The IRS has issued proposed and interim final rules to reduce the preparer tax identification number (PTIN) user fee from $11 to $10. The total cost for preparers to apply for or renew a PTIN will now be $18.75, which includes a separate, unchanged $8.75 fee paid to a third-party contractor. (IR 2025-95, 9/29/2025; TD 10035, 9/30/2025; Preamble to Prop Reg REG-108673-25, 9/30/2025)
Individual tax return preparers who are applying for or renewing a PTIN are required to pay a user fee. That includes attorneys, CPAs, enrolled agents, or registered tax return preparers, whether or not they must pay other fees associated with obtaining and maintaining licenses and certifications.
The reduced $10 fee applies to all new applications and renewals filed on or after September 30, 2025. The agency issued the change as an interim final rule to ensure the lower fee would be in effect for the upcoming filing season renewal period. PTINs expire on December 31 of the calendar year for which they are issued.
Fee Reduction Follows Litigation
PTIN user fees have been the subject of ongoing litigation in recent years. The District of Columbia U.S. Circuit Court of Appeals found that IRS has authority to charge return preparers fees for the issuance and renewal of PTINs. (Montrois v. United States, 916 F.3d 1056 (D.C. Cir. 2019)) The appellate court reasoned that maintaining PTINs is a benefit to preparers – they can use a PTIN instead of their Social Security number on returns for fraud protection purposes.
However, a district court subsequently ruled that PTIN user fees collected from 2011 through 2017 were excessive. (Steele v. United States, 657 F. Supp. 3d 23 (D.D.C. 2023)) The district court concluded that fees must be “reasonably related” to the cost to the agency of the service provided to the recipient. Fees cannot be based on costs for activities that provided an independent benefit to the public or the IRS, rather than a specific benefit to the PTIN holder, said the court. An appeal is pending in the case.
PTIN Fee Calculation
The PTIN user fee was previously set at $11 in 2023. The latest reduction is in line with the IRS’ Cost Model for fiscal years 2026-2028.
The IRS estimated salary and benefit; travel, training, and supplies; and overhead costs associated with the PTIN program to determine the user fee. It found that for fiscal years 2026-2028, costs would amount to $28,792,946.
Based on a projected 2,829,524 applications over that same three-year period, the cost per application is $10.18. The IRS rounded down to $10 for the final fee.
Comments
Comments and public hearing requests on the PTIN fee change are due October 30, 2025.
Comments can be submitted via the Federal e-Rulemaking portal (indicate “IRS” and “REG-108673-25”).
For more on PTIN user fees, see Checkpoint’s Federal Tax Coordinator 2d ¶ S-1522.3.
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