[Federal Register Volume 81, Number 154 (Wednesday, August 10, 2016)]
[Rules and Regulations]
[Pages 52766-52767]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-18925]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 300

[TD 9781]
RIN 1545-BN02


Preparer Tax Identification Number (PTIN) User Fee Update

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations and removal of temporary regulations.

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SUMMARY: This document contains final regulations relating to the 
imposition of certain user fees on tax return preparers. The final 
regulations supersede and adopt the text of temporary regulations that 
reduced the user fee to apply for or renew a preparer tax 
identification number (PTIN) from $50 to $33. The final regulations 
affect individuals who apply for or renew a PTIN. The Independent 
Offices Appropriations Act of 1952 authorizes the charging of user 
fees.

DATES: Effective Date: These regulations are effective on September 9, 
2016. Applicability Date: For date of applicability, see Sec.  
300.13(d).

FOR FURTHER INFORMATION CONTACT: Concerning the final regulations, 
Hollie M. Marx at (202) 317-6844; concerning cost methodology, Eva J. 
Williams at (202) 803-9728 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background and Summary of Comments

    This document contains final regulations relating to the imposition 
of a user fee to apply for or renew a PTIN. The Independent Offices 
Appropriations Act of 1952 (IOAA), which is codified at 31 U.S.C. 9701, 
authorizes agencies to prescribe regulations that establish user fees 
for services provided by the agency. The charges must be fair and must 
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 provides that regulations implementing user fees are 
subject to policies prescribed by the President; these policies are set 
forth in the Office of Management and Budget Circular A-25, 58 FR 38142 
(July 15, 1993) (OMB Circular A-25).
    Under OMB Circular A-25, federal agencies that provide services 
that confer special benefits on identifiable recipients beyond those 
accruing to the general public are to establish user fees that recover 
the full cost of providing the special benefit. An agency that seeks to 
impose a user fee for government-provided services must calculate the 
full cost of providing those services, review user fees biennially, and 
update them as necessary.
    Section 6109(a)(4) of the Internal Revenue Code (Code) authorizes 
the Secretary to prescribe regulations for the inclusion of a tax 
return preparer's identifying number on a return, statement, or other 
document required to be filed with the IRS. On September 30, 2010, the 
Treasury Department and the IRS published final regulations under 
section 6109 (REG-134235-08) in the Federal Register (TD 9501) (75 FR 
60315) (PTIN regulations) to provide that, for returns or claims for 
refund filed after December 31, 2010, the identifying number of a tax 
return preparer is the individual's PTIN or such other number 
prescribed by the IRS in forms, instructions, or other appropriate 
guidance. The PTIN regulations require a tax return preparer who 
prepares or who assists in preparing all or substantially all of a tax 
return or claim for refund after December 31, 2010 to have a PTIN. 
Final regulations (REG-139343-08) published in the Federal Register (TD 
9503) (75 FR 60316) on September 30, 2010, established a $50 user fee 
to apply for or renew a PTIN. The ability to prepare tax returns and 
claims for refund for compensation is a special benefit, for which the 
IRS may charge a user fee to recover the full costs of providing the 
special benefit.
    Pursuant to the guidelines in OMB Circular A-25, the IRS 
recalculated its cost of providing services under the PTIN application 
and renewal process and determined that the full cost of administering 
the PTIN program going forward is reduced from $50 to $33 per 
application or renewal. On October 30, 2015, the Treasury Department 
and the IRS published in the Federal Register (80 FR 66851-01) a notice 
of proposed rulemaking by cross-reference to temporary regulations 
(REG-121496-15) proposing amendments to regulations under 26 CFR part 
300. On the same date, the Treasury Department and the IRS published in 
the Federal Register (80 FR 66792-01) temporary regulations (TD 9742) 
that reduced the amount of the user fee to obtain or renew a PTIN from 
$50 to $33 per original or renewal application. Five electronic public 
comments were submitted under the regulation number for the proposed 
regulations, but their contents related to issues other than a user fee 
for applying for or renewing a PTIN and are not relevant to these 
regulations. The comments are available for public

[[Page 52767]]

inspection at http://www.regulations.gov or upon request. The IRS 
received no requests for a public hearing, and none was held. The final 
regulations adopt the proposed regulations without change. The 
temporary regulations are hereby made obsolete and removed.

Effect on Other Documents

    Temporary regulations Sec.  300.13T are obsolete as of September 9, 
2016.

Special Analyses

    Certain IRS regulations, including this one, are exempt from the 
requirements of Executive Order 12866, as supplemented and reaffirmed 
by Executive Order 13563. Therefore, a regulatory impact assessment is 
not required.
    The Administrative Procedure Act provides that substantive rules 
generally will not be effective until thirty days after the final 
regulations are published in the Federal Register (5 U.S.C. 553(d)). 
The Treasury Department and the IRS have determined that section 5 
U.S.C. 553(d) of the Administrative Procedure Act applies to these 
final regulations.
    The notice of proposed rulemaking (REG-121496-15) included an 
initial regulatory flexibility analysis. The Treasury Department and 
the IRS concluded in the initial regulatory flexibility analysis that 
the proposed regulations, if promulgated, may have a significant 
economic impact on a substantial number of small entities. None of the 
public comments submitted under the regulation number for the proposed 
regulation addressed the initial regulatory flexibility analysis. After 
further consideration, the Treasury Department and the IRS conclude 
that no final regulatory flexibility analysis is required. The Treasury 
Department and the IRS certify that the final regulations will not have 
a significant economic impact on a substantial number of small 
entities. Although the final regulations will likely affect a 
substantial number of small entities, the economic impact on those 
entities is not significant. The final regulations establish a $33 fee 
to apply for or renew a PTIN per original or renewal application, which 
is a reduction from the previously established fee of $50 per original 
or renewal application, and the $33 fee will not have a significant 
economic impact on a small entity.
    Pursuant to section 7805(f) of the Code, the notice of proposed 
rulemaking that preceded these final regulations was submitted to the 
Chief Counsel for Advocacy of the Small Business Administration for 
comment on its impact on small business. No comments were received on 
the proposed regulations.

Drafting Information

    The principal author of these final regulations is Hollie M. Marx, 
Office of the Associate Chief Counsel (Procedure and Administration). 
However, other personnel from the Treasury Department and the IRS 
participated in their development.

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 as 
follows:

    Authority: 31 U.S.C. 9701.

0
Par. 2. Section 300.13 is amended by adding paragraph (b) and revising 
paragraph (d) to read as follows:


Sec.  300.13  Fee for obtaining a preparer tax identification number.

* * * * *
    (b) Fee. The fee to apply for or renew a preparer tax 
identification number is $33 per year, which is the cost to the 
government for processing the application for a preparer tax 
identification number and does not include any fees charged by the 
vendor.
* * * * *
    (d) Applicability date. This section will be applicable for 
applications for and renewal of a preparer tax identification number 
filed on or after September 9, 2016.


Sec.  300.13T  [Removed]

0
Par. 3. Section 300.13T is removed.

John Dalrymple,
Deputy Commissioner for Services and Enforcement.

    Approved: July 14, 2016.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2016-18925 Filed 8-9-16; 8:45 am]
 BILLING CODE 4830-01-P