[Federal Register Volume 89, Number 95 (Wednesday, May 15, 2024)]
[Rules and Regulations]
[Pages 42362-42363]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-10631]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 300

[TD 9997]
RIN 1545-BQ77, 1545-BQ78


Preparer Tax Identification Number (PTIN) User Fee Update

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final rule.

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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 adopt without change the text of interim final and proposed 
regulations that reduced the user fee to apply for or renew a preparer 
tax identification number (PTIN) from $21 to $11. The final regulations 
affect individuals who apply for or renew a PTIN. The Independent 
Offices Appropriation Act of 1952 authorizes the charging of user fees.

DATES: 
    Effective date: These regulations are effective on June 14, 2024.
    Applicability date: For date of applicability, see Sec.  300.11(d).

FOR FURTHER INFORMATION CONTACT: Concerning the final regulations, 
Jamie Song at (202) 317-6845; concerning cost methodology, Michael A. 
Weber at (202) 803-9738 (not toll-free numbers).

SUPPLEMENTARY INFORMATION: 

Background

    This document contains amendments to 26 CFR part 300--User Fees. On 
October 4, 2023, the Department of the Treasury (Treasury Department) 
and the IRS published in the Federal Register (88 FR 68525) a notice of 
proposed rulemaking (proposed regulations) by cross-reference to an 
interim final rule (REG-106203-23) proposing amendments to regulations 
under 26 CFR part 300. On the same date, the Treasury Department and 
the IRS published in the Federal Register (88 FR 68456) an interim 
final rule (TD 9980) that reduced the PTIN user fee from $21 per 
application or application for renewal to $11, plus the fee payable 
directly to a third-party contractor. The interim final rule and the 
proposed regulations took into account the February 2023 memorandum 
opinion of the United States District Court for the District of 
Columbia in Steele v. United States, 657 F.Supp.3d 23 (D.D.C. 2023). 
The preamble to the interim final rule contains a detailed explanation 
of the legal background and user fee calculations regarding the 
amendments to these regulations. No public hearing was requested or 
held, and no comments were received on the proposed regulations. These 
final regulations therefore adopt the text of the interim final rule 
and proposed regulations without change.

Special Analyses

I. Regulatory Planning and Review

    The OMB's Office of Information and Regulatory Analysis has 
determined that

[[Page 42363]]

these final regulations are not significant and are not subject to 
review under section 6(b) of Executive Order 12866, as amended.

II. Regulatory Flexibility Act

    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. 
Accordingly, a regulatory flexibility analysis is not required. These 
regulations affect all 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 these regulations will likely affect a substantial number of 
small entities, the economic impact on those entities is not 
significant. These regulations establish an $11 fee per application or 
application for renewal (plus the fee payable directly to the third-
party contractor), which is a reduction from the previously established 
fee, and will therefore not have a significant economic impact on small 
entities. Accordingly, 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. These final regulations do 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 final 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 Code, the notice of proposed 
rulemaking and the interim final rule that preceded these final 
regulations was submitted to the Chief Counsel for the Office of 
Advocacy of the Small Business Administration for comment on its impact 
on small business. No comments were received on the proposed 
regulations or the interim final rule.

VI. Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this rule 
as not a major rule, as defined by 5 U.S.C. 804(2).

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.

PART 300--USER FEES

0
Accordingly, the interim rule amending 26 CFR part 300, which was 
published at 88 FR 68456 on October 4, 2023, is adopted as final 
without change.

Douglas W. O'Donnell,
Deputy Commissioner.
    Approved: April 28, 2024.
Aviva R. Aron-Dine,
Acting Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2024-10631 Filed 5-14-24; 8:45 am]
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