Emily Cauble on ‘Guiding Tax Return Preparers Informally’

Emily Cauble recently published “Guiding Tax Return Preparers Informally.” The study examines how professional tax return preparers use IRS publications, a form of informal IRS guidance, and whether such publications influence their interpretation of tax law. Based on a 2024 survey of 143 preparers, respondents reported regularly consulting IRS publications alongside other sources.

In a scenario with a clear legal answer, 76.9% of preparers selected the correct tax treatment after reading relevant IRS publication language, outperforming non-experts in an earlier study. However, some preparers still reached incorrect conclusions. In two scenarios involving ambiguous tax law, IRS publications characterized the law as clearly disallowing deductions. After reviewing this guidance, most preparers concluded the deductions were not permitted, results similar to those of non-experts. These findings suggest that IRS publications can significantly shape taxpayer-facing advice. In particular, when publications present uncertain, standards-based legal questions as clear taxpayer-unfavorable rules, they may reduce preparers’ tendency to recommend pro-taxpayer positions under uncertainty.

Read the paper.