taxxcpa Posted January 19, 2013 Report Share Posted January 19, 2013 FALLS CHURCH, Va. (AP) -- A federal judge on Friday barred the IRS from imposing a series of new regulations, including a competency exam, on hundreds of thousands of tax preparers.http://hosted.ap.org/dynamic/stories/U/US_TAX_PREP_LAWSUIT?SITE=AP&SECTION= HOME&TEMPLATE=DEFAULT&CTIME=2013-01-18-18-32-55 Quote Link to comment Share on other sites More sharing options...
spiderweb Posted January 19, 2013 Report Share Posted January 19, 2013 Taxxcpa - This link you provided is broken... Can you please resubmit.....This is an interesting development ..... Quote Link to comment Share on other sites More sharing options...
JohnH Posted January 19, 2013 Report Share Posted January 19, 2013 Try this link:http://hosted.ap.org/dynamic/stories/U/US_TAX_PREP_LAWSUIT?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-01-18-18-32-55 This development has the potential to cause some of our board participants to go ballistic. Quote Link to comment Share on other sites More sharing options...
mwrightea Posted January 19, 2013 Report Share Posted January 19, 2013 I can hardly wait to read the entire ruling. Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted January 19, 2013 Report Share Posted January 19, 2013 WOW Quote Link to comment Share on other sites More sharing options...
grmy2h Posted January 19, 2013 Report Share Posted January 19, 2013 You can also google the topic....it's everywhere... Quote Link to comment Share on other sites More sharing options...
spiderweb Posted January 19, 2013 Report Share Posted January 19, 2013 Folks, seriously, now that this injunction barring the IRS in proceeding any further in this light... What are we to make of this, considering an appeal likely to come from the IRS to stoke the flame burning even more on this issue...So what's your take on this... Quote Link to comment Share on other sites More sharing options...
Eli Posted January 19, 2013 Report Share Posted January 19, 2013 I hope I can get my money back! Eli Quote Link to comment Share on other sites More sharing options...
JohnH Posted January 19, 2013 Report Share Posted January 19, 2013 The court correctly drew a distinction between PREPARING a return and PRACTICING before the IRS. If there's an appeal, the next step should be a proper distinction between PREPARING a return and FILING a return. It's a distinction with a difference. Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted January 19, 2013 Report Share Posted January 19, 2013 How long does it take to appeal. I think eventually the IRS will win. I guess those prep course outfits and prometric will be looking at demands for refunds. Here is the courts complete opinion! I guess I can't attach the PDF here?? Here is the caption: Quote Link to comment Share on other sites More sharing options...
grmy2h Posted January 19, 2013 Report Share Posted January 19, 2013 Here is the actual court ruling.http://www.ij.org/images/pdf_folder/economic_liberty/irs_tax_preparers/irs-opinion-1-18-13.pdf Quote Link to comment Share on other sites More sharing options...
tetspa Posted January 19, 2013 Report Share Posted January 19, 2013 If ultimately the IRS loses on appeal (or chooses not to appeal), then the IRS could still demand anything they wanted as a condition of issuing a valid EFIN#. They could, theoretically, back-door all of this by requiring EFIN holders to get the CE's and pass the test, and also agree "only to transmit returns prepared by preparers who hold PTINS and have passed the exam and obtained the 15 hours of CE credits". That way they are only requiring EFIN holders to agree to whatever they want in exchange for the EFIN. I wonder if the ruling also means the IRS doesn't have the right to enforce "Due Dilligence" requirements on preparers either? Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted January 19, 2013 Report Share Posted January 19, 2013 IRS may try hard as hell but tying an EFIN to getting CE credits and passing a test is a stretch in my opinion. There are transmitters and software developers who have EFINs. Now do we expect them to take CE and tests. If you read the opinion IRS was trying to hang its hat that taxpreparers "practice" before the IRS, therefore it can regulate them like EAs etc. But I think the court blew that theory. Let's see what happens on appeal and I am sure if IRS (or the new secy. of Treasury) tries to get Congress to pass a law, there will be some fight put up by Repubs. They are already ticked off by the new gun regulations. this is another point of contention. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted January 19, 2013 Report Share Posted January 19, 2013 Try this link:http://hosted.ap.org/dynamic/stories/U/US_TAX_PREP_LAWSUIT?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-01-18-18-32-55 This development has the potential to cause some of our board participants to go ballistic. I won't go ballistic, but the court decision supports my opinion about the whole process. See my posts in the other threads. Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted January 19, 2013 Report Share Posted January 19, 2013 I just read the ruling, and the judge makes a lot of sense. It is going to be up to Congress now to spell out the role of the IRS in regulating the Tax Prep industry. This could get really ugly. Tom Hollister, CA Quote Link to comment Share on other sites More sharing options...
