How the IRS's Focus on Due Diligence Changed the Way I Run My Office

Gwennetta Wright
14 hours ago
1 min read

By Dr. Gwennetta Wright, Tax Coach

Stack of organised tax and financial documents on a desk with a pen placed on top, representing tax filing, record keeping, compliance paperwork, and business documentation in a professional office setting.

When the IRS began tightening its focus on Due Diligence and compliance, it forced a shift in how I operate my office—and honestly, it made my business better.

I no longer view Due Diligence as just a form. I treat it like a full protection plan for my business. I shifted from checking boxes to building systems. I created detailed workflows to support every part of the compliance process, from client interviews to final file review.

First, I standardized how we collect and document client information

Clipboard with a completed form on a tidy desk near a window, alongside tools, small office accessories, and potted plants, representing organised paperwork, documentation review, and a professional workspace.

Every return goes through a clear process. We ask qualifying questions, take notes during the interview, and tailor additional inquiries based on what the client says—not just what the software prompts.

Second, I trained my team differently

Illustration of a business leader steering a large arrow-shaped boat forward while a team rows together, symbolising leadership, teamwork, strategic direction, and guiding an organisation toward growth and progress.

It is not enough for a preparer to know how to use software. They must understand tax law, filing status rules, and what the IRS looks for in an audit. I trained them on what a real Due Diligence file should look like.

Third, I made documentation a non-negotiable

Person reviewing and organising a large stack of paperwork at a desk, holding a pen while checking documents, representing tax preparation, compliance review, and detailed record keeping in a professional office setting.

We do not move a file forward unless it is complete. That means proper notes, support for credits, explanations for inconsistencies, and matching records when needed. We do not rely on “simple returns” because the IRS never sees it that way.

The increased scrutiny taught me something valuable: the more compliant you are, the more confident you become. You sleep better. You serve better. And your business becomes stronger.

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