DeWitt Law represented a high-volume federal income tax return preparer after the IRS opened an investigation involving potential civil penalty allegations under IRC §§ 6700 and 6701, as well as potential IRC § 6694 and 6695 return preparer violations.

Immediately after being notified of the investigation, the client retained DeWitt Law to provide legal representation and early intervention. Our firm took over the matter from the outset, handled all communications with the IRS, managed document and information requests, and guided the client through each phase of the investigation to ensure her legal and procedural rights were protected.

After approximately 14 months, the IRS concluded its review and found no violations, issuing a formal letter confirming the investigation was closed with no penalty assessments against the client.

Why Early Intervention Matters in Tax Preparer Investigations

When the IRS investigates a tax preparer, the stakes are often far higher than many practitioners realize. These matters can escalate quickly—sometimes resulting in:

  • Criminal investigation referrals;

  • Indictments;

  • Civil injunction lawsuits seeking to shut down the tax preparation business; and

  • Severe civil penalties, including penalties that can be financially devastating or business-ending

Early legal intervention is critical, both to ensure the preparer responds appropriately and to prevent avoidable mistakes that can intensify the IRS’s scrutiny. Whether an investigation is civil or potentially criminal, how the preparer responds at the beginning can shape the entire trajectory of the case.

If you are a tax preparer facing an IRS investigation (whether civil or criminal) it is critical to seek legal representation early. Call DeWitt Law today to protect your business, your reputation, and your future.