First, they were not investigating the business and really could not. Not for preparing tax returns because preparing tax returns is a lawful business and everyone has to submit tax returns and everyone therefore has the right to counsel and advice in preparing those returns. Everyone whether the income is legal or illegal is required to pay his taxes on it. The process of payment of taxes cannot be used as evidence of another crime. This is a basic common law principle and an exceedingly important one.
Both the money paid in taxes, and the income they were paid on came from illegal activity. The tax preparer was actively engaged in fostering the illegal crime and cover-up of same.
Should drug dealers be exempt from being charged if they open up a “drug dealer tax service”?
The number of regular-Joe type people who know there isn't just one big lump of 'law' involved in our American legal system are few and far between.
Forget them being able to recognize any principles if they should conflict with personal beliefs.