The Complaint Referrals unit receives and evaluates complaints against tax return preparers.

Complaints come from a variety of sources, including taxpayers, IRS employees, other tax return preparers, and other government agencies via mail, email or ee-Fax.

Form 14157, Complaint: Tax Return Preparer, should be used to submit complaints about return preparers, but Complaint Referrals will accept a complaint in any format. Form 14157 requests the identifying information of the return preparer, a description of the behavior that caused the complaint, and the complainant’s information.

The Director of RPO Compliance is responsible for oversight of the complaint referrals program.

The Complaint Referrals manager is responsible for ensuring the program instructions are communicated to and carried out by the proper employees.

The Complaint Referrals employees are responsible for following the procedures herein to receive, evaluate, research and resolve complaints.

All employees must consider the Taxpayer Bill of Rights while carrying out duties related to the complaint referrals program. For additional information, see Policy Statement 1-236 and the Taxpayer Bill of Rights.

The ability to input or modify content of the Return Preparer Database is granted only on an as-needed basis. See IRM 25.20.1.2 for information about the Return Preparer Database.

The Complaint Referrals manager approves all complaint closures.

RPO performs a quality review of a random sample of resolved complaints, and generates a report for managerial review.

IDTVA - Identity Theft Victim Assistance unit

EFIN - Electronic Filer Identification Number

ETIN - Electronic Transmitter Identification Number

PII - Personally Identifiable Information

PTIN - Preparer Tax Identification Number

RP Database - Return Preparer Database

RPO - Return Preparer Office

TIGTA - Tax Inspector General for Tax Administration

TPPS - Tax Professional PTIN System

A control number consists of seven digits in the format of XX-XXXXX.

The first two digits represent the last two digits of the calendar year in which the complaint was received by RPO (19 for 2019, 20 for 2020, etc.).

The third digit represents the source of the complaint, as follows:

Digits four through seven are sequential, starting with XX-X0001 for each new calendar year. Each complaint source listed in the above chart uses its own sequence.

A Management Directive is a request from RPO management to conduct specific research on or provide information about a complaint, or a complaint that requires special handling and response. Management directives are generally sent to Complaint Referrals employees via email.

Log, scan and upload the complaint into the RP Database within one business day. The manager will then assign the complaint for resolution.

If assigned a Management Directive, follow all phases of standard complaint processing, with the following exceptions:

Complaints alleging the following must be classified as urgent:

Do not rely on the complaint form checkboxes as the sole indication of urgency. The narrative and any attachments should be used to assist in the decision.

For urgent complaints, follow all phases of standard complaint processing, with the following exceptions:

These entries to the RP Database are not complaints. Rather, they are records of return preparers who have been or may be considered for future IRS action due to violations of the tax law, tax regulations, PTIN requirements and/or Circular 230 provisions.

Internal Referrals – FYI Only entries come from two sources:

When receiving a FYI Only referral, follow all phases of standard complaint processing, with the following exceptions:

Complaints that are not written in English must be translated by IRS Linguistic Services whenever possible.

Complete the intake phase prior to sending the complaint for translation.

When assigned a foreign language complaint, follow all phases of standard complaint processing, with the following exceptions:

The employee who receives the email in the *RPO Referrals mailbox will:

After receiving the translation, the manager will assign the complaint for routine processing.

Incoming mail should be handled as described in the following subsections.

Each complaint must be entered into inventory within 10 days of receipt in RPO.

The manager assigns complaints for evaluation using the RP Database. Employees assigned to the complaints should generate an inventory report from the database on a daily basis showing the complaints to be evaluated.

The inventory report lists complaints in the order they were received. Evaluate complaints in this order unless more recent complaints are deemed urgent or must be worked based on a management directive.

All complaint documents should have been scanned and uploaded to the RP Database prior to evaluation.

Verify that the correct complaint was uploaded to the complaint record. If not, send an email to the group manager requesting the correct complaint be uploaded and associated.

If the preparer information has not yet been transcribed from the complaint, enter it now by following guidance in IRM 25.20.1.7.2.3 for entering and perfecting the preparer information.

If the information has already been entered, review it for accuracy and make any necessary changes based on guidance in IRM 25.20.1.7.2.3.

