U.S. Court Strikes down IRS Rules for Tax-Return Preparers

February 11, 2014

For Immediate Release

Contact: Gigi Thompson Jarvis

202.822.6232, x119                                           

gjarvis@naea.org

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U.S. Court Strikes down IRS Rules for Tax-Return Preparers

Washington, DC, (February 10, 2014) The IRS has lost its appeal of the decision handed down in Loving vs. IRS, and will not be allowed to regulate paid tax return preparers. The U.S. Court of Appeals for the District of Columbia upheld a lower court ruling in the suit, which argued that the IRS does not have statutory authority to require paid preparers to pass competency testing, complete annual continuing education, and pay a registration fee. The Appeals Court decision can be found here

In the decision, the Appeals Court agreed with the lower court that the IRS’s statutory authority “cannot be stretched so broadly as to encompass authority to regulate tax-return preparers.” The Court’s decision was unanimous.

While the Court agreed that the more stringent regulation of return preparers may be a wise policy matter, doing so would require new legislation and not a unilateral expansion of the IRS’ authority. The IRS has repeatedly committed to reducing tax preparation fraud by increasing oversight of paid preparers.

The National Association of Enrolled Agents (NAEA) is the professional society that provides America’s Tax Experts®, enrolled agents, with resources, education and networking and represents their interests to government, business and the general public. Enrolled agents are federally licensed tax practitioners who have unlimited rights of representation before the IRS.   

© 2014 National Association of Enrolled Agents