Thursday 14th of December 2017 8:07:25 AM


    Monday 28th of January 2013 11:14:00 AM

    As mentioned last week, Judge James Boasberg of the US District Court for the District of Columbia had ruled that the Internal Revenue Service does not have the power to standardize tax preparers. This ruling has made it impossible for the Internal Revenue Service to implement tax preparer registrations and competency testing systems. Well, the IRS is not taking this lying down. They are fighting back.

    Federal lawyers are arguing that the IRS does indeed have “reasonable likelihood” of winning the appeal. It has also been said that the public will have “irreparable harm” if Judge James Boasberg’s ruling is not suspended. The IRS’ lawyers say “substantial disruption to tax administration” and “massive confusion” for both tax preparers and the public.

    How does all this legal battles affect the average taxpayer? Well, it probably won’t affect them much unless they are paying a professional tax preparer to file their returns because preparer can’t renew or obtain their Preparer Tax Identification Numbers (PTIN). Without a PTIN a tax preparer absolutely can’t  file tax returns for their customers.

    Luckily, a majority of tax preparers obtained or renewed their PTINs prior to the end of 2012 according to Cindy Hockenberry, a manager with National Association of Tax Professionals. Those that have dragged their feet are just out of luck right now, as are their customers.

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