The nature of the complaint reflects the allegation(s) made in the complaint.

Complete this portion of the RP Database by selecting the fields that correspond with the boxes on Form 14157, Form 14157-A or Form 3949-A.

If no boxes are checked, or if the complaint was not received on Form 14157, Form 14157-A or 3949-A, then do not make any entries.

The allegation entered into the RP Database is the same as the complaint category found in IRM 25.20.1.4.

Read the complaint and all attached documentation.

Select the allegation category most appropriate for the allegation in the complaint. If there are multiple allegations, select the most egregious one, or the one that will allow action to be taken on the complaint.

Examples of appropriate suspected allegations are:

A complaint that alleges Identity Theft to Obtain a PTIN requires special handling. See IRM 25.20.1.11.1 for a complaint with this allegation.

If the submission is not a complaint as defined in IRM 25.20.1.1.1.1 , close it immediately.

If the noncomplaint involves a valid IRS matter, route it to the appropriate office and send Letter 5590 to the complainant, if possible, advising that the submission was rerouted.

See IRM 25.20.1.6 for guidance on identifying, rerouting and closing noncomplaints.

A complaint is considered to be processable unless it is:

Complainant identifying information is not required for a complaint to be considered processable.

Unprocessable complaints are not the same as noncomplaints. See IRM 25.20.1.6 for details about noncomplaints.

Complaints identified as unprocessable can be closed during the evaluation phase without further research.

Document in the RP Database notes why the complaint is considered unprocessable.

Send Letter 5590 to the complainant, if possible, advising that the complaint is not processable, unless it is unprocessable due to being out of cycle.

A preparer may be the subject of multiple complaints (also referred to as “related complaints”). It is important to identify related complaints because the volume and nature of all complaints against a preparer impacts the resolution. These related complaints are generally linked by a preparer’s PTIN, SSN, EIN, EFIN or phone number.

The RP Database automatically generates a list of complaints linked by the above identifiers. The list is an indication of some relationship among the complaints, but not a confirmation that they all involve the same preparer or business. Conduct a cursory review of the related complaints to make sure they are truly related. Complaints that appear related because they share the EIN of a large tax preparation franchise or because of an invalid character in one of the fields used to link the complaints are not truly related.

Consider whether any of the related complaints impact the complaint in question. See IRM 25.20.1.8.12 for additional guidance on closing a complaint during the evaluation phase.

A duplicate complaint is any complaint in which the complainant, preparer, impacted tax year(s) and allegation are the same as in a previously-filed complaint. It is important to identify duplicate complaints because decisions are made based on the number of complaints received.

A duplicate complaint may be identified at any point during the complaint referral process and should be closed immediately.

If a duplicate complaint contains information not in the previously-filed complaint, merge the additional information into the file that is already uploaded to the RP Database. This ensures that all available information is associated with the original complaint. See IRM 25.20.1.11.4 for additional guidance about receiving subsequent information.

Document in the Evaluation tab notes all actions taken and the reason for the actions.

Close the complaint as a "Duplicate."

Other IRS business units receive referrals and leads on return preparers, including SB/SE Examination and the Lead Development Center (LDC). As part of their normal operations, they research the leads and decide if they will take any action.

A return preparer is considered to be part of an existing project if the preparer or preparation firm is the subject of an open Program Action Case (PAC) or investigation under Internal Revenue Code (IRC) section 6700/6701, or is part of a return preparation entity recognized as having ongoing LDC involvement.

Complaint Referrals has two ways, using the RP Database, to identify preparers who are part of a project: the LDC Indicator and the SB/SE Indicator.

Complaints alleging the following must be classified as urgent:

Follow instructions in IRM 25.20.1.5.2 for processing urgent complaints.

In the following circumstances, a complaint may be closed during the evaluation phase and referred to the noted IRS stakeholder:

If the complaint can be closed during the evaluation phase, complete all applicable fields in the RP Database based on the reason for the closure.

In most circumstances, Complaint Referrals acknowledges the receipt of a complaint in writing when the complainant’s name and mailing address are available.

There are two acknowledgement letters: Letter 4924 and Letter 5590. Send Letter 4924 when the complaint is processable, or unprocessable only because it is out of cycle. Send Letter 5590 when the complaint is unprocessable for a reason other than out of cycle, or will be closed Not a Complaint.

