Law Times

Page 16 October 7, 2013 Law Times • u The u Bizarre Briefs InsIde story By Viola James GOV'T BEATS DEAD HORSE IN DEFENDING NEW LAW WASHINGTON — Will the judges say yay or neigh to the pile of horse material the U.S. government is putting before them as it seeks to justify regulating tax preparers? According to Reuters, the U.S. government is basing its case for regulating the tax return preparation business for the first time in U.S. history largely on a 19th-century law dealing with horses lost or killed in the Civil War. At an appellate court hearing on a challenge brought by libertarian lawyers challenging the administration, Justice Department tax division lawyer Gilbert Rothenberg said: "I hate to beat a dead horse, especially one from the Civil War era." But he explained that the administration sees the Horse Act of 1884 as providing ample authority for the U.S. Internal Revenue Service to regulate the tens of thousands of preparers who fill out millions of Americans' federal tax returns. A three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit heard the administration's argument. According to Reuters, Rothenberg said the IRS should be able to force tax return preparers to pass a competency test and take annual continuing education classes. But the Institute for Justice, a libertarian advocacy law firm, disagreed. "Congress never gave the IRS authority to regulate tax preparers," said Dan Alban, an attorney for the institute. The case has broad implications for the industry, which includes H&R Block Inc., a few midtier companies, and thousands of tiny firms. A decision from the judges is still months away. In oral arguments, the judges gave no clear sign of how they'll rule. But according to Reuters, they did question why the IRS was citing an 1884 law to justify trying to police tax return preparers in 2013. After the Civil War, many Americans brought war loss claims against the U.S. government, often for dead or missing horses. A post-war industry emerged of agents who would press war loss claims for a fee, usually a percentage of the amount collected. Soon, the government was seeing fraudulently inflated claim values. In response, the government started regulating these intermediaries, barring unscrupulous ones and certifying honest ones as enrolled agents, a title still used today by people who represent clients in matters before the IRS. According to Reuters, the IRS is arguing that tax return preparers represent their customers in much the same way that enrolled agents do and it should therefore be able to expand regulation to include preparers. But the Institute for Justice is arguing tax return preparers don't carry the same level of representation but rather merely provide a paid service for clients. The Institute sued in March 2012 to block the IRS' regulations and won a district court ruling in January halting parts of the agency's program. The IRS appealed. COPS USING GHOULISH TACTICS TO STOP CRIME LONDON, England — Criminals will turn green with fear when faced with this kind of ghoulish identification evidence. According to Reuters, police caught a thief not so much red-handed as green-faced in London after he broke into a car that sprayed him with a liquid that glows emerald under ultraviolet light. Yafet Askale, 28, denied entering the vehicle police set up with a dye trap in Harlesden in northwest London to catch thieves in June. But the court found him guilty of stealing objects inside the car after police produced photos showing his face covered with the liquid that's invisible under normal light. Askale, from Harlesden, received a sentence of 49 hours of community service, Reuters reported. LT IP BOUTIQUE JOINS OSLERS Ottawa intellectual property boutique law firm McFadden Fincham has joined Osler Hoskin & Harcourt LLP. Lawyers at McFadden Fincham provide services exclusively in intellectual property. Oslers says the firm's addition will boost its range of intellectual property services. "Both of our IP practices are built on a solid commitment to client service. We are very pleased to welcome our new colleagues and Brad White are confident that their clients will continue to receive the excellent service to which they are accustomed — with the benefit of access to the full range of Osler's legal talent," said Brad White, chairman of Oslers' national intellectual property department. "Our solid record of growth and leadership in the protection and enforcement of intellectual property rights, together with strategic advice on portfolio management for clients in Canada and around the world, is enhanced by the addition of McFadden Fincham's practice," Osler said in a press release. HANSELL LLP LAUNCHED A former Davies Ward Phillips & Vineberg LLP senior partner has launched her own boutique law firm. Carol Hansell, who deals with capital markets, corporate governance, and mergers and acquisitions, announced the opening of Hansell LLP in Toronto last week. The boutique governance counsel law firm says it will provide expert advice to businesses, boards of directors, and shareholders. "Boards, shareholders, and management teams operate within a complex environment of evolving governance practices and regulation," said Hansell. "Hansell LLP will respond to their need for sophisticated and focused advice." Lawyers Michael Brown and Frédéric Duguay will be joining Hansell LLP in the coming weeks, the firm announced. "Mr. Brown and Mr. Duguay bring to the firm important expertise in M&A, capital markets, and securities law as well as deep regulatory experience." Brown is formerly of Cassels Brock & Blackwell LLP. For more than 10 years, he also practised at the Ontario Securities Commission, where Duguay also worked as a senior legal counsel in the corporate finance group. NEW LAWYERS AT DENTONS Dentons Canada LLP has two new lawyers at its Ottawa office. Peter Burn is now counsel in the public policy and regulatory affairs group and Marc Doucet is a partner in the firm's construction group. "Two highly respected lawyers with top tier skills are joining our team in Ottawa," said Tom Houston, managing partner of Dentons' Ottawa office. "Peter's government and international experience and Marc's broad construction law expertise are strong assets for Dentons' clients, and for our firm's global platform." Burn has worked in areas involving technology and regulation, clean energy development, and climate change strategies, Dentons said in a press release. The firm noted he also represented Canada's minister of finance during the development and negotiation of the CanadaU.S. free-trade agreement. Doucet has been practicing construction law since 1987, according to Dentons. POLL RESULTS The results for the latest Law Times online polls are in. The majority of respondents aren't happy with Queen's University's plan to expand enrolment at its law school in Kingston, Ont. About 80 per cent of respondents said the law school shouldn't be increasing enrolment. Queen's is entertaining the idea of increasing the number of applicants it accepts to its law school in order to increase its revenues. But critics have said it's not the time to do so given the shortage of articling jobs. LT CANADIAN LAW LIST 2013 YOUR INSTANT CONNECTION TO CANADA'S LEGAL NETWORK Visit carswell.com or call 1.800.387.5164 for a 30-day no-risk evaluation Inside you will find: MORE THAN A PHONE BOOK Untitled-1 1 www.lawtimesnews.com 13-07-05 10:03 AM

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