Loving versus IRS

[Uncle Sam]

Taxxcpa-Could you please rephrase that gobbly-gook double talk into clear English so it makes sense?

[taxxcpa]

Regulation good and bad

Regulation to the extent that it provides some assurance that a preparer knows the difference between a deduction and a credit is probably a good thing. Regulations which require the preparer to obtain absolute assurance that everything the client tells him is a burden, shifting functions that should be performed by IRS auditors to tax preparers.

If a taxpayer can prepare his own return and lie like a dog, going to a qualified tax preparer would at least serve to put the lies on the right form or schedule. Exposing the preparer to all kinds of possible fines and penalties would serve some purpose in the case of fraudulent returns, but would cost many wasted hours verifying that honest returns are actually honest.

[Nashville]

Congress

Knowing the avaricious nature of government to regulate and collect revenue in the process, the most probable response from Congress would be to simply pass another law which clearly outlines requirements for preparers. The only thing the Supreme Court could do at that point would be to declare the law unconstitutional (and that won't happen).

I have been vocal on this forum that regulation would ultimately prove to be a Trojan Horse, first welcomed by those of us who want unscrupulous preparers OUT of business, but then turning into an administrative and capricious nightmare. Those who wish to prepare returns with no formal testing and regulation can enjoy this decision, however temporary.

[Roland Slugg]

February 11, 2014

The United States Court of Appeals for the D.C. Circuit today issued its opinion on the Loving, et al case (regarding registration, fees and testing for tax return preparers), upholding the decision of the District Court. It is Case No. 13-5061. The decision is 19 pages long in PDF format and is too long to attach here. But it is an interesting and precisely written decision, and anyone interested is encouraged to read it. It should be available on the court's web site within a day or two.