IRS Announces New PTIN User Fee in Proposed Regulations

Procedurally Taxing, April 28, 2020

3 Pages Posted: 30 Apr 2020

Date Written: April 28, 2020

Abstract

The IRS has announced the imposition of a new PTIN (practitioner tax identification number) user fee. The proposed regulations require tax practitioners to pay $21 (plus a vendor fee) to obtain, or renew, their PTIN. This is a marked reduction from the previous (pre-suspension) $33 fee, which itself had been a significant reduction from the original PTIN fee of $50 (plus the vendor fee).

After the district court in Steele held the IRS lacked the authority to impose the fee, they briefly suspended the issuance of PTINs altogether. However, the Service quickly resumed issuance of the PTIN – without charging the corresponding user fee. Last year, in Montrois, the D.C. Circuit reversed Steele and held the IRS could properly impose a PTIN user fee. Unresolved, however, was the question of how much could be charged for the PTIN. That issue was remanded to the district court for determination.

Keywords: PTIN, IRS, Tax Practice and Procedure, Tax Return Preparers

Suggested Citation

Colella, Frank G., IRS Announces New PTIN User Fee in Proposed Regulations (April 28, 2020). Procedurally Taxing, April 28, 2020, Available at SSRN: https://ssrn.com/abstract=3587769

Frank G. Colella (Contact Author)

Pace University ( email )

One Pace Plaza
New York, NY 10038-1502
United States

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