An official website of the U.S. GovernmentStrengthening 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.
To mitigate these challenges and prevent further harm to taxpayers, TAS recommends that the IRS:
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.
Quarter 3 Updates
During Quarter 3, no significant progress was made on this specific activity. Although there were no Operational Completion Plans (OCPs) or Data Gathering Calls related to scheme notices, TAS continued engaging with the IRS to discuss frozen refund cases and identify opportunities to improve taxpayer communication.
TAS held regular discussions with the IRS to evaluate whether updates to existing guidance, including the Internal Revenue Manual (IRM), were warranted to better assist IRS employees in responding to taxpayer inquiries regarding frozen refunds. These discussions support the broader objective of ensuring taxpayers receive accurate, timely, and consistent information when their refunds are delayed due to concerns about potentially improper credits or deductions.
TAS will continue working with the IRS to identify opportunities to improve taxpayer communications and advocate for clear guidance that helps taxpayers understand the status of their refunds and the steps necessary to resolve any outstanding issues.
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.
