Suffolk County CPA Firm, Diapoules & Feinstein, Comments On The IRS Appealing Court Bar To License Tax Preparers Cited In Bloomberg News

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Following an article published by Bloomberg News, which discusses the IRS decision to appeal a court ruling that prevents it from licensing tax preparers, Suffolk County CPA firm Diapoules & Feinstein said the licensing bar could hurt the industry and lead to an increase of incorrectly filed returns.

On February 1, Marvin Feinstein, partner of Diapoules & Feinstein, comments on an article published in Bloomberg News discussing the IRS appeal of a court ruling, which barred the organization from licensing tax preparers.

According to the Bloomberg News article, nearly 700,000 people would be affected if the IRS had to discontinue its tax preparer oversight problem, like the court ruling requires. It would take away the IRS’ ability to guide tax preparers on how to properly file returns for individuals and corporate accounts.

However, in the case, Loving vs. Internal Revenue Service, 12-cv- 00385, U.S. District Court, District of Columbia, the judge invalidated the program on Jan. 18. The article said the judge ruled against the IRS, arguing the agency “overstepped” its authority by relying on an old law. The law, from 1884, states the IRS can regulate people presenting cases against the Treasury Department.

In the article, the IRS said the program was developed for the good of the clients. The article said, “The rules were designed to impose standards on return preparers who aren’t certified public accountants, attorneys or enrolled agents already licensed to practice before the agency.”

Marvin Feinstein, a partner of Suffolk County CPA firm Diapoules & Feinstein said many of his new clients come in with incorrectly filed personal income and corporate tax income returns prepared by “licensed” accountants.

“As you might not be aware, CPAs, EAs, and attorneys must take continuing education courses to maintain their licenses to practice,” Feinstein said. “However, there are many preparers who are not licensed and are not required to update their skills by taking continuing education classes on a yearly basis. In addition, all returns prepared by our staff are reviewed by other firm members and then by a partner before they are released. We agree and have no issue with the IRS’s position that all preparers should meet minimum qualifications and have the necessary knowledge to prepare a tax return.”

The article revealed that the IRS plans on filing for an appeal within the next month if the court neglects to lift the injunction.

Diapoules & Feinstein have been providing accounting, auditing and tax services to Greater New York City area since 1989. D&F provides our clients with great personal attention and years of professional experience in order to see them succeed and help them to feel confident.
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Jim Diapoules
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