Licensing Board for Unenrolled Preparers Facing Court Challenge

[zeros]

According to the Kiplinger Tax Letter, the licensing rules for unenrolled preparers are facing a court challenge. The lawsuit claims that the IRS' regulatory scheme requiring unenrolled preparers to pass the competency exam, satisfy the continuing education rules and pay fees is invalid

[Uncle Sam]

Kiplinger Tax Letter

Which edition discussed that?
I just went to both editions for July 2012 - and neither edition had discussed it.

And if you can't recall the specific edition - please disclose the details of the Court Challenge.

[zeros]

June 2012

The one I received in the mail was dated June 2012. It doesn't mention anything else but did mention that it would report more details as they are known.

[Uncle Sam]

Kiplinger Tax Letter - 6/22/12 edition

It was the 6/22/12 edition -

Here's the details -


The user fee for obtaining or renewing a preparer tax ID number is valid,

an Appeals Court says. A preparer challenged the fees, alleging that the IRS

lacked the authority to impose them. But the Court sided with the Revenue Service,

saying that in exchange for the user fee, the agency gives applicants the privilege

of preparing tax returns for others for compensation (Brannen, 11th Cir.). Thus,

preparers will still have to pay the renewal fee, which was set at $63 for this year.


Just as I thought - an individual preparer challenging - not any official authority.

[Uncle Sam]

The Brannen Case

What this involved was a CPA/Attorney's challenge to IRS charging a fee for
the privilege of obtaining a PTIN number.
He lost.
It had nothing to do with being an "unenrolled preparer".

[New York Enrolled Agent]

The case is probably Loving v. IRS, filed in the United States District Court in the District of Columbia. Loving is the name of one of the three plaintiffs.

The Commissioner has broad power to issue regulations under §7805. I think the chance of these people prevailing in this case borders on none.