Why Tax Return Preparers Fear IRS Due Diligence Audits
As former IRS attorneys at Gregory Law Group, we know how stressful IRS due diligence audits can be for tax return preparers. These audits often arrive just before tax season, when you’re already under pressure to serve clients. Instead of focusing on your practice, you’re suddenly consumed with IRS demands, scrambling to produce documentation, and worrying about penalties that could devastate your business.
The IRS targets preparers for compliance with credits such as:
Earned Income Tax Credit (EITC)
Child Tax Credit (CTC)
Additional Child Tax Credit (ACTC)
American Opportunity Tax Credit (AOTC)
Head of Household filing status
If the IRS believes you failed to meet your due diligence requirements, the penalties can be thousands of dollars per return.
IRS Enforcement Tools Against Tax Return Preparers
When the IRS launches a due diligence audit, it’s not just a paperwork review—it’s one of the agency’s most powerful enforcement mechanisms.
Civil penalties: Steep fines for each return deemed non-compliant.
Injunction suits: The Department of Justice can shut down your tax preparation business entirely. Many injunction cases begin after a preparer performs poorly in a due diligence audit.
Criminal investigations: In extreme cases, preparers may face fraud charges, indictments, or even prison time. Non-compliance during a due diligence audit increases this risk.
A routine compliance review can quickly escalate into a career-threatening ordeal.
Why Timing Matters in IRS Due Diligence Audits
The earlier you involve us, the more effectively we can protect you.
Before tax season: We review your practices, identify vulnerabilities, and prepare you for IRS scrutiny.
During an audit: We represent you, manage all communications, and protect your rights.
After an audit: We challenge penalties, negotiate settlements, and guide you toward long-term compliance.
Many preparers fall into the “overconfidence trap.” They assume they’re compliant because they’ve filed returns for years without issues. But with tens of thousands of preparers nationwide and limited IRS resources, the real question is not if you will be audited, but when.
If you prepare returns containing the EITC, CTC, AOTC, or Head of Household status, an audit is virtually inevitable.
How Gregory Law Group Helps Tax Return Preparers
We don’t just defend clients—we help strengthen their practices.
Audit representation: We take control of communications with the IRS so you never face them alone.
Documentation defense: We help you gather records, challenge penalties, and present your case effectively. Many preparers receive steep penalties simply because they don’t understand which documents must be produced.
Future compliance: We train you and your staff, implement checklists, and build systems that reduce future risk.
Our goal is both immediate protection and long-term stability.
Why Choose Gregory Law Group’s Former IRS Attorneys
Because we once worked for the IRS, we understand exactly how due diligence audits are conducted. We know what auditors look for, how cases escalate, and where preparers are most vulnerable.
Insider knowledge: We understand IRS enforcement priorities and tactics.
Proven track record: We’ve represented more than 400 tax return preparers nationwide.
Tailored strategies: We customize solutions based on your practice, your clients, and your risk exposure.
This blend of insider knowledge and compassionate guidance makes us uniquely equipped to defend tax professionals.
The Emotional Toll of IRS Audits
IRS audits are not just legal or financial challenges—they’re emotional ones.
Fear of losing your business or facing criminal charges
Shame from having your integrity questioned
Sleepless nights worrying about what the IRS will do next
We understand how heavy this burden feels. Our role is not only to defend you legally but also to provide clarity and peace of mind.
Building a Stronger Tax Preparation Practice
Working with us means more than surviving an audit—it means improving your entire practice.
Training: We educate you and your staff on IRS due diligence requirements.
Systems: We help implement compliance checklists and documentation protocols.
Confidence: You can enter tax season knowing you are prepared for IRS scrutiny.
A proactive approach transforms audits from threats into opportunities for growth.
Peace of Mind During Tax Season
Imagine entering tax season without the dread of an IRS audit.
Imagine knowing your due diligence procedures are strong, your documentation is complete, and your practice is protected.
Imagine sleeping through the night with the confidence that former IRS attorneys are ready to defend you if needed.
That is the peace of mind we provide.
Take the First Step Toward IRS Audit Defense
If you’re a tax return preparer facing a due diligence audit—or if you want to prepare before one arrives—the most important step is to act now. The IRS won’t wait, and you shouldn’t either.
We offer confidential consultations where you can discuss your situation openly. We’ll explain your options, outline a defense strategy, and begin protecting you immediately.
Conclusion: Protect Your Practice from IRS Due Diligence Audits
IRS due diligence audits are one of the agency’s most powerful tools against tax return preparers. They often occur just before tax season, creating maximum stress and disruption. But with Gregory Law Group’s former IRS attorneys on your side, you gain both a strong defense and guidance toward long-term compliance.
We’ve already helped more than 400 tax return preparers nationwide. We can help you too. Relief is possible, protection is achievable, and confidence is within reach.
