Tags: IRS | Loving v. IRS | verdict

What Does Loving v. IRS Verdict Mean for IRS?

By    |   Sunday, 19 Jul 2015 02:27 PM

The IRS lost its appeal in the Loving v. IRS case in 2014 when a judge upheld a ruling in favor of three plaintiffs — all independent tax preparers — who had argued that the government had overstepped its bounds in forcing them to become licensed.

The IRS paid refunds to tax preparers who paid $116 each in testing fees between November 2011 and January 2013. About 89,000 tests were taken, amounting to about $10 million.

In announcing the refunds in May, the IRS said
it “remains committed to the principle that all persons who prepare federal tax returns for compensation should be required to pass a test of minimal competency.”

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The agency continued its efforts to create a voluntary program for education and certification of tax preparers, noting that consumers have more protection when those who are doing their taxes receive ongoing training.

The program was deemed the Annual Filing Season Program. Those who participate take 18 hours of continuing education classes, with six of those focused on a federal tax law refresher course.

Those who pass the class receive a record of completion certification and are included in an IRS database, The Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. Such credentials must be renewed annually.

The IRS said in creating such a program that it "aims to recognize the efforts of non-credentialed return preparers who aspire to a higher level of professionalism."

It is also looking to Congress to enact a program, in the wake of losing the Loving case, which would give it broader authority to regulate tax preparers. Already, a provision in the 2016 budget from President Barack Obama would authorize the IRS to regulate all paid tax preparers.

About 44,000 tax preparers across the country participated in the voluntary program thus far, the IRS said, according to AccountingWeb.

IRS Commissioner John Koshkinen said he hoped in the future that all of the nation's 400,000 independent tax preparers would participate.

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The IRS lost its appeal in the Loving v. IRS case in 2014 when a judge upheld a ruling in favor of three plaintiffs - all independent tax preparers - who had argued that the government had overstepped its bounds in forcing them to become licensed.
Loving v. IRS, verdict
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2015-27-19
Sunday, 19 Jul 2015 02:27 PM
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