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
New Jersey Will Contest Grounds Explained
How Courts Evaluate Testamentary Capacity and Undue Influence Will contests in New Jersey are difficult to win, given the strong presumption that a properly executed will reflects the testator’s intent. However, challenges based on lack of testamentary capacity and undue influence remain common, particularly where there are concerns about mental capacity or the involvement of […]
Author: Marc J. Comer
Legal Issues Before Bringing on Investors
Bringing on outside investors can provide the capital and strategic support a business needs to grow. However, raising capital also introduces important legal, financial, and operational considerations. Before bringing on investors, businesses should address key legal issues to reduce risk, streamline investor due diligence, and position the company for long-term success. Early preparation signals that […]
Author: Dan Brecher
SECURE 2.0 RMD Planning Strategies
How the Updated Law Shapes Retirement and Estate Planning The SECURE 2.0 Act of 2022 materially reshapes the required minimum distribution (RMD) landscape, extending tax deferral opportunities while accelerating distribution requirements for many beneficiaries. For high-net-worth individuals and families, these changes are not merely technical. They require a reassessment of retirement income strategies, beneficiary planning, […]
Author: Marc J. Comer
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
Author: Robert L. Baker, Jr.
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Author: Dan Brecher
Common Legal Mistakes NYC and New Jersey Business Owners Make
Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
Author: Dan Brecher
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.