Generate the letter in the RP Database, and print and mail it within one day of creation.

The manager assigns complaints for research and resolution using the RP Database. Employees should generate an inventory report from the database on a daily basis showing the complaints assigned to them.

The inventory report lists urgent complaints first, followed by complaints in the order they were received. Resolve complaints in this order unless more recent complaints are deemed urgent or must be worked based on a management directive.

Ensure that all of the information entered on the RP Database is accurate by comparing it to information provided on the complaint or available elsewhere.

Attempt to complete any missing data elements, including identifying numbers such as the SSN or EIN.

Document the reason for making any corrections in the database.

Although the complaint should have been identified as part of an existing project during the evaluation phase, another check should be made during the research and resolution phase, as the routine opening and closing of investigations may result in a different finding. See IRM 25.20.1.8.10 for guidance on checking for an existing project.

Research IDRS using the preparer’s SSN and EIN to determine if the preparer or the preparer’s business is under active criminal (Z – or – Z freeze) or Exam (- L freeze) investigation.

An Exam investigation is worked by either Campus Exam or a field group. A preparer is only considered to be under open Exam investigation if being worked by a field group. If the investigation is in Campus Exam, it is not considered to be an open investigation. A field investigation is indicated by an L freeze and open TC 420 with a status code below 20, and the three-digit primary business code (PBC) does not begin with "1."

Indicate in the RP Database if there is an open investigation.

If the preparer or preparer’s business is under an open investigation, close the complaint immediately to the business unit who controls the investigation. Do not take any further action; it is especially important that no written or verbal contact be made with the preparer.

See IRM 25.20.1.8.8 for a discussion of related complaints.

Conduct a cursory review of the related complaints to make sure they are truly related. Complaints that appear related because they share the EIN of a large tax preparation franchise or because of an invalid character in one of the fields used to link the complaints are not truly related.

Request to be assigned any related open complaint.

After determining the appropriate resolution of the related complaints, close all of them together. They should generally close with the same disposition and to the same stakeholder, but use judgment when grouping and closing complaints.

Do not close a complaint or group of complaints to a stakeholder simply because a related complaint was previously closed to that stakeholder. See guidance in IRM 25.20.1.9.6 for closing complaints related to previously-referred complaints.

For related complaints that have already been closed, notify the manager of any incorrect information in the database related to the closed complaint or incorrect closure determinations found during the review.

Use judgment to determine how to close a complaint about a preparer or firm who was previously referred to an IRS stakeholder. Determine if this complaint would add value to the stakeholder’s investigation, and document the justification for referring or not referring this complaint to the same stakeholder.

If the previously-referred complaint was received in Complaint Referrals more than two years ago, it should not be counted for any new referral criteria thresholds.

The possible resolutions of a complaint are:

The scope and depth of necessary research varies and depends on the allegation(s), available information, supporting evidence, presence of related complaints, and any prior treatments or other actions.

Thoroughly read each complaint and the supporting documentation.

Determine the appropriate complaint category and allegation (for a complaint with several allegations, select the one with the best referral potential). They may differ from those selected during evaluation.

Use the guidance contained in this subsection to conduct the appropriate research based on the allegation(s). The research techniques described herein are not all-inclusive, but are the most common. Exercise judgment when deciding which techniques to use, and avoid research that does not add value.

Determine the proper resolution of the complaint from the list above.

A compliance letter may be issued, when appropriate, in conjunction with another resolution.

Four types of stakeholder referrals must be considered for all complaints in addition to any other resolutions:

Document all research and the reason for the selected disposition in the Disposition Note field of the RP Database.

Send a copy of the complaint to TIGTA if both of the following apply:

Send a copy of the complaint to the Office of Professional Responsibility (OPR), in addition to any other resolution, if either of the following apply:

This section applies only to preparers with a TPPS-issued PTIN.

If the complaint alleges or research indicates that a preparer is currently incarcerated, has been convicted of a felony within the last ten years, or misrepresented his or her credentials on the PTIN application or renewal, refer the complaint to RPO Suitability in conjunction with any other resolution.

