Block on Trump's Asylum Ban Upheld by Supreme Court
Admit it, you feel a secret joy when the IRS was permanently enjoined from enforcing regulations on the little people.
This case demonstrates that minor nuances in statutory language can cost you the case.
The Treasury Department Circular 230, issued by the IRS, was controversial because it created a new category of tax return preparers ("registered tax return preparers") and subjected them to the ethical standards and rules. Under the new rules, the tax return preparers were barred from representing taxpayers before IRS appeals officers and other similar employees.
In Loving, a group of registered tax return preparers claimed the IRS lacked the authority to issue those regulations against them. In its defense, the IRS cited 31 U.S.C. §330 and argued that the statute gives the Department of Treasury the authority to regulate people who practice before it. While the statute does give the IRS that power, the court found that tax return preparers don't fall into that category.
The D.C. Circuit provided six reasons why the IRS's statutory interpretation was incorrect when applied to the tax return preparers.
So if your clients are tax return preparers, you can let them know that the IRS is enjoined from regulating them. Just don't forget to remind your other clients about tax issues in their upcoming filings.
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