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IRS lacks authority to regulate tax preparers, court says
IRS lacks authority to regulate tax preparers, court says

The Internal Revenue Service lacks the authority to regulate paid tax preparers, a federal appeals panel said, upholding a lower-court ruling that throws out licensing rules for as many as 700,000 practitioners. The IRS issued new rules in 2011 to address concerns about the performance of some preparers. The agency relied for authority on a 1884 law empowering it to "regulate the practice of representatives of persons before the Department of Treasury," according to the ruling by a three-judge panel in Washington. In the 125 years after the law's enactment, "the executive branch never interpreted the statute to authorize regulation of tax-return preparers,"...

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