2019 Third Quarter Tax Relief Scammer Report

There are various reasons practitioners can be banned by the IRS. We've listed out each instance below.

Types of Sanctions

Why does a tax practitioner lose their license? What type of sanctions can the IRS impose? Understanding the various sanctions imposed by the OPR can help you understand why you should avoid tax practitioners suspended by the IRS.

Disbarred by practice from the IRS – Just as a lawyer may be disbarred for illegal or immoral conduct, a tax practitioner can lose his or her license to practice before the IRS for a minimum of five years. A practitioner who is disbarred may take your money but cannot negotiate with the IRS on your behalf or represent you in court.

Suspended by practice from the IRS – This tax professional cannot practice before the IRS for the term of the suspension, which varies.

Censured in practice before the IRS – Beware, because this individual can still practice before the IRS. However, the tax practitioner’s rights may be subject to conditions designed to hold the person to high standards of conduct. Consider this sanction a warning flag; you may not want to hire a practitioner whose integrity has been called into question.

Monetary penalty – A tax practitioner may have to pay a penalty if he or she has engaged in conduct subject to sanction. Likewise, if a tax practitioner acts on behalf of an employer, firm or entity and reasonably should have known the actions were subject to sanction, the practitioner could face a penalty. Be careful of this person, because this tax practitioner might look the other way and allow behavior, such as lying on your tax returns, that could get you into trouble.

Tax practitioners who are facing other sanctions often face monetary penalties as well as having their license suspended or revoked.

Disqualification of appraiser – A professional under this sanction is not permitted to present evidence or testimony in administrative proceedings before the IRS or Department of Treasury.

Ineligible for limited practice – Steer clear of these individuals. A tax practitioner declared ineligible for limited practice was never enrolled or licensed. By failing to comply with IRS requirements, the practitioner may now be determined ineligible to engage in limited practice as a taxpayer representative.

Disciplinary Sanctions

Just as the IRS doesn’t collect unpaid tax debt overnight or put a lien or levy on your property without due process, the OPR must follow a specific process before imposing sanctions. Learn about the steps that go into sanctions to better understand the information in Solvable’s scam report.

Disbarred by decision, Suspended by decision, Censured by decision, Monetary penalty imposed by decision, and Disqualified after hearing – An administrative law judge (ALJ) imposes sanctions after the government’s summary judgement movement or an evidentiary hearing. There is no appeal.

Disbarred by default decision, Suspended by default decision, Censured by default decision, Monetary penalty imposed by default decision, and Disqualified by default decision — If the tax practitioner does not respond to the OPR’s complaint, the ALJ issues a default decision imposing sanctions.

Disbarment by decision on appeal, Suspended by decision on appeal, Censured by decision on appeal, Monetary penalty imposed by decision on appeal, and Disqualified by decision on appeal — The tax practitioner appealed the ALJ’s decision but lost the appeal.

Disbarred by consent, Suspended by consent, Censured by consent, Monetary penalty imposed by consent, and Disqualified by consent — The tax practitioners offered a consent to sanctions to avoid disciplinary proceedings.

Suspended indefinitely by decision in expedited proceeding, Suspended indefinitely by default decision in expedited proceeding, Suspended by consent in expedited proceeding — Proceedings were expedited by the OPR because the tax practitioner is also facing criminal convictions or lost his or her professional license.

Determined ineligible for limited practice — An unenrolled or unlicensed tax return preparer may not practice because the preparer violated standards or conduct or failed to comply with requirements.

Any tax practitioner can petition to have sanctions lifted after five years, unless the sanctions specified a shorter time period.

If the sanctions are lifted, the practitioner may be “reinstated to practice before the IRS.” Unenrolled / unlicensed professionals may be “reinstated to engage in limited practice before the IRS.”

Review our scam report to find out if your tax practitioner has ever faced sanctions. If a tax practitioner has been reinstated, tread carefully. Read online reviews and determine if you would prefer to find a tax debt relief firm with a flawless track record and no history of sanctions.

We have taken the greatest effort to ensure our information is up-to-date. To verify a practitioner’s current status, you can also contact the IRS in writing: Internal Revenue Service, Office of Professional Responsibility, Attention: SE:OPR, Room 7238/IR, 1111 Constitution Avenue, NW, Washington, DC 20224.