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District Court Ruling Regarding IRS RTRP Regulations


lydia33

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District Court Ruling Regarding IRS RTRP Regulations

On Friday, as some of you may already know, the U.S. District Court for the District of Columbia has ruled against the IRS, enjoining it from enforcing the RTRP requirements. Therefore the requirement that non CPAs, Attorneys and Enrolled Agents must sit for and pass the exam cannot be enforced. In addition, the licensing requirement that imposes continuing education is also struck down. The requirement of having a PTIN was not part of the ruling and is a separate issue. Therefore, holding a PTIN is still a requirement.

The court ruled that the IRS did not have authority to issue the regulations without a Statute issued by Congress. There are a few paths that may be taken:

  1. Congress may pass a law and give the IRS the authority and/or
  2. The IRS will appeal to the D.C. Circuit Court

Note that the attorneys for the plaintiffs have stated that they will be ready to take it to the Supreme Court after that.

The IRS has not commented as of this writing.

NSTP encourages everyone to have a PTIN and obtain CPE even if you are not required to do so by the IRS. You and your clients benefit from your personal goals and knowledge.

NSTP will keep you posted.

Paul LaMonaca

NSTP Director of Education

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District Court Ruling Regarding IRS RTRP Regulations

The requirement of having a PTIN was not part of the ruling and is a separate issue. Therefore, holding a PTIN is still a requirement.

Well... getting and paying for a PTIN looks to me like a "license" which the court said IRS had no authority to do. What do you think?

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I think they are stirring up a big kettle of confusion. I am glad that I was able to conform and have it behind me. CE has always been a voluntary part of my tax prep. The test didn't hurt me one bit and am glad to have it over as we have enough things to worry about right now with the ATRA and the delay of filing as well as the issues with the tax program (s). No matter what the courts decide, I won't be crying over spilt milk. Any and all knowledge that I gleaned from studying for and taking the test is only to my benefit and for the good of my clients. Those are my major concerns.

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I do think there should be some regualations on who can fill out tax returns and CE. I have passed my RTRP. ( which at this time looks like it is just a piece of paper) I did the CE even more than was required. I have always gone to Tax Schools before each tax season. I would have been stupid not to to see what the changes were. It is the money that we paid!

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On New Years Day, we were flipping channels and came across this:

"If you did anything wrong, it's your own fault. You shouldn't have made out your own tax return. I told you to go down to the barber shop and get somebody to do it who knows how."
Alice Cramden, The Honeymooners (1956)
season 4, episode 28 "The Worry Wart"

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>>There are a few paths that may be taken:

  1. Congress may pass a law and give the IRS the authority and/or
  2. The IRS will appeal to the D.C. Circuit Court<<

I can think of another way. IRS could simply ignore the ruling, leave everything in place except have registration be voluntary. That's how it is with enrolled agents. By next year, H&R Block and other large employers would have ads that emphasize how trained and tested their preparers all are. Then how could an unregistered preparer answer the clients' obvious question?

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