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IRS opts not to fight court ruling that tossed out its effort to regulate tax preparers

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WASHINGTON - The Internal Revenue Service will not ask the U.S. Supreme Court to reinstate regulations it sought to impose on hundreds of thousands of paid tax preparers.

The rules would have required many tax preparers to take continuing education courses and pass a competency exam. A federal judge and an appellate court in Washington tossed the rules out. The judges said the IRS was overstepping its authority by trying to impose the rules without congressional authorization.

Several independent tax preparers challenged the new regulations in a 2012 lawsuit, represented by the Arlington, Virginia-based Institute for Justice, which opposes what it sees as onerous occupational-licensing schemes in a variety of professions.

The IRS let pass a deadline to seek Supreme Court review of the appellate court's ruling.

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