tax

IRS tries but fails to impose onerous new regulations on tax preparers

Wednesday, January 23, 2013 by: J. D. Heyes
Tags: IRS, regulations, tax preparers

eTrust Pro Certified

Delicious Pin It
(NaturalNews) Because of the United States' complex, byzantine tax code, an entire cottage industry of tax preparers and tax preparation software has emerged as a way to help navigate the law and remain on the good side of the Internal Revenue Service.

Were lawmakers to ever adopt, and a president sign, legislation that would dramatically simplify the tax code - say, passage of a single-rate flat tax - this cottage industry would disappear overnight because taxpayers would no longer need trained professionals just to file tax returns.

But Congress won't ever do that because lawmakers, as well as presidents from time to time, like to use the tax code punitively, to punish certain income classes and industries (sound familiar?). The IRS then plays the role of enforcer.

Federal judge: No new regulations for you

Having stacked the game against taxpayers already, now Congress and the IRS are trying to take over the very industry they helped create, but thankfully the courts are having no part of it.

A federal judge ruled Jan. 18 that the tax agency cannot impose a raft of new regulations that included, among other things, requiring hundreds of thousands of tax preparers to take and pass a competency exam (no such exam for IRS agents and lawmakers was proposed, by the way).

U.S. District Judge James Boasberg in the District of Columbia ruled in favor of three tax preparers who filed a suit last year with the help of the Arlington, Va.-based Institute for Justice, a libertarian-leaning legal group, The Associated Press reported.

The IRS has sought the new regulations since 2011, in response to what the agency said was an increase in poorly done returns. Among new regulations for tax preparers included the requirement to pass a qualifying exam, pay an annual application fee (of course), and a requirement they take 15 hours annually of continuing education courses. Certified Public Accountants and attorneys would have been exempted from the requirement.

The Institute for Justice argued that the tax collecting agency did not have the statutory authority to impose the strict new rules. The institute further said that the regulations would put tens of thousands of mom-and-pop tax preparers out of business "because the regulations were onerous" and because they created "a competitive disadvantage to the attorneys and CPAs who were exempt," AP reported.

The judge's order puts in place an injunction against the IRS, barring the agency from implementing the regulations which have to date been placed in a piecemeal fashion. The exam testing competency would have been implemented in 2014.

'An unlawful power grab by one of the most powerful federal agencies'

The ruling "is good for the public at large because the cost of preparing a tax return was about to go up" as a result of the IRS regulations, said Institute of Justice attorney Dan Alban. He added that the timing of the ruling is good because tax preparation specialists who might have had to close shop will now be able to work on returns in the coming tax season.

In comments to AP, Alban called the agency's plan "an unlawful power grab by one of the most powerful federal agencies and thankfully the court stopped the IRS dead in its tracks."

IRS attorneys argued that the agency not only possessed the statutory authority to impose the regulations, but also the inherent authority to do so (no doubt owed to Congress' unwillingness to reign the agency in over the past several decades).

The government can appeal the judge's ruling and likely will, given federal tendencies to gather as much power unto Washington as can be gathered.

The impact of the regulations would not have been inconsequential. The AP reported that 60 percent of all U.S. tax returns are done by paid tax preparers, according to a study by the Government Accountability Office, Congress' watchdog agency.

Don't penalize preparers, make tax code simpler to understand

In a 2006 study, the GAO took tax returns from 19 separate commercial tax preparation firms; 17 of the 19 incorrectly calculated taxes due.

But rather than see that statistic as a sign that the tax code is simply too complex, the government would rather impose new regulations and fees on preparers instead of making the code much simpler to understand and comply with.

According to ABC News, nearly seven decades ago, the IRS used to run television commercials extolling the simplicity of filing your own taxes; instructions on filing taxes then were two pages.

"Forms are as simple as careful thought and planning can make them," one ad said.

Not anymore.

"Certainly there's no one person that understands the tax code. It's too big. It's too complicated," says David Keating of the National Taxpayers Union, a group that advocates for a simpler tax code.

Indeed it is and obviously, by design.

Sources:

http://hosted.ap.org

http://abcnews.go.com/WNT/story?id=129739&page=1&authuser=1

http://www.ntu.org/news-and-issues/

Get breaking news alerts on GMOs, fluoride, superfoods, natural cures and more...
Join over four million monthly readers. Email privacy 100% protected. Unsubscribe at any time.


Have comments on this article? Post them here:

comments powered by Disqus

Take Action: Support NaturalNews.com

Email this article to a friend

Permalink to this article:

Reprinting this article: Non-commercial use OK, cite NaturalNews.com with clickable link.

Embed article link: (copy HTML code below):
Most Popular
Today | Week | Month | Year

See all Top Headlines...



