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Published:   |   Last Updated: May 29, 2026

Strengthen IRS Oversight of Unethical Tax Return Preparers

Strengthening IRS oversight of unethical tax return preparers is critical to protecting vulnerable taxpayers from financial harm, improper claims, and prolonged compliance consequences caused by fraudulent or misleading practices.

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TAS Recommends

To mitigate these challenges and prevent further harm to taxpayers, TAS recommends that the IRS:

Recommendation 4-1

Improve Taxpayer Communication: Provide clear notices to taxpayers informing them that their refund has been held because of concerns with potentially improper credits or deductions. These notices should include detailed instructions on how taxpayers can resolve any issue related to their claims.

Quarter 1 Updates

TAS is reviewing how to incorporate this initiative into an existing or new Collaborative Team, a Systemic Advocacy Project, or a potential FY 2025 Annual Report to Congress Most Serious Problem. Progress during this period was affected by the lapse in appropriations and related operational impacts, including reduced staffing capacity, reassignment of work and priorities, and a reevaluation of TAS’s approach to managing systemic advocacy objectives and associated initiatives.

Quarter 2 Updates

No substantive progress has been made in Q2. TAS will research and become more engaged in efforts to improve notices and prevent further harm to these taxpayers.

Recommendation 4-2

Enact Tax Preparer Legislation: Establish minimum standards and continuing education requirements for all tax return preparers.

 

Quarter 1 Updates

TAS is reviewing how to incorporate this initiative into an existing or new Collaborative Team, a Systemic Advocacy Project, or a potential FY 2025 Annual Report to Congress Most Serious Problem. Progress during this period was affected by the lapse in appropriations and related operational impacts, including reduced staffing capacity, reassignment of work and priorities, and a reevaluation of TAS’s approach to managing systemic advocacy objectives and associated initiatives.

Quarter 2 Updates

The Taxpayer Assistance and Service Act “TAS Act” was introduced in the Senate in February 2026. This proposed legislation would strengthen penalties and oversight of tax return preparers, but stop short of universal minimum standards for all preparers. TAS is closing this recommendation; however, we will continue to monitor activity with this proposed legislation and include any updates in our annual Purple Book Compilation of Legislation Recommendations.