IRS appeals tax return preparer registration decision.

• Author: Schreiber, Sally P.

The IRS filed a Notice of Appeal to the D.C. Circuit of the Jan. 18 district court decision that struck down the IRS's registered tax return preparer program and enjoined it from enforcing the regulations (Loving, No. 1:12-cv-00385-JEB (D.D.C) (Defendant's Notice of Appeal)). The IRS also made a motion asking the district court to stay the injunction, pending the outcome of the appeal. Earlier, the IRS had attempted unsuccessfully to have the injunction lifted.

Background

The IRS in 2011 began regulating all tax return preparers who prepare

and file tax returns for compensation. In May 2011, it issued final regulations (T.D. 9527) making unenrolled return preparers (i.e., return preparers who are not CPAs, attorneys, or enrolled agents) subject to Circular 230, Regulations Governing Practice Before the Internal Revenue Service (31 C.F.R. Part 10), for the first time and requiring them to pass a qualifying exam, pay an annual fee, and take 15 hours of continuing education courses. each year.

The IRS argued that its regulation of tax return preparers is permitted under 31 U.S.C...