[Federal Register Volume 72, Number 210 (Wednesday, October 31, 2007)]
[Proposed Rules]
[Pages 61583-61584]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-5428]



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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 300

[REG-134923-07]
RIN 1545-BG88


User Fees Relating to Enrollment to Perform Actuarial Services

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking and notice of public hearing.

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SUMMARY: This document contains proposed regulations relating to user 
fees for the initial and renewed enrollment to become an enrolled 
actuary. The charging of user fees is authorized by the Independent 
Offices Appropriations Act (IOAA) of 1952. This document also contains 
a notice of public hearing on these proposed regulations.

DATES: Written or electronic comments must be received by November 30, 
2007.
    Outlines of topics to be discussed at the public hearing scheduled 
for November 26, 2007, at 10 a.m., must be received by November 19, 
2007.

ADDRESSES: Send comments to: CC:PA:LPD:PR (REG-134923-07), room 5203, 
Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand-delivered Monday through 
Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-
134923-07), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue, NW., Washington, DC. Alternatively, submissions may be sent 
electronically via the Federal eRulemaking Portal at 
www.regulations.gov (IRS REG-134923-07).

FOR FURTHER INFORMATION CONTACT: Concerning submissions of comments 
and/or to be placed on the building access list to attend the hearing 
Richard [email protected] or at (202) 622-7180; concerning 
cost methodology, Eva J. Williams at (202) 435-5514; concerning the 
proposed regulations, Joel Rutstein at (202) 622-4940 (not toll-free 
numbers).

SUPPLEMENTARY INFORMATION:

Background

    The Employee Retirement Income Security Act of 1974 (Pub. L. 93-
406) ordered the Secretary of Labor and the Secretary of Treasury to 
establish a Joint Board for the Enrollment of Actuaries. 29 U.S.C. 
1241. The Joint Board shall, by regulation, establish reasonable 
standards and qualifications for persons performing actuarial services 
and the Joint Board shall enroll such individuals who, upon 
application, satisfy such standards and qualifications. 29 U.S.C. 
1242(a). The regulations at 20 CFR Part 901, Subpart B address 
eligibility for enrollment and renewal of enrollment. Pursuant to the 
Joint Board's bylaws, the Secretary of the Treasury is to appoint an 
Executive Director to the Board who has the delegated authority to 
administer the Board's enrollment program. The Secretary of the 
Treasury has delegated these functions to the Internal Revenue Service 
and the costs of these activities are borne by the Service.
    20 CFR 901.11(d)(4) provides for a reasonable non-refundable fee 
for applications for renewal of enrollment. Form 5434-A, ``Application 
for Renewal of Enrollment'' presently states that the renewal fee is 
$25. Proposed 26 CFR 300.7 and 300.8 establish separate $250 user fees 
for the enrollment and renewal of enrollment process. These fees 
represent the IRS's costs in administering the program, and the $250 
fee for renewal of enrollment will supplant the $25 fee.

Authority

    The IOAA of 1952 (31 U.S.C. 9701) authorizes agencies to prescribe 
regulations that establish charges for services provided by the agency. 
The charges must be fair and be based on the costs to the Government, 
the value of the service to the recipient, the public policy or 
interest served, and other relevant facts. The IOAA of 1952 provides 
that regulations implementing user fees are subject to policies 
prescribed by the President, which are currently set forth in OMB 
Circular A-25, 58 FR 38142 (July 15, 1993) (the OMB Circular).
    The OMB Circular encourages user fees for government-provided 
services that confer benefits on identifiable recipients over and above 
those benefits received by the general public. Under the OMB Circular, 
an agency that seeks to impose a user fee for government-provided 
services must calculate its full cost of providing those services. In 
general, a user fee should be set at an amount in order for the agency 
to recover the cost of providing the special service, unless the Office 
of Management and Budget grants an exception. Pursuant to the 
guidelines in the OMB Circular, the IRS has calculated its cost of 
providing services under the enrolled actuaries program. The IRS has 
determined that the full cost of administering the enrollment and re-
enrollment processes is $250 per enrolled actuary per process.
    The proposed user fees will be implemented under the authority of 
the IOAA of 1952 and the OMB Circular.

Proposed Effective Date

    These regulations are proposed to apply 30 days after the date of 
publication in the Federal Register of the final regulations.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in Executive Order 
12866. Therefore, a regulatory assessment is not required. It is hereby 
certified that these regulations will not have a significant economic 
impact on a substantial number of small entities. Accordingly, a 
regulatory flexibility analysis is not required. This certification is 
based on the information that follows. These proposed rules affect 
enrolled actuaries, of which there are currently 4,600 active. The 
economic impact of these regulations on any small entity would result 
from a small entity, including a sole proprietor, being required to pay 
a fee prescribed by these regulations in order to obtain a particular 
service. The appropriate NAICS codes for enrolled actuaries relate to 
Insurance--Other (524298) and Administrative and General Management 
Consulting, Including Financial Consulting (541611). Entities 
identified under these codes are considered small under the SBA size 
standards (13 CFR 121.201) if their annual revenue is less than $6.5 
million. The IRS estimates that as many as 2,070 enrolled actuaries may 
be operating as or employed by small entities. Therefore, the IRS has 
determined that these proposed rules will affect a substantial number 
of small entities. The dollar amounts of the fees are not, however, 
substantial enough to have a significant economic impact on any entity 
subject to the fees. The amounts of the fees are commensurate with, if 
not less than, the amount charged by professional organizations. 
Persons who elect to apply for enrollment or renewal of enrollment also 
receive benefits from obtaining the enrolled actuary designation. 
Pursuant to section 7805(f) of the Internal Revenue Code, this Notice 
of Proposed Rulemaking will be submitted to the Chief Counsel for 
Advocacy of the Small Business Administration for comment on its 
impact.

