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Author: fleg9bo Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121180  
Subject: Challenging tax-prep licensing Date: 3/13/2012 3:18 PM
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http://mjperry.blogspot.com/2012/03/video-above-is-about-ins...

Congress never gave the IRS the authority to license tax preparers, and the IRS can’t give itself that power. But last year the IRS imposed a sweeping new licensing scheme that forces tax preparers to get IRS permission before they can work. This is an unlawful power grab that exceeds the authority granted to the IRS by Congress.

The burden of compliance will fall most heavily on independent tax return preparers and small businesses. Unsurprisingly, big firms such as H&R Block and Jackson Hewitt support the licensing scheme. As The Wall Street Journal explained: "Cheering the new regulations are big tax preparers like H&R Block, who are only too happy to see the feds swoop in to put their mom-and-pop seasonal competitors out of business."

That is why on March 13, 2012, three independent tax preparers joined the Institute for Justice in filing suit against the IRS in the U.S. District Court for the District of Columbia. This lawsuit challenges the IRS's statutory authority to impose this licensing scheme, and seeks to overturn regulations that would affect an estimated 350,000 tax return preparers, forcing many of them to stop working in the occupation of their choice.
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My state of OR requires the passing of a board exam to get a license to prepare taxes for pay. It's a tough exam -- I'm a very good student with four degrees and two professional certificates and I had to study hard to score a mere 80 (passing was 75). CPAs and attorneys are exempt and EAs only need to pass the OR-specific part. At the H&R Block training I attended, they said that they had to offer a third more hours than elsewhere in the country to get us prepared for the exam, and still only half of my class passed.

--fleg
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