[Federal Register Volume 76, Number 75 (Tuesday, April 19, 2011)]
[Rules and Regulations]
[Pages 21805-21807]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-9469]



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 Rules and Regulations
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  Federal Register / Vol. 76, No. 75 / Tuesday, April 19, 2011 / Rules 
and Regulations  

[[Page 21805]]



DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 300

[TD 9523]
RIN 1545-BJ65


User Fees Relating to Enrolled Agents and Enrolled Retirement 
Plan Agents

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

-----------------------------------------------------------------------

SUMMARY: This document contains amendments to the regulations relating 
to the imposition of user fees for enrolled agents and enrolled 
retirement plan agents. The final regulations lower the initial 
enrollment and renewal of enrollment user fees for enrolled agents and 
enrolled retirement plan agents and separate the enrolled retirement 
plan agent user fees from the enrolled agent user fees. The final 
regulations affect individuals who are, or apply to become, enrolled 
agents or enrolled retirement plan agents.

DATES: Effective Date: These regulations are effective on April 19, 
2011.
    Applicability Date: For dates of applicability see Sec. Sec.  
300.5(d), 300.6(d), 300.9(d), 300.10(d), and 300.11(d).

FOR FURTHER INFORMATION CONTACT: Concerning the final regulations, 
Emily M. Lesniak at (202) 622-4570, or concerning cost methodology, Eva 
J. Williams at (202) 435-5514 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    This document contains final regulations relating to the initial 
enrollment and renewal of enrollment for enrolled agents and enrolled 
retirement plan agents. The Independent Offices Appropriations Act of 
1952, which is codified at 31 U.S.C. 9701, authorizes agencies to 
prescribe regulations establishing user fees for services provided by 
the agency. Regulations prescribing user fees are subject to the 
policies of the President, which are currently set forth in the Office 
of Management and Budget Circular A-25 (the OMB Circular), 58 FR 38142 
(July 15, 1993). The OMB Circular requires agencies seeking to impose 
user fees for providing special benefits to identifiable recipients to 
calculate the full cost of providing those benefits.
    Section 330 of title 31 of the United States Code authorizes the 
Secretary of the Treasury to regulate the practice of representatives 
before the Treasury Department. Pursuant to section 330 of title 31, 
the Secretary has published regulations governing practice before the 
IRS in 31 CFR part 10 and reprinted the regulations as Treasury 
Department Circular No. 230 (Circular 230). Section 10.4 of Circular 
230 authorizes the Commissioner of Internal Revenue to grant status as 
an enrolled agent or enrolled retirement plan agent to applicants who 
demonstrate special competence in tax matters.
    To become an enrolled agent or enrolled retirement plan agent, an 
applicant generally must pass a special enrollment examination and file 
an application for enrollment with the IRS. An individual granted 
status as an enrolled agent or enrolled retirement plan agent as 
provided in Sec.  10.6(d) of Circular 230 must renew enrollment every 
three years to maintain active enrollment and be able to practice 
before the IRS.
    On December 10, 2010, the Treasury Department and the IRS published 
in the Federal Register (75 FR 76940) a notice of proposed rulemaking 
proposing amendments to part 300 of title 26 of the Code of Federal 
Regulations. The regulations proposed to reduce the initial enrollment 
and renewal of enrollment user fees for enrolled agents and enrolled 
retirement plan agents to $30 from $125. The reduction in user fees is 
necessary to account for the reallocation of portions of the enrolled 
agent and enrolled retirement plan agent renewal processes to the 
preparer tax identification number (PTIN) application and renewal 
process. The costs to the government for the reallocated portions of 
the enrolled agent and enrolled retirement plan agents initial 
enrollment and renewal of enrollment processes are now recovered by the 
user fee to apply for or renew a PTIN (TD 9503, 75 FR 60316). 
Additionally, these regulations proposed to separate the enrolled 
retirement plan agent user fees from the enrolled agent user fees.
    A public hearing was scheduled for January 14, 2011. The IRS did 
not receive any requests to testify at the public hearing, and the 
hearing was cancelled.
    The IRS received written comments in response to the proposed 
regulations. After careful consideration of the public comments, the 
Treasury Department and the IRS decided to adopt without substantive 
modification the proposed regulations reducing the enrolled agent and 
enrolled retirement plan agent initial enrollment and renewal of 
enrollment user fees to $30 and separating the enrolled retirement plan 
agent user fees from the enrolled agent user fees.

