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Proposed Rule2022-21458

User Fees Relating to Enrolled Actuaries

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Published

October 5, 2022

Issuing agencies

Treasury DepartmentInternal Revenue Service

Abstract

This document contains proposed amendments to the regulations relating to imposing user fees for enrolled actuaries. The proposed regulations increase both the enrollment and renewal of enrollment user fees for enrolled actuaries from $250.00 to $680.00. The proposed regulations affect individuals who apply to become an enrolled actuary or seek to renew their enrollment. The Independent Offices Appropriation Act of 1952 authorizes charging user fees.

Full Text

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<title>Federal Register, Volume 87 Issue 192 (Wednesday, October 5, 2022)</title>
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[Federal Register Volume 87, Number 192 (Wednesday, October 5, 2022)]
[Proposed Rules]
[Pages 60357-60362]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-21458]

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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 300

[REG-100719-21]
RIN 1545-BQ26

User Fees Relating to Enrolled Actuaries

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking and notice of public hearing.

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[[Page 60358]]

SUMMARY: This document contains proposed amendments to the regulations
relating to imposing user fees for enrolled actuaries. The proposed
regulations increase both the enrollment and renewal of enrollment user
fees for enrolled actuaries from $250.00 to $680.00. The proposed
regulations affect individuals who apply to become an enrolled actuary
or seek to renew their enrollment. The Independent Offices
Appropriation Act of 1952 authorizes charging user fees.

DATES: Electronic or written comments must be received by December 5,
2022. The public hearing is being held by teleconference on December
16, 2022 at 10 a.m. EDT. Requests to speak and outlines of topics to be
discussed at the public hearing must be received by December 14, 2022.
If no outlines are received by December 5, 2022, the public hearing
will be cancelled. Requests to attend the public hearing must be
received by 5:00 p.m. EDT on December 14, 2022. The telephonic hearing
will be made accessible to people with disabilities. Requests for
special assistance during the telephonic hearing must be received by
December 13, 2022.

ADDRESSES: Commenters are strongly encouraged to submit public comments
electronically. Submit electronic submissions via the Federal
eRulemaking Portal at <a href="http://www.regulations.gov">www.regulations.gov</a> (indicate IRS and REG-100719-
21) by following the online instructions for submitting comments. Once
submitted to the Federal eRulemaking Portal, comments cannot be edited
or withdrawn. Send paper submissions to: CC:PA:LPD:PR (REG-100719-21),
Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin
Station, Washington, DC 20044. The IRS will publish any comments
submitted to the public docket.
For those requesting to speak during the hearing, send an outline
of topic submissions electronically via the Federal eRulemaking Portal
at <a href="http://www.regulations.gov">www.regulations.gov</a> (indicate IRS and REG-100719-21).
Individuals who want to testify by telephone at the public hearing
must send an email to <a href="/cdn-cgi/l/email-protection#166663747a7f757e7377647f787165567f646538717960">[email&#160;protected]</a> to receive the telephone
number and access code for the hearing. The subject line of the email
must contain the regulation number REG-100719-21 and the word TESTIFY.
For example, the subject line may say: Request to TESTIFY at Hearing
for REG-100719-21. The email should include a copy of the speaker's
public comments and outline of topics. Individuals who want to attend
the public hearing by telephone must also send an email to
<a href="/cdn-cgi/l/email-protection#304045525c595358555142595e5743705942431e575f46">[email&#160;protected]</a> to receive the telephone number and access code
for the hearing. The subject line of the email must contain the
regulation number REG-100719-21 and the word ATTEND. For example, the
subject line may say: Request to ATTEND Hearing for REG-100719-21. To
request special assistance during the telephonic hearing contact the
Publications and Regulations Branch of the Office of Associate Chief
Counsel (Procedure and Administration) by sending an email to
<a href="/cdn-cgi/l/email-protection#7e0e0b1c12171d161b1f0c1710190d3e170c0d50191108">[email&#160;protected]</a> (preferred) or by telephone at (202) 317-5177
(not a toll-free number).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Carolyn M. Lee at 202-317-6845; concerning cost methodology, Michael A.
Weber at (202) 803-9738; concerning submission of comments, the
hearing, and the access code to attend the hearing by telephone, Regina
Johnson at (202) 317-5177 (not toll-free numbers), or
<a href="/cdn-cgi/l/email-protection#8ffffaede3e6ece7eaeefde6e1e8fccfe6fdfca1e8e0f9">[email&#160;protected]</a>.

