IRS refunds $10 million to thousands of tax preparers who paid to take test

The IRS is refunding a total of $10 million to thousands of tax preparers who paid to take a competency test.

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A federal court struck down IRS regulations in 2013 that sought to require some tax preparers to get training and take a test. An appellate court upheld the ruling last year, saying the IRS lacked the legal authority to mandate the testing.

The IRS said about 89,000 tax preparers paid $116 apiece to take the test. The agency said Thursday it is issuing refunds to those preparers.

The Obama administration has proposed giving the IRS the authority to regulate paid tax-return preparers. As it now stands, there are no federal rules governing who can charge clients to prepare their tax returns.