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).
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) )
The final reg adopts, without change, the April proposed reg. (Preamble to TD 9903)
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-1522; United States Tax Reporter ¶61,094.
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