Return Preparer Audit

The Return Preparer Program (RPP) is an agency-wide IRS effort to enforce compliance of tax return preparers.  The IRS encourages compliance among tax return preparers through a variety of means by providing targeted enforcement activities to identify and address what it views as the most egregious return preparers. The RPP includes all tax return preparers and not only self-identified return preparers. A tax return preparer is anyone who prepares for compensation or employs one or more persons to prepare for compensation, any tax return or claim for refund.  All tax return preparers must properly identify themselves with their Preparer Taxpayer Identification Number on all tax returns, in which they were compensated for preparing.

The RPP allows for the examination of returns prepared by a particular tax return preparer, if information indicates a pattern of noncompliance. The examination of a tax return preparer’s client’s tax returns without the approval of the Area Director is prohibited. During the examination of the non-compliant return preparer, erroneously filed tax returns may be identified.

Return preparer audits can result in the imposition of civil penalties, referrals to the Office of Professional Responsibility (OPR), or criminal prosecutions.

RPP audits are large scale and resource intensive requiring experienced counsel to successfully manage such examinations, which our Law Office will provide.