IRS Due Diligence Rules for Tax Preparers Are Serious Business

Tax filing season can be chaotic.

According to the Internal Revenue Service, 155,798,000 individual income tax returns were received in the 2019 filing season, with over half of those returns (80,630,000) filed by tax professionals. That doesn’t include the number of other tax returns filed (like business and partnership tax returns, excise, estate, and gift tax returns, or state tax returns) or other tax compliance activity.

Bottom line: Tax professionals are busy year-round.

In the months following the last tax filing season, the IRS began reaching out to tax professionals to remind them of the importance of understanding tax law ...