Washington, June 27, 2026, 13:02 EDT
- The Supreme Court let stand a decision allowing the IRS an unlimited period to assess tax on returns impacted by preparer fraud, regardless of whether the taxpayer intended any fraud.
- Tax pros submitted 75.3 million individual e-filed returns by May 8, making up 53.4% of all electronically filed individual returns, Reuters calculated from IRS numbers.
- U.S. stock exchanges were closed for the weekend. Nasdaq normal trading runs Monday through Friday, 9:30 a.m. to 4 p.m. ET.
Supreme Court rejects Stephanie Murrin tax case; 75 million paid-preparer e-filed returns in focus
The Supreme Court isn’t taking up Stephanie Murrin’s tax dispute, which means investors have a number to keep in mind: 75 million e-filed returns prepared for a fee. The main concern is not widespread fraud, but that fraud by just one tax preparer can leave an IRS assessment open years after the normal three-year audit window closes.
Supreme Court rejects Murrin v. Commissioner review, keeps Third Circuit decisionThe Supreme Court on June 22 declined to take up Murrin v. Commissioner, so the Third Circuit ruling stands. Murrin’s petition had asked if the IRS can bypass the three-year assessment window just because a third party committed fraud—even if the taxpayer neither knew about nor intended the fraud.
Murrin’s bill has hit about $330,000 after the Supreme Court refused her appeal, MarketWatch said Thursday. The court file details a $65,318 agreed tax shortfall, a $13,064 penalty for accuracy, and estimated interest near $250,000. That totals roughly $328,400, with close to 80% of the amount coming from interest and penalty, according to Reuters.
Third Circuit records show Duane Howell put false entries on Murrin’s returns from 1993 to 1999. The court noted Murrin didn’t cause the errors or intend to dodge taxes. IRS sent its notice in 2019. The appeals panel ruled that “taxpayer intent is not required” for the fraud exception.
IRS filing-season stats lay out the business size at stake. Tax pros sent in 75.316 million individual e-filed returns by May 8, while self-prepared returns were at 65.730 million. That means paid preparers handled 53.4% of e-filings, based on Reuters’ math.
H&R Block Inc. NYSE:HRB said the ruling hits the paid help part of the business, the segment investors watch. Fiscal third-quarter revenue was up 5.3% at $2.4 billion, with the company pointing to a higher net average charge and more volume in U.S. assisted tax prep. CFO Tiffany Mason said the business is making progress with “higher complexity clients,” and H&R Block raised its full-year view. H&R Block®
Intuit Inc. NASDAQ:INTU, which owns TurboTax, told investors TurboTax Live revenue will jump 36% to $2.8 billion by fiscal 2026, reaching about 53% of TurboTax’s total. That’s another 53% number after a previous figure. Still, Intuit expects total TurboTax Online units to fall about 2% and e-file market share to dip by roughly 1 percentage point. CEO Sasan Goodarzi said the quarter was pushed by its “AI-driven expert platform strategy.” Intuit Inc.
Those figures make the court order a product-mix test for paid tax preparers. Paid providers control just above half the e-file market. Intuit says assisted TurboTax will account for just over half of TurboTax’s revenue. A broader IRS window could boost the sale of reviews, credential checks, and audit support, instead of only low-fee filing.
Court turns away another tax case. Bloomberg Tax said the justices refused to hear two couples’ complaint after the Tax Court denied them a jury trial on over $15 million in civil tax fraud penalties.
Senators have rolled out the Taxpayer Assistance and Service Act. The bipartisan bill, backed by Finance Committee Chair Mike Crapo and Ranking Member Ron Wyden, is aimed at making IRS communication and compliance easier, according to the committee. Scott Artman, who heads the National Association of Tax Professionals, said “education standards and fair oversight are essential” for taxpayer protection and trust in the sector. finance.senate.gov
