up the statute expressly cover situations such as the one which resulted in Loving v. IRS,
742 F.3d 1013 (D.C. Cir. 2014).
The Enrolled Agent who derive their right to practice the IRS receive their authority through
Circular 230 as enabled by 31 US 330(a). The certainly a reasonable argument to provide for a
special procedure where an individual has been employed by the Treasury for a substantial
amount of time. It becomes much more difficult to justify the complete lack of an education
requirement for individuals that take the Special Enrollment Exam. It becomes completely absurd
when one notices that the Internal Revenue Service’s own hiring guidelines for Revenue Agent’s
Grade GS­5, Series 512 requires that the applicant have
“deceive” is omitted as being included in the word “mislead”. The words “by word, circular,
letter, or by advertisement” are omitted as unnecessary.
AMENDMENTS
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).
EFFECTIVE 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
Section 156(b) of Pub. L. 98–369 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].”

4. A. You have at least 4 full years of progressive academic study (120 semester
hours) at an accredited college or university that included at least 30 semester
hours in accounting as outlined above; OR
B. You have a Certificate as a Certified Public Accountant (CPA) obtained through
written examination in a state, territory or the District of Columbia; OR
C. You have a combination of education and experience that included at least 30
semester hours in accounting as outlined above .
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The requirements for further advancement include
For GS­7
A. You have earned Superior Academic Achievement: A bachelor's degree with
either a 3.0 ("B") GPA overall or 3.5 ("B+") on a 4.0 scale in all accounting
courses. You may also qualify under this requirement if you ranked in the upper
one­third of your graduating class. You may also qualify if you possess
membership in a national scholastic college honorary society above the
freshman level that meets the requirements of the Association of College Honor
Societies; OR
B. You have at least one year of graduate education in accounting, business,
finance, law, economics, management, statistical/quantitative methods or
computer science; OR
C. You have at least one year of experience equivalent to the GS­5 level that
required knowledge of, and skill in, applying principles, concepts and
methodology of professional accounting and related fields; and skill in
communicating and dealing with others; OR
D. You have at least one year of combined graduate education and experience as
defined in paragraphs (B) and (C) above.
For GS­9
A. A master's or equivalent degree, or two academic years of graduate education in
accounting or the fields of business, finance, law, economics, management,
statistical/quantitative methods or computer science; OR
B. At least one year of experience equivalent to the GS­7 level that required
knowledge of and skill in applying the principles, concepts and methodology of
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One full year of undergraduate academic study is defined as 30 semester hours and is equivalent to one
year of full­time experience. If your credits are in quarter hours, multiply the number of quarter hours you
have earned by 2/3 to determine the number of equivalent semester hours.
Your accounting coursework must have been such that it would serve as a prerequisite for more advanced
study in the field of accounting. This means that the courses should be acceptable toward an accounting
degree by a four­year college or university, and must include upper­level courses normally taken during the
junior and senior years at a four­year college or university. Your coursework should reflect your knowledge
of principles, intermediate and advanced accounting, cost accounting and auditing. Click here for examples
of qualifying courses .

5. professional accounting and related fields, and skill in communicating and
dealing effectively with others; OR
C. At least one year of combined graduate education and experience as defined in
paragraphs (A) and (B) above. Only graduate education in excess of the amount
required for the GS­7 level may be combined with experience to qualify for GS­9.
The full set of criteria for Revenue Agent Series 0512 are detailed at
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3 Internal Revenue Agent Series, 0512
Individual Occupational Requirements
Basic Requirements
1. Degree: accounting, that included at least 30 semester hours in
accounting or 24 semester hours in accounting and an additional 6
semester hours in related subjects such as business law, economics,
statistical/quantitative methods, computerized accounting or financial
systems, financial management, or finance.
2. Combination of education and experience: equivalent to 4 years that
included courses equivalent to a major in accounting, i.e., at least 30
semester hours in accounting or 24 semester hours in accounting and 6
semester hours in related subjects as described in A above, in
combination with appropriate experience or additional education.
Certificate
A certificate as a Certified Public Accountant (CPA) obtained through written
examination in a State, territory, or the District of Columbia meets the
requirements for GS­5. Applicants with CPA certificates may also qualify for
higher grade levels based on their education and/or experience.
Graduate Education
May have been in accounting, or with completion of the basic requirements
described above, may have been in a related field such as business, finance,
law, economics, management, statistical/quantitative methods, or computer
science. The key consideration in determining if such graduate education should
be credited is whether or not it provided the knowledge, skills, and abilities
identified as necessary to perform the work at the grade level of the position
being filled.
Specialized Experience
Qualifying specialized experience for positions at grades GS­7/11 may have
been in accounting, auditing, tax, financial, legal, or other work that required:

