D.C. Circuit - IRS’s return preparer regulations exceed statutory authority 

February 11:  The U.S. Court of Appeals for the District of Columbia Circuit today held that the IRS’s statutory authority to “regulate the practice of representatives of persons before the Department of the Treasury” did not encompass the authority to regulate tax return preparers. Loving v. IRS, 13-5061 (D.C. Cir. February 11, 2014)

In this case, three independent tax return preparers challenged the IRS’s tax return preparer regulations as exceeding the agency’s statutory authority. A federal district court found against the IRS.

Today, the D.C. Circuit affirmed and agreed with the district court that the IRS’s statutory authority could not be “stretched so broadly” as to encompass authority to regulate tax return preparers.

Read the D.C. Circuit’s decision [PDF 199 KB]

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