SUPPLEMENTARY INFORMATION:

Background and Explanation of Provisions

This document contains proposed amendments to 26 CFR part 300
regarding user fees.
Regulations establish certain requirements for individuals who seek
to provide actuarial services under the Employee Retirement Income
Security Act of 1974 (ERISA) Pub. L. 93-406, Title III, Sec. 3042,
Sept. 2, 1974, 88 Stat. 1002. To account for its costs of providing
enrolled actuary enrollment and renewal of enrollment services, the IRS
charges a user fee to apply for enrollment or renew enrollment as an
enrolled actuary. This proposal would increase the amount of the user
fee from $250.00 per enrollment application or renewal application to
$680.00 per enrollment application or renewal application.

A. Enrolled Actuaries

ERISA directed the Secretary of Labor and the Secretary of the
Treasury to establish a Joint Board for the Enrollment of Actuaries
(Joint Board). 29 U.S.C. 1241. The Joint Board consists of three
members and one alternate member appointed by the Secretary of the
Treasury, two members and one alternate member appointed by the
Secretary of Labor, and one non-voting representative designated by the
Director of the Pension Benefit Guaranty Corporation. Pursuant to the
Joint Board's bylaws, the Secretary of the Treasury appoints an
Executive Director who has the delegated authority to administer the
Joint Board's enrollment and renewal of enrollment processes. The
Secretary of the Treasury delegated these functions to the IRS and the
costs of these activities are borne by the IRS. The Executive Director,
an IRS Return Preparer Office (RPO) employee, administers the
enrollment and renewal of enrollment processes for the Joint Board.
Pursuant to 29 U.S.C. 1242(a), the Joint Board establishes
reasonable standards and qualifications for persons performing
actuarial services and is empowered to enroll such individuals who,
upon application, satisfy these standards and qualifications. The
regulations at 20 CFR part 901, subpart B prescribe eligibility
requirements for enrollment and renewal of enrollment. An enrolled
actuary is any individual who has satisfied the standards and
qualifications as set forth in the regulations of the Joint Board and
who has been approved by the Joint Board to perform actuarial services
required under ERISA.
Before conferring status as an enrolled actuary to an individual,
the Joint Board must verify the individual fulfills certain
requirements related to experience, basic actuarial knowledge, and
pension actuarial knowledge. 20 CFR 901.12(a). The RPO Joint Board
staff oversees this verification as part of its responsibility to
administer the enrollment application and renewal application processes
for the Joint Board. An applicant may be denied enrollment for
disreputable conduct (20 CFR 901.12(f)(1)), conviction of specified
offenses (20 CFR 901.12(f)(2)), submitting false or misleading
information on the enrollment application (20 CFR 901.12(f)(3)), or
knowingly submitting false or misleading information on any report
presenting actuarial information to any person (id.). An individual
applying for enrollment as an enrolled actuary must submit a Form 5434,
Joint Board for the Enrollment of Actuaries--Application for
Enrollment, and pay the current non-refundable $250.00 user fee. 20 CFR
901.10(a).
Enrollment is for a three-year term. 20 CFR 901.1(k). Before the
Joint Board will renew an actuary's enrollment, the enrolled actuary
must certify he or she has satisfied continuing professional education
(CPE) requirements as prescribed by the regulations of the Joint Board,
including a minimum of 36 (thirty-six) hours of CPE in prescribed core
and non-core subject matter courses during the three-year enrollment
cycle. 20 CFR 901.11(e).

