Chapter 8 of Licensed to Exploit: The OBTP Accountability Project
They didn’t have to issue cease-and-desist letters. They didn’t have to file lawsuits. They didn’t have to knock on doors or summon anyone to court.
All they had to do was imply.
And it worked.
Across the country, tax preparers walked away from Oregon clients. Some dropped a handful. Some dropped dozens. Others backed out of entire contracts just to avoid the threat. It wasn’t about whether OBTP was right. It was about whether it was worth the risk.
That’s the cost of silence.
A Chilling Effect by Design
No public campaign. No formal guidance. Just a line in an FAQ and a quiet enforcement policy whispered from agency to agency. And suddenly, the licensing board of a single state managed to scare tax professionals in every other state into submission.
They didn’t win by argument. They won by pressure.
Preparers asked questions. OBTP gave vague answers, cited uncited statutes, and invoked settlements they refused to share. The FAQ conveniently omitted that CPAs, employees of CPAs, and attorneys were exempt from these same requirements—shepherding Oregon clients back into the gnashing teeth of the ever-hungry corporation.
Some preparers paid the licensing fee. Others gave up.
Some took the exam. Others gave up.
A few reached out to lawyers. Most decided it wasn’t worth it.
And the Board never had to explain itself.
Affidavits in the Ashes
The stories came quickly.
A Facebook poll with 184 respondents—tax professionals across the country—revealed a clear pattern:
- 27% gave up Oregon clients because of OBTP’s stance.
- 3% got licensed to comply.
- 4% said they would.
- Others expressed disbelief that such a rule could even exist.
Some preparers described lost clients, ethical dilemmas, and broken contracts. Others expressed deep concern about long-standing client relationships disrupted or lost—triggered by an ambiguous rule that didn’t exist.
These aren’t hypothetical harms. They’re documented. They’re real.
They are the cost of silence.
And silence was the goal.
Because if you can scare professionals into walking away, you don’t need to regulate them. You don’t need to enforce anything at all. You just let the fear do the work.
And it did.
Next: Recordsgate – The Day the Gloves Came Off