Steele Vs. U.S.
Since 2010
Family and Locally Owned
Serving Clients Nationwide
Update on Case January, 2023
In January of 2023, the U.S. District Court issued a ruling largely spelling out what fees could lawfully be charged. The DOJ was directed to work with the IRS to produce costs thereunder. The DOJ was required to provide monthly progress reports. Plaintiffs were allowed to include information in such reports. By June, Allen Buckley, an attorney/CPA (and class co-counsel) had produced an estimate of the costs that could be charged. The June notice to the court so reported. Since then, monthly notices have noted plaintiffs have estimated the costs. In the September notice, plaintiffs asked the court to require the DOJ/IRS to produce their costs figures no later than late November, if the numbers were not produced by late October. Also in September, the court issued a ruling stating the IRS did not have to currently pay back $81 million it had conceded (in addition to the roughly $28 million it has already given to plaintiffs via concession--that money is invested in Treasury notes pending resolution of the case). It also ruled against the plaintiffs with respect to two other relatively small clarification issues. In late September, the IRS set the 2023-24 PTIN fee at $19.75. Given inflation and the fact that the fee started in excess of $60, progress has been made.
Update on Case September, 2022
Check out the latest update as of, September, 2022 CLICK HERE to read.
Update on Case
The United States has decided to appeal the decision made by the Judge concerning the ruling on our case. The appeals process could take up to a year or more to be finalized. So, at this time, it is going to be a wait and see if this case will stand as ruling in our favor. The thoughts on the importance of this case can be summed up below my legal representation, Allen Buckley.
“If fees can be charged for what was done here - an unlawful licensing scheme where the thing done by the Government is done via a requirement designed to help the Government (that offers no benefit to the individual "requiree"), then the sky is the limit. In this regard, the Government is entitled to "overhead" and related to costs, etc. if it wins a user fee case. As accountants, you know where that ends up - the entire executive branch and agencies' budgets funded by fees. We need to win and keep the line where it is - if something of value that is not available to the general public is received (i.e., a special benefit), then a reasonable fee can be charged.”
Many people may not understand what this case is about or why it even matters. $50 - $60 a year for a subscription renewal is not a ton of money. But, what if it is not about the money? What? Not about the money? That is right, I said, “not about the money.” This case is about being forced to pay for something just because the government says so, with no real value in return.
When someone goes to perform a job, they receive compensation for the job. The
government does not step in and say, “well, we think we should be allowed to track every job you do and since we want to do that, you need to pay us before you do your job.”
The main issue for this case has been to give a foundation that a government agency cannot charge a profession without the authority to do so and get away with it. It has been over two years that these proceedings have been going through the judicial process. Finally, we have received confirmation by the ruling of the Judge that it is not legal for the IRS to implement and require this annual charge to tax preparers.
The court did see the justification in the fact that the IRS can require preparers to use a Preparer Tax Identification Number, in order to secure proper identification of the preparer on the returns. But, the IRS cannot make the preparers pay to have this ID Number.
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