IRS to merge tax practitioner offices despite AICPA opposition

The IRS will merge two offices that deal with tax practitioners — one that deals with misconduct and discipline and another that administers the preparer tax identification number (PTIN) program — a move the AICPA opposed.

The IRS, in a statement Monday, said it will form the Tax Professional Management Office (TPMO) from the merger of the Office of Professional Responsibility (OPR) and the Return Preparer Office (RPO). The RPO handles the PTIN and enrolled agent practitioner programs and also encourages enrollments in the annual filing season program and processes some complaints against return preparers.

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 merger will “simplify and modernize” how the IRS interacts with tax professionals and also supports workforce management requirements in Executive Order 14210, Implementing the President’s “Department of Government Efficiency” Cost Efficiency Initiative, the IRS said.

Melanie Lauridsen, the AICPA’s vice president–Tax Policy & Advocacy, said in a statement that the AICPA had previously noted concerns, which included that the merger could increase taxpayer confusion related to the qualifications of various tax return preparers.

In a letter sent in November to the RPO and OPR, the AICPA said the merger “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 IRS statement tried to allay such concerns. “This reorganization under TPMO will not change the distinction between credentialed tax professionals and uncredentialed tax preparers,” the IRS said. “The missions of RPO and OPR will remain intact and will operate independently within their respective roles and authorities. Aside from improved efficiencies, the merger will have no impact on how the IRS oversees the tax professional community.”

“We are hopeful that this distinction will prevent further confusion and we will continue to diligently monitor developments as more details regarding the new office structure are revealed,” Lauridsen said in her statement Tuesday.

Chris Pleffner, the RPO director, will lead the new office, the IRS said. The merger is effective June 28.

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