Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
IRS to Appeal Court's Tax Licensing Decision
Author: Scarinci Hollenbeck, LLC
Date: February 20, 2013
Key Contacts
Back
Court Makes Decision on Tax Licensing Case
The U.S. District Court for the District of Columbia recently ruled the Internal Revenue Service did not have the authority to license independent tax preparers. However, the IRS said it plans to appeal the decision, a move that may affect as many as many as 700,000 professionals who file their clients’ tax returns.
At the center of the issue is the federal tax agency’s latest tax licensing effort, which would have required independent preparers not affiliated with large corporate entities, such as H&R Block, to pass a competency test and follow several new regulations and rules. These changes would have taken place under the IRS’s newly created Registered Tax Return Preparers Program.
The IRS noted that too many mistakes were being made by independent agents which were causing delays and higher expenses. The federal court quickly struck down the IRS’ rules, which would have imposed a new annual application fee and continuing educational requirements on independent preparers. The RTRP program requirements would have started on January 1, 2014, and attorneys, certified public accountants and enrolled agents would be exempt from the policies.
Judge James Boasberg’s ruling also included an injunction that prohibited the implementation of the RTRP program.
The IRS said it will appeal the decision, noting that discontinuing the program “would result in a substantial disruption to tax administration,” according to Bloomberg. The agency also noted that hundreds of thousands of independent preparers are responsible for more than 80 million returns each year, and failing to set standards can open the door to costly errors and inadvertent tax law violations. The IRS has taken several measures to both elucidate on the tax code and reduce tax evasion, both of which are designed to help close the $385 billion tax gap.
- Practices: Tax and Trusts & Estates
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs
When a family member can no longer make important decisions for themself, the question is often not whether the family will step in, but whether they have the legal authority to do so. A spouse may manage household finances, or an adult child may arrange medical care and pay bills. Still, informal assistance does not […]
Author: Marc J. Comer
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments
New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
Author: Wendy Rubinstein Quiroga
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Author: Sean M. Pena
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders
Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]
Author: Nicholas Wall
Navigating Disputes: Hire a Partnership Dispute Lawyer
A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]
Author: Jay McDaniel
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Author: John D. Giampolo
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.