[Federal Register Volume 87, Number 40 (Tuesday, March 1, 2022)]
[Rules and Regulations]
[Pages 11295-11297]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-04302]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 300

[TD 9962]
RIN 1545-BQ06


User Fees Relating to the Enrolled Agent Special Enrollment 
Examination and the Enrolled Retirement Plan Agent Special Enrollment 
Examination

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

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SUMMARY: These final regulations amend existing regulations relating to 
the user fees for the special enrollment examinations for enrolled 
agents and enrolled retirement plan agents. The final regulations 
increase the amount of the user fee for each part of the special 
enrollment examination for enrolled agents (EA SEE). The final 
regulations also remove the user fee for the special enrollment 
examination for enrolled retirement plan agents (ERPA SEE) because the 
IRS no longer offers the ERPA SEE or new enrollment as an enrolled 
retirement plan agent. The final regulations affect individuals taking 
the EA SEE. The Independent Offices Appropriation Act of 1952 
authorizes charging user fees.

DATES: Effective date: These regulations are effective March 31, 2022.
    Applicability date: For the date of applicability, see Sec.  
300.4(d).

[[Page 11296]]


FOR FURTHER INFORMATION CONTACT: Karen Wozniak at (202) 317-5129 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    This document contains amendments to 26 CFR part 300 regarding user 
fees. On September 29, 2021, a notice of proposed rulemaking (REG-
100718-21) and notice of public hearing was published in the Federal 
Register (86 FR 53893). The notice proposed amending the regulations 
relating to the user fees for the EA SEE and ERPA SEE. The notice 
proposed increasing the amount of the user fee for each part of the EA 
SEE from $81, plus an amount payable to a third-party contractor, to 
$99, plus an amount payable to a third-party contractor. The notice 
also proposed removing the user fee for the ERPA SEE. The notice 
contains a detailed explanation regarding the amendments to these 
regulations.
    Two comments responding to the notice were received. There were no 
requests to speak at the scheduled public hearing. Consequently, the 
public hearing was cancelled (86 FR 66496). After consideration of the 
written comments, the Department of the Treasury (Treasury Department) 
and the IRS have decided to adopt without modification the regulations 
proposed by the notice.

Summary of Comments

    The two comments submitted in response to the notice of proposed 
rulemaking are available at www.regulations.gov or upon request.
    The two commenters expressed concern that the proposed EA SEE user 
fee would be used to fund the program for enrollment and renewal of 
enrolled agents in addition to recovering the IRS's cost of overseeing 
the EA SEE. One commenter stated that the program for enrollment and 
renewal of enrollment of enrolled agents should be funded by enrollment 
and renewal fees--not the EA SEE user fee--and recommended increasing 
the enrollment and renewal fees instead of increasing the EA SEE user 
fee. The second commenter expressed agreement with this comment.
    Under Office of Management and Budget (OMB) Circular A-25, 58 FR 
38142 (July 15, 1993) (OMB Circular A-25), Federal agencies that 
provide services that confer benefits on identifiable recipients are to 
establish user fees that recover for the government the full cost of 
providing the service. An agency that seeks to impose a user fee for 
government-provided services must calculate the full cost of providing 
those services. Under OMB Circular A-25, a user fee should be set at an 
amount that recovers the full cost of providing a service, unless the 
OMB grants an exception. The full cost of providing a service includes 
both the direct and indirect costs of providing the service.
    As required by OMB Circular A-25, the IRS conducted a biennial 
review of the EA SEE user fee, during which it calculated the full cost 
of overseeing the EA SEE, taking into account all direct and indirect 
costs. In calculating the full cost of overseeing the EA SEE, the IRS 
followed generally accepted accounting principles established by the 
Federal Accounting Standards Advisory Board. The proposed EA SEE user 
fee only recovers the IRS's cost of overseeing the EA SEE. It does not 
recover costs associated with other programs. The preamble to the 
proposed regulations describes in detail the costs associated with 
overseeing the EA SEE and the IRS's calculation of the proposed EA SEE 
user fee.
    The IRS charges a separate user fee to recover the costs it incurs 
related to enrollment and renewal of enrollment of enrolled agents and 
renewal of enrollment of enrolled retirement plan agents. That fee is 
currently set at $67 per initial application and renewal. Like the EA 
SEE user fee, the user fees for enrollment and renewal of enrollment of 
enrolled agents and renewal of enrollment of enrolled retirement plan 
agents are also subject to biennial review under OMB Circular A-25. See 
REG-114209-21 in the Proposed Rules section of this edition of the 
Federal Register, separately proposing to increase the renewal user fee 
for enrolled retirement plan agents from $67 to $140 and both the 
enrollment and renewal user fee for enrolled agents from $67 to $140.
    Accordingly, after consideration of the comments, the proposed 
regulations are adopted without change.

