Here at Brown, PC, we regularly represent tax preparers facing IRS civil audits or criminal investigations for their tax return preparation work. The IRS actively reviews returns filed by preparers in an effort to uncover noncompliance with preparer due-diligence requirements or behavior that may amount to criminal violation of federal tax laws.
Each year the criminal investigations unit of the IRS (IRS-CI) puts out its annual report. Agents in this division are in charge of investigation tax crimes and recommending prosecutions.
A recent decision from a Nevada federal district court addresses authority of IRS Office of Professional Responsibility (OPR) to regulate tax preparers. The OPR is tasked with making sure that tax professionals follow tax practice standards as well as the law.