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Professional Tax Software News & Advice

IRS Regulation of Licensed Tax Return Preparers Overruled

The IRS does not have the authority to regulate the tax preparation profession and license hundreds of thousands of tax preparers, a federal judge ruled late January 18, 2013. The IRS rules requiring all paid tax return preparers to pass a competency test and meet continuing education requirements are all part of the regulatory structure the court found invalid. All three prongs of the IRS tax preparer regulation regime were affected by the ruling, including the testing, continuing education and RTRP registration requirements. However, the Preparer Tax Identification Number, or PTIN, which is part of the registration requirements, is not affected by the lawsuit. [More]