[[Page 60359]]

Core subject matter is program content and knowledge integral and
necessary to the satisfactory performance of pension actuarial services
and actuarial certifications under ERISA and the Internal Revenue Code,
and includes content concerning the ethical standards of performance
for actuarial services. 20 CFR 901.11(f)(1)(i). An individual applying
to renew enrollment as an enrolled actuary must submit a Form 5434-A,
Joint Board for the Enrollment of Actuaries--Application for Renewal of
Enrollment, and pay the current non-refundable $250.00 user fee. 20 CFR
901.11(d). The RPO Joint Board staff verifies the enrolled actuary's
certification as part of its responsibilities to administer the
enrollment and renewal of enrollment processes for the Joint Board.
Section 330 of Title 31 of the United States Code authorizes the
Secretary of the Treasury to regulate the practice of representatives
before the Department of the Treasury (Treasury Department) and
requires that an individual seeking to practice demonstrate necessary
qualifications, competency, and good character and reputation. The
rules governing practice before the IRS are published in 31 CFR,
Subtitle A, part 10, and reprinted as Treasury Department Circular No.
230 (Circular 230). Under section 10.3(d)(1) of Circular 230, any
individual who is enrolled as an actuary by the Joint Board and who is
not currently under suspension or disbarment from practice before the
IRS may practice before the IRS. Section 10.3(d)(2) provides that an
enrolled actuary's authority to practice before the IRS is limited to
matters involving certain provisions of the Internal Revenue Code.

B. User Fee Authority

The Independent Offices Appropriation Act of 1952 (IOAA) (31 U.S.C.
9701) authorizes each agency to promulgate regulations establishing the
charge for services the agency provides (user fees). The IOAA states
that the services provided by an agency should be self-sustaining to
the extent possible. 31 U.S.C. 9701(a). The IOAA provides that user fee
regulations are subject to policies prescribed by the President. The
policies are currently set forth in the Office of Management and Budget
(OMB) Circular A-25 (OMB Circular A-25), 58 FR 38142 (July 15, 1993).
Section 6a(1) of OMB Circular A-25 states that when a service
offered by an agency confers special benefits to identifiable
recipients beyond those accruing to the general public, the agency is
to charge a user fee to recover the full cost of providing the service.
Section 8e of OMB Circular A-25 requires agencies to review user fees
biennially and update the fees as necessary to reflect changes in the
cost of providing the underlying services. During the biennial review,
an agency must calculate the full cost of providing each service,
taking into account all direct and indirect costs to any part of the
U.S. government. Under section 6d(1) of OMB Circular A-25, the full
cost of providing a service includes, but is not limited to, an
appropriate share of salaries, medical insurance and retirement
benefits, management costs, and physical overhead, and other indirect
costs, including rents, utilities, and travel associated with providing
the service.
An agency should set the user fee at an amount that recovers the
full cost of providing the service unless the agency requests, and the
OMB grants, an exception to the full-cost requirement. Under section
6c(2) of OMB Circular A-25, the OMB may grant exceptions when the cost
of collecting the fees would represent an unduly large part of the fee
for the activity or when any other condition exists that, in the
opinion of the agency head, justifies an exception. When the OMB grants
an exception, the agency does not collect the full cost of providing
the service and must fund the remaining cost of providing the service
from other available funding sources. Consequently, the agency
subsidizes the cost of the service to the recipients of reduced-fee
services even though the service confers a special benefit on those
recipients who would otherwise be required to pay the full cost of
providing the service as provided for by the IOAA and OMB Circular A-
25.

