Subject of a Closed IRS Investigation? Now You Can Find Out Why.

Chris Gaetano
Published Date:
Mar 8, 2018

Previously if the IRS investigated a tax preparer for possible Circular 230 violations, then closed the case, the preparer in question could not be told what the investigation was about. This has now changed due to a policy change at the Office of Professional Responsibility (OPR), according to Accounting Today. Under the new rules, practitioners under investigation for possible Circular 230 violations will be informed of the precise nature of the allegations and be given an opportunity to respond before the investigation closes. Accounting Today said that the change was prompted by a preparer who was informed via letter that he had been under investigation for possible Circular 230 violations, but that the OPR decided not to take further action and closed the case. Wondering what exactly it was they were being investigated for, the preparer sent a Freedom of Information Act request to the OPR for more information, but was denied because the matter involved a taxpayer before the IRS, which brought the request in conflict with privacy rules. The OPR said that this result was inconsistent with its commitment to provide practitioners a full and fair opportunity to respond to allegations and so decided to change the policy. 

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