A decision was announced this afternoon regarding the 2012 court case Loving v. IRS, which challenged IRS’ authority to regulate commercial preparers. United States District Court for the District of Columbia Judge James E. Boasberg granted Loving’s motion for summary judgment. The Court is granting a permanent injunction against IRS for what the opinion calls “an invalid regulatory regime.”
As with any legal matter, it is best not to jump to conclusions, particularly in the moments following major decisions. As we sit here on Friday evening, the obvious question is how IRS will respond. In any event, this situation will develop over the next week and upcoming months. NAEA will continue to interpret possible ramifications for enrolled agents and the overall tax community and will share our perspective during the back and forth volleying that promises to ensue.