It appears that the Court has indeed responded to the IRS' motion to suspend the injunction it issued on January 18 with a resounding thud today. While the motion was denied, the court did articulate that the IRS' PTIN system is not at issue, which will offer at least some clarity as preparers move forward with tax season.
Citing several factors including its belief that (1) the order is not likely to be overturned by an appellate court; (2) that the IRS overstated the harm to itself due to the injunction; (3) that the IRS understated the harm that would come to the plaintiff; and (4) that the IRS' argument about the public's interest was not convincing and did not take into account the harm that may befall the unlicensed preparer.
The Court further explains, "As the factors beyond likelihood of success do not decisively tilt in favor of the IRS - indeed, they tip somewhat against - the Court sees no basis to lift its injunction pending appeal." And so, the Court ordered as follows:
"1. Defendants' Motion to Suspend Injunction Pending Appeal is DENIED; and
2. The Injunction is MODIFIED to make clear that the IRS is not required to suspend its PTIN program, nor is it required to shut down all of its testing and continuing-education centers; instead, they may remain, but no tax-return preparer may be required to pay testing or continuing-education fees or to complete any testing or continuing education unless and until this injunction is stayed or vacated by the Court of Appeals."
Citing several factors including its belief that (1) the order is not likely to be overturned by an appellate court; (2) that the IRS overstated the harm to itself due to the injunction; (3) that the IRS understated the harm that would come to the plaintiff; and (4) that the IRS' argument about the public's interest was not convincing and did not take into account the harm that may befall the unlicensed preparer.
The Court further explains, "As the factors beyond likelihood of success do not decisively tilt in favor of the IRS - indeed, they tip somewhat against - the Court sees no basis to lift its injunction pending appeal." And so, the Court ordered as follows:
"1. Defendants' Motion to Suspend Injunction Pending Appeal is DENIED; and
2. The Injunction is MODIFIED to make clear that the IRS is not required to suspend its PTIN program, nor is it required to shut down all of its testing and continuing-education centers; instead, they may remain, but no tax-return preparer may be required to pay testing or continuing-education fees or to complete any testing or continuing education unless and until this injunction is stayed or vacated by the Court of Appeals."
Comment