Compliance
Compliance Alert: New Tax Professional Management Office (TPMO) & Your Obligations
IRS is reorganizing how it regulates tax preparers: learn what the new Tax Professional Management Office means for preparer credentials, oversight, and your compliance obligations.
By NomadicTax Research Team • 5-8 min read • June 17, 2026
## What the Tax Professional Management Office (TPMO) Is
On **June 8, 2026**, the IRS announced that effective **June 28, 2026**, it will merge the Return Preparer Office (RPO) and the Office of Professional Responsibility (OPR) under a new division called the **Tax Professional Management Office (TPMO)**. ([irs.gov](https://www.irs.gov/newsroom/statement-on-new-tax-professional-management-office-tpmo?utm_source=openai)) This reorganization aims to streamline how the IRS interacts with credentialed tax professionals and uncredentialed tax preparers alike. Although oversight authority remains distinct, both groups will see operational changes.
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## What Stays the Same vs. What Changes
| Remains the Same | Changes / New Expectations |
|---|---|
| Credentialed vs. uncredentialed distinction — rules and standards still apply. ([irs.gov](https://www.irs.gov/newsroom/statement-on-new-tax-professional-management-office-tpmo?utm_source=openai)) | Processes for submitting credentials or managing authorizations may be handled through TPMO for efficiency. ([irs.gov](https://www.irs.gov/newsroom/statement-on-new-tax-professional-management-office-tpmo?utm_source=openai)) |
| Responsibilities of RPO and OPR remain intact within TPMO. ([irs.gov](https://www.irs.gov/newsroom/statement-on-new-tax-professional-management-office-tpmo?utm_source=openai)) | Likely improved processing times; consolidated points of contact. |
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## Key Compliance Actions for Tax Professionals
- Make sure your **Preparer Tax Identification Number (PTIN)** is active and correctly used on all returns. It must appear on every return or claim you prepare.
- If you have a credential (CPA, attorney, enrolled agent), ensure your credentials are up to date and documented. TPMO may streamline tracking of disciplinary history or status.
- Review your engagements: uncredentialed preparers have legal exposure, especially if claiming false credits or deductions.
- Firms with multiple preparers may need extra record keeping for **Centralized Authorization File (CAF)** relationships, since the TPMO and IRS rollout may intersect with CAF-linked tools.
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## Impacts on Taxpayers When Choosing a Preparer
- Look for preparers who are credentialed or enrolled agents — oversight will be clearer under TPMO.
- Ask for PTIN, make sure you get a copy of your return, check how fees are charged (avoid percentage-of-refund scenarios).
- Be wary of promises of extraordinary refunds or misleading statements tied to OBBB provisions. IRS has warned against preparers overselling newly expanded deductions or credits. ([irs.gov](https://www.irs.gov/newsroom/irs-reminds-taxpayers-watch-out-for-preparers-promising-quick-cash-fast-refunds-under-new-one-big-beautiful-bill-tax-changes?utm_source=openai))
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## Example: Firm Compliance checklist
Suppose “Nomad CPA Group” has five tax preparers, two credentialed, three not. After TPMO starts on June 28:
- They ensure all preparers have active PTINs and PTINs are included on every return.
- They upload credential status for their CPAs/enrolled agents in any IRS portal that TPMO uses.
- They distribute standard engagement letters that disclose fees, responsibilities, and how OBBB deductions will be claimed.
- They audit sample returns for tips, overtime compensation claims, etc., to avoid misreporting.
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## What to Watch For
- Public guidance from IRS on TPMO’s processes and expected timelines.
- Proposed rules or regulations issued under TPMO that may change standards or definitions.
- State-level boards or credentialing bodies may adapt in response to federal consolidation.
**Category:** Compliance
TaxHome: US
Author: NomadicTax Research Team
ReadTime: 5-8 min
Published: true