GAO Report on Tax Filing, IRS Should Enhance Ghost Preparer Identification and Compliance Efforts in a Comprehensive Preparer Strategy

The Government Accountability Office looked at the IRS efforts to identify ghost preparers. The GAO found that IRS efforts were fragmented because relevant data was scattered across several databases. The IRS lacked a strategy, goals, or ways to measure the success of its efforts.

Ghost Preparers Impact IRS

Ghost preparers are tax preparers who do not identify themselves on tax returns. These individuals may leave information off to file fraudulent returns, steal refunds, and steal identities. Courts ordered individual ghost preparers to pay millions in restitution. IRS officials believe the total effect of ghost preparers is likely greater because they are difficult to detect. IRS data systems lack connections and have limitations that limit their usefulness. This prevents the IRS from knowing how many ghost preparers it has identified or addressed.

Why GAO Looked Into It

The Government Accountability Office was asked to examine the Internal Revenue Service’s efforts to address ghost preparers. Ghost preparers may hide identities to avoid accountability and leave taxpayers responsible for inaccurate or fraudulent returns. GAO described how ghost preparers harmed taxpayers and the IRS. The GAO assessed the extent to which the IRS maintained data on ghost preparers and evaluated IRS actions to identify and address them. GAO reviewed federal court cases, IRS documentation and data, and compared IRS efforts to leading practices.

What GAO Recommends

GAO made 3 recommendations to Internal Revenue Service:

• The Commissioner of Internal Revenue should review the quality and usefulness of existing data and identify opportunities to enhance data collecting, sharing, and analysis to inform its ghost preparer efforts.
• The Commissioner of Internal Revenue should incorporate efforts to identify and address ghost preparers within a comprehensive, coordinated paid preparer strategy and identify the resources needed to implement it.
• The Commissioner of Internal Revenue should define and document measurable strategic objectives and performance goals for ghost preparer initiatives, including methods and measures to assess the effectiveness of taxpayer outreach.

The full report, Tax Filing: IRS Should Enhance Ghost Preparer Identification and Compliance Efforts in a Comprehensive Preparer Strategy, is on GAO’s site, publicly released Oct 16, 2026.