IRS Hit With Class Action Suit Over Tax Preparer User Fees

[Y2KEA]

This will get interesting.
700,000. That’s the number of potential plaintiffs in a class action suit filed today in the United States District Court for the District of Columbia. The suit, Adam Steele, Brittany Montrois et al versus United States of America (complaint opens in Scribd), challenges the Internal Revenue Service (IRS) attempts to regulate tax preparers.

http://www.forbes.com/sites/kellyphillipserb/2014/09/08/irs-hit-with-class-action-suit-over-tax-preparer-user-fees/

[Gary2]

I read it as saying that they're challenging the PTIN fees, not the requirement to have a PTIN.

Argument 1: Since PTINs aren't voluntary, they don't meet the rules by which agencies can charge user fees.

Argument 2: If argument 1 fails, then the actual user fees exceed the amount they can legally charge.

I won't comment on number 1, but in the analysis for argument 2, I'm reading it as comparing the fee against the cost of issuing the PTIN, which is paid to a third party. If so, that's not quite right, since it should also include the cost of validating that PTINs on tax returns, as well as the overhead in processing the payments to the third party and sharing the PTIN data. The underlying argument may well be correct, and it may still be a significant overcharge, but not as high as the article suggests.

[buzzardbreath]

Selling us out

as well as the overhead in processing the payments to the third party and sharing the PTIN data.

Gary, the overhead and related costs of administering PTIN data is surely overwhelmed by collecting $25 from anyone who wants
their CD. Contains contact information for all PTIN holders. I find the fallout from this practice to be a nuisance.

[taxea]

Gary, the overhead and related costs of administering PTIN data is surely overwhelmed by collecting $25 from anyone who wants
their CD. Contains contact information for all PTIN holders. I find the fallout from this practice to be a nuisance.

How are they keeping the CD up to date? I thought they were going to put this info on their website.

[DaveO]

We need an opt out for the release of our information. My spam folder is full of hot stock tips, weight loss miracle drugs and of course male enhancement products. Perhaps 1 of 20 emails is remotely related to CPE, tax law or some relevant topic.