Sigma Tax Pro Reports IRS Attempt to Regulate Professional Tax Preparers Struck Down by Supreme Court

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A recent attempt by the IRS to introduce a certification exam, annual fees, and 15 hours of continuing education courses each year has been unsuccessful.

Sigma Tax Pro

Professional tax preparers can breathe a sigh of relief as a federal appeals court struck down the recent attempt by the IRS to increase regulation on the industry. The IRS had proposed sweeping changes in the requirements to become a registered tax preparer; this would have included an initial certification exam, new annual fees and and an annual requirement to complete 15 hours of continuing education. Unsurprisingly the move was met with significant opposition from tax preparer associations and the federal appeals court decision was met with enthusiasm by hundreds of thousands of tax pros nationwide.

CPAs, enrolled agents and attorneys handling IRS audits have long been subject to onerous requirements from the IRS, however the recent attempt to expand this regulation to anyone preparing tax returns for money has been unpopular. Many tax professionals are small local businesses and the proposed regulations would have made it impossible for many of them to continue to operate. The IRS holds that its objective is to ensure that taxpayers get quality service from tax professionals and the regulations would not have been unreasonable.

John Koskinen, IRS commissioner believes that a further appeal is not forthcoming but they are exploring other options. This may include voluntary credentials for tax preparers as well as legislative remedies. Koskinen also recognized the chances of the new regulations being passed by the Supreme Court were slim from the beginning. He did however reject claims that the increased regulation would have unfairly benefited large tax preparation chains such as H&R Block and Jackson Hewitt.

Sigma Tax Pro provides a full range of essential services for tax professionals.This includes industry leading software solutions as well as technical support, tax preparation support and client retention strategies. The Audit Assistance program is offered to new and existing clients and can provide them with peace of mind in the event their clients are audited by the IRS.

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Jody Dovich
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