TRX 1 Posted January 19, 2013 Report Share Posted January 19, 2013 How does this effect the States like CA. that require testing and certification? I think this ruling will take the wind out of the sails of both the IRS and the DOR's, maybe this will allow the IRS to move all the people that have been hired to regulate the tax preparers to things needed. The Nationwide IRS Tax Forums are in jeopardy of being discontinued due to budgeting, which I believe can also be blamed on regulatory. It had gotten so expensive for us to go to each of these we quit going, the last year we went it cost us over $100,000.000 between Expo fees, Airfare, Hotels, and lets not forget Union Labor that was required. I am very courious about the States on this ruling though. Doug Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted January 19, 2013 Report Share Posted January 19, 2013 Liberal states like CA and NY will probably press along trying to regulate state return preparers. But for the midwest and south which is fed up with over regulations, i think you can stick a fork in that turkey! However I do think there has to be a way at the state level to keep fly by night people from taking advantage of gullible taxpreparers. When we had the $1500 energy credits, I saw many HVAC specialists enlist their GF or significant others to prepare returns or give bogus bill of sale for people who bought their stuff. I must have done like 6 amendments after CP2000 showed up. Quote Link to comment Share on other sites More sharing options...
Don in Upstate NY Posted January 19, 2013 Report Share Posted January 19, 2013 Liberal states like CA and NY will probably press along trying to regulate state return preparers. NY has required registration of preparers for several years now. They were to establish a committee to define the requirements, but that was never accomplished. Right now the only qualification necessary is a credit card. Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted January 19, 2013 Report Share Posted January 19, 2013 NY has required registration of preparers for several years now. They were to establish a committee to define the requirements, but that was never accomplished. Right now the only qualification necessary is a credit card. Don my credit card is maxed out! Will Mr. Cuomo cut me slack? 1 Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted January 19, 2013 Report Share Posted January 19, 2013 How does this effect the States like CA. that require testing and certification? I think this ruling will take the wind out of the sails of both the IRS and the DOR's, maybe this will allow the IRS to move all the people that have been hired to regulate the tax preparers to things needed. The Nationwide IRS Tax Forums are in jeopardy of being discontinued due to budgeting, which I believe can also be blamed on regulatory. It had gotten so expensive for us to go to each of these we quit going, the last year we went it cost us over $100,000.000 between Expo fees, Airfare, Hotels, and lets not forget Union Labor that was required. I am very courious about the States on this ruling though. Doug It will have no effect at all. The issue was practice before the IRS. States still have the power to regulate businesses (licenses for hairstylists, lawyers, accountants, etc). They will still regulate the business. I expect that the IRS will appeal and lose this case on appeal, but concurrently, they will go to congress and ask for the authority they were trying to impose. Congress may give it to them. Then we will be back here again. Tom Hollister, CA Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted January 19, 2013 Report Share Posted January 19, 2013 I expect that the IRS will appeal and lose this case on appeal, but concurrently, they will go to congress and ask for the authority they were trying to impose. Congress may give it to them. Then we will be back here again. Tom Hollister, CA They will be back! But they may have to wait 2 years and pray the House goes Democrat. I don't see this passing the HR and Mr. Obama has bigger fish to fry for the next 4 years! Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted January 19, 2013 Report Share Posted January 19, 2013 I guess now it really doesn't matter what happens anymore, the biggest fraud has been EIC and I think this year the IRS got it right Quote Link to comment Share on other sites More sharing options...
mcb39 Posted January 19, 2013 Report Share Posted January 19, 2013 I am not going ballistic either. I am glad I have it behind me and am not sitting on the fence at this critical time and wondering "Should I or shouldn't I?" I wasn't happy about the mandate, but the testing process was an interesting experience and I have done CE on my own for as long as I can remember. If they want to drive us battier than we already are, they picked a good time to do it. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted January 19, 2013 Report Share Posted January 19, 2013 Click here for Web version of this message. Please use the Web version if you have any difficulty accessing a hyperlink. A decision was announced this afternoon regarding the 2012 court case Loving v. IRS, which challenged IRS’ authority to regulate commercial preparers. United States District Court for the District of Columbia Judge James E. Boasberg granted Loving’s motion for summary judgment. The Court is granting a permanent injunction against IRS for what the opinion calls “an invalid regulatory regime.” As with any legal matter, it is best not to jump to conclusions, particularly in the moments following major decisions. As we sit here on Friday evening, the obvious question is how IRS will respond. In any event, this situation will develop over the next week and upcoming months. NAEA will continue to interpret possible ramifications for enrolled agents and the overall tax community and will share our perspective during the back and forth volleying that promises to ensue. To read the original complaint, click here. To read today’s decision, click here. National Association of Enrolled Agents 1120 Connecticut Ave NW Ste 460 Washington, DC 20036-3953 202-822-6232; 202-822-6270 fax[email protected]; www.naea.org Quote Link to comment Share on other sites More sharing options...
jainen Posted January 19, 2013 Report Share Posted January 19, 2013 >>pray the House goes Democrat<< I think it is a stupid ruling that will not stand. Lawyers of course love to play word games, and the judge makes a big deal about what "case" means and so on. But whenever I see "flip-flop," I know it is just political posturing. It's so much fun to stick it to the IRS! IRS will prevail on its basic argument that it has inherent authority to administer its own business. Courts have interpreted this very broadly for decades. IRS will also ask Congress for support--and will get it. Republicans rail about over-regulation, but they don't actually vote that way. In particular, they have come down incredibly hard on the financial services industry. Gramm, Leach, and Bliley are all Republicans. Besides, RTRP targets tax prep mills that churn out low income returns for independent contractors, EIC, dependents, and other problem areas that nobody in Congress is comfortable with. It has little effect on campaign-contributing corporations and investors who typically use a CPA or EA. So when the new law goes through, it's going to mean a lot more than just 15 hours a year. Quote Link to comment Share on other sites More sharing options...
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