The Internal Revenue Service Lacks a Coordinated Strategy to Address Unregulated Return Preparer Misconduct

The Deputy Commissioner for Services and Enforcement should develop a preparer misconduct strategy that encourages programs with the authority to address preparer misconduct to coordinate with one another to establish program goals and track progress towards those goals.

The Commissioner, SB/SE Division, should establish goals that support the Service-wide Return Preparer Strategy being developed by the Deputy Commissioner for Services and Enforcement and monitor progress towards those goals.

The Commissioner, SB/SE Division, should analyze procedures among the RPCs for best practices and establish national procedures, including PAC referral criteria.

The Commissioner, SB/SE Division, should establish formal procedures and criteria for LDC case selection and refer to the Examination function along with performance measures that compare results with goals and criteria, such as the percentage and amount of penalties assessed for referred cases.

The Commissioner, SB/SE Division, should assess the priority and assignment of preparer misconduct penalties and track the results so that changes can be made to improve collection rates.