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Von Aldo
An Ugly IRS Power Grab

An Ugly IRS Power Grab

"I am your keeper in all matters of your life."

Today, a CPA and financial advisor writes in the New York Post that the IRS has made an illegal power grab to force independent tax preparers to get a license from the IRS and take ongoing continuing education classes. The author of the opinion piece, John Gambino, is based in Hoboken, N.J. and runs Inner Circle Advisors. He says the new IRS regulation would reduce consumer choice, put small CPA practices out of business and force taxpayers into the arms of expensive tax lawyers and H&R Block employees. The rule tax effect next year.

On the other hand, lawyers get licensed, barbers get licensed and etc. (Financial advisors get licensed, as you all know well.) But, the libertarian in me reckons these violate the "restraint of trade" law. I mean, sure, you can have licneses, but can't an individual decide to whom he wants to go to? A lawyer who passed the bar? Or a lawyer who has credentials (law school) and didn't pursue the bar? A barber with a license or a barger without? Typically such licenses are used by big companies to stifle competition.

Gambino writes: "To continue preparing taxes, independent preparers like me will first have to get permission from the IRS. We’ll need to pass a licensing exam, pay fees and endure an endless series of continuing-education courses.

"All this only serves to raise prices and reduce choice. It’s classic crony capitalism, as large and well-funded companies like H&R Block supported the regulations, and interest groups like the American Institute for CPAs got the IRS to exempt their members and employees — while small-business owners got left behind."

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