Comments Regarding Proposed Amendments to the Regulations
Governing Practice Before the Internal Revenue Service
(Title 31, Code of Federal Regulations, Subtitle A, Part 10)
April 23, 2001

Section 10.22  Diligence as to accuracy.

The Section supports the clarification of the phrase "due diligence" in the context of a practitioner who relies on others. This clarification recognizes the realities of practice in a firm or other organization.

In addition, there should be a cross-reference to section 10.34(a)(3) which provides that, to the extent that a practitioner acts in accordance with the principles set forth in section 10.34(a)(3), the practitioner will be presumed to have exercised due diligence for purposes of section 10.22 when advising a client to take a position on a return or when preparing or signing a return as a preparer. This cross-reference will clarify the meaning of due diligence when a practitioner relies on information provided by a client.