Rev. Proc. 59-16

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to reiterate that fee statements are required of preparers of returns appearing before the Internal Revenue Service without enrollment.

SEC. 2. BACKGROUND.

Section 10.7(a)(7) of Department Circular No. 230, as revised, page 745, and section 4.06 of Revenue Procedure 59-3, page 801, set forth the rules relating to recognition of unenrolled preparers of returns and the form of fee statements that are required to be filed by them. Notwithstanding the publicity given to these provisions it appears that a question exists among unenrolled preparers of returns, enrolled attorneys and agents, and Internal Revenue Service personnel regarding the filing of fee statements.

SEC. 3. FEE STATEMENTS.

.01 An unenrolled preparer of returns should file with the authorization of the taxpayer a signed fee statement in the form set forth in Appendix C, or Appendix D of Revenue Procedure 59-3, supra. However, the preparer may use any other form clearly evidencing whether or not there is a contingent or partially contingent fee agreement for the representation of the taxpayer before revenue agents or examining officers and if there is such an agreement, the terms thereof relating to compensation. See section 4.06 of Revenue Procedure 59-3, supra.

.02 An enrolled attorney or agent is not required to file a contingent fee statement. See section 10:37 of Department Circular 230, as revised, supra.

SEC. 4. INQUIRIES.

Inquiries from Service personnel regarding this Revenue Procedure should be addressed to the Audit Division (O:A). Other inquiries should be addressed to the Director of Practice (C:DP).