81 FR 52766 - Preparer Tax Identification Number (PTIN) User Fee Update

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 81, Issue 154 (August 10, 2016)

Page Range		52766-52767
FR Document		2016-18925

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.

Federal Register, Volume 81 Issue 154 (Wednesday, August 10, 2016)

[Federal Register Volume 81, Number 154 (Wednesday, August 10, 2016)]
[Rules and Regulations]
[Pages 52766-52767]
From the Federal Register Online  [www.thefederalregister.org]
[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.

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

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

52766 Federal Register / Vol. 81, No. 154 / Wednesday, August 10, 2016 / Rules and Regulations

§ 383.1 Purpose and periodic adjustment. DEPARTMENT OF THE TREASURY the special benefit. An agency that seeks
(a) Purpose. This part adjusts the civil to impose a user fee for government-
Internal Revenue Service provided services must calculate the full
penalty liability amounts prescribed in
cost of providing those services, review
49 U.S.C. 46301(a) for inflation in 26 CFR Part 300 user fees biennially, and update them as
accordance with the Act cited in necessary.
paragraph (b) of this section. [TD 9781]
Section 6109(a)(4) of the Internal
(b) Periodic Adjustment. DOT will RIN 1545–BN02 Revenue Code (Code) authorizes the
periodically adjust the maximum civil Secretary to prescribe regulations for the
penalties set forth in 49 U.S.C. 46301 Preparer Tax Identification Number inclusion of a tax return preparer’s
and this part as required by the Federal (PTIN) User Fee Update identifying number on a return,
Civil Penalties Inflation Adjustment Act AGENCY: Internal Revenue Service (IRS), statement, or other document required
of 1990 as amended by the Federal Civil Treasury. to be filed with the IRS. On September
Penalties Inflation Adjustment Act 30, 2010, the Treasury Department and
ACTION: Final regulations and removal of
Improvements Act of 2015. the IRS published final regulations
temporary regulations.
under section 6109 (REG–134235–08) in
■ 3. Section 383.2 is revised to read as SUMMARY: This document contains final the Federal Register (TD 9501) (75 FR
follows: regulations relating to the imposition of 60315) (PTIN regulations) to provide
certain user fees on tax return preparers. that, for returns or claims for refund
§ 383.2 Amount of penalty. filed after December 31, 2010, the
The final regulations supersede and
Civil penalties payable to the U.S. adopt the text of temporary regulations identifying number of a tax return
Government for violations of Title 49, that reduced the user fee to apply for or preparer is the individual’s PTIN or
Chapters 401 through 421, pursuant to renew a preparer tax identification such other number prescribed by the
49 U.S.C. 46301(a), are as follows: number (PTIN) from $50 to $33. The IRS in forms, instructions, or other
final regulations affect individuals who appropriate guidance. The PTIN
(a) A general civil penalty of not more regulations require a tax return preparer
apply for or renew a PTIN. The
than $32,140 (or $1,414 for individuals who prepares or who assists in
Independent Offices Appropriations Act
or small businesses) applies to preparing all or substantially all of a tax
of 1952 authorizes the charging of user
violations of statutory provisions and fees. return or claim for refund after
rules or orders issued under those December 31, 2010 to have a PTIN.
DATES: Effective Date: These regulations
provisions, other than those listed in Final regulations (REG–139343–08)
are effective on September 9, 2016.
paragraph (b) of this section, (see 49 published in the Federal Register (TD
Applicability Date: For date of
U.S.C. 46301(a)(1)); 9503) (75 FR 60316) on September 30,
applicability, see § 300.13(d).
(b) With respect to small businesses 2010, established a $50 user fee to apply
FOR FURTHER INFORMATION CONTACT: for or renew a PTIN. The ability to
and individuals, notwithstanding the Concerning the final regulations, Hollie prepare tax returns and claims for
general $1,414 civil penalty, the M. Marx at (202) 317–6844; concerning refund for compensation is a special
following civil penalty limits apply: cost methodology, Eva J. Williams at benefit, for which the IRS may charge a
(1) A maximum civil penalty of (202) 803–9728 (not toll-free numbers). user fee to recover the full costs of
$12,856 applies for violations of most SUPPLEMENTARY INFORMATION: providing the special benefit.
provisions of Chapter 401, including the Background and Summary of Pursuant to the guidelines in OMB
anti-discrimination provisions of Circular A–25, the IRS recalculated its
Comments
sections 40127 (general provision), and cost of providing services under the
41705 (discrimination against the This document contains final PTIN application and renewal process
disabled) and rules and orders issued regulations relating to the imposition of and determined that the full cost of
a user fee to apply for or renew a PTIN. administering the PTIN program going
pursuant to those provisions (see 49
The Independent Offices forward is reduced from $50 to $33 per
U.S.C. 46301(a)(5)(A));
Appropriations Act of 1952 (IOAA), application or renewal. On October 30,
(2) A maximum civil penalty of which is codified at 31 U.S.C. 9701, 2015, the Treasury Department and the
$6,428 applies for violations of section authorizes agencies to prescribe IRS published in the Federal Register
41719 and rules and orders issued regulations that establish user fees for (80 FR 66851–01) a notice of proposed
pursuant to that provision (see 49 U.S.C. services provided by the agency. The rulemaking by cross-reference to
46301(a)(5)(C)); and charges must be fair and must be based temporary regulations (REG–121496–15)
(3) A maximum civil penalty of on the costs to the government, the proposing amendments to regulations
$3,214 applies for violations of section value of the service to the recipient, the under 26 CFR part 300. On the same
41712 or consumer protection rules or public policy or interest served, and date, the Treasury Department and the
orders (see 49 U.S.C. 46301(a)(5)(D)). other relevant facts. The IOAA provides IRS published in the Federal Register
that regulations implementing user fees (80 FR 66792–01) temporary regulations
Issued in Washington, DC, under authority are subject to policies prescribed by the (TD 9742) that reduced the amount of
delegated at 49 CFR 1.27(n), on: August 5, President; these policies are set forth in the user fee to obtain or renew a PTIN
2016. the Office of Management and Budget from $50 to $33 per original or renewal
Molly J. Moran, Circular A–25, 58 FR 38142 (July 15, application. Five electronic public
Acting General Counsel. 1993) (OMB Circular A–25). comments were submitted under the
Lhorne on DSK30JT082PROD with RULES

