IRS Wants Tax Preparer Licensing Injunction Suspended —Accounting Web

Still Fighting for its RTRP Program;  More Case Analysis and Industry Reaction

Frank Byrt at Accounting Web reports what’s happened in last two weeks since the U.S. District Court for the District of Columbia found the IRS lacked authority to regulate independent tax preparers.  Here’s more:

The IRS hasn’t given up its fight to regulate independent tax preparers. It has asked a federal court to suspend the federal court injunction issued last week that blocked the IRS effort until a new motion can be filed.

“The Internal Revenue Service, working with the Department of Justice, continues to have confidence in the scope of its authority to administer this program,” the IRS said in a statement posted on its website on January 25. “Regardless of the outcome of that request, an appeal is planned within the next thirty days. The IRS is continuing to evaluate the scope of the court’s order in determining consistent next steps.” 

On January 18, the US District Court for the District of Columbia granted an injunction that blocked the IRS effort to impose the Registered Tax Return Preparers (RTRP) program, which would require that independent tax preparers obtain a Preparer Tax Identification Number (PTIN), pass a competency test, pay an annual application fee, and complete fifteen hours of continuing education annually.   The IRS effort is aimed at eliminating from the tax preparation industry what it sees as individuals ill-equipped for the task.   Under the IRS RTRP program, only registered tax return preparers would be authorized to prepare and sign federal tax returns beginning January 1, 2014. Attorneys, certified public accountants, and enrolled agents would be exempt from the requirements. 

Read the full piece for analysis of the case, comments from industry observers, and more. 

A Court Announced IRS Doesn’t Have Authority to Regulate Independent Taxpayers; The IRS Plans to Fight On

The IRS has requested a federal judge suspend his ruling.   

see also:

• Tax Preparers Contest IRS Legal Maneuver   —Accounting Today [1/28]
• IRS Reacts to RTRP Ruling   —Virginia Society of CPAs [1/23]
• The IRS Suspends the RTRP PTIN Program      —Client Whys [1/23]
• IRS Plans Next Move after Court Invalidates Tax Preparer Regulation   —WebCPA [1/22]