In light of the decision in Loving et al v Commissioner where the court ruled that the Internal Revenue Service did not have the authority to regulate tax preparers, the IRS has issued the following statement:
As of Friday, Jan. 18, 2013, the United States District Court for the District of Columbia has enjoined the Internal Revenue Service from enforcing the regulatory requirements for registered tax return preparers. In accordance with this order, tax return preparers covered by this program are not currently required to register with the IRS, to complete competency testing or secure continuing education. The ruling does not affect the regulatory practice requirements for CPAs, attorneys, enrolled agents, enrolled retirement plan agents or enrolled actuaries.
The Internal Revenue Service, working with the Department of Justice, continues to have confidence in the scope of its authority to administer this program. It is considering how best to address the court’s order and will take further action shortly. Please continue to check this site as additional information becomes available.
In short, for the upcoming season, preparers need not be an RTRP (registered tax return preparer) in order to prepare tax returns for compensation. That could change (clearly, from that statement, the IRS is reviewing its options). But for 2013, there you go.
On the taxpayer side, taxpayers need not seek out a preparer who is an RTRP or other designation in order to file their federal income tax returns for 2012. However, don’t forget that you’re still responsible for your return when you put your name on the signature line. So be smart and choose a tax preparer that you trust. Here are a few tips:
