Common Problems Tax Professionals Face And How TaxPro Shield
Running a tax practice isn’t just about preparing returns, it’s about navigating an industry where one mistake (or even someone else’s mistake) can cost you your license, your PTIN, your EFIN, or your freedom.
At TaxPro Shield, we’ve seen the same problems catch tax professionals off guard over and over again.
Here’s what you need to watch out for and how we can protect you.
EFIN Suspension or Expulsion
The Risk:
Your Electronic Filing Identification Number (EFIN) is your lifeline. Lose it, and you can’t e-file, which means you can’t run your business. The IRS can suspend or revoke your EFIN for unauthorized use, incomplete applications, or failing to update business information.
How TaxPro Shield Protects You:
- Preemptive compliance reviews to spot risk before the IRS does
- Representation if your EFIN is flagged, suspended, or revoked
- Guidance on policies to prevent unauthorized use by employees or contractors
Due Diligence Penalties
The Risk:
The IRS can impose $635 per return penalties for failing to meet due diligence requirements for credits like EITC, CTC/ACTC, ODC, and AOTC. Even if you didn’t personally prepare the return. If you signed it as the ERO, you’re responsible.
How TaxPro Shield Protects You:
- Training on IRS Form 8867 and due diligence documentation
- Representation during IRS due diligence audits
- Guides and checklists to ensure you’re audit-ready year-round
IRS Criminal Investigations (CID)
The Risk:
A knock on the door from IRS Criminal Investigation (CID) agents can change everything. Many tax professionals end up under investigation for alleged fraud, conspiracy, or identity theft , often because of a client’s actions or a team member’s mistake.
How TaxPro Shield Protects You:
- Immediate legal defense from an experienced criminal tax attorney.
- Protection before, during, and after federal interviews or raids.
- Crisis management to safeguard your reputation and your rights.
OPR Disciplinary Actions
The Risk:
The IRS Office of Professional Responsibility (OPR) can censure, suspend, or disbar tax professionals from practice before the IRS. These actions often stem from conduct the IRS views as unethical or in violation of Circular 230.
How TaxPro Shield Protects You:
- Legal representation during OPR investigations and hearings.
- Written responses to proposed sanctions.
- Advice on compliance with Circular 230 to prevent violations.
Client or Employee Fraud
The Risk:
A single fraudulent return prepared by a staff member or even submitted by a client can bring the IRS and DOJ to your doorstep. Even if you didn’t know about it, you may still be held liable.
How TaxPro Shield Protects You:
- Internal control reviews to detect suspicious activity.
- Defense representation if you’re accused of preparing or facilitating fraudulent returns.
- Guidance on terminating problem clients or staff without creating legal exposure.
Data Breaches & Security Failures
The Risk:
IRS Publication 4557 requires you to safeguard taxpayer data. A breach could mean federal and state investigations, loss of your EFIN, and lawsuits from affected clients.
How TaxPro Shield Protects You:
- Data security compliance guidance and best practices.
- Representation in breach investigations and enforcement actions.
- Incident response planning to minimize damage and penalties.
Don’t Wait Until the IRS Comes Knocking
JOIN Taxpro shield today
Most tax professionals don’t think about legal protection until they’re already in trouble. By then, it’s too late to avoid the stress, cost, and damage to your business.
With TaxPro Shield, you get:
- Year-round legal guidance,
- Representation in regulatory and criminal matters.
- Tools to keep your practice compliant and protected.
Still Have Questions
Contact us at 888-30-TAXPROS or click the link below to get your question(s) answered.