[FR Doc. 2016–19003 Filed 8–9–16; 8:45 am] Under OMB Circular A–25, federal regulation number for the proposed
BILLING CODE 4910–9X–P
agencies that provide services that regulations, but their contents related to
confer special benefits on identifiable issues other than a user fee for applying
recipients beyond those accruing to the for or renewing a PTIN and are not
general public are to establish user fees relevant to these regulations. The
that recover the full cost of providing comments are available for public

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Federal Register / Vol. 81, No. 154 / Wednesday, August 10, 2016 / Rules and Regulations 52767

inspection at http:// impact on small business. No comments DEPARTMENT OF DEFENSE
www.regulations.gov or upon request. were received on the proposed
The IRS received no requests for a regulations. Department of the Army
public hearing, and none was held. The
final regulations adopt the proposed Drafting Information 32 CFR Part 505
regulations without change. The The principal author of these final [USA–2016–HQ–0030]
temporary regulations are hereby made
regulations is Hollie M. Marx, Office of
obsolete and removed. Army Privacy Program
the Associate Chief Counsel (Procedure
Effect on Other Documents and Administration). However, other AGENCY: Department of the Army, DoD.
Temporary regulations § 300.13T are personnel from the Treasury ACTION: Direct final rule.
obsolete as of September 9, 2016. Department and the IRS participated in
their development. SUMMARY: The Department of the Army
Special Analyses is amending the Army Privacy Program
Certain IRS regulations, including this List of Subjects in 26 CFR Part 300 Regulation. Specifically, Army is adding
one, are exempt from the requirements Reporting and recordkeeping exemption rules for Army system of
of Executive Order 12866, as records ‘‘A0600–20 SAMR, Soldiers
requirements, User fees.
supplemented and reaffirmed by Equal Opportunity Investigative Files’’.
Executive Order 13563. Therefore, a Adoption of Amendments to the This rule provides policies and
regulatory impact assessment is not Regulations procedures for the Army’s
required. implementation of the Privacy Act of
The Administrative Procedure Act Accordingly, 26 CFR part 300 is 1974, as amended. This direct final rule
provides that substantive rules generally amended as follows: makes changes to the Department of the
will not be effective until thirty days Army’s Privacy Program rule. These
after the final regulations are published PART 300—USER FEES changes will allow the Department to
in the Federal Register (5 U.S.C. exempt records from certain portions of
553(d)). The Treasury Department and ■ Paragraph 1. The authority citation the Privacy Act. This will improve the
the IRS have determined that section 5 for part 300 continues to read as efficiency and effectiveness of the
U.S.C. 553(d) of the Administrative follows: Department of Defense’s (DoD’s)
Procedure Act applies to these final Authority: 31 U.S.C. 9701. program by preserving the exempt status
regulations. of the records when the purposes
The notice of proposed rulemaking ■ Par. 2. Section 300.13 is amended by underlying the exemption are valid and
(REG–121496–15) included an initial adding paragraph (b) and revising necessary to protect the contents of the
regulatory flexibility analysis. The paragraph (d) to read as follows: records.
Treasury Department and the IRS
§ 300.13 Fee for obtaining a preparer tax DATES: The rule will be effective
concluded in the initial regulatory
identification number. October 19, 2016 unless comments are
flexibility analysis that the proposed
received that would result in a contrary
regulations, if promulgated, may have a * * * * * determination. Comments will be
significant economic impact on a (b) Fee. The fee to apply for or renew accepted on or before October 11, 2016.
substantial number of small entities. a preparer tax identification number is
None of the public comments submitted ADDRESSES: You may submit comments,
$33 per year, which is the cost to the identified by docket number and/or RIN
under the regulation number for the
government for processing the number and title, by any of the
proposed regulation addressed the
application for a preparer tax following methods:
initial regulatory flexibility analysis.
After further consideration, the Treasury
identification number and does not • Federal Rulemaking Portal: http://
Department and the IRS conclude that include any fees charged by the vendor. www.regulations.gov. Follow the
no final regulatory flexibility analysis is * * * * * instructions for submitting comments.
required. The Treasury Department and • Mail: Department of Defense, Office
(d) Applicability date. This section of the Deputy Chief Management
the IRS certify that the final regulations will be applicable for applications for
will not have a significant economic Officer, Directorate for Oversight and
and renewal of a preparer tax Compliance, 4800 Mark Center Drive,
impact on a substantial number of small identification number filed on or after
entities. Although the final regulations Mailbox #24, Alexandria, VA 22350–
September 9, 2016. 1700.
will likely affect a substantial number of
small entities, the economic impact on Instructions: All submissions received
§ 300.13T [Removed]
those entities is not significant. The must include the agency name and
final regulations establish a $33 fee to ■ Par. 3. Section 300.13T is removed. docket number or Regulatory
apply for or renew a PