"This blogpost was coauthored by Cato legal associate Chaim Gordon.
On Tuesday, the Institute for Justice brought a lawsuit to stop recent IRS regulations that require independent tax return preparers to pay a yearly registration fee, take a competency exam, complete 15 hours of IRS-approved continuing education every year, and possibly subject themselves to mandatory fingerprinting. Our colleague Dan Mitchell observed two years ago that these regulations appear to be the result of “regulatory capture.” 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.
Indeed, as others have already noted, one of the architects of this licensing scheme is Mark Ernst, former CEO of H&R Block. These protectionist regulations were even cited by UBS as a reason to buy H&R Block stock, on the grounds that they will “add barriers to entry (or continuation) for small preparers.”
Joe wrote: Instead of tax reform and simplification, require more training and licenses for paid tax preparers. Great idea!
The HR block full employment act. More jobs too!
Those Gov't guys are so smart.
This is actually a grand opportunity for mom-and-pop seasonal competitors to shut down their businesses and apply for jobs at the large tax accounting firms. They would have better wages, a level of health care that they probably couldn't afford as a small business, retirement plans, paid vacations and a multitude of benefits that a large corporation affords.
I see no problem with this new regulation. This is a win-win situation.
I've done my own taxes with software for many, many years because the last time I took it to a preparer they hosed it up and I ended up paying taxes and penalties. That preparer was H&R Block.
One of the European countries, UK or Germany I think, the IRS just sends you a tax bill already filled out and you just sign it and return, unless you have extra income/deductions. They already have your info in the computer. Sounds efficient to me!
Oh and we had a couple mistakes on my GF's tax return done by a preparer, glad I checked it over for her. Big waste of money we spend as a nation on tax returns.
If you want to be, press one. If you want not to be, press 2
Republicans are red, democrats are blue, neither of them, gives a flip about you.
I worked as a volunteer tax preparer for seniors and low income people for several years. Even we had to take a yearly class and pass an IRS exam each year (a pretty detailed one at that).
I don't mind the concept of professional licenses and exams. Its the bureaucracy/renewals and temptation to use license fees as revenue generators. Look at car registrations and liquor licenses. And Building permits. $200 just to replace an existing roof?
If you want to be, press one. If you want not to be, press 2
Republicans are red, democrats are blue, neither of them, gives a flip about you.
