IRS sends refunds – to tax preparers

The IRS is giving thousands of tax preparers their money back, for testing taken for a program later struck down by a federal court.

Tax preparers took some 89,000 tests as part of an IRS program to regulate the paid preparer field between November 2011 and January 2013. 

{mosads}But with a federal court ruling the program exceeded the IRS’s authority, the agency said Thursday it is now giving preparers back $116 per test taken. (Some preparers took the test more than once.) Under the program, preparers were required to pass a competency test, and take continuing education classes.

The IRS is now offering voluntary courses to paid preparers, and agency officials are hoping Congress gives the agency the authority to more vigorously regulate preparers.

“Oversight of all paid preparers, coupled with diligent enforcement, would promote high-quality services from all tax professionals, improve voluntary compliance and foster confidence in the fairness of the U.S. tax system,” the agency said in announcing the refunds to preparers.