"

Estimated reading time: 1 minute, 8 seconds

Ruling Against IRS Stands, but PTINs OK

Judge James E. Boasberg A federal judge has refused to suspend his injunction barring the Internal Revenue Service from requiring unlicensed tax preparers to pass tests or take continuing education. However, late last week, U.S. District Court Judge James E. Boasberg said the ruling did not affect the IRS requirement for paid preparers to have Preparer Tax Identification Numbers.

Boasberg also said the ruling did not prevent the IRS from offering testing or continuing education centers on a voluntary basis. With that clarification in hand, the IRS reopened the PTIN system. The IRS had asked Boasberg to suspend the injunction because the impact would disrupt tax season. The IRS is expected to appeal.

The IRS had implemented a system required preparers to obtain a Registered Tax Preparer Identification Number and for paid preparers who are not Enrolled Agents, CPAs or attorneys to pass an examination and take CPE courses. Three preparers and the conservative Institute for Justice sued on the grounds that IRS did not have the authority to enact these rules and the judge agree.

In California, things are different. The California Tax Education council, a state-mandated nonprofit organization that registers unlicensed tax preparers, issued a statement noting that California state law requires registration. Those registered with the CTEC must complete 60 hours of qualifying education, obtain a $5,000 surety bond to protect clients against fraud, and complete 20 hours of CPE annually.

Read 7518 times
Rate this item
(0 votes)

Visit other PMG Sites:

Template Settings

Color

For each color, the params below will give default values
Tomato Green Blue Cyan Dark_Red Dark_Blue

Body

Background Color
Text Color

Header

Background Color

Footer

Select menu
Google Font
Body Font-size
Body Font-family
Direction
PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.