The Internal Revenue Service has decided not to appeal a district court case which ruled that the agency doesn’t have the authority to regulate return preparers’ contingent fee arrangements for refund claims.
The case,
The ruling invalidated and permanently enjoined the IRS from enforcing Circular 230 restrictions generally prohibiting attorneys, CPAs, and Enrolled Agents from entering into contingent fee arrangements for ordinary refund claims and amended returns (see
“This long-fought battle to protect taxpayers and their representatives from the IRS’s efforts to limit their ability to pursue valid claims is finally over,” said Ridgely. “We are very gratified that taxpayers, and not the IRS, now have the right to determine the fee arrangements between themselves and their representatives.”