D.C. Circuit upholds IRS unenrolled tax preparer program
 

D.C. Circuit upholds IRS unenrolled tax preparer program

The Court of Appeals for the D.C. Circuit held in American Institute of Certified Public Accountants v. Internal Revenue Service, No. 16-5256 (D.C. Cir. 8/14/18), that the AICPA had standing to challenge the IRS’s voluntary Annual Filing Season Program (the Program). However, the court held for the IRS on the merits, allowing the Service to continue the Program, which had already gone into effect while AICPA’s challenge was pending.

Rejecting the AICPA’s arguments to the contrary, the court unanimously held that the program was within the statutory authority delegated to the IRS, and held over a dissenting opinion that Revenue Procedure 2014-42, which established the Program was an interpretive rule, so the IRS did not violate the Administrative Procedure Act (APA) by failing to follow notice-and-comment rulemaking procedures in promulgating it.. Read more on the Journal of Accountancy.