DOES NORTH CAROLINA KNOW THAT CIRCULAR 230 EXISTS?

North Carolina recently postponed the effective date of a new law that prohibits the department (as well as units of local government and the state treasurer) from employing an agent or auditor who is compensated in whole or in part by North Carolina for services rendered on a contingent fee basis or any other basis related to the amount of tax, interest, or penalty assessed against or collected.  This is amazing as Circular 230 specifically prohibits any tax practitioner from being compensated in a contingent manner based upon the amount of tax, and every person contracted by North Carolina on a contingent basis could be sanctioned for an ethical violation.  For the savvy tax controversy practitioner, I would be reminding the auditor of Circular 230’s ethical mandate.