IRS Files 'Motion to Stay' on PTIN RulingIRS Files 'Motion to Stay' on PTIN Injunction
Makes Request to Continue to Charge for PTINs
July 24, 2017 - The IRS has formally asked the U.S. District Court for the District of Columbia to stay its injunction prohibiting the IRS from charging PTIN fees. The Court had ruled in June that the IRS must cease charging for a PTIN and to reimburse fees collected since 2010.
In the filing, the IRS requested that the injunction to be stayed (on hold) while the IRS decides whether to appeal. The IRS contests that if they appeal and win, they would have no way to collect the “likely tens of millions of dollars” of PTIN fees it would have collected during the appeal process. If they lose, the IRS can simply refund the fees collected during that time.
The IRS noted that if they are prohibited from collecting PTIN fees, they would have to redirect money from other programs to fund the PTIN program, which would prevent them providing other taxpayer services.
The IRS also argued that they’re likely to win on appeal, noting that the D.C. District Court’s holding conflicts with decisions from the Eleventh Circuit and the Northern District of Georgia (Brannen, 682 F.3d 1316 (11th Cir. 2012), aff’g No. 4:11-CV-0135 (N.D. Ga. 8/26/11); Buckley, No. 1:13-CV-1701 (N.D. Ga. 12/4/13)). The IRS also argues that the district court’s decision that a PTIN is not a “service or thing of value” under 31 U.S.C. Section 9701 is unsupported by the statute and regulations.
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