If the complaint alleges that a preparer has personal tax compliance issues, refer the complaint to RPO Suitability in conjunction with any other resolution.

Notes about the complaint should be captured in the RP Database and contain the following information:

Depending on the letter type, generate the letter from either the RP Database (which will be auto-populated with the required information) or the IRS Forms/Pubs/Products repository (which must be populated manually).

Determine the preparer’s address of record using IDRS command code INOLES. All letters must be mailed to the address of record.

When issuing a letter from the IRS repository, insert the case specialist’s name as the person to contact, and insert the complaint control number as the reference number.

Upload the letter to the Administrative folder for the calendar year of the complaint for which the letter is being issued.

Print, date and mail the letter within one business day of receiving the manager’s approval.

Certain stakeholders to whom a complaint has been referred will access the RP Database on a regular basis to identify all complaints that have been referred to them. No action is required by CR during complaint processing.

Stakeholders who do not have access to the RP Database will receive the referrals from the CR group manager or designee.

Definition - An individual’s identity was stolen in order to obtain a PTIN. These complainants are generally not return preparers, but are individuals who have received an IRS communication stating that a PTIN has been issued or a TPPS account created on the basis of his or her identity.

A complaint with this allegation is considered urgent.

To recognize a complaint involving identity theft for obtaining a PTIN when the explanation in the complaint is not clear, look for statements such as:

During the evaluation phase:

During the research and resolution phase:

Definition - A compensated preparer who:

Do not rely solely on information in the RP Database to identify a ghost preparer. A PTIN search may not link to a preparer, or it may link to the wrong preparer.

Use the following chart to determine the appropriate research and resolution for a ghost preparer:

For more information about ghost preparers, see IRM 25.20.2, Identification and Treatment of Ghost Preparers.

A taxpayer may be the victim of return preparer misconduct to the extent that a tax account correction is necessary to reverse the harm done to the taxpayer. A taxpayer’s request for account correction is known as a request for victim assistance. See IRM 25.24.1.

Taxpayers are instructed to request victim assistance on a Form 14157-A. Mailing instructions are on the form. However, Complaint Referrals often receives requests for victim assistance that have been mailed to Complaint Referrals, bypassing the W&I Identity Theft Victim Assistance unit (IDTVA). The remainder of this section applies only to those submissions that have not yet been routed through IDTVA. Requests for victim assistance that have already gone through IDTVA should be treated like any other correspondence received by Complaint Referrals.

Not all requests for victim assistance are filed on Form 14157-A; taxpayers make requests in a variety of ways, including on Form 14157 or Form 3949-A, and in general correspondence. If a request for victim assistance is not readily identifiable because it is not on Form 14157-A, it can be identified by statements such as:

A Complaint Referrals employee who identifies a request for victim assistance must:

If Complaint Referrals receives correspondence referencing an existing complaint, the Complaint Referrals employee who last handled the complaint will be given the correspondence to determine what action, if any, to take as a result of the new correspondence.

Decide if the correspondence affects a prior decision, and contact the manager for guidance on potentially reopening the complaint, or creating a new complaint (for example, when a preparer reacts to a compliance letter by indicating PTIN misuse).

Document the complaint record with the received date of the new correspondence, and brief comments regarding the new information, actions taken, and results.

Depending on the information, it may be necessary to scan and merge the documents into the existing complaint.

Complaint Referrals employees may need to speak directly with a complainant, return preparer, or other third party. Follow the guidelines in IRM 10.5.1, Privacy and Information Protection, Privacy Policy, to avoid making an unauthorized disclosure of confidential information.

A voicemail box with a standard outgoing message has been established to receive calls from those who receive a letter from Complaint Referrals.

Messages must be retrieved daily and provided to the employee to whom the message was directed.

When possible, return calls within two business days of receipt.

If the person is unavailable, leave a voicemail message with your name and return contact number, pursuant to the guidance in IRM 25.20.1.11.5.2.

Make two attempts to return a call.

Document all calls to the voicemail box, and attempts to return the call, in the RP Database. Include the date the call was received, the date returned, the telephone number provided and a brief summary of the issue and resolution.

Use timekeeping code 99007 (Complaint Phone Line) to record time spent addressing phone calls.