Tuesday, March 13, 2012

Institute for Justice Goes Up Against the IRS


The video above features the Institute for Justice's latest heroic effort to defend small businesses and entrepreneurs against economic protectionism, empower individuals to earn an honest living, and promote economic liberty.  Here's a summary:

"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.

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."

5 Comments:

At 3/13/2012 12:48 PM, Blogger morganovich said...

question:

why did the IRS do this? what was in it for them? was there some big donation by the big tax preparers to a related politician?

are they trying to make their work easier by excluding numerous folks who effectively use the rules in creative ways?

i'm sure they are calling it "consumer protection", but i doubt that's the real motive.

 
At 3/13/2012 1:17 PM, Blogger Jon Murphy said...

That is a good question, Morganovich. What does the IRS stand to gain from this? DO you think there could be political pressure from Congress?

 
At 3/13/2012 7:44 PM, Blogger Ron H. said...

Jon M: "DO you think there could be political pressure from Congress?"

Either Congress or the Obama Administration. The IRS is a mighty powerful tool.

 
At 3/13/2012 10:30 PM, Anonymous Anonymous said...

Would you be more or less likely to aggressively fight for your client if the government agency that you're fighting against has licensing authority over you? That's what the IRS gains from this.

 
At 3/14/2012 6:42 AM, Blogger geoih said...

Guess who's getting audited this year?

 

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