The IRS and the Obama Administration are at it again. There has been a recent report were the IRS is planning on using what is commonly called the “Horse Act of 1884” to regulate entities that help the American people prepare and file their taxes.
This act created the position of enrolled agent as a reaction to fraudulent war loss claims in the wake of the Civil War and was signed into law by President Chester A. Arthur on July 7, 1884. After the Civil War, many citizens faced difficulties in settling disputes with the Federal government for property seized for use in the war. This resulted in Congress endowing enrolled agents with the power of advocacy to prepare claims against the government.
Now the IRS wants to use the statue, which predates the creation of the IRS to regulate entities that prepare taxes. What legal authority does the IRS have in regulating tax preparers? They do no have any. The Obama Administration is reaching to find new ways to regulate even more sectors of the economy.
Let’s make things clear: You cannot use the Horse Act of 1884 to allow the IRS to regulate tax prepares when the statue was not designed to be used in such a way. You cannot simply decide that a law created to regulate something else now applies to a sector to which you seek to regulate to meet the means to which you seek.
If the IRS and the Obama Administration wish to regulate tax preparers, then it must go to Congress to grant it the powers to do such. In January a federal judge ruled that the Horse Act of 1884 was never intended to regulate tax preparers. Lets hope U.S. Court of Appeals for the District of Columbia Circuit agrees as well after the government filed an appeal. It would be best to just abolish the IRS and then we would remove the Federal governments hunger to tax, spend and regulate.
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