Tax Return Preparers With Delinquent Tax Returns, Tax Liabilities, and Preparer Penalties Should Be More Effectively Prioritized

The Commissioner, SB/SE Division, should update the IRS Small Business/Self-Employed Nonfiler Strategic Plan to include identifying and prioritizing nonfiler preparers for examination.

The Commissioner, SB/SE Division, should update IRM 4.1.5 to include the RPD as a recognized internal source for Examination function case building.

The Commissioner, SB/SE Division, should update IRM 4.11.51.7 to include guidance for PSP return preparer coordinators to identify nonfiler preparers and provide them to the Examination function to review.

The Commissioner, SB/SE Division, should refer the top 100 preparers that we identified as high-risk nonfilers, as appropriate, to revenue officers in the Collection Field function, to revenue agents in the Examination function, or special agents within CI for enforcement action.

The Deputy Commissioner, Services and Enforcement, should consider a reallocation of resources to ensure that most, if not all, tax return preparer nonfilers are subject to enforcement action, such as creating a team of revenue officers, revenue agents, and special agents that specifically focus on nonfilers who present a high risk to tax administration.