[Federal Register Volume 88, Number 191 (Wednesday, October 4, 2023)]
[Proposed Rules]
[Pages 68525-68527]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-22104]


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

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 300

[REG-106203-23]
RIN 1545-BQ77


Preparer Tax Identification Number (PTIN) User Fee Update

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to interim 
final rule.

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

SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the Department of the Treasury (Treasury Department) 
and the IRS are issuing interim final regulations that amend the 
current regulations to reduce the amount of the user fee imposed on tax 
return preparers to apply for or renew a preparer tax identification 
number (PTIN). The text of the interim final regulations also serves as 
the text of these proposed regulations.

DATES: Electronic or written comments and requests for a public hearing 
must be received by December 4, 2023.

ADDRESSES: Commenters are strongly encouraged to submit public comments 
electronically. Submit electronic submissions via the Federal 
eRulemaking Portal at https://www.regulations.gov (indicate IRS and 
REG-106203-23) by following the online instructions for submitting 
comments. Requests for a public hearing must be submitted as prescribed 
in the ``Comments and Requests for a Public Hearing'' section. Once 
submitted to the Federal eRulemaking Portal, comments cannot be edited 
or withdrawn. The Treasury Department and the IRS will

[[Page 68526]]

publish for public availability any comments submitted to the IRS's 
public docket. Send paper submissions to: CC:PA:LPD:PR (REG-106203-23), 
Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin 
Station, Washington, DC 20044.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Jamie Song at (202) 317-6845; concerning cost methodology, Michael A. 
Weber at (202) 803-9738; concerning submissions of comments or requests 
for a public hearing, Vivian Hayes at (202) 317-6901 (not toll-free 
numbers) or by email at [email protected] (preferred).

SUPPLEMENTARY INFORMATION: 

Background and Explanation of Provisions

    Interim final regulations in the Rules and Regulations section of 
this issue of the Federal Register amend regulations under 26 CFR part 
300 setting a user fee for individuals who apply for or renew a PTIN. 
The Independent Offices Appropriation 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 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). The text of the interim final regulations also serves 
as the text of these proposed regulations. The preamble to the interim 
final regulations explains the interim final regulations and these 
proposed regulations.

Special Analyses

I. Regulatory Planning and Review

    The OMB's Office of Information and Regulatory Analysis has 
determined that this regulation is not significant and subject to 
review under section 6(b) of Executive Order 12866.

II. Regulatory Flexibility Act

    Pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6), it 
is hereby certified that these proposed regulations will not have a 
significant economic impact on a substantial number of small entities. 
The proposed regulations affect individuals who prepare or assist in 
preparing all or substantially all of a tax return or claim for refund 
for compensation. Only individuals, not businesses, can have a PTIN. 
Thus, the economic impact of these regulations on any small entity 
generally will be a result of an individual tax return preparer who is 
required to have a PTIN owning a small business or a small business 
otherwise employing an individual tax return preparer who is required 
to have a PTIN. The Treasury Department and the IRS estimate that 
approximately 847,555 individuals will apply annually for an initial or 
renewal PTIN. Although the interim final regulations will likely affect 
a substantial number of small entities, the economic impact on those 
entities is not significant. The interim final regulations will 
establish an $11 fee per application or renewal (plus $8.75 payable 
directly to the contractor), which is a reduction from the previously 
established fee and will not have a significant economic impact on a 
small entity. Accordingly, the Secretary certifies that the rule will 
not have a significant economic impact on a substantial number of small 
entities, and a regulatory flexibility analysis is not required.

III. Unfunded Mandates Reform Act

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) 
requires that agencies assess anticipated costs and benefits and take 
certain other actions before issuing a final rule that includes any 
Federal mandate that may result in expenditures in any one year by a 
State, local, or Tribal government, in the aggregate, or by the private 
sector, of $100 million in 1995 dollars, updated annually for 
inflation. This rule does not include any Federal mandate that may 
result in expenditures by State, local, or Tribal governments, or by 
the private sector in excess of that threshold.

IV. Executive Order 13132: Federalism

    Executive Order 13132 (Federalism) prohibits an agency from 
publishing any rule that has federalism implications if the rule either 
imposes substantial, direct compliance costs on State and local 
governments, and is not required by statute, or preempts State law, 
unless the agency meets the consultation and funding requirements of 
section 6 of the Executive order. These proposed regulations do not 
have federalism implications and do not impose substantial direct 
compliance costs on State and local governments or preempt State law 
within the meaning of the Executive order.

V. Submission to Small Business Administration

    Pursuant to section 7805(f) of the Internal Revenue Code, this 
notice of proposed rulemaking has been submitted to the Chief Counsel 
of the Office of Advocacy of the Small Business Administration for 
comment on its impact on small business.

Comments and Requests for a Public Hearing

    Consideration will be given to comments that are submitted timely 
to the IRS as prescribed in this preamble under the ADDRESSES heading. 
The Treasury Department and the IRS request comments on all aspects of 
the proposed regulations. Any comments submitted will be made available 
at https://www.regulations.gov or upon request.
    A public hearing will be scheduled if requested in writing by any 
person who timely submits electronic or written comments. Requests for 
a public hearing are also encouraged to be made electronically. If a 
public hearing is scheduled, notice of the date and time for the public 
hearing will be published in the Federal Register.

Statement of Availability of IRS Documents

    IRS notices and other guidance cited in this preamble are published 
in the Internal Revenue Bulletin (or Cumulative Bulletin) and are 
available from the Superintendent of Documents, U.S. Government 
Publishing Office, Washington, DC 20402, or by visiting the IRS website 
at https://www.irs.gov.

Drafting Information

    The principal author of these regulations is Jamie Song, 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

    Estate taxes, Excise taxes, Fees, Gift taxes, Income taxes, 
Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 300 is proposed to be 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 300.11 is amended by revising paragraphs (b) and (d) to 
read as follows:


Sec.  300.11  Fee for obtaining a preparer tax identification number.

* * * * *

[[Page 68527]]

    (b) [The text of proposed Sec.  300.11(b) is the same as the text 
of Sec.  300.11(b) published elsewhere in this issue of the Federal 
Register].
* * * * *
    (d) [The text of proposed Sec.  300.11(d) is the same as the text 
of Sec.  300.11(d) published elsewhere in this issue of the Federal 
Register].

Douglas W. O'Donnell,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2023-22104 Filed 9-29-23; 4:15 pm]
BILLING CODE 4830-01-P