Last week, a federal judge ruled against the U.S. Internal Revenue Service (IRS) on the agency's efforts to regulate the tax preparation profession.
Judge James Boasberg found that the text of the relevant statute does not support the IRS's claim to its authority to regulate tax return preparers. The ruling does not affect the IRS's Preparer Tax Identification Number (PTIN) requirements.
While CPAs (along with Enrolled Agents and tax attorneys) were exempt from the requirements, the ruling is a major blow to the IRS's Registered Tax Return Preparer (RTRP) requirements. Do you think the regulatory oversight is necessary?