Comments and Public Hearing

    Before these proposed regulations are adopted as final regulations,

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consideration will be given to any written (a signed original and eight 
(8) copies) or electronic comments that are submitted timely to the 
IRS. The IRS and Treasury Department request comments on the substance 
of the proposed regulations, as well as on the clarity of the proposed 
rules and how they can be made easier to understand. All comments will 
be available for public inspection and copying.
    A public hearing has been scheduled after date of hearing listed 
above for November 26, 2007 at 10 a.m. in room 3716. Due to building 
security procedures, all visitors must present photo identification to 
enter the building. Because of access restrictions, visitors will not 
be admitted beyond the immediate entrance area more than 30 minutes 
before the hearing starts. For information about having your name 
placed on the building access list to attend the hearing, see the FOR 
FURTHER INFORMATION CONTACT section of this preamble.
    The rules of 26 CFR 601.601(a)(3) apply to the hearing. Persons who 
wish to present oral comments at the hearing must submit electronic or 
written comments by November 30, 2007 and an outline of the comments to 
be discussed and the time to be devoted to each topic (signed original 
and eight (8) copies) by November 19, 2007. A period of ten (10) 
minutes will be allotted to each person for making comments. An agenda 
showing the scheduling of the speakers will be prepared after the 
deadline for receiving outlines has passed. Copies of the agenda will 
be available free of charge at the hearing.

Drafting Information

    The principal author of these regulations is Joel S. Rutstein of 
the Office of the Associate Chief Counsel (Procedure & Administration).

List of Subjects in 26 CFR Part 300

    Reporting and recordkeeping requirements, User fees.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 300 is proposed to be amended as follows:

PART 300--USER FEES

    Paragraph 1. The authority citation for part 300 continues to read 
as follows:

    Authority: 31 U.S.C. 9701.

    Par. 2. Section 300.0 is amended as follows:
    1. Paragraphs (b)(7) and (b)(8) are added.
    2. Paragraph (c) is revised.
    The additions and revision read as follows:


Sec.  300.0  User fees, in general.

* * * * *
    (b) * * *
    (7) Enrolling an enrolled actuary.
    (8) Renewing the enrollment of an enrolled actuary.
    (c) Effective/applicability date. This part 300 is applicable March 
16, 1995, except that the user fee for processing offers in compromise 
is applicable November 1, 2003; the user fee for the special enrollment 
examination, enrollment, and renewal of enrollment for enrolled agents 
is applicable November 6, 2006; the user fee for entering into 
installment agreements on or after January 1, 2007, is applicable 
January 1, 2007; the user fee for restructuring or reinstatement of an 
installment agreement on or after January 1, 2007, is applicable 
January 1, 2007; and the user fee for the enrollment and renewal of 
enrollment for enrolled actuaries is applicable thirty days after the 
date of publication in the Federal Register of the final regulations.
    Par. 3. Section 300.7 is added to read as follows:


Sec.  300.7  Enrollment of enrolled actuary fee.

    (a) Applicability. This section applies to the initial enrollment 
of enrolled actuaries with the Joint Board for the Enrollment of 
Actuaries pursuant to 20 CFR part 901.
    (b) Fee. The fee for initially enrolling as an enrolled actuary 
with the Joint Board for the Enrollment of Actuaries is $250.00.
    (c) Person liable for the fee. The person liable for the enrollment 
fee is the applicant filing for enrollment as an enrolled actuary with 
the Joint Board for the Enrollment of Actuaries.
    Par. 4. Section 300.8 is added to read as follows:


Sec.  300.8  Renewal of enrollment of enrolled actuary fee.

    (a) Applicability. This section applies to the renewal of 
enrollment of enrolled actuaries with the Joint Board for the 
Enrollment of Actuaries pursuant to 20 CFR Part 901.
    (b) Fee. The fee for renewal of enrollment as an enrolled actuary 
with the Joint Board for the Enrollment of Actuaries is $250.00.
    (c) Person liable for the fee. The person liable for the renewal of 
enrollment fee is the person renewing their enrollment as an enrolled 
actuary with the Joint Board for the Enrollment of Actuaries.

Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 07-5428 Filed 10-26-07; 4:29 pm]
BILLING CODE 4830-01-P