Rule2022-04302
User Fees Relating to the Enrolled Agent Special Enrollment Examination and the Enrolled Retirement Plan Agent Special Enrollment Examination
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 1, 2022
Effective
March 31, 2022
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
These final regulations amend existing regulations relating to the user fees for the special enrollment examinations for enrolled agents and enrolled retirement plan agents. The final regulations increase the amount of the user fee for each part of the special enrollment examination for enrolled agents (EA SEE). The final regulations also remove the user fee for the special enrollment examination for enrolled retirement plan agents (ERPA SEE) because the IRS no longer offers the ERPA SEE or new enrollment as an enrolled retirement plan agent. The final regulations affect individuals taking the EA SEE. The Independent Offices Appropriation Act of 1952 authorizes charging user fees.
Full Text
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<title>Federal Register, Volume 87 Issue 40 (Tuesday, March 1, 2022)</title>
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[Federal Register Volume 87, Number 40 (Tuesday, March 1, 2022)]
[Rules and Regulations]
[Pages 11295-11297]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-04302]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 300
[TD 9962]
RIN 1545-BQ06
User Fees Relating to the Enrolled Agent Special Enrollment
Examination and the Enrolled Retirement Plan Agent Special Enrollment
Examination
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations.
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SUMMARY: These final regulations amend existing regulations relating to
the user fees for the special enrollment examinations for enrolled
agents and enrolled retirement plan agents. The final regulations
increase the amount of the user fee for each part of the special
enrollment examination for enrolled agents (EA SEE). The final
regulations also remove the user fee for the special enrollment
examination for enrolled retirement plan agents (ERPA SEE) because the
IRS no longer offers the ERPA SEE or new enrollment as an enrolled
retirement plan agent. The final regulations affect individuals taking
the EA SEE. The Independent Offices Appropriation Act of 1952
authorizes charging user fees.
DATES: Effective date: These regulations are effective March 31, 2022.
Applicability date: For the date of applicability, see Sec.
300.4(d).
[[Page 11296]]
FOR FURTHER INFORMATION CONTACT: Karen Wozniak at (202) 317-5129 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
Background
This document contains amendments to 26 CFR part 300 regarding user
fees. On September 29, 2021, a notice of proposed rulemaking (REG-
100718-21) and notice of public hearing was published in the Federal
Register (86 FR 53893). The notice proposed amending the regulations
relating to the user fees for the EA SEE and ERPA SEE. The notice
proposed increasing the amount of the user fee for each part of the EA
SEE from $81, plus an amount payable to a third-party contractor, to
$99, plus an amount payable to a third-party contractor. The notice
also proposed removing the user fee for the ERPA SEE. The notice
contains a detailed explanation regarding the amendments to these
regulations.
Two comments responding to the notice were received. There were no
requests to speak at the scheduled public hearing. Consequently, the
public hearing was cancelled (86 FR 66496). After consideration of the
written comments, the Department of the Treasury (Treasury Department)
and the IRS have decided to adopt without modification the regulations
proposed by the notice.
Summary of Comments
The two comments submitted in response to the notice of proposed
rulemaking are available at <a href="http://www.regulations.gov">www.regulations.gov</a> or upon request.
The two commenters expressed concern that the proposed EA SEE user
fee would be used to fund the program for enrollment and renewal of
enrolled agents in addition to recovering the IRS's cost of overseeing
the EA SEE. One commenter stated that the program for enrollment and
renewal of enrollment of enrolled agents should be funded by enrollment
and renewal fees--not the EA SEE user fee--and recommended increasing
the enrollment and renewal fees instead of increasing the EA SEE user
fee. The second commenter expressed agreement with this comment.
Under Office of Management and Budget (OMB) Circular A-25, 58 FR
38142 (July 15, 1993) (OMB Circular A-25), Federal agencies that
provide services that confer benefits on identifiable recipients are to
establish user fees that recover for the government the full cost of
providing the service. An agency that seeks to impose a user fee for
government-provided services must calculate the full cost of providing
those services. Under OMB Circular A-25, a user fee should be set at an
amount that recovers the full cost of providing a service, unless the
OMB grants an exception. The full cost of providing a service includes
both the direct and indirect costs of providing the service.
As required by OMB Circular A-25, the IRS conducted a biennial
review of the EA SEE user fee, during which it calculated the full cost
of overseeing the EA SEE, taking into account all direct and indirect
costs. In calculating the full cost of overseeing the EA SEE, the IRS
followed generally accepted accounting principles established by the
Federal Accounting Standards Advisory Board. The proposed EA SEE user
fee only recovers the IRS's cost of overseeing the EA SEE. It does not
recover costs associated with other programs. The preamble to the
proposed regulations describes in detail the costs associated with
overseeing the EA SEE and the IRS's calculation of the proposed EA SEE
user fee.
