U. S. District Court Judge James E. Boasberg released his ruling (Download Feb 1, 2013 Memorandum Opinion and Order ») on Friday, February 1, 2013 denying the IRS's Motion to Suspend Injunction Pending Appeal. He adds some clarification to the January 18, 2013 ruling (Download January 18, 2013 Memorandum Opinion ») in this Order with "The Injunction is MODIFIED to make clear that the IRS is not required to suspend its PTIN program, nor is it required to shut down all of its testing and continuing-education centers; instead they may remain, but no tax-return preparer may be required to pay testing or continuing-education fees or to complete any testing or continuing-education unless and until this injunction is stayed or vacated by the Court of Appeals."
The IRS has updated their website reflecting this ruling (http://www.irs.gov/for-Tax-Pros).
Please note the Alert located on the login screen:
Sign-up and manage your Preparer Tax Identification Number (PTIN)
ALERT: The PTIN system is being updated to reflect current requirements. Until those updates can be completed, a screen titled Continuing Education (CE) Completion may appear during PTIN renewal. Please check either one of the boxes on that screen. This information is NOT being collected, but you must check a box to advance to the next screen. We apologize for any inconvenience.
Today the IRS filed a motion with the United States District Court for the District of Columbia to move that the court suspend the injunction entered on January 18, 2013, pending a resolution of the appeal that they intend to file within 30 days. The IRS requested the stay on the grounds that:
As an alternative, the IRS moves that the court suspend the injunction for at least 14 days to allow them to seek relief from the Court of Appeals.
At this time Prometric has ceased the scheduling of the RTRP examination. The IRS CPE requirements are not required and the PTIN system has been closed.
As NSTP learns more we will update you.
NSTP Director of Education
On Friday, as some of you may already know, the U.S. District Court for the District of Columbia has ruled against the IRS, enjoining it from enforcing the RTRP requirements. Therefore the requirement that non CPAs, Attorneys and Enrolled Agents must sit for and pass the exam cannot be enforced. In addition, the licensing requirement that imposes continuing education is also struck down. The requirement of having a PTIN was not part of the ruling and is a separate issue. Therefore, holding a PTIN is still a requirement.
The court ruled that the IRS did not have authority to issue the regulations without a Statute issued by Congress. There are a few paths that may be taken:
Note that the attorneys for the plaintiffs have stated that they will be ready to take it to the Supreme Court after that.
The IRS has not commented as of this writing.
NSTP encourages everyone to have a PTIN and obtain CPE even if you are not required to do so by the IRS. You and your clients benefit from your personal goals and knowledge.
NSTP will keep you posted.
NSTP Director of Education
The National Society of Tax Professionals (NSTP) is pleased to announce that we have entered into an agreement with Fast Forward Academy for the purposes of training and preparing tax preparers for the Registered Tax Return Preparer (RTRP) Competency Examination.
NSTP and Fast Forward Academy are joining forces to provide the most efficient RTRP exam training and preparation program available on the market. The strength of both organizations blends solid Federal Income Tax knowledge and analysis with mastered exam preparation materials and skills for the first time.
NSTP will offer Fast Forward Academy's "IRS Tax Preparer Course & RTRP Exam Study Guide," a comprehensive guide to passing the IRS RTRP Examination. In addition to using the most efficient study guide available, students can access an online test bank of questions and complete simulated practice exams before they schedule the real exam. Detailed reports provide performance results, explanations, correct answers and all the important metrics needed to Learn Fast and Pass.
For more details or to order self-study materials, go to http://fastforwardacademy.com/NSTP