Feb 1 A U.S. judge on Friday modified an earlier
order and said the Internal Revenue Service does not have to
shut down a new program for registering and testing tax
preparers, but he also said preparers need not take the tests or
pay related fees.
In a move to put the IRS program on hold for now, Judge
James Boasberg of the U.S. District Court for the District of
Columbia ordered that "the IRS is not required to suspend its
... program." Further legal action is expected.
The same judge had ruled on Jan. 18 that the IRS lacked
legal authority to impose rules that represented the agency's
first attempt to regulate the tax return preparer industry. That
earlier order threw the industry into disarray just days before
the beginning this year's tax-filing season.