Taxpayers may obtain representation before the IRS by a registered tax return preparer concerning returns the RTRP prepared. The Declaration of Taxpayer Rights states that individuals have this right for a professional to represent them in IRS matters. Unfortunately, IRS authority also governs every RTRP practice.
This presents a subtle balancing act for tax preparers. The IRS can sanction any professional with a tax preparer license. That presents some reservation in how aggressive an RTRP defends a taxpayer. The tax professional must possess complete assurance that deducted expenses are legitimate. Otherwise, the IRS is likely to sanction a tax preparer who submits client information without substantiation.
The IRS Office of Professional Responsibility is the department charged with administering activities in the tax preparation business. OPR has a staff of 58 employees. They investigate complaints about the conduct of tax practitioners. Several punishments are available for OPR to implement.