Proposed Rule2023-22104
Preparer Tax Identification Number (PTIN) User Fee Update
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
October 4, 2023
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
In the Rules and Regulations section of this issue of the Federal Register, the Department of the Treasury (Treasury Department) and the IRS are issuing interim final regulations that amend the current regulations to reduce the amount of the user fee imposed on tax return preparers to apply for or renew a preparer tax identification number (PTIN). The text of the interim final regulations also serves as the text of these proposed regulations.
Full Text
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<title>Federal Register, Volume 88 Issue 191 (Wednesday, October 4, 2023)</title>
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[Federal Register Volume 88, Number 191 (Wednesday, October 4, 2023)]
[Proposed Rules]
[Pages 68525-68527]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-22104]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 300
[REG-106203-23]
RIN 1545-BQ77
Preparer Tax Identification Number (PTIN) User Fee Update
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross-reference to interim
final rule.
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SUMMARY: In the Rules and Regulations section of this issue of the
Federal Register, the Department of the Treasury (Treasury Department)
and the IRS are issuing interim final regulations that amend the
current regulations to reduce the amount of the user fee imposed on tax
return preparers to apply for or renew a preparer tax identification
number (PTIN). The text of the interim final regulations also serves as
the text of these proposed regulations.
DATES: Electronic or written comments and requests for a public hearing
must be received by December 4, 2023.
ADDRESSES: Commenters are strongly encouraged to submit public comments
electronically. Submit electronic submissions via the Federal
eRulemaking Portal at <a href="https://www.regulations.gov">https://www.regulations.gov</a> (indicate IRS and
REG-106203-23) by following the online instructions for submitting
comments. Requests for a public hearing must be submitted as prescribed
in the ``Comments and Requests for a Public Hearing'' section. Once
submitted to the Federal eRulemaking Portal, comments cannot be edited
or withdrawn. The Treasury Department and the IRS will
[[Page 68526]]
publish for public availability any comments submitted to the IRS's
public docket. Send paper submissions to: CC:PA:LPD:PR (REG-106203-23),
Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin
Station, Washington, DC 20044.
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Jamie Song at (202) 317-6845; concerning cost methodology, Michael A.
Weber at (202) 803-9738; concerning submissions of comments or requests
for a public hearing, Vivian Hayes at (202) 317-6901 (not toll-free
numbers) or by email at <a href="/cdn-cgi/l/email-protection#91e1e4f3fdf8f2f9f4f0e3f8fff6e2d1f8e3e2bff6fee7"><span class="__cf_email__" data-cfemail="a0d0d5c2ccc9c3c8c5c1d2c9cec7d3e0c9d2d38ec7cfd6">[email protected]</span></a> (preferred).
SUPPLEMENTARY INFORMATION:
Background and Explanation of Provisions
Interim final regulations in the Rules and Regulations section of
this issue of the Federal Register amend regulations under 26 CFR part
300 setting a user fee for individuals who apply for or renew a PTIN.
The Independent Offices Appropriation Act of 1952 (IOAA), which is
codified at 31 U.S.C. 9701, authorizes agencies to prescribe
regulations that establish user fees for services provided by the
agency. The IOAA provides that regulations implementing user fees are
subject to policies prescribed by the President; these policies are set
forth in the Office of Management and Budget Circular A-25, 58 FR 38142
(July 15, 1993). The text of the interim final regulations also serves
as the text of these proposed regulations. The preamble to the interim
final regulations explains the interim final regulations and these
proposed regulations.
Special Analyses
I. Regulatory Planning and Review
The OMB's Office of Information and Regulatory Analysis has
determined that this regulation is not significant and subject to
review under section 6(b) of Executive Order 12866.
II. Regulatory Flexibility Act
Pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6), it
is hereby certified that these proposed regulations will not have a
significant economic impact on a substantial number of small entities.
The proposed regulations affect individuals who prepare or assist in
preparing all or substantially all of a tax return or claim for refund
for compensation. Only individuals, not businesses, can have a PTIN.
Thus, the economic impact of these regulations on any small entity
generally will be a result of an individual tax return preparer who is
required to have a PTIN owning a small business or a small business
otherwise employing an individual tax return preparer who is required
to have a PTIN. The Treasury Department and the IRS estimate that
approximately 847,555 individuals will apply annually for an initial or
renewal PTIN. Although the interim final regulations will likely affect
a substantial number of small entities, the economic impact on those
entities is not significant. The interim final regulations will
establish an $11 fee per application or renewal (plus $8.75 payable
directly to the contractor), which is a reduction from the previously
established fee and will not have a significant economic impact on a
small entity. Accordingly, the Secretary certifies that the rule will
not have a significant economic impact on a substantial number of small
entities, and a regulatory flexibility analysis is not required.
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.
V. Submission to Small Business Administration
Pursuant to section 7805(f) of the Internal Revenue Code, this
notice of proposed rulemaking has been submitted to the Chief Counsel
of the Office of Advocacy of the Small Business Administration for
comment on its impact on small business.
Comments and Requests for a Public Hearing
Consideration will be given to comments that are submitted timely
to the IRS as prescribed in this preamble under the ADDRESSES heading.
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="https://www.regulations.gov">https://www.regulations.gov</a> or upon request.
A public hearing will be scheduled if requested in writing by any
person who timely submits electronic or written comments. Requests for
a public hearing are also encouraged to be made electronically. If a
public hearing is scheduled, notice of the date and time for the public
hearing will be published in the Federal Register.
Statement of Availability of IRS Documents
IRS notices and other guidance cited in this preamble are published
in the Internal Revenue Bulletin (or Cumulative Bulletin) and are
available from the Superintendent of Documents, U.S. Government
Publishing Office, Washington, DC 20402, or by visiting the IRS website
at <a href="https://www.irs.gov">https://www.irs.gov</a>.
Drafting Information
The principal author of these regulations is Jamie Song, 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
Estate taxes, Excise taxes, Fees, Gift taxes, Income taxes,
Reporting and recordkeeping requirements.
Proposed Amendments to the Regulations
Accordingly, 26 CFR part 300 is proposed to be amended as follows:
PART 300--USER FEES
0
Paragraph 1. The authority citation for part 300 continues to read in
part as follows:
Authority: 31 U.S.C. 9701.
0
Par. 2. Section 300.11 is amended by revising paragraphs (b) and (d) to
read as follows:
Sec. 300.11 Fee for obtaining a preparer tax identification number.
* * * * *
[[Page 68527]]
(b) [The text of proposed Sec. 300.11(b) is the same as the text
of Sec. 300.11(b) published elsewhere in this issue of the Federal
Register].
* * * * *
(d) [The text of proposed Sec. 300.11(d) is the same as the text
of Sec. 300.11(d) published elsewhere in this issue of the Federal
Register].
Douglas W. O'Donnell,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2023-22104 Filed 9-29-23; 4:15 pm]
BILLING CODE 4830-01-P
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