From the posted article:
U.S. District Judge James Boasberg in Washington ruled against the IRS in favor of three tax preparers who filed suit last year with the help of a libertarian legal group, the Arlington, Va.-based Institute for Justice.
The IRS did not file the suit but were respondents to the suit.
The IRS should not have fought this law suit.
Cease and desist, comes to mind as their proper response.
The size and scope of the Federal government needs at least a 33% cut, and I do not include the DOD in that number.