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PTIN

Final Reg Reduces Preparer Tax Identification Number (PTIN) user fee

Thomson Reuters Tax & Accounting  

Thomson Reuters Tax & Accounting  

The IRS has issued a final reg, adopting a proposed reg without change, that reduces the fee for applying for and renewing Preparer Tax Identification Numbers (PTINs).

Background.

Code Sec. 6109(a)(4) authorizes IRS to prescribe regs for the inclusion of a tax return preparer’s identifying number on a return, statement, or other document required to be filed with IRS.

Final regs provide that the identifying number of a tax return preparer is the individual’s PTIN or such other number prescribed by IRS in forms, instructions, or other appropriate guidance. The PTIN regs require a tax return preparer who prepares or who assists in preparing all or substantially all of a tax return or claim for refund to have a PTIN. (Reg. § 1.6109-2(d))

Final regs also provided that, in order to apply for or renew a PTIN, one has to pay $33 per year plus an outside vendor fee. The outside vendor fee, which was set at $17 for both new applications and renewal applications, was paid directly to the vendor. (TD 8742, 10/29/2015)

At the current time, as a result of case that has been remanded to the trial court (see D.C. Circuit vacates and remands; IRS may charge PTIN fees ), IRS is not charging the PTIN fee. (IRS PTIN requirements)

In April, the IRS issued a proposed reg (“April proposed reg”) that proposed that the fee be reduced to $21 per year plus $14.95 directly payable to the outside vendor. (Preamble to Prop Reg REG-117138-17, see Proposed reg would reduce Preparer Tax Identification Number (PTIN) user fee (04/16/2020) )

Final reg.

The final reg adopts, without change, the April proposed reg. (Preamble to TD 9903)

Applicability date.

The final reg applies to applications for, or renewal of, a PTIN filed on or after August 16, 2020. (Reg §300.12(d))

To continue your research on PTINs, see FTC 2d/FIN ¶S-1522United States Tax Reporter ¶61,094.

 

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