WASHINGTON, March 27 The U.S. Internal Revenue
Service on Wednesday lost a request to prevent the partial
shutdown of its tax return preparer regulatory program pending
In a one-page ruling, the U.S. Court of Appeals for the
District of Columbia said the IRS had "not satisfied the
stringent requirements" to overturn a lower-court judge's
injunction against the IRS's new return preparer regulations.
The IRS had hoped to continue, pending an appeal,
requirements for test-taking and continuing education that
affect thousands of individuals who prepare tax filings.
An IRS spokesman did not immediately have a comment on
Wednesday. The IRS has argued it will cost millions of dollars
to stop the program.
No date for oral arguments has been scheduled yet for an
appeal in this case.
The rules were part of the IRS's first attempt to regulate
the tax return preparation industry.
A federal judge in February affirmed an earlier injunction
to stop the testing and education portion of the IRS's return
preparer regulatory program.
Return preparers who do not have professional licenses still
need to register with the IRS.