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Not All Tax Preparers Are Equally Qualified: Loving v. IRS Explained

Most people assume all tax preparers are qualified professionals. But did you know that many have no formal credentials or training? A court case, Loving v. IRS, changed the landscape of tax preparation—and not in the way you might think.

What Was Loving v. IRS?

In 2011, the IRS introduced new rules requiring tax preparers to pass an exam, undergo background checks, and complete continuing education. The goal? To protect taxpayers from incompetent or fraudulent preparers.

But three independent tax preparers, led by a man named Loving, sued the IRS. They argued that the IRS had no legal authority to regulate all tax return preparers. The case went to court, and in 2014, the U.S. Court of Appeals ruled against the IRS.

The Shocking Outcome

Because of Loving v. IRS:

  • The IRS cannot require tax preparers to meet any minimum qualifications.
  • Anyone can legally prepare tax returns—even without training.
  • Taxpayers are left to figure out who is competent and trustworthy on their own.

What This Means for You

Not all tax preparers are Enrolled Agents (EAs), CPAs, or attorneys. Many have no formal tax education. Some may even make costly mistakes that leave you liable for penalties.

How to Protect Yourself

  1. Look for credentials. Choose an EA, CPA, or tax attorney—they are licensed and regulated.
  2. Check their expertise. Do they specialize in your type of return or industry? 
  3. Ask about IRS representation. Only EAs, CPAs and attorneys have unlimited representation rights before the IRS if something goes wrong.
  4. Make sure your tax preparer signs your return and includes their Preparer Tax Identification Number (PTIN). The IRS requires ALL paid preparers to do this—if yours doesn’t, it’s a major red flag that they may not be legitimate.

Why Professional Tax Help Matters

At Vital Practice, we are IRS-credentialed tax professionals who understand complex tax laws. We help small business owners and individuals avoid costly mistakes and ensure their returns are prepared correctly the first time.

Legal Citation: Loving v. IRS, 742 F.3d 1013 (D.C. Cir. 2014).