U.S. District Court Judge James E. Boasberg ruled on January 18th that the IRS does not have the authority to regulate tax preparers and force them to undergo testing or take continuing education classes. The ruling explained that congress never gave the IRS authority to regulate tax preparers and that the IRS cannot give themselves that power. The PTIN requirement is not effected by this ruling. The IRS still has the option of appeal.
InsureAccountants.com adds that tax preparers might not have a duty to continuing education any longer, but a mistake can still cost them. An accountant’s professional malpractice lawsuit can arise from any error in preparing taxes. It is important for each preparer to remain diligent about properly filing taxes and to consider professional liability insurance as an additional means to protect themselves and their firms. Contact a licensed broker today to discuss how insurance and risk management can help protect your firm.