6. The Senior Revenue Agents for Large Business and International are responsible for the
more highly complex tasks performed by the IRS. They are divided into
For GS­7 and GS­9: 1) Knowledge of and skill in applying the principles,
concepts, and methodology of professional accounting and related fields, and
2) skill in communicating and dealing effectively with others.
For GS­11: 1) Knowledge of and skill in applying professional accounting
principles, concepts, and methodology to the examination of accounting books,
records, and systems; 2) skill in interpreting and applying tax law for individuals
and business and/or exempt organizations; 3) knowledge of business and trade
practices to analyze business operations and financial conditions; and 4) skill in
interacting effectively in a wide range of situations with a broad range of
individuals.
For positions at GS­12 and above : Qualifying experience must have been in
progressively responsible and diversified professional accounting or auditing
work that required 1) knowledge of and skill in applying professional accounting
principles, theory, and practices to analyze and interpret accounting books,
records, or systems specifically to determine their effect on Federal tax liabilities
and their adequacy for recording transactions affecting tax liabilities; 2) skill in
interpreting and applying Federal tax law for individuals, business, and/or exempt
organizations, partnerships, and corporations; 3) knowledge of business and
trade practices to develop tax issues based on analysis and evaluation of overall
business operations and financial condition; 4) knowledge of corporate financial
transactions and financial management principles and practices; and 5) skill in
interacting effectively with a broad range of individuals and in negotiating with
specialists in accounting, legal, tax, and other similar business­related
professions.
Some positions may require additional specialized knowledge and skills, such as
those dealing with employee benefit plans, exempt organizations, excise tax,
computer auditing, and international or specialized industry/market segment
programs.
Additional Requirements
Employment is conditional on a satisfactory report of background investigation,
including a tax audit, conducted when and as may be necessary under the
security requirements of the Internal Revenue Service.

7. ● IRS Large Business and International Division Grade 13 Internal Revenue Agent
o Looking for a second career that offers everything you need to have a great
lifestyle? The Large and Mid­Size Business (LB&I) Revenue Agent is a
professional accountant who examines and audits individual, business and
corporate tax returns to determine correct federal tax liabilities and ensures
compliance with technical requirements imposed by the Internal Revenue
Code.
o As an LB&I Internal Revenue Agent you will be responsible for administering
the tax examinations of the largest corporations in America. You may work on
teams or individually, coordinating examinations of multinational and national
companies, and other complex entities. You will be supported by a variety of
specialists to assist in addressing numerous complex tax issues as you deal
with corporations on the most complex issues. These often include tax
shelters, mergers and acquisitions, global operations, transfer pricing and
others. You will work closely with your customers, often dealing with the
senior levels of corporate tax departments and/or their representatives. You
will be challenged every day, both in your research, development of issues
and in communications with taxpayers.
o In addition to serving the American public and helping to fund its economy,
working at IRS will give you the job security you’re looking for, a defined
40­hour work week and the ability to step into roles that let you make an
immediate impact. What’s more, you’ll receive extensive benefits, including
comprehensive health care, a retirement fund, flexible spending accounts,
and continuing education assistance that can help keep you moving forward
in your career.
o The IRS Large Business and International Division has a number of important
specialists within the tax examination programs, including:
● Financial Products and Transactions Examiners (FPTE) provide financial
product/activity and tax implication expertise to the corporate tax program, often
dealing with the largest corporations in America. As an FPTE, you will examine,
research and assess corporate tax returns to determine an appropriate amount of tax
as it relates to financial transactions and activities. You will interact with corporate
taxpayers, their representatives and other agents regarding many of the most
complex financial activities and the resulting tax issues. These include domestic and
international financial products, trading activities, global marketplaces, structured
transactions and others.
● International Examiners (IE) provide international tax expertise to the corporate tax
program, often dealing with the largest corporations in America. They also work with
other parts of the IRS to provide examination support. As an IE, you will be
responsible for examining, researching and assessing corporate tax returns to
determine the appropriate amount of tax as it relates to international transactions.
You will interact with corporate taxpayers regarding many of the most complex tax
issues, including overseas operations, tax shelters, transfer pricing, foreign tax
treaties and other issues.