C. Enrolled Actuary User Fee

An individual who has been granted new enrollment or renewal of
enrollment as an enrolled actuary by the Joint Board may perform
actuarial services under ERISA and practice before the IRS as provided
by section 10.3(d) of Circular 230. The enrollment confers benefits on
individuals who are enrolled actuaries beyond those that accrue to the
general public. Because these are specific benefits not available to
the general public, the IRS charges a user fee to recover the full cost
associated with the administration of the enrollment and renewal of
enrollment processes.
Final regulations (TD 9370) published in the Federal Register (72
FR 72606-01) on December 21, 2007, established the current $250.00 user
fee for the enrollment application and renewal of enrollment
application processes for enrolled actuaries. At that time, the
Treasury Department and the IRS determined that a $250.00 user fee per
application to enroll or renew enrollment as an enrolled actuary would
recover the full direct and indirect costs the government would incur
to administer the enrollment and renewal of enrollment processes.
As required by OMB Circular A-25, the IRS has conducted biennial
reviews of this user fee since it was established by regulation in
2007. These reviews either resulted in a user fee calculation of
approximately $250.00 or otherwise did not result in the Treasury
Department and the IRS increasing the fee. In 2021 the IRS conducted a
biennial review and calculated its costs associated with administering
the enrolled actuary enrollment and renewal of enrollment processes. As
discussed in Section D of this preamble, during the review, the IRS
took into account increases in labor, benefits, and overhead costs
incurred in connection with providing services to individuals who
enroll or renew enrollment as enrolled actuaries since the user fee was
promulgated in 2007. The costs include activities related to verifying
that an individual meets the requirements for enrollment or renewal of
enrollment as an enrolled actuary. The RPO also took into account a re-
allocation of certain labor costs in their methodology to include costs
associated with certain human capital matters, formalizing policies and
procedures, and other administrative support. The number of employees,
the percentage allocation of time spent by employees performing
activities directly related to the enrollment or renewal of enrollment
processes, and the associated oversight and support labor costs were
increased from those costs underlying the current $250.00 user fee.
The costs to the RPO Joint Board staff of performing enrollment and
renewal of enrollment processes are the same. The IRS determined that
the full cost of administering the enrollment and renewal of enrollment
processes increased from $250.00 to $680.00 per enrollment or renewal
of enrollment. The proposed fee is an increase of $143.33 per year for
the three-year enrollment period.

D. Calculation of User Fees Generally

The IRS follows generally accepted accounting principles (GAAP) in
calculating the full cost of administering the enrolled actuary
enrollment and renewal of enrollment processes. The Federal Accounting
Standards Advisory Board (FASAB) is the body that establishes GAAP that
apply for Federal reporting entities, such as the IRS.

[[Page 60360]]

