PTIN Injunction (DOJ Return Preparer Injunction)
Stopping government overreach. Protecting your right to prepare returns.
When the Department of Justice (DOJ) files a civil injunction to stop you from preparing tax returns, they’re trying to shut down your livelihood—often permanently. These suits, commonly called “PTIN injunctions,” are brought in federal court under 26 U.S.C. §7407 (return preparers), §7408 (promotion of abusive arrangements), and sometimes §7402(a) (broad equitable relief). At The Walton Firm—Exclusively Defending Tax Professionals, we move fast to protect your practice, your PTIN/EFIN status, and your reputation.
What the government must prove
- You are a “tax return preparer.”
- You engaged in specified conduct (e.g., willful/reckless disregard of rules, understating tax, fraudulent or deceptive practices, or promoting abusive arrangements).
- An injunction is necessary to prevent recurrence—sometimes they ask the court to bar you from preparing any returns at all if narrower relief is “not sufficient.”
We focus on breaking these elements—factually, legally, and strategically.
Why these cases are different for tax professionals
- High-speed timelines: TROs/preliminary injunctions can be set on days’ notice, with quick discovery.
- Collateral damage: OPR discipline, PTIN denial/suspension, EFIN revocation/suitability, software and bank-product holds.
- Publicity risk: DOJ press releases can harm referrals, partnerships, and hiring.
First 72 hours: do this now
- Stop the bleeding: Enforce unique logins + MFA, freeze risky workflows, and halt any questionable marketing.
- Preserve evidence: Export e-file logs, user-access reports, client lists, fee records, refund-advance stats, QC/due-diligence checklists.
- Centralize communications: No off-the-cuff calls or emails to IRS/DOJ—route through counsel.
- Operational continuity: Prepare a paper-file/extension plan and a compliant client message.
- Hire defense counsel immediately: Early narrative control can prevent a blanket ban.
Our defense approach
1) Rapid Risk Map & Theory of the Case
We identify exactly what DOJ is alleging (credits patterns, Schedule C issues, ERC, “cookie-cutter” deductions, etc.) and build a defense narrative that explains your process, supervision, and controls.
2) Evidence Build-Out & Expert Review
We assemble the real record: engagement letters, questionnaires, contemporaneous notes, due-diligence files, training logs, audits, and third-party verification. We often add expert analysis to rebut DOJ sampling and “pattern” claims.
3) Procedural & Substantive Challenges
- Attack sampling, statistics, and the “pattern and practice” leap.
- Reframe alleged willfulness as good-faith reliance, documented inquiries, or client misconduct.
- Challenge breadth—push for narrow, targeted relief (if any), not a lifetime ban.
4) Parallel-Track Control
Coordinate with OPR, PTIN/EFIN units, IRS Exam/CI, and state boards so one step doesn’t trigger another.
5) Resolution Options
If appropriate, negotiate a consent order with tight scope (e.g., specific credits or procedures), compliance undertakings, training, audits, and no admission—protecting your long-term practice. If not, we’re prepared to litigate.
Documents we gather fast
- Return packets, organizers, EITC/CTC/HOH/AOTC checklists, internal file-audit logs
- Research memos/authority supporting positions; disclosures used when standards required
- User access/MFA proof; role-based permissions; e-file/bank-product reports
- Marketing/website/fee disclosures; scripts; client communications
- Training sign-offs; discipline records; Written Information Security Program (WISP)
- Ownership/locations consistent with your e-file application (no gaps or surprises)
Walton's Win
- Scope Limited; No OPR Suspension: Government demanded broad relief. We negotiated limited conduct restraints plus audits/training; no suspension by OPR.
Frequently Asked Questions
Please reach us at taxteam@thewaltonfirm.com if you cannot find an answer to your question.
No—this is a civil case in federal court. But facts can feed CI leads. We defend with that in mind.
Not necessarily. It depends on TRO/preliminary-injunction rulings. We fight to avoid business-ending restrictions while the case proceeds.
They often seek client notices, record retention, training, and sometimes fee/records remedies. We negotiate scope to protect your brand.
We rebut with file-level proof, sampling critiques, and process improvements (independent review, enhanced checklists, third-party verification).
The Walton Firm Advantage
Expert Tax Attorneys at The Walton Firm
- Exclusively Defending Tax Professionals—this is all we do.
- Injunction playbook: Tight timelines, strong affidavits, expert critique of DOJ sampling, and targeted remedies that keep you in practice.
- Parallel-proceeding protection across OPR, PTIN/EFIN, Exam, and CI.
- Nationwide representation with proven compliance kits (QC, training, WISP, access controls).
A DOJ injunction moves fast—and so should your defense.