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

The Deputy Commissioner, Services and Enforcement, should consider including executive level leadership from the Return Preparer Office and Criminal Investigation on the Nonfiler Executive Steering Committee.

The Director, Collection Inventory Selection and Delivery, Small Business/Self-Employed Division, should use the Return Preparer Database (RPD) to identify high-risk preparers with tax and penalty liabilities who identify themselves as being tax noncompliant during the Preparer Tax Identification Number (PTIN) renewal/application process.

The Director, Collection Inventory Selection and Delivery, Small Business/Self-Employed Division, should ensure that high-priority preparer penalty and tax modules are assigned to the Automated Collection System (ACS) or the Field Collection function to be worked and brought into compliance.

The Director, Collection Inventory Selection and Delivery, Small Business/Self-Employed Division, should consider using the Return Preparer Database (RPD) to determine whether preparers are filing large numbers of client returns showing potential unreported income prior to closing them as a Currently Not Collectible (CNC) hardship and to monitor CNC hardship cases for potentially unreported income.

The Director, Collection Inventory Selection and Delivery, Small Business/Self-Employed Division, should ensure that the top 100 penalty modules in the Queue and top 100 modules for taxpayers who self-attested as noncompliant in the Queue are assigned to be worked by the Field Collection function, or where appropriate.