Chapter 7 of Licensed to Exploit: The OBTP Accountability Project
Regulatory authority is supposed to rest on law. On statute. On democratic process.
But the OBTP? It built an empire on paper—paper that looked official, sounded authoritative, and operated on the assumption that no one would question it.
FAQ blurbs. Internal memos. Unofficial, unadopted interpretations. Private stipulations dressed as precedent.
And it worked—because most people didn’t look too closely.
Until now.
The Illusion of Law
From the beginning, the Board’s campaign to license out-of-state preparers relied not on actual rulemaking, but on the appearance of legitimacy.
There was no administrative rule stating that remote preparers must be licensed. There was no statute redefined to stretch the words “in this state.” There was no public hearing, no posted notice, no formal adoption.
There was just… implication.
They posted it in an FAQ. They referenced it in enforcement. They whispered it through legal memos. They called it consumer protection and hoped you’d nod along.
But they never did what the law actually requires.
Regulatory Theater, Revenue Reality
This isn’t a new fear. As far back as 1973, during the very legislative hearings that created the OBTP, lawmakers voiced concern that the Board could become a “closed corporation”—one more interested in protecting its income and itself than protecting the public. A system where safeguarding the coffers came before safeguarding the commons.
They saw the risk.
And half a century later, we’re watching it play out. In real time.
The OBTP didn’t regulate—it monetized.
It charged fees for exams that don’t test Oregon-specific tax systems. It created licensing renewals, late penalties, and disciplinary threats. It built a structure where noncompliance with an unpublished policy could still cost you your practice.
That’s not licensing. That’s extraction.
They found a soft spot in the system—a professional class not politically protected, not unionized, not wealthy—and began selling paper titles to shield them from the very fear the Board itself generated.
Pay us, or face the iron wall.
What an Empire Built on Paper Fears Most
Sunlight.
Because once exposed, the whole thing fades and crinkles.
The FAQ that disappeared. The settlement they won’t fully release. The conflicting statements between the Board and DOJ. The records they refused to produce unless thousands were paid upfront.
They don’t fear the IRS. They don’t fear preparers in Oregon. They fear the ones outside—the ones they can’t control.
Because outside those borders, the Board has no ground to stand on.
And they know it.
Next: The Cost of Silence – Preparers who gave up clients, turned away work, or left the profession altogether because of OBTP’s overreach.