Rule2024-10631
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
May 15, 2024
Effective
June 14, 2024
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
This document contains final regulations relating to the imposition of certain user fees on tax return preparers. The final regulations adopt without change the text of interim final and proposed regulations that reduced the user fee to apply for or renew a preparer tax identification number (PTIN) from $21 to $11. The final regulations affect individuals who apply for or renew a PTIN. The Independent Offices Appropriation Act of 1952 authorizes the charging of user fees.
Full Text
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<title>Federal Register, Volume 89 Issue 95 (Wednesday, May 15, 2024)</title>
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[Federal Register Volume 89, Number 95 (Wednesday, May 15, 2024)]
[Rules and Regulations]
[Pages 42362-42363]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-10631]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 300
[TD 9997]
RIN 1545-BQ77, 1545-BQ78
Preparer Tax Identification Number (PTIN) User Fee Update
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final rule.
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SUMMARY: This document contains final regulations relating to the
imposition of certain user fees on tax return preparers. The final
regulations adopt without change the text of interim final and proposed
regulations that reduced the user fee to apply for or renew a preparer
tax identification number (PTIN) from $21 to $11. The final regulations
affect individuals who apply for or renew a PTIN. The Independent
Offices Appropriation Act of 1952 authorizes the charging of user fees.
DATES:
Effective date: These regulations are effective on June 14, 2024.
Applicability date: For date of applicability, see Sec. 300.11(d).
FOR FURTHER INFORMATION CONTACT: Concerning the final regulations,
Jamie Song at (202) 317-6845; concerning cost methodology, Michael A.
Weber at (202) 803-9738 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
This document contains amendments to 26 CFR part 300--User Fees. On
October 4, 2023, the Department of the Treasury (Treasury Department)
and the IRS published in the Federal Register (88 FR 68525) a notice of
proposed rulemaking (proposed regulations) by cross-reference to an
interim final rule (REG-106203-23) proposing amendments to regulations
under 26 CFR part 300. On the same date, the Treasury Department and
the IRS published in the Federal Register (88 FR 68456) an interim
final rule (TD 9980) that reduced the PTIN user fee from $21 per
application or application for renewal to $11, plus the fee payable
directly to a third-party contractor. The interim final rule and the
proposed regulations took into account the February 2023 memorandum
opinion of the United States District Court for the District of
Columbia in Steele v. United States, 657 F.Supp.3d 23 (D.D.C. 2023).
The preamble to the interim final rule contains a detailed explanation
of the legal background and user fee calculations regarding the
amendments to these regulations. No public hearing was requested or
held, and no comments were received on the proposed regulations. These
final regulations therefore adopt the text of the interim final rule
and proposed regulations without change.
Special Analyses
I. Regulatory Planning and Review
The OMB's Office of Information and Regulatory Analysis has
determined that
[[Page 42363]]
these final regulations are not significant and are not subject to
review under section 6(b) of Executive Order 12866, as amended.
II. Regulatory Flexibility Act
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.
Accordingly, a regulatory flexibility analysis is not required. These
regulations affect all 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 these regulations will likely affect a substantial number of
small entities, the economic impact on those entities is not
significant. These regulations establish an $11 fee per application or
application for renewal (plus the fee payable directly to the third-
party contractor), which is a reduction from the previously established
fee, and will therefore not have a significant economic impact on small
entities. Accordingly, 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. These final regulations do 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 final 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 Code, the notice of proposed
rulemaking and the interim final rule that preceded these final
regulations was submitted to the Chief Counsel for the Office of
Advocacy of the Small Business Administration for comment on its impact
on small business. No comments were received on the proposed
regulations or the interim final rule.
VI. Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs designated this rule
as not a major rule, as defined by 5 U.S.C. 804(2).
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.
PART 300--USER FEES
0
Accordingly, the interim rule amending 26 CFR part 300, which was
published at 88 FR 68456 on October 4, 2023, is adopted as final
without change.
Douglas W. O'Donnell,
Deputy Commissioner.
Approved: April 28, 2024.
Aviva R. Aron-Dine,
Acting Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2024-10631 Filed 5-14-24; 8:45 am]
BILLING CODE 4830-01-P
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</html>Indexed from Federal Register on May 15, 2024.
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