Summary of Comments

    The IRS received five comments in response to the notice of 
proposed rulemaking. The comments were considered and are available for 
public inspection at http://www.regulations.gov or upon request. The 
comments related to the reduced enrolled agent user fees; Announcement 
2010-81 (2010-45 IRB 638), which delayed the renewal period for 
enrolled agents whose social security or tax identification number ends 
in 4, 5, or 6; the recently published final regulations under section 
6109 (TD 9501, 75 FR 60309), which require tax return preparers who 
prepare all or substantially all of a tax return or claim for refund 
for compensation to have a PTIN; the final regulations implementing a 
$50 user fee to the IRS to apply for or renew a PTIN; and the proposed 
amendments to Circular 230 (75 FR 51713). The IRS did not receive any 
comments regarding the separation of the enrolled retirement plan agent 
user fees from the enrolled agent user fees.
    The comments relating to the proposed regulations reducing the 
enrolled agent and enrolled retirement plan agent user fees are 
summarized in this preamble. To the extent that the comments raised 
issues regarding other Treasury Department guidance, the Treasury 
Department and the IRS have

[[Page 21806]]

considered or will consider the comments in connection with the 
relevant guidance.
    The IRS received two comments regarding the amount of the user fees 
in the proposed regulations. One comment supported reducing the initial 
enrollment and renewal of enrollment user fees for enrolled agents to 
$30. Another comment requested that the reduction in the user fee to 
renew enrollment as an enrolled agent be made retroactive.
    The Treasury Department and the IRS took steps to prevent 
duplication of costs for enrolled agents whose enrollment renewal 
period was scheduled to begin after the effective date of the user fee 
to apply for or renew of PTIN, but before the enrolled agent user fees 
are reduced. As previously discussed, the enrolled agent and enrolled 
retirement plan agent user fees are being reduced to account for the 
reallocation of part of the enrollment processes to the PTIN 
application and renewal process. On October 14, 2010, the Treasury 
Department and the IRS issued Announcement 2010-81, which delayed the 
renewal period for enrolled agents who were scheduled to renew their 
enrollment between November 1, 2010, and January 31, 2011. Thus, the 
Announcement delayed the renewal period for those enrolled agents 
required to both renew their enrollment and obtain a PTIN between 
September 28, 2010 and January 31, 2011 until guidance reducing the 
renewal of enrollment user fees could be finalized.
    Further, the OMB Circular provides that Federal agencies should 
recover the full cost of providing a special benefit to an identifiable 
recipient. Designation as an enrolled agent is a special benefit that 
is conferred upon a specific individual, and under the OMB Circular, 
the IRS should recover the full cost of providing this benefit. Prior 
to the implementation of the user fee to apply for or renew a PTIN, the 
cost to the government to process an initial enrollment or renewal of 
enrollment application for an enrolled agent or enrolled retirement 
plan agent was $125. Thus, the reduced $30 user fee would not recover 
the entire cost to the government to process applications submitted 
before the effective date of the regulations implementing the user fee 
to apply for or renew a PTIN.
    After considering the public comments, the Treasury Department and 
the IRS have decided to adopt the proposed regulations without 
substantive modification.

Effective/Applicability Date

    The Administrative Procedure Act provides that substantive rules 
will not be effective until thirty days after the final regulations are 
published in the Federal Register (5 U.S.C. 553(d)). Final regulations 
may be effective prior to thirty days after publication if the 
publishing agency finds that there is good cause for an earlier 
effective date.
    The Treasury Department and the IRS finalized regulations that 
require all tax return preparers who prepare all or substantially all 
of a tax return or claim for refund for compensation to use a PTIN as 
their identifying number and to pay a $64.25 fee, which includes the 
amount paid to the vendor, to apply for or renew a PTIN. Tax return 
preparers who prepare all or substantially all of a tax return or claim 
for refund must obtain or renew their PTIN for the 2011 tax season.
    Circular 230 requires that, to maintain active enrollment to 
practice before the IRS, enrolled agents must renew enrollment every 
third year after initial enrollment is granted. Under Circular 230, 
enrolled agents with social security numbers or tax identification 
numbers ending in 4, 5, or 6 were scheduled to renew their enrollment 
between November 1, 2010 and January 31, 2011. To enable these enrolled 
agents to renew their enrollment at the reduced fee, the IRS issued 
Announcement 2010-81 on October 14, 2010, which delayed the renewal 
period for enrolled agents with social security numbers or tax 
identification numbers ending in 4, 5, or 6. The renewal process cannot 
be reinstated until these regulations are finalized; otherwise, these 
enrolled agents will pay twice for the IRS to perform compliance and 
suitability checks. To minimize the disruption to the enrolled agent 
program caused by the delay of renewal, the renewal process must be 
reinstated as quickly as possible. Thus, the Treasury Department and 
the IRS find that there is good cause for these regulations to be 
effective upon the publication of a Treasury decision adopting these 
rules as final regulations in the Federal Register.

