From The Office of the Treasury Inspector General
The Return Preparer Office of the IRS coordinates the IRS strategies in dealing with non-compliant preparers that have a history of preparing inaccurate returns. With a growing tax gap, however, the Office of the Treasurer Inspector General for Tax Administration (TIGTA) reviewed 2,134 returns prepared by paid preparers from 2012 to 2014.
The review found that 722 referrals to the Small Business/Self-Employed Division of the Return Preparer Office had not been considered for a formal case to be initiated. TIGTA has therefore recommended the use of improved inventory controls and timeliness standards for referrals to ensure that these problematic returns are considered for further enforcement actions. TIGTA further recommended that the Small Business/Self-Employed Division coordinate with the Return Preparer Office to improve communications between the two.
IRS officials agreed with these actions and plan to take appropriate corrective actions.
Source: Office of the Treasury Inspector General at http://www.treasury.gov/tigta/auditreports/2014reports/201430050fr.pdf