Tax preparers no longer need a special ID number to file returns
What happened
The US Treasury Department has withdrawn a proposed rule that would have required tax preparers to obtain a special identification number. This means tax preparers will not face new eligibility requirements to file tax returns for others.
Why it matters
The IRS tried for years to regulate tax preparers by requiring them to get a special ID number. Courts repeatedly struck down these rules. This withdrawal means the IRS has given up on that approach for now.
The signal
Watch for new legislative proposals from Congress that would give the IRS explicit authority to regulate tax preparers.