8. ● Employment Tax Specialists (ETS) conduct examinations of employment tax
returns filed by large and complex business firms. The businesses generally have
extensive operations and contain several operating subdivisions. The examinations
require special ability in accounting and auditing, as well as a highly­advanced
knowledge of tax law and industry practices. As an ETS, you will conduct
independent examinations and serve as the employment tax expert on an audit team
in the examination of a controlled large case. You will interact with corporate
taxpayers, their representatives and other agents regarding many of the most
complex wage issues.
● Computer Audit Specialists (CAS) analyze complex computerized accounting
systems, recommending the most effective method for providing audit data.
Recognized experts in applying statistical sampling techniques, these professionals
also provide computer analyses of large volumes of data, independently designing
applications and continually searching for creative and innovative ways to use
computer­assisted audit technique
One initiative that the National Association of Enrolled Agents has undertaken is
“Educating America” which is an effort to bolster the status of the Enrolled Agent as a
professional occupation through the combination of
● Strongly advocating for the implementation of NAEA's "Educating
America" initiative, a critical differentiator.
● Without it IT looks and smells too much like RTRP
● Explicit acknowledgment that while EA is a professional under CIrcular
230, it is an entry­level credential that gets folks into the profession.
● This is in sharp contrast to CPA’s, for whom paying for six years of school
is a real burden.
● The EA has always had the option to augment education why not
harmonize all of the education tracks for tax professionals
The level of specialization with the CPA profession has increased substantially. As a
consequence, the AICPA must act to create a second level Advanced Tax Credential
[“ATC”]. The ATC could become a certificate program that essentially fills in the gaps
for an individual that cobbled together their experience and education. The ATC
could be awarded to CPA’s with an MS in Taxation and attorneys with an LLM‐Tax
upon completion of the NTPI program. Thus the path to the top is CPA ‐ MST, JD‐LLC
or EA, NTPI and ATC.
The single most important component that is missing is dialogue on a process and
the blame for belongs to NAEA and NATP for perpetuating the fallacy that EA is
what it isn’t doesn’t reflect on the individual EA its the culture that has been
manipulated for an organization based agenda.

9. The proposed remedy for one portion of the issues would be for Congress to modify
31 USC § 330 (a) by adding new subparagraph (E) to read
“(1)Notwithstanding anything else contained in this Title, the
Commissioner is directed to modify Circular 230 to expressly require
that the grant of full representation rights to an Enrolled Agent shall
require that the Enrolled Agent meet the minimum education
requirements [specifically inclusive of accounting course hours] to be
not less than the current requirements for IRS Revenue Agent, Grade
GS­5, Series 0512.
(2) Effective as of the date of enactment, any Enrolled Agent that does
not meet the education requirement in (1) above shall be required to be
supervised by an attorney, certified public accountant, or Enrolled
Agent that does meet the requirement of (1) above.
(3) For purposes of classification under (2) above each Enrolled Agent
shall be classified based upon a review of the educational background
and reclassified as though they had become an Enrolled Agent upon
the date of the enactment of this legislation”
[Additional to come]
31 USC § 330 (a)
Loving v. IRS, 742 F.3d 1013 (D.C. Cir. 2014).