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IRS Loses Appeal on New Rules for Tax Preparers
Source:
abcnews.go.com
- Feb 13, 2014
By MATTHEW BARAKAT Associated Press
Associated Press
The IRS on Tuesday lost a federal appeal in a legal battle over its effort to institute competency exams and other new regulations for as many as 700,000 paid tax preparers.
A three-judge panel of the U.S. Court of Appeals for the District of Columbia unanimously upheld a lower court's ruling last year that the IRS lacked authority to impose the new rules without congressional authorization.
The regulations were challenged by the Institute for Justice in Arlington, Va., a libertarian legal group that has filed a variety of lawsuits challenging occupational licensing laws. It argued that the proposed regulations for tax preparers were onerous and would have put thousands of mom-and-pop tax preparers out of business.
Dan Alban, a lawyer for the institute who argued the case in front of the D.C. circuit, called the ruling "a clear win both for tax preparers and taxpayers" and said it could have broad implications for federal agencies that attempt to issue regulations without a mandate from Congress.
"Congress never gave the IRS the power to license tax preparers, and the IRS cannot give itself that authority," Alban said.
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Category: General Business
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