DDVs are a core enforcement component of the Return Preparer Strategy and serve as the primary mechanism for proposing and assessing preparer penalties under IRC 6695(g). RCA conducts DDVs for paid return preparers with a demonstrated pattern or history of noncompliance with statutory due diligence requirements.

SB/SE Revenue Agents (RAs) and Tax Compliance Officers (TCOs) or Tax Specialists (TS) administer DDVs and may conduct the visits either in person or through correspondence. These visits involve a structured review of selected client returns to evaluate whether the preparer satisfied due diligence requirements for covered tax benefits, including:

During a DDV, examiners evaluate compliance with statutory and regulatory standards, including proper completion of Form 8867, satisfaction of knowledge requirements, computation accuracy, and record-retention requirements pursuant to IRC 6695(g) and Treas. Reg. 1.6695-2.

DDVs require the development and documentation of additional substantiating evidence to support penalty determinations. Where failures are identified, penalties may be proposed and assessed in accordance with established procedures. Cases demonstrating repeated, willful, or egregious noncompliance may be referred for further enforcement consideration.

KTV is a field-based treatment focused on paid tax return preparers who demonstrate indicators of elevated risk related to due diligence requirements under IRC 6695(g). The program identifies preparers who have filed returns claiming refundable credits and other covered tax benefits—such as the Earned Income Tax Credit (EITC), Child Tax Credit (CTC/ACTC), American Opportunity Tax Credit (AOTC), and Head of Household (HOH) filing status—where compliance models identify patterns suggesting potentially deficient due diligence or highly questionable claims.

KTV visits are educational, non-examination contacts designed to:

SB/SE Revenue Agents (RAs) in coordination with a Special Agent (SA) from Criminal Investigation (CI) conduct the KTV. The purpose of the visit is to promote voluntary compliance, reinforce statutory and regulatory requirements, and address questionable filing patterns.

KTVs Lite are similarly structured educational visits in which selected client returns are reviewed; however, CI Special Agents are not present. SB/SE RAs or SL Tax Specialists may conduct the KTV Lite. This treatment stream focuses on outreach, education, and behavioral correction without an enforcement posture.

Both KTV and KTV Lite treatments serve as early-intervention compliance tools within the Return Preparer Strategy and may inform subsequent case selection or escalation where patterns of noncompliance persist.

The Lead Development Center (LDC) works to identify and deter individuals who promote abusive tax schemes and/or prepare abusive returns; evaluates and develops information from both internal and external sources. RCPM identifies and refers to the LDC egregious preparers that have been previously treated with multiple DDVs and the behavior continues.

The Webinar Invitation Letter (Letter 6597 - Webinar Invitation) is issued to paid return preparers as an invitation to attend a virtual educational webinar hosted by the Internal revenue Service (IRS).

The webinar provides guidance on due diligence requirements under IRC 6695(g), common compliance deficiencies, documentation standards, and best practices for refundable credit claims and related filing positions.

Participation in the webinar constitutes an educational treatment stream within the Return Preparer Strategy. However, receipt of Letter 6597 and webinar attendance does not preclude selection for other compliance treatments. Preparers meeting risk thresholds may alternatively—or subsequently—be assigned to other treatment streams, including KTV, KTV Lite, or DDVs, based on program criteria and case analysis.

Post-Refund Client Audits (PRAs) within the Return Preparer Strategy include focused examinations of client returns prepared by egregious preparers who demonstrate persistent noncompliance with due diligence requirements under IRC 6695(g). These audits are conducted after refunds have been issued and focus on verifying eligibility for specific refundable credits, including the EITC and the AOTC and the Head of Household filing status.

Educational telephone calls focus on helping paid preparers comply with the due diligence requirements and prepare accurate returns and claims for refund claiming the:

Outbound Phone Calls conducted by TS during both PFS and FS are educational in nature but incorporate a compliance-warning component. They promote behavioral correction while documenting continued risk indicators that may support subsequent case selection or escalation if noncompliance persists.

Educational letters focus on helping paid preparers comply with the due diligence requirements and prepare accurate returns and claims for refund claiming the:

Each letter/notice to a preparer reminds them that not meeting due diligence requirements can result in a penalty assessed against the preparer. The RPS team continues to monitor the preparer's future returns, claiming the tax benefits to which due diligence requirements apply.

Control groups are assigned by treatment stream (DDV, KTV, Letters, etc.) and allow the team to determine treatment effectiveness.

Deconfliction protocols are used to preserve treatment integrity, prevent duplicative contacts, and ensure coordinated compliance actions across IRS functions.

Control groups consist of preparers who meet established selection criteria but are intentionally excluded from a specific treatment stream (e.g., Webinar, KTV, KTV Lite, telephone contact, or DDV) for analytic and program-evaluation purposes. These groups allow RPS to:

Preparer’s assigned to control groups are subject to ongoing monitoring and are eligible for future treatment streams based on compliance behavior and risk indicators.

Deconfliction procedures are implemented to prevent overlapping compliance actions involving the same preparer across IRS functions (e.g., SB/SE Exam, CI, RCPM, LDC, or other enforcement programs). Deconfliction ensures:

Prior to assignment or execution of an RPS treatment, preparer identifiers are screened against relevant IRS systems and program inventories to identify conflicts.

The value of the program is measured by estimating the number of improper payments prevented or deterred because of compliance treatments and the estimated number of assessments collected by the IRS.

The goal of the treatments is behavioral changes following educational treatments (e.g., Webinars, KTV/KTV Lite, telephone contacts) that reduce future erroneous claims.

DDVs resulting in assessed IRC 6695(g) penalties.

PRAs that disallow improper refundable credits and/or increase tax liability.