FASAB publishes the FASAB Handbook of Federal Accounting Standards and
Other Pronouncements, as Amended (Current Handbook), which is available
at <a href="https://files.fasab.gov/pdffiles/2021_%20FASAB_%20Handbook.pdf">https://files.fasab.gov/pdffiles/2021_%20FASAB_%20Handbook.pdf</a>. The
Current Handbook includes the Statement of Federal Financial Accounting
Standards (SFFAS) 4: Managerial Cost Accounting Standards and Concepts.
SFFAS 4 establishes internal costing standards under GAAP to
accurately measure and manage the full cost of Federal programs, and
the methodology below is in accordance with SFFAS 4.
1. Cost Center Allocation
The IRS determines the cost of its services and the activities
involved in providing them through a cost accounting system that tracks
costs to organizational units. The lowest organizational unit in the
IRS's cost accounting system is a cost center. Cost centers are usually
separate offices that are distinguished by subject-matter area of
responsibility or geographic region. All costs of operating a cost
center are recorded in the IRS's cost accounting system. The costs
charged to a cost center are the direct costs for the cost center's
activities in addition to allocated overhead. Some cost centers work on
different services across the IRS and are not fully dedicated to the
services for which the IRS charges user fees.
2. Cost Estimation of Direct Costs
The IRS uses various cost measurement techniques to estimate the
costs attributable to the enrolled actuary enrollment and renewal of
enrollment processes. These techniques include using various
timekeeping systems to measure the time required to accomplish
activities, or using information provided by subject matter experts on
the time devoted to a program. To determine the labor and benefits
costs incurred to provide the service of enrolling actuaries, the IRS
estimated the number of full-time employees required to conduct
activities related to administering the enrollment and renewal of
enrollment processes. The number of full-time employees is based on
both current employment numbers and future hiring estimates. Other
direct costs associated with administering the enrollment and renewal
of enrollment processes include travel, training, and supplies.
3. Overhead
When the indirect cost of a service or activity is not specifically
identified from the cost accounting system, an overhead rate is added
to the identifiable direct cost to arrive at full cost. Overhead is the
indirect cost of operating an organization that is not specifically
identifiable with a single activity. Overhead includes costs of
resources that are jointly or commonly consumed by one or more
organizational unit's activities but are not specifically identifiable
to a single activity.
These costs can include:
<bullet> General management and administrative services of
sustaining and supporting organizations.
<bullet> Facilities management and ground maintenance services
(security, rent, utilities, and building maintenance).
<bullet> Procurement and contracting services.
<bullet> Financial management and accounting services.
<bullet> Information technology services.
<bullet> Services to acquire and operate property, plants, and
equipment.
<bullet> Publication, reproduction, graphics and video services.
<bullet> Research, analytical, and statistical services.
<bullet> Human resources/personnel services.
<bullet> Library and legal services.
To calculate the overhead allocable to a specific service, the IRS
multiplies an overhead rate by the estimated direct costs of the
service. The IRS calculates the overhead rate annually based on the
Statement of Net Cost included in the IRS annual financial statements.
The financial statements are audited by the Government Accountability
Office. The overhead rate is the ratio of the IRS's indirect costs
divided by direct costs of its organizational units. Indirect costs are
labor, benefits, and non-labor costs (excluding IT related to taxpayer
services, enforcement, and business system modernization) from the
supporting and sustaining organizational units. Direct costs are labor,
benefits, and non-labor costs for the IRS's organizational units that
interact directly with taxpayers.
For the enrolled actuary user fee review, an overhead rate of 58.83
percent was used. The rate was calculated based on the Fiscal Year (FY)
2020 Statement of Net Cost as follows:

Total Indirect Costs.................................. $4,274,512,375
Total Direct Costs.................................... $7,265,460,800
Overhead Rate......................................... 58.83%

E. Calculation of Enrolled Actuary Enrollment and Renewal of Enrollment
User Fees

1. Cost Estimate
The IRS projected the estimated costs of direct labor and benefits
based on the actual salary and benefits of employees who devote time to
conducting enrolled actuary enrollment and renewal of enrollment
processes, reduced to reflect the percentage of time each individual
spends on those activities. The RPO's managers estimated the percentage
of time these employees devote to conducting enrolled actuary
enrollment and renewal of enrollment activities based on their
knowledge of actual program assignments. Four employees devote an
average of sixty-five percent of their time over the three-year
enrollment cycle to enrolled actuary enrollment or renewal of
enrollment activities. Prior biennial review costing analyses had
understated the cost by only taking into account an average of forty
percent of their time to enrolled actuary enrollment or renewal of
enrollment activities. Additional staffing costs include oversight and
support associated with these functions.
The baseline for the labor and benefits estimate was the actual
salary and benefits for FY 2021. From this baseline, the IRS estimated
the direct labor and benefits costs over the next three years using an
inflation factor for FYs 2022, 2023, and 2024. The IRS used a three-
year projection because the increase in future labor and benefits costs
are reliably predictable representations of the actual costs that will
be incurred by the RPO. These estimated direct labor and benefits costs
were then reduced to reflect the percentage of time each individual
devoted to enrolled actuary enrollment and renewal of enrollment
activities and are set out in the following table:

------------------------------------------------------------------------
Estimated costs
Year for direct labor
and benefits
------------------------------------------------------------------------
2022................................................ $546,457
2023................................................ 557,659
2024................................................ 569,101
-------------------
Total............................................. 1,673,217
------------------------------------------------------------------------

In addition, the IRS estimated $3,500 in direct costs for each year
for travel, training, and supplies, or $10,500 total in this category
for the three-year projection.
The total estimated direct costs for the three years is $1,683,717.
After estimating the total direct costs, the IRS applied the FY 2021
overhead rate of 58.83 percent to the estimated direct costs to
calculate indirect costs of $990,531, for a total cost for the three-
year period of $2,674,248.
The calculation of the total cost of the enrolled actuary
enrollment and renewal of enrollment program for 2022 through 2024 is
shown below:

