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[18947]
June 16, 2005
TO: ADVISER DISTRIBUTOR TAX ISSUES TASK FORCE No. 3-05
TAX COMMITTEE No. 20-05
RE: DRAFT LETTER TO TREASURY ON GENERAL APPLICATION OF CIRCULAR 230
The Institute has prepared for your review the attached draft letter to Treasury and the
Internal Revenue Service requesting clarification of the potential application of the “covered
opinion” rules of section 10.35 of Circular 230 to the mutual fund industry. Specifically, we
request that additional guidance address, as examples of communications not subject to
Circular 230: (1) mutual fund communications with prospective and current shareholders; (2)
internal communications by in-house counsel of a mutual fund adviser regarding the tax
treatment of the mutual funds that the firm manages; and (3) trade association communications
to members. We also request related revisions to the definition of “covered opinion.”
As we previously informed you, a conference call will be held this afternoon (Thursday,
June 16) to discuss the general application of Circular 230.1 We will discuss this letter during
that call. Please provide any comments you have on the letter to the undersigned at your
earliest convenience. We plan to file the letter no later than the morning of June 20.
Keith Lawson
Senior Counsel
Attachment (in .pdf format)
1 See Institute Memorandum to Adviser Distributor Tax Issues Task Force No. 2-05 and Tax Committee No. 19-05,
dated June 14, 2005.