The IRS charges a separate user fee to recover the costs it incurs
related to enrollment and renewal of enrollment of enrolled agents and
renewal of enrollment of enrolled retirement plan agents. That fee is
currently set at $67 per initial application and renewal. Like the EA
SEE user fee, the user fees for enrollment and renewal of enrollment of
enrolled agents and renewal of enrollment of enrolled retirement plan
agents are also subject to biennial review under OMB Circular A-25. See
REG-114209-21 in the Proposed Rules section of this edition of the
Federal Register, separately proposing to increase the renewal user fee
for enrolled retirement plan agents from $67 to $140 and both the
enrollment and renewal user fee for enrolled agents from $67 to $140.
Accordingly, after consideration of the comments, the proposed
regulations are adopted without change.
Special Analyses
These regulations are not significant and are not subject to review
under section 6(b) of Executive Order 12866 pursuant to the Memorandum
of Agreement (April 11, 2018) between the Treasury Department and the
Office of Management and Budget regarding review of tax regulations.
Pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6), it is
hereby certified that these final regulations will not have a
significant economic impact on a substantial number of small entities.
The final regulations remove the ERPA SEE user fee as the IRS no longer
offers the examination or new enrollment as an enrolled retirement plan
agent. The EA SEE user fee primarily affects individuals who take the
EA SEE. Only individuals, not businesses, can be enrolled agents.
Accordingly, the economic impact of these regulations on any small
entity would be a result of an individual enrolled agent owning a small
entity or a small entity employing an enrolled agent and reimbursing
the individual for the fee. The Treasury Department and the IRS
estimate that an average of 22,381 EA SEE examination parts will be
taken by individuals annually. Consequently, a substantial number of
small entities is not likely to be affected. Further, the economic
impact on any small entities affected would be limited to paying the
$18 difference in cost between the $99 user fee and the previous $81
user fee per part (for each enrolled agent that a small entity employs
and pays for), which is unlikely to present a significant economic
impact. The total economic impact of these regulations is approximately
$402,858 annually, which is the product of the approximately 22,381
examination parts and the $18 increase in the fee per part. The rule
is, therefore, not expected to have a significant economic impact on a
substantial number of small entities, and a regulatory flexibility
analysis is not required.
Pursuant to section 7805(f) of the Internal Revenue Code, the
notice of proposed rulemaking was submitted to the Chief Counsel of the
Office of Advocacy of the Small Business Administration for comment on
its impact on small business. No comments on the notice were received
from the Chief Counsel for the Office of Advocacy of the Small Business
Administration.
Drafting Information
The principal author of these regulations is Karen Wozniak, Office
of the Associate Chief Counsel (Procedure and Administration). Other
personnel from the Treasury Department and the IRS participated in the
development of the regulations.
List of Subjects in 26 CFR Part 300
Reporting and recordkeeping requirements, User fees.
Adoption of Amendments to the Regulations
Accordingly, 26 CFR part 300 is amended as follows:
[[Page 11297]]
PART 300--USER FEES
0
Paragraph 1. The authority citation for part 300 continues to read as
follows:
Authority: 31 U.S.C. 9701.
Sec. 300.0 [Amended]
0
Par. 2. Section 300.0 is amended by removing paragraph (b)(9) and
redesignating paragraphs (b)(10) through (13) as paragraphs (b)(9)
through (12).
0
Par. 3. Section 300.4 is amended by revising paragraphs (b) and (d) to
read as follows:
Sec. 300.4 Enrolled agent special enrollment examination fee.
* * * * *
(b) Fee. The fee for taking the enrolled agent special enrollment
examination is $99 per part, which is the cost to the government for
overseeing the development and administration of the examination and is
in addition to the fees charged by the administrator of the
examination.
* * * * *
(d) Applicability date. This section applies to registrations for
the enrolled agent special enrollment examination that occur on or
after March 31, 2022.
Sec. 300.9 [Removed]
0
Par. 4. Section 300.9 is removed.
Sec. Sec. 300.10 through 300.13 [Redesignated as Sec. Sec. 300.09
through 300.12]
0
Par. 5. Redesignate Sec. Sec. 300.10 through 300.13 as Sec. Sec.
300.09 through 300.12.
Douglas W. O'Donnell,
Deputy Commissioner for Services and Enforcement.
Approved: February 24, 2022.
Thomas C. West, Jr.,
Deputy Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2022-04302 Filed 2-25-22; 11:15 am]
BILLING CODE 4830-01-P
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