In a stunning blow to the IRS’s efforts to regulate the tax preparation profession, a federal judge ruled that the IRS did not have the authority to regulate tax preparers on last Friday January 18th.
The authority is invalid because the IRS stretched an 1884 law allowing it to regulate people who “advise and assist persons in presenting their cases” before the agency to cover tax preparers, U.S. District Judge James Boasberg in Washington wrote in a permanent injunction. “Filing a tax return would never, in normal usage, be described as ‘presenting a case.’ ”
I agree with the ruling; Which is not to say I am unsympathetic to the need to weed out unethical or incompetent tax preparers.
If Congress intends to have the IRS regulate preparers, it must grant IRS that authority.
This, however, was yet another “statutory scheme” (Judge’s words) by a federal agency to create law without legislation passed by Congress.
That my opinion.
John J Kasperek, E.A.