[[Page 60361]]

Direct Costs............................................ $1,683,717
Overhead at 58.83%...................................... + 990,531
---------------
Total Costs........................................... 2,674,248

2. Volume of Applications
The number of applicants during FYs 2018, 2019, and 2020 were 214,
132, and 3,584, respectively. The higher number of applicants in 2020
follows the historical norm of most renewals of enrollment occurring
every third year. The total number of applications for the three years
was 3,930. The IRS used this historical three-year volume to estimate
the number of applicants for FYs 2022, 2023, and 2024.

3. Unit Cost per Application

To arrive at the total cost per application, the IRS divided the
estimated three-year total of enrolled actuaries costs by the total
volume of applications expected over the same three-year period to
determine a per-application cost of $680.00, as shown below:

Total Costs............................................. $2,674,248
Number of Applications.................................. / 3,930
---------------
Cost per Application.................................... $680

Special Analyses

I. Regulatory Planning and Review

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.

II. Initial Regulatory Flexibility Analysis

When an agency issues a rulemaking proposal, the Regulatory
Flexibility Act (5 U.S.C. chapter 6), (RFA) requires the agency ``to
prepare and make available for public comment an initial regulatory
flexibility analysis'' that will ``describe the impact of the proposed
rule on small entities.'' See 5 U.S.C. 603(a). Section 605 of the RFA
provides an exception to the requirement if the agency certifies that
the proposed rulemaking will not have a significant economic impact on
a substantial number of small entities. A small entity is defined as a
small business, small nonprofit organization, or small governmental
jurisdiction. See 5 U.S.C. 601(3) through (6). The Treasury Department
and the IRS conclude that the proposed regulations, if promulgated, may
have a significant economic impact on a substantial number of small
entities. As a result, an initial regulatory flexibility analysis is
required.
Description of the reasons why action by the agency is being
considered.
The change in enrolled actuary user fees is being considered in
compliance with Section 6a(1) of OMB Circular A-25, which states that
when a service offered by an agency confers special benefits to
identifiable recipients beyond those accruing to the general public,
the agency is to charge a user fee to recover the full cost of
providing the service. Enrollment as an enrolled actuary confers
special benefits to identifiable recipients; such ``identifiable
recipients'' are new and renewing enrolled actuaries authorized to
provide pension actuarial services and actuarial calculations under
ERISA and the Internal Revenue Code. The IRS incurs costs associated
with enrollment and renewal of enrollment verification and approval
processes. The Treasury Department and the IRS previously determined
that the full cost to the IRS of the enrollment and renewal of
enrollment processes was $250.00 for each enrollment and each renewal
of enrollment. In accordance with OMB Circular A-25, the Treasury
Department and the IRS conducted a biennial review of the enrolled
actuary user fee amount in 2021 and determined that the full cost to
the IRS of the enrollment and renewal of enrollment processes for each
enrolled actuary candidate is $680.00 per enrollment and renewal of
enrollment, an increase of $143.33 per year for the three-year
enrollment period.
Succinct statement of the objectives of, and the legal basis for,
the proposed rule.
The objective of the proposed regulations is to recover the costs
to the government associated with providing the services conferring the
special benefit that accrues to an individual whom the Joint Board
enrolls as a new or renewing enrolled actuary. When performing its
duties, the RPO Joint Board staff conducts enrollment and renewal of
enrollment processes including verifying that the individual applying
for new or renewed enrolled actuary status fulfills certain
requirements related to experience, basic actuarial knowledge, and
pension actuarial knowledge. In addition, with respect to an individual
seeking to renew as an enrolled actuary, the RPO Joint Board staff must
verify that the renewing enrolled actuary properly certified that he or
she satisfied continuing professional education (CPE) requirements as
prescribed by the regulations of the Joint Board. Section 6a(1) of OMB
Circular A-25 states that when a service offered by an agency confers
special benefits to identifiable recipients beyond those accruing to
the general public, the agency is to charge a user fee to recover the
full cost of providing the service. An individual who is enrolled as an
actuary by the Joint Board is conferred the special benefits of being
authorized to perform actuarial services under ERISA and to practice
before the IRS as provided by section 10.3(d) of Circular 230. These
benefits are not available to the general public.
The legal basis for the fee for initial enrollment and the fee for
renewal of enrollment as an enrolled actuary with the Joint Board is
section 9701 of title 31.
Description of and, where feasible, an estimate of the number of
small entities to which the proposed rule will apply.
The proposed regulations affect actuaries who apply for enrollment
as an enrolled actuary or renewal of enrollment with the Joint Board.
Only individuals, not businesses, can apply for new enrollment or to
renew enrolled actuary certification. Therefore, the economic impact of
these regulations on any small entity generally will be the result of
an individual actuary owning a small business, or a small business
employing an actuary and requiring the individual to apply for enrolled
actuary status or renew as an enrolled actuary with the Joint Board. An
estimate of the number of small entities to which the proposed rule
will apply is not available.
The appropriate NAICS codes for enrolled actuaries are those that
relate to the performance of pension actuarial services and actuarial
certifications under ERISA and the Internal Revenue Code: NAICS code
524298, other insurance related activities; NAICS code 525110, employee
benefit plans, retirement plans, pension funds and plans; and NAICS
code 541611, administrative management and general management
consulting services. The Small Business Administration establishes size
standards for concerns considered to be small, as provided by 13 CFR
121.201. Pursuant to 13 CFR 121.201, concerns within NAICS 524298 are
considered to be small if their annual receipts are less than or equal
to $27.0 million; NAICS 525110, $35.0 million; and NAICS 541611, $21.5
million.
A description of the projected recordkeeping, and other compliance
requirements of the proposed rule, including an estimate of the classes
of small entities that will be subject to such requirements that the
type of professional skills necessary for preparation of the report or
record.

