Circular 230

Information Regarding the Circular 230 Disclaimer

What does this disclaimer mean?

The letter, e-mail, or other writing you received includes a disclaimer stating that the writing is not intended or written to be used, and it cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on any taxpayer by the Internal Revenue Service. This disclaimer is included in order for Sherman & Howard L.L.C. to comply with Treasury Department Circular 230 ("Circular 230"), which governs our practice before the Internal Revenue Service and is described in more detail below.

The effect of the disclaimer is that the letter, e-mail, or other writing that addresses a Federal tax issue or issues and that includes this disclaimer may not be relied upon by a taxpayer to establish the reasonable cause and good faith defense to the accuracy-related penalties that may be imposed on that taxpayer by the Internal Revenue Service. The disclaimer is not intended to otherwise qualify or alter any of the advice or provisions in the applicable documents.

What is Circular 230?

Circular 230 is a regulation that governs practice before the Internal Revenue Service. Circular 230 applies to attorneys, accountants, and other tax professionals. On December 20, 2004, the Department of the Treasury published final regulations on Circular 230 which became effective June 20, 2005. These final regulations changed the way that attorneys and other professionals are allowed to give tax advice to clients, including specific requirements for the content of various types of written advice.

In particular, the final Circular 230 regulations set forth and define specific types of written advice that constitute "covered opinions." Including a disclaimer in the writing you received allows us to provide written advice without that written advice becoming a "covered opinion" under the final Circular 230 regulations.

If you have further questions about the disclaimer included in the letter, e-mail, or other writing that you received, if you would like to discuss receiving written advice that does not include the disclaimer, or if you would like more information about Circular 230 generally, please contact the attorney at Sherman & Howard L.L.C. who initially provided the letter, e-mail, or other writing that included the Circular 230 disclaimer.