As
a belated follow up to my post “Practice Vs Represent” Enrolled Agent Hal Leahy
has sent me the following email -
It
took a while to find it but here is the IRS's justification for including tax
preparation under representation {highlight is mine – rdf}
"The IRS believes that increased oversight of
paid tax return preparers does not require additional legislation. As discussed
more fully below, the IRS’ intention is to require paid tax return preparers to
register with the IRS through the issuance of regulations under section 6109 of
the Internal Revenue Code. Further, the
IRS considers the preparation of a tax return for compensation as a form of
representation before the agency. Thus, the IRS intends to amend the
regulations under 31 U.S.C. 330 to clarify that any person preparing a tax
return for compensation is practicing before the agency and, therefore, must
demonstrate good character, good reputation, and the necessary qualifications
and competency to advise and assist other persons in the preparation of their
federal tax returns."
IRS
Return Preparer Review, Publication 4832 (Rev. 12-2009) Catalog Number 54419P,
Department of the Treasury Internal Revenue Service, page 33.
Once
a regulation is final, Congress can overturn it. The regulations related to the
Return Preparer Initiative (RPI) were finalized in several IRS regulations and
Circular 230. Congress held hearings on the RPI and did not overturn any of
them. Therefore the regulations are law.
It
would take a federal court case to overturn them. That is unlikely given the
Supreme Court's Chevron or Administrative Deference Doctrine.
See
Wikipedia Chevon ...
So
tax preparation is practice before the IRS, unless a federal court states
otherwise. The latter outcome is unlikely.
Hal
Leahy EA
My
response to Hal – The DFBs (clean version = damned fool bureaucrats).
RDF
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