By Joseph Henchman
The IRS issued new regulations effective 2011 that require federal tax return preparers to register with the agency, pay significant fees, and pay for certified continuing education (larger preparers with other professional credentials are exempt from some of these requirements). “Mom and pop” tax return preparers filed suit against the IRS, arguing that the regulations exceed the IRS’s power and are arbitrary and capricious. In January 2013, a trial judge ruled against the IRS, striking down the regulatory scheme, and the IRS has appealed to the U.S. Court of Appeals for the D.C. Circuit.
On May 24, 2013, the Tax Foundation and seven independent tax preparers filed an amicus brief opposing the IRS in this appeal. Our brief makes three main arguments:
We argue that the appeals court should affirm the lower court’s decision striking down the regulatory scheme.