President’s Budget Includes Tax Proposals and Regulation of Return Preparers

by Alistair M. Nevius | May 24, 2017   ()

The Office of Management and Budget (OMB) released President Donald Trump’s proposed FY 2018 budget for the federal government on Tuesday. Included in the proposals are several tax items, including a proposal to authorize the IRS to regulate all paid tax return preparers.

The budget proposal calls for giving the IRS “statutory authority to increase its oversight of paid tax return preparers.” The proposal would be effective upon enactment. The OMB’s “Analytical Perspectives” on the budget says that this will decrease the “need for after-the-fact enforcement of tax laws and increase the amount of revenue that the IRS can collect.” It estimates that the proposal will increase revenue by $259 million in the years 2018–2027. An attempt by the IRS to regulate unenrolled tax return preparers was struck down by a federal court in 2013, on the grounds that the Service lacks statutory authority to impose rules on return preparers who are not practicing before the IRS (Loving, 742 F.3d 1013 (D.C. Cir. 2/11/14), aff’g 917 F. Supp. 2d 67 (D.D.C. 1/18/13)).

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Source: Journal of Accountancy

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