GET SHOW DETAILS
+ a FREE GIFT

Now Available at ShopNaturalNews.com

O3 Essentials OraJuvenate™
A powerful, cleansing dental cream for maximum oral/dental health.
New Cancer Solutions
Over 3 hours of content covering today’s best cancer tests, how to kill cancer cells and the best diets and exercise routines.
Freeze-Dried 100% Organic Whole Corn
Our freeze-drying method preserves taste, texture and nutrients better than any other food preservation method ever invented.
Fenix TK35 Flashlight
Tough, waterproof, extremely bright and it’s touted to throw an 800+ lumen beam more than 1,000 feet into the night.
Inca Treasure Smoothie Pack
This pack of our four most popular superfoods from South America is the perfect combo pack for smoothie lovers.
Pink Himalayan Salt
This salt delivers significant levels of magnesium, zinc and selenium, with trace levels of dozens of other elements.
Pinhole Glasses - Aviator Style
Pinhole glasses are becoming famous for helping people improve their vision without the risks of laser surgery.
Oxy-Rich Facial Serum
O3 Essentials Jojoba Oxy-Rich Facial Serum is cellular nourishment for your skin. Helps smooth fine lines while enhancing tissue elasticity.
Freeze-Dried 100% Blackberry Halves
Our freeze-dried blackberry halves are grown in Serbia under strict organic standards.

Also on NaturalNews:

Health Ranger Videos
Activist music
CounterThink Cartoons
Food documentaries
FREE Special Reports
Podcasts
Colloidal Silver

Advertise with NaturalNews...

Support NaturalNews Sponsors:

Advertise with NaturalNews...

Most Popular Stories

Flu shot kills 19-year-old, but vaccine industry still has total immunity against lawsuits
Here's a nutty fact: Eating more tree nuts lowers the risk of all-cause death by up to 20 percent
Six important facts you're not being told about lost Malaysia Airlines Flight 370
Malaysia Airlines Flight 370 now clearly a government cover-up: All evidence contradicts official story
10 other companies that use the same Subway yoga mat chemical in their buns
BLM fracking racket exposed! Armed siege and cattle theft from Bundy ranch really about fracking leases
High-dose vitamin C injections shown to annihilate cancer
U.S. treating meat with ammonia, bleach and antibiotics to kill the '24-hour sickness'
USDA to allow U.S. to be overrun with contaminated chicken from China
Vaccine fraud exposed: Measles and mumps making a huge comeback because vaccines are designed to fail, say Merck virologists
Battle for humanity nearly lost: global food supply deliberately engineered to end life, not nourish it
Diet soda, aspartame linked to premature deaths in women

25 Amazing Facts About Food

This FREE downloadable report unveils a collection of astonishing and little-known facts about the food we eat very day. Click here to read it now...

 

Resveratrol and its Effects on Human Health and Longevity - Myth or Miracle.

Unlock the secrets of cellular health with the "miracle" nutrient Resveratrol Click here to read it now...

 

Nutrition Can Save America

FREE online report shows how we can save America through a nutrition health care revolution. "Eating healthy is patriotic!" Click here to read it now...

The Healing Power of Sunlight and Vitamin D

In this exclusive interview, Dr. Michael Holick reveals fascinating facts on how vitamin D is created and used in the human body to ward off chronic diseases like cancer, osteoporosis, mental disorders and more. Click here to read it now...

Vaccines: Get the Full Story

The International Medical Council on Vaccination has released, exclusively through NaturalNews.com, a groundbreaking document containing the signatures of physicians, brain surgeons and professors, all of which have signed on to a document stating that vaccines pose a significant risk of harm to the health of children. Click here to read it now...

Health Ranger Storable Organics

GMO-free, chemical-free foods and superfoods for long-term storage and preparedness. See selection at www.StorableOrganics.com



Recommended Resources On:

Natural News trends
Health Ranger news
Natural News GMOs
Mike Adams tracker
Natural News photos
Natural News Global
Natural News in focus
Natural News connect
Natural News shocking stories
Natural News radar
GMOs
Quackwatch
Vaccines
Health freedom
Dr. Paul Offit

This site is part of the Natural News Network © 2014 All Rights Reserved. Privacy | Terms All content posted on this site is commentary or opinion and is protected under Free Speech. Truth Publishing International, LTD. is not responsible for content written by contributing authors. The information on this site is provided for educational and entertainment purposes only. It is not intended as a substitute for professional advice of any kind. Truth Publishing assumes no responsibility for the use or misuse of this material. Your use of this website indicates your agreement to these terms and those published here. All trademarks, registered trademarks and servicemarks mentioned on this site are the property of their respective owners.

eTrust Pro Certified Android app on Google Play

Sign up for the FREE Natural News Email Newsletter

Receive breaking news on GMOs, vaccines, fluoride, radiation protection, natural cures, food safety alerts and interviews with the world's top experts on natural health and more.

Join over 7 million monthly readers of NaturalNews.com, the internet's No. 1 natural health news site. (Source: Alexa.com)

Your email address *

Please enter the code you see above*

No Thanks

Already have it and love it!

Natural News supports and helps fund these organizations:

* Required. Once you click submit, we will send you an email asking you to confirm your free registration. Your privacy is assured and your information is kept confidential. You may unsubscribe at anytime.