[[Page 60362]]

No reporting or recordkeeping requirements are projected to be
associated with the proposed regulations.
Identification, to the extent practicable, of all relevant Federal
rules that may duplicate, overlap, or conflict with the proposed rule.
The IRS is not aware of any Federal rules that duplicate, overlap,
or conflict with the proposed rule.
Description of any significant alternatives to the proposed rule
that accomplish the stated objectives of applicable statutes and that
minimize any significant economic impact of the proposed rule on small
entities, including a discussion of significant alternatives.
The IOAA authorizes the government to charge user fees for agency
services, subject to policies designated by the President. OMB Circular
A-25 implements presidential policies regarding user fees and
encourages user fees when a government agency provides services that
confer a special benefit to a member of the public. In the IOAA,
Congress has stated a preference that the costs of providing such
services should be self-sustaining. OMB Circular A-25 expressly states
that the agency providing such services generally must charge a user
fee to recover the full cost of providing the service.
The IRS, acting through the RPO Joint Board staff, provides
services which confer special benefits to the enrolled actuaries who
will be subject to these user fees. Individuals who wish to perform
pension actuarial services and actuarial certifications under ERISA and
the Internal Revenue Code and practice before the IRS must satisfy the
standards and qualifications as set forth in the regulations of the
Joint Board for persons performing actuarial services required under
ERISA. Only after the Joint Board verifies that an individual satisfied
the stated standards and qualifications--either as a new enrolled
actuary applicant or a renewing enrolled actuary--will the individual
be enrolled as an enrolled actuary. An enrolled actuary must renew his
or her certification every three years to ensure the required
competence and compliance with ethical standards of performance for
actuarial service.
Due to the costs of administering the new enrollment and renewal of
enrollment processes, and the expressed preference in the IOAA that
government services conferring special benefits be self-sustaining,
there is no viable alternative to imposing a user fee.
III. Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA)
requires that agencies assess anticipated costs and benefits and take
certain other actions before issuing a final rule that includes any
Federal mandate that may result in expenditures in any one year by a
state, local, or tribal government, in the aggregate, or by the private
sector, of $100 million in 1995 dollars, updated annually for
inflation. This rule does not include any Federal mandate that may
result in expenditures by state, local, or tribal governments, or by
the private sector in excess of that threshold.
IV. Executive Order 13132: Federalism
Executive Order 13132 (Federalism) prohibits an agency from
publishing any rule that has federalism implications if the rule either
imposes substantial, direct compliance costs on state and local
governments, and is not required by statute, or preempts state law,
unless the agency meets the consultation and funding requirements of
section 6 of the Executive Order. These proposed regulations do not
have federalism implications and do not impose substantial direct
compliance costs on state and local governments or preempt state law
within the meaning of the Executive Order.