Special Analyses

    It has been determined that this final rule is not a significant 
regulatory action as defined in Executive Order 12866. It is hereby 
certified that the 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 upon the information that follows. The regulations do not place 
an additional filing requirement on enrolled agents or enrolled 
retirement plan agents and decrease the enrollment costs already in 
effect. Thus, the regulations should reduce the economic impact imposed 
by the current enrolled agent and enrolled retirement plan agent user 
fees.
    It also has been determined that section 553(b) of the 
Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to 
these regulations, and because the regulations do not impose a 
collection of information on small entities, the Regulatory Flexibility 
Act (5 U.S.C. chapter 6) does not apply. Pursuant to section 7805(f) of 
the Code, the notice of proposed rulemaking was submitted to the Chief 
Counsel for Advocacy of the Small Business Administration for comment 
on its impact on small business. The Chief Counsel for Advocacy did not 
submit comments on the notice of proposed rulemaking.

Drafting Information

    The principal author of these regulations is Emily M. Lesniak, 
Office of the Associate Chief Counsel (Procedure and Administration).

List of Subjects in 26 CFR Part 300

    Reporting and recordkeeping requirements, User fees.

Adoption of Amendments to the Regulations

    Accordingly, 26 CFR part 300 is amended as follows:

PART 300--USER FEES

0
Paragraph 1. The authority citation for part 300 continues to read in 
part as follows:

    Authority: 31 U.S.C. 9701.

0
Par. 2. Section 300.0 is amended by:
0
1. Redesignating paragraph (b)(9) as paragraph (b)(12).
0
2. Adding new paragraph (b)(9).
0
3. Adding paragraphs (b)(10) and (b)(11).
    The additions read as follows.


Sec.  300.0  User fees; in general.

* * * * *
    (b) * * *
    (9) Taking the special enrollment examination to become an enrolled 
retirement plan agent.
    (10) Enrolling an enrolled retirement plan agent.
    (11) Renewing the enrollment of an enrolled retirement plan agent.
* * * * *

0
Par. 3. Section 300.4 is amended by revising the heading to read as 
follows:

[[Page 21807]]

Sec.  300.4  Enrolled agent special enrollment examination fee.

* * * * *

0
Par. 4. Section 300.5 is amended by revising paragraphs (b) and (d) to 
read as follows:


Sec.  300.5  Enrollment of enrolled agent fee.

* * * * *
    (b) Fee. The fee for initially enrolling as an enrolled agent with 
the IRS is $30.
* * * * *
    (d) Effective/applicability date. This section is applicable 
beginning April 19, 2011.

0
Par. 5. Section 300.6 is amended by revising paragraphs (b) and (d) to 
read as follows:


Sec.  300.6  Renewal of enrollment of enrolled agent fee.

* * * * *
    (b) Fee. The fee for renewal of enrollment as an enrolled agent 
with the IRS is $30.
* * * * *
    (d) Effective/applicability date. This section is applicable 
beginning April 19, 2011.


Sec.  300.9  [Redesignated as Sec.  300.12]

0
Par. 6. Redesignate Sec.  300.9 as Sec.  300.12.

0
Par. 7. Add new Sec.  300.9 to read as follows:


Sec.  300.9  Enrolled retirement plan agent special enrollment 
examination fee.

    (a) Applicability. This section applies to the special enrollment 
examination to become an enrolled retirement plan agent pursuant to 31 
CFR 10.4(b).
    (b) Fee. The fee for taking the enrolled retirement plan agent 
special enrollment examination is $11 per part, which is the cost to 
the government for overseeing the examination and does not include any 
fees charged by the administrator of the examination.
    (c) Person liable for the fee. The person liable for the enrolled 
retirement plan agent special enrollment examination fee is the 
applicant taking the examination.
    (d) Effective/applicability date. This section is applicable 
beginning April 19, 2011.

0
Par. 8. Section 300.10 is added to read as follows:


Sec.  300.10  Enrollment of enrolled retirement plan agent fee.

    (a) Applicability. This section applies to the initial enrollment 
of enrolled retirement plan agents with the IRS pursuant to 31 CFR 
10.5(b).
    (b) Fee. The fee for initially enrolling as an enrolled retirement 
plan agent with the IRS is $30.
    (c) Person liable for the fee. The person liable for the enrollment 
fee is the applicant filing for enrollment as an enrolled retirement 
plan agent with the IRS.
    (d) Effective/applicability date. This section is applicable 
beginning April 19, 2011.

0
Par. 9. Section 300.11 is added to read as follows:


Sec.  300.11  Renewal of enrollment of enrolled retirement plan agent 
fee.

    (a) Applicability. This section applies to the renewal of 
enrollment of enrolled retirement plan agents with the IRS pursuant to 
31 CFR 10.5(b).
    (b) Fee. The fee for renewal of enrollment as an enrolled 
retirement plan agent with the IRS is $30.
    (c) Person liable for the fee. The person liable for the renewal of 
enrollment fee is the person renewing enrollment as an enrolled 
retirement plan agent with the IRS.
    (d) Effective/applicability date. This section is applicable 
beginning April 19, 2011.

Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
    Approved: April 13, 2011.
Michael Mundaca,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2011-9469 Filed 4-14-11; 4:15 pm]
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