IRS Defeats NY Tax Firm’s Early Bid to Restore E-Filing Rights

The IRS doesn’t need to immediately restore a New York tax firm’s electronic filing identification numbers while the business sues the agency over its suspension, a federal court said.

SL Tax sued the IRS for allegedly violating its due process rights by failing to offer notice before suspending the EFINs. SL Tax’s inability to e-file caused it irreparable financial harm and warrants immediate restoration, its lawsuit said.

The tax preparation business failed to make a requisite showing of irreparable harm to justify a preliminary injunction against the IRS, the US District Court for the Eastern District of New York said ...