IRS to be sued

[Maia Gabrial]

With all the banksters being arrested and possibly charged, my question is why the IRS isn't on the list with them? If there ever were a corrupt organization that needed to be put out of business that would be the Internal Revenue Service....


This video deals with the new IRS licensing scheme, which is now
the subject of a lawsuit, from the angle of some 350,000
independent tax return preparers (workers) who will be run out of
business, leaving only the major firms who would then have a good
deal less competition.

Which is an extremely valid and legal angle to approach it.

I see this also as a way to CONTROL those who prepare taxes. If you
need a license to prepare taxes, then you had better prepare the
tax papers the way the IRS wants or your license can be withdrawn
or refused renewal.

It has elsewhere been demonstrated that independent tax prepares
often come up with different numbers than major tax preparing
firms, that almost always means a larger return for the taxpayer.

Yeah, I think it's a control scheme as well as limiting competition
for major firms.

Video:

http://www.brasschecktv.com/page/9836.html

Goodman Green
- Brasscheck

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Tax Preparers Sue the IRS, Fight Unlawful Licensing Scheme

Sweeping new regulations could impact millions of taxpayers

WEB RELEASE: March 13, 2012
Media Contact:
Bob Ewing (703) 682-9320

Institute for Justice

Arlington, Va.—The IRS has imposed an unlawful licensing scheme that benefits powerful industry insiders and could affect millions of taxpayers—and more than 350,000 independent tax return preparers.

That is why today three independent tax preparers—Sabina Loving of Chicago, John Gambino of Hoboken, N.J., and Elmer Kilian of Eagle, Wisc.,—have joined forces with the Institute for Justice in filing suit against the IRS in the U.S. District Court for the District of Columbia.

“Congress never gave the IRS the authority to license tax preparers, and the IRS can’t give itself that power,” said Attorney Dan Alban of the Institute for Justice, the nation’s leading legal advocate for the rights of entrepreneurs. “This is an unlawful power grab by one of the most powerful federal agencies.”

The new regulations, which were imposed last year and take effect this tax season, force tax preparers to get IRS permission before they can work. The burden of compliance will fall most heavily on independent tax return preparers and small businesses. They require all paid tax return preparers—except for attorneys, CPAs and several categories of politically powerful “enrolled agents”—to become a “registered tax return preparer” by paying extra fees, passing a government exam, and taking 15 hours of continuing education classes every year.

The regulations are not being applied evenly to all tax preparers, and instead exempt certain favored professions and types of businesses that have the resources to lobby for special privileges. As noted, attorneys and certified public accountants (CPAs) are exempt, thanks in large part to powerful interest groups, such as the American Institute of CPAs, which successfully lobbied for an exemption.

Unsurprisingly, big tax preparation firms, such as H&R Block and Jackson Hewitt, support the licensing scheme. As The Wall Street Journal explained: “Cheering the new regulations are big tax preparers like H&R Block, who are only too happy to see the feds swoop in to put their mom-and-pop seasonal competitors out of business.”

“These regulations are typical government protectionism,” said IJ Senior Attorney Scott Bullock. “They benefit powerful industry insiders at the expense of entrepreneurs and consumers, who will likely have fewer options and face higher prices. But tax preparers have a right to earn an honest living without getting permission from the IRS. And taxpayers—not the IRS—should be the ones who decide who prepares their taxes.”

Institute for Justice

[xbusymom]

I used to do my taxes thru an Independent that used to work for the IRS for many years. It let them know where all the loopholes and options that were available to the little guy, and how to sidestep the redflag items.

So -OF COURSE it is a control issue... TPTB want to close those doors.

[GCS1103]

Probably one of the most corrupt institutions in our country today. All tax returns prepared by someone other than the taxpayer requires the social security number or PTIN number of the preparer. When someone in the IRS decides to put a tax preparer out of business, they simply input the preparer's PTIN number and send a tax audit notice to all their clients. This has been done for years and still continues to this day.

The IRS uses it's self-manufactured powers to intimidate and prosecute people. They have an unlimited budget (thanks to our tax dollars) and a cadre of power-crazed robots working in their offices. Most incredible is how they turn a blind eye to tax fraud, if the person is well-connected. Heading up this organization- one of the biggest tax cheats alive- Tim Geithner.

[crested-duck]

I wish I could get a kiss or at least a reach around once in a while, before they stick it up my ass !!

[Maia Gabrial]

Too bad Alex Collier can't sue the IRS as well since they've INTENTIONALLY ruined him.

[9eagle9]

The IRS is the largest policing agency in the world. They are also the most miserably overstaffed agency in the world, and they are also the world's worst accountants. They lose track of billions a year, which is why the US taxpayers had to start paying the Dept of Treasury. Also they are losing more in lawsuits when they aggresively pursue people 'they think' are delinquent only to find out that the error was on their part.

I'd agree that is exactly the intention of the IRS, to close off what we common folk know as 'red flags' which lead to an audit so we should avoid them....even though they are perfectly legitimate write offs. Make sure tax returns are prepared so they get what they want. I used them for years and was never audited, even though I did my own taxes.

The IRS is stuck between a rock and a hard place. They are fair easy on corporations with all sorts of lax loopholes and allowance of certain agreements. Major corps can't be belted up the way the common sheeple are because they provide the campaign funds at all levels to make sure there's some arsehole in office somewhere that is looking out for the IRS's best interest. However the common folk are corportations too and their revenue codes cannot be written to separate the wheat from the chaff. We are entitled to to every write off a major corporation enjoys. A common citizen can set themselves up as S or C Corp and move their own money around in crazy making loop in a perfectly legitimate way. Unfortunately more people are doing this.

It is a brilliant paradigm though; we pay them for the pleasure of being their slaves.

I've said it a zillion times the only way to break their back is to have every man and woman and tax paying entity put the checkbook away.

[sdv]

Great to see people take action and stand up against this blatant erosion of rights!

[xbusymom]

I'd agree that is exactly the intention of the IRS, to close off what we common folk know as 'red flags' which lead to an audit so we should avoid them....even though they are perfectly legitimate write offs. Make sure tax returns are prepared so they get what they want. I used them for years and was never audited, even though I did my own taxes.


that is not always the case- they routinely red flag and audit high risk category groups... My dad was a psychologist and was audited about every 3 years while in private practice... but the year he got hooked up with a clinic, he was never audited again.