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IRS faces law suit over paid-preparer rules.

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"The Institute for Justice (IJ), a public interest law firm, is suing the IRS on behalf of three professional tax preparers over a rule mandating that they obtain a license to file tax forms for compensation.

"The rule, first implemented in 2011, imposes $64 in new fees and mandates a $100 examination charge on top of an obligation to take a 15-hour course. Certified public accountants, attorneys and certain IRS-approved "enrolled agents," however, are exempt from the requirements."

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"The firm argues that the IRS does not have the authority to implement such a rule without the consent of Congress."

Reply to
D. Stussy
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I have heard that same argument from other respectable tax professionals. It will be interesting to see how this plays out.

Reply to
Mark Bole

"D. Stussy" wrote

Certified public accountants, attorneys and enrolled agents are exempt from the testing, because we've taken a test already and we're required to have continuing education. The $64 is new, for an EFIN, and an annual charge that applies to all paid preparers.

Reply to
paulthomascpa

In the current world of fewer taxes and less money collected, the IRS has reasonably instituted fees for work they perform. I guess they figured they can't continue to give it away. Getting letter rulings and approvals for nonprofits used to be free. Not any more.

Section 7805(a) says, "the Secretary shall prescribe all needful rules and regulations for the enforcement of this title,..." It's vague, but pretty broad. Seems to me that being sure a tax preparer is qualified could well be thought to be within the powers needed to properly enforce the tax laws.

___ Stu

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Reply to
Stuart A. Bronstein

Then why exempt attorneys who know nothing about taxes?

Seth

Reply to
Seth

I suppose it's because attorneys are already regulated and supervised by the states.

There are also CPA's who know little or nothing about taxes, and they are exempt also. ___ Stu

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Reply to
Stuart A. Bronstein

and accordingly, they are supposed to know what their areas of expertise are and are not. supposed to, anyway.

Reply to
Pico Rico

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