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Court Denies Motion to Suspend Injunction Against IRS in ‘Loving'

Monday, February 4, 2013
The U.S. District Court for the District of Columbia issues an order denying the Internal Revenue Service's motion to suspend a permanent injunction against IRS's tax preparer registration program. Judge James Boasberg also modifies the permanent injunction to clarify that IRS was not required to suspend its preparer tax identification number (PTIN) program. What the plaintiffs challenged and was enjoined was the requirement that tax return preparers—who are not attorneys, CPAs, enrolled agents, or enrolled actuaries—must pay some fees that are unrelated to the PTIN, pass a qualifying exam, and complete annual continuing education requirements. IRS is not required to stop the tax return preparer registration program, because IRS could allow tax return preparers to “voluntarily obtain credentials that might distinguish them from other preparers,” Boasberg says, noting that tax return preparers might want to continue with the program as a hedge against the possibility of reversal of his decision on appeal.

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