Loving v. Internal Revenue Service
920 F. Supp. 2d 108
D.D.C.2013Background
- This case concerns the IRS’s registered tax-return preparer program and a District Court injunction pending appeal.
- Plaintiffs do not challenge PTIN eligibility; Congress authorized PTINs under 26 U.S.C. § 6109(a)(4).
- The court enjoined fees, exam, and CE requirements for non-authorized preparers, while PTIN/authorization stayed intact.
- Deadline to complete the qualifying exam is December 31, 2013; 2012 CE can be made up in 2013.
- If stayed, preparers could wait to see appellate results; testing/CE would be limited or postponed, affecting compliance.
- The court denies the stay and modifies the injunction to permit testing centers/CE centers to remain, but without fees or required testing/CE absent stay or vacatur.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a stay pending appeal should be granted | IRS seeks stay to avoid disruption | Court should not stay given public interest and harms | Stay denied; harms and public interest weighed against stay |
| Whether irreparable harm supports a stay | Injury from disrupted testing/CE and costs | Some harms are not irreparable and may be mitigated | Injuries not irreparable; stay not justified |
| Whether others will be harmed by a stay | Preparers and clients face confusion and costs | Harm to IRS and program if no stay | Harm to others supports maintaining injunction unless stayed |
| Whether the public interest favors lifting the injunction | Regulatory overhaul should proceed if lawful | If unlawful, funds and oversight harmed | Public interest does not favor lifting the injunction; broader statutory action possible |
Key Cases Cited
- Common Cause v. Judicial Ethics Comm., 473 F. Supp. 1251 (D.D.C. 1979) (preliminary-injunction standards; likelihood of appeal)
- Holiday Tours, Inc., 559 F.2d 841 (D.C. Cir. 1977) (public interest and irreparable harm factors guidance)
- Cuomo v. Nuclear Regulatory Comm'n, 772 F.2d 972 (D.C. Cir. 1985) (four-factor test for stay pending appeal)
- Wis. Gas Co. v. FERC, 758 F.2d 669 (D.C. Cir. 1985) (irreparable harm must be certain and great)