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On Tuesday, the American Institute of CPAs(AICPA) filed a lawsuit against the IRS (Internal Revenue Service) in federal court, stating that the taxing agency’s voluntary program to regulate tax return preparers, is unlawful claiming that it violates Administrative procedure act. The AICPA has been
raising its voice over this for the past few months. IP valuation methods

The suit was filed in the U.S. District Court for the District of Columbia.

AICPA’s CEO and Chairman of board of directors Barry C. Melancon and William E. Balhoff, in a letter
to the IRS’s commissioner said that the AICPA values their longstanding and constructive relationship
with the IRS, and look forward to continuing to work with the IRS to develop workable solutions
to important public policy issues, including the shared goal of crafting an improved regulatory
approach to tax return preparers. But the continuance disregard of AICPA’s comments on the newly
announced Voluntary program for tax preparers has forced them to follow a legal approach against
the IRS.

Meloncon also added that “The IRS simply does not have the authority to proceed with the new
rule. By doubling the number of categories of tax return preparers to eight, the rule will also
confuse consumers. Worse yet, the new rule will do nothing to address the problem of unethical or
fraudulent tax return preparers – which should be a top priority.”

AICPA made a strong statement that any such major policy changes or additions must invite a public
comment, before they are being enforced so that the issues at hand are dealt in more effective and
lawful manner.