Special Analyses

    These regulations are not significant and are not subject to review 
under section 6(b) of Executive Order 12866 pursuant to the Memorandum 
of Agreement (April 11, 2018) between the Treasury Department and the 
Office of Management and Budget regarding review of tax regulations. 
Pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6), it is 
hereby certified that these final regulations will not have a 
significant economic impact on a substantial number of small entities. 
The final regulations remove the ERPA SEE user fee as the IRS no longer 
offers the examination or new enrollment as an enrolled retirement plan 
agent. The EA SEE user fee primarily affects individuals who take the 
EA SEE. Only individuals, not businesses, can be enrolled agents. 
Accordingly, the economic impact of these regulations on any small 
entity would be a result of an individual enrolled agent owning a small 
entity or a small entity employing an enrolled agent and reimbursing 
the individual for the fee. The Treasury Department and the IRS 
estimate that an average of 22,381 EA SEE examination parts will be 
taken by individuals annually. Consequently, a substantial number of 
small entities is not likely to be affected. Further, the economic 
impact on any small entities affected would be limited to paying the 
$18 difference in cost between the $99 user fee and the previous $81 
user fee per part (for each enrolled agent that a small entity employs 
and pays for), which is unlikely to present a significant economic 
impact. The total economic impact of these regulations is approximately 
$402,858 annually, which is the product of the approximately 22,381 
examination parts and the $18 increase in the fee per part. The rule 
is, therefore, not expected to have a significant economic impact on a 
substantial number of small entities, and a regulatory flexibility 
analysis is not required.
    Pursuant to section 7805(f) of the Internal Revenue Code, the 
notice of proposed rulemaking was submitted to the Chief Counsel of the 
Office of Advocacy of the Small Business Administration for comment on 
its impact on small business. No comments on the notice were received 
from the Chief Counsel for the Office of Advocacy of the Small Business 
Administration.

Drafting Information

    The principal author of these regulations is Karen Wozniak, Office 
of the Associate Chief Counsel (Procedure and Administration). Other 
personnel from the Treasury Department and the IRS participated in the 
development of the regulations.

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:

[[Page 11297]]

PART 300--USER FEES

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

    Authority: 31 U.S.C. 9701.


Sec.  300.0  [Amended]

0
Par. 2. Section 300.0 is amended by removing paragraph (b)(9) and 
redesignating paragraphs (b)(10) through (13) as paragraphs (b)(9) 
through (12).
0
Par. 3. Section 300.4 is amended by revising paragraphs (b) and (d) to 
read as follows:


Sec.  300.4  Enrolled agent special enrollment examination fee.

* * * * *
    (b) Fee. The fee for taking the enrolled agent special enrollment 
examination is $99 per part, which is the cost to the government for 
overseeing the development and administration of the examination and is 
in addition to the fees charged by the administrator of the 
examination.
* * * * *
    (d) Applicability date. This section applies to registrations for 
the enrolled agent special enrollment examination that occur on or 
after March 31, 2022.


Sec.  300.9  [Removed]

0
Par. 4. Section 300.9 is removed.


Sec.  Sec.  300.10 through 300.13   [Redesignated as Sec. Sec.  300.09 
through 300.12]

0
Par. 5. Redesignate Sec. Sec.  300.10 through 300.13 as Sec. Sec.  
300.09 through 300.12.

Douglas W. O'Donnell,
Deputy Commissioner for Services and Enforcement.
    Approved: February 24, 2022.
Thomas C. West, Jr.,
Deputy Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2022-04302 Filed 2-25-22; 11:15 am]
BILLING CODE 4830-01-P