From a public opinion standpoint, it seems that many are in favor of tax preparer regulation and support the IRS’s efforts to create fair and reasonable requirements. Supporters describe it as a positive step towards weeding out unscrupulous preparers who are committing fraud and ripping off taxpayers.
On the flip side, some view it as an additional layer of bureaucracy that is not needed, and said it will likely force many honest, hard-working tax preparers out of business due to the costs associated with compliance. They argue that other measures should be taken to address fraud, such as bolstering enforcement and issuing more damaging fines and punishments to preparers who get caught committing fraud.
So what happens now? The IRS can appeal the decision; however, the ruling appears pretty sound. Congress can step in and grant the IRS the authority to impose these regulations. But will they? They have much bigger fires to fight right now.
For the time being, it does appear that the IRS will not be able to impose these regulations.
Memorandum Opinion on the case: