Tax Preparer Compliance Resources

PTIN & IRS Registration Requirements

If you prepare or assist in preparing federal tax returns for compensation, you generally must have a valid PTIN.

My Tax Pros Networking requirement: You must maintain an active PTIN and keep your information current. If you are unsure about your status, pause and verify before preparing or filing returns.

Due Diligence Rules: Form 8867, EITC, CTC, ACTC, ODC, AOTC & HOH

IRS due diligence rules require paid preparers to complete and submit Form 8867 when specific credits or Head of Household status are claimed, and to meet documentation, knowledge, and recordkeeping requirements.

• Complete and submit Form 8867 when required.
• Ask proper questions, review information for consistency, and resolve conflicts.
• Keep due diligence records for at least 3 years.
• Do not ignore red flags; document follow-up questions and client responses.

Network standard: If a client cannot provide reasonable support for eligibility, you must pause, request documentation, and document the outcome.

Data Security & Privacy: Section 7216, Publication 4557 & FTC Safeguards

Protecting taxpayer data is a legal obligation. Tax preparers are expected to use administrative, technical, and physical safeguards to prevent unauthorized access, disclosure, or misuse of client information.

• Follow IRS guidance on safeguarding taxpayer data.
• Comply with IRC Section 7216 consent rules for use or disclosure of tax information beyond preparation.
• Maintain a written information security program where applicable.
• Use strong passwords, MFA, device encryption, secure storage, and least-privilege access.

Recordkeeping Rules

Keep organized records to support due diligence, defend your work, and respond to IRS inquiries.

• Signed authorizations and acknowledgments as applicable.
• Copies of returns and supporting worksheets.
• Due diligence documentation and Form 8867 support.
• Notes of client conversations and document requests.

Recommended retention: Keep due diligence records for at least 3 years. When in doubt, retain longer based on professional standards and applicable rules.

Continuing Education & Credentials

Maintain competence through ongoing education. Requirements depend on credentials and whether you participate in the IRS Annual Filing Season Program.

Prohibited Practices

Zero tolerance: Any intentional fraud, document alteration, identity manipulation, or fabricated credit claims is grounds for immediate removal and may expose you to civil and criminal penalties.

• No guaranteed refund promises.
• No inventing income, deductions, dependents, credits, or filing status.
• No filing without taxpayer authorization.
• No sharing client data or using it for non-tax purposes without proper Section 7216 consent.
• No ignoring inconsistencies or red flags; document follow-up and resolution.

IRS Updates

Staying current is part of professional responsibility. Use official IRS channels for weekly updates, notices, and guidance.

Internal Policies

These internal policies protect clients, preparers, and the My Tax Pros Networking brand.

Penalties & Enforcement

IRS can assess penalties for preparer failures, including due diligence violations and administrative compliance failures.

Reminder: Penalties can apply per failure and can multiply quickly when multiple credits or filing statuses are claimed on the same return.

Internal Standards for My Tax Pros Networking

• Integrity & accuracy: file only what can be supported.
• Confidentiality: follow Section 7216 and security policies at all times.
• Professionalism: communicate clearly, avoid misleading claims, and provide respectful service.
• Compliance-first: pause, verify, document, and escalate when uncertain.

When you are unsure: Do not guess. Document the issue and contact compliance support before filing.

Legal Disclaimer

This page is provided for educational and internal compliance guidance only and does not replace IRS regulations, federal or state law, Circular 230 obligations, licensing board rules, or professional legal advice. Each preparer is responsible for compliance with all applicable laws and regulations.

Compliance Support

Need help interpreting a rule or handling a compliance situation? Contact us before filing.