IRS proposes PTIN fees.

• Author: Nevius, Alistair M.
• Position: Preparer tax identification

On July 21, the IRS proposed (REG-139343-08) to begin charging all authorized tax preparers a $50 user fee to obtain or renew annually a preparer tax identification number (PTIN). The fee would be on top of a "reasonable fee" charged by a third-party vendor that will administer the application and renewal process. The new fee will be effective on the date the proposed regulations are finalized.

While the preamble to the proposed regulations says that a third-party vendor will administer the PTTN application and renewal process and maintain a web-based database that individuals will use to apply for and renew PTINs, it does not specify the vendor fee amount, but the IRS expects it to be "substantially lower" than $50 (IR-2010-86).

The proposed regulations were the latest guidance in the IRS's push to establish a comprehensive regulatory regime applicable to all paid preparers by the beginning of next tax filing season. For taxpayers who are not CPAs, attorneys, or enrolled agents, the requirements would include testing and continuing education. For more on the IRS's plan, see News Notes, "IRS Announces Mandatory Registration, Testing, and CPE for Return Preparers," 41 The Tax Adviser 156 (March 2010).

In late March 2010, the IRS issued its first proposed regulations implementing the plan to revise rules and procedures governing PTINs by requiring all covered return preparers to obtain one and renew it...