Tax Preparer Rules Vanish on Filing Eve After Court Loss

The U.S. Internal Revenue Service suspended its regulation of tax-return preparers after a federal court ruling said the agency lacked authority, removing a tax-compliance tool that was years in the making and raising concerns from the national taxpayer advocate.

With the tax-filing season starting Jan. 30, hundreds of thousands of return preparers won’t have to register with the federal government, pass a competency test or meet continuing-education requirements. The court decision undercuts work that persuaded the IRS to impose the rules to protect filers, said Nina Olson, the national taxpayer advocate whose office is an independent organization within the agency.