New PTIN Fee Set at $50 Annually, Regulations Issued
The IRS has released proposed regulations setting a $50 annual fee for registration for or renewal of a preparer tax identification number (PTIN). The user fee will be nonrefundable whether or not the preparer obtains a PTIN. There will be an additional service fee set by the vendor who administers the registration database, which IRS officials have indicated will be “reasonable” and “substantially less” than $50.
The IRS will contract with a third party vendor to administer the PTIN application and renewal process. The vendor will develop a web-based database that preparers will use to apply for or renew a PTIN. Paper PTIN applications will be accepted as well. The database also will be used for to self-certify continuing professional education credits and to pay user fees. IRS anticipates that as many as 1.2 million persons may request a PTIN.
The IRS also will establish and implement a reconsideration process for individuals who are denied a PTIN upon initial application or renewal. All registered preparers will have available due process procedures for challenging denials of their PTIN renewals.
Coordination With Fees for Enrolled Agents
Future regulations will coordinate the enrollment and renewal user fees now imposed on enrolled agents with the new PTIN user fees so enrolled agents will not have to pay duplicate fees.
Examination and Continuing Education Fees Will be Separate
The IRS will collect additional fees for the competency examination and for verifying compliance with the new continuing education requirements. These fees will be in addition to the fees charged by each continuing education provider and by the third party vendor for administering the examinations.
Public Comments: Comments submissions are due by August 23, 2010, and the IRS will hold a public hearing on the proposed regulations on August 24, 2010. See REG-139343-08 on the IRS website or the Federal Rulemaking Portal at www.regulations.gov for instructions on submitting comments.