Comments and Public Hearing

Before these proposed amendments to the regulations are adopted as
final regulations, consideration will be given to comments that are
submitted timely to the IRS as prescribed in the preamble under the
ADDRESSES section. The Treasury Department and the IRS request comments
on all aspects of the proposed regulations. Any comments submitted will
be made available at <a href="http://www.regulations.gov">www.regulations.gov</a> and upon request.
A public hearing is being held by teleconference on December 16,
2022 beginning at 10 a.m. EDT. The rules of 26 CFR 601.601(a)(3) apply
to the hearing. Persons who wish to present oral comments by telephone
at the hearing must submit electronic or written comments and an
outline of the topics to be addressed and the time to be devoted to
each topic by December 5, 2022 as prescribed in the preamble under the
ADDRESSES section.
A period of 10 minutes will be allocated to each person for making
comments. After the deadline for receiving outlines has passed, the IRS
will prepare an agenda containing the schedule of speakers. Copies of
the agenda will be made available at <a href="http://www.regulations.gov">www.regulations.gov</a>, search IRS
and REG-100719-21. Copies of the agenda will also be available by
emailing a request to <a href="/cdn-cgi/l/email-protection#c9b9bcaba5a0aaa1aca8bba0a7aeba89a0bbbae7aea6bf">[email&#160;protected]</a>. Please put ``REG-100719-
21 Agenda Request'' in the subject line of the email.

Drafting Information

The principal author of these regulations is Carolyn M. Lee, Office
of the Associate Chief Counsel (Procedure and Administration). Other
personnel from the Treasury Department and the IRS participated in the
development of these regulations.

List of Subjects in 26 CFR Part 300

Reporting and recordkeeping requirements, User fees.

Accordingly, the Treasury Department and the IRS propose to amend
26 CFR part 300 as follows:

PART 300--USER FEES

0
1. The authority citation for part 300 continues to read as follows:

Authority: 31 U.S.C. 9701.

0
2. Amend Sec. 300.7 by revising paragraphs (b) and (d) to read as
follows:

Sec. 300.7 Enrollment of enrolled actuary fee.

* * * * *
(b) Fee. The fee for initially enrolling as an enrolled actuary
with the Joint Board for the Enrollment of Actuaries is $680.00.
* * * * *
(d) Applicability date. This section is applicable beginning [DATE
30 DAYS AFTER DATE OF PUBLICATION OF THE FINAL RULE IN THE Federal
Register].
0
3. Amend Sec. 300.8 by revising paragraphs (b) and (d) to read as
follows:

Sec. 300.8 Renewal of enrollment of enrolled actuary fee.

* * * * *
(b) Fee. The fee for renewal of enrollment as an enrolled actuary
with the Joint Board for the Enrollment of Actuaries is $680.00.
* * * * *
(d) Applicability date. This section is applicable beginning [DATE
30 DAYS AFTER DATE OF PUBLICATION OF THE FINAL RULE IN THE Federal
Register].

Paul J. Mamo,
Assistant Deputy Commissioner for Services and Enforcement.
[FR Doc. 2022-21458 Filed 10-4-22; 8:45 am]
BILLING CODE 4830-01-P

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