AICPA warns that merger of IRS offices would ‘confuse’ taxpayers

Merging the IRS office that regulates credentialed tax practitioners with another office that deals with uncredentialed return preparers would confuse the public and could harm the tax system, the AICPA said in a letter to the leaders of those offices.

The AICPA opposes the proposed merger of the Office of Professional Responsibility (OPR) and the Return Preparer Office (RPO) “because it would inappropriately consolidate credentialed and uncredentialed return preparers under OPR, create potential conflicts of interest, and divert resources from the primary role of OPR,” the AICPA wrote in the letter, dated Nov. 14.

The OPR investigates referrals of alleged misconduct, institutes disciplinary proceedings, and exercises disciplinary authority for violations of Treasury Circular 230, Regulations Governing Practice Before the Internal Revenue Service (31 C.F.R. Part 10), which governs tax practitioners in their interactions with the tax administration system. The RPO administers the preparer tax identification number (PTIN) program and the enrolled agent practitioner program. It also encourages enrollments in the annual filing season program and processes some complaints against return preparers.

“The two offices perform dissimilar government functions, oversee different types of preparers, and, therefore, should remain separate to avoid potential conflicts of interest,” the letter said.

The AICPA has established professional standards for its members, including the Code of Professional Conduct and the Statements on Standards for Tax Services. CPAs also are subject to state professional licensing regimes, continuing education requirements, and Circular 230, while uncredentialed preparers need only a PTIN to prepare federal tax returns, the letter said.

A merger of the OPR and the RPO “would give the dangerous and false impression” that all return preparers are subject to the same standards of conduct, thus blurring “the public’s ability to perceive the distinction between credentialed, uncredentialed, and unenrolled preparers,” the letter said.

“Under a combined OPR unit, unscrupulous and incompetent preparers could readily misrepresent that they are subject to ethical obligations overseen by the ‘Office of Professional Responsibility,’ which would give such preparers a foothold to abuse taxpayers and undermine public trust and accountability in the tax profession,” the letter said.

The letter was sent to Kimberly Rogers, RPO director, and Thomas Curtin Jr., OPR acting director, and signed by Cheri Freeh, CPA, CGMA, chair of the AICPA Tax Executive Committee.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.