Internal Revenue Service Abandons Effort to Regulate Tax Preparers

DALLAS, May 19, 2014 /PRNewswire/ -- The Internal Revenue Service's fight to regulate tax preparers has come to an end. In January of last year, a federal judge ruled the Internal Revenue Service (IRS) had overstepped its statutory authority when it attempted to regulate tax preparers, which for all intents and purposes put an end to the IRS's Registered Tax Return Preparer Program. Then in February of this year, the Court of Appeals for the District of Columbia (the "Court of Appeals"), in the case of Loving v. Internal Revenue Service, affirmed an order of the District Court enjoining the IRS from enforcing regulations related to paid tax-return preparers. The Court of Appeals, based on its own textual and historical analysis of the statutory authority, concluded that tax-return preparers were not in the practice of representing tax payers before the Department of Treasury. On this basis, it agreed with the District Court that the IRS does not have the authority to regulate paid tax-return preparers and held that the District Court's order of enjoinment would stand.

The next step for the IRS would have been to submit a petition seeking review from the Supreme Court. However, the deadline for such a submission has passed. As such, this final chapter in the IRS's attempt to regulate paid tax-return preparers comes to a close.

About Ryan
Ryan is an award-winning global tax services firm, with the largest indirect and property tax practices in North America and the sixth largest corporate tax practice in the United States. Headquartered in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning. Ryan is a three-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan's multi-disciplinary team of more than 1,800 professionals and associates serves over 9,000 clients in more than 40 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at www.ryan.com.

TECHNICAL INFORMATION CONTACT:

Jeremiah T. Lynch
Principal
Ryan
212.871.3901
jeremiah.lynch@ryan.com

Available Topic Expert(s): For information on the listed expert(s), click appropriate link.
Jerry Lynch
http://www.profnetconnect.com/jeremiahlynch

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SOURCE Ryan, LLC



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