IRS Announces New PTIN User Fee in Proposed Regulations

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