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State Board Report

October 2013

The Internal Revenue Service is not ready to give up on its program to regulate paid tax preparers, including a mandatory program for periodic examinations and continuing professional education. In January 2013, District Court Judge James E. Boasberg ruled that the regulation program exceeded the IRS’s statutory authority, in a case brought in March 2012 by three tax preparers, Sabina Loving, Elmer Killian and John Gambino, with the assistance of the Institute for Justice, Loving v. IRS (see sbr 5/12 and 2/13). On September 24, 2013, oral arguments in the IRS’s appeal were heard.

The three-judge U.S. Circuit Court panel, David Sentelle, Brett Kavanaugh and Stephen Williams, hearing the appeal questioned the Justice Department’s Tax Division lawyer Gilbert Rothenberg about how the IRS determined that based on the Horse Act of 1884 it had the authority to regulate paid tax preparers who cannot represent tax payers before the IRS. The Circuit Court’s ruling is not expected for several months.

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