It’s bad enough to lose a court case that most expected they would win but now the IRS is paying more than they ever took in from the RTRP test. Almost $8 million more.
From an IRS notice:
The IRS is refunding the fees that return preparers paid for the Registered Tax Return Preparer test. Letters will be mailed to refund recipients on May 28 and checks will be mailed on June 2. Return preparers took the test between November 2011 and January 2013 and paid a fee of $116. About 89,000 tests were paid for and taken, with some preparers taking the test more than once.
The refunds are being made because the federal courts determined in Loving v. IRS that the IRS lacked authority to mandate testing.
So, by my math the IRS is going to have to pay back about $10,324,000 (89k tests @ $116 per test). But…they only got $2,403,000 off the tests. I went back to a September 23, 2011 post. In that post, while the total fee had not been set yet, the IRS announced that their share of the test would be $27. The rest of the $116 ($89) went to Prometic who administered the test.
I would be greatly surprised if Prometic is giving back any money they collected from the tests. That means that the IRS is footing the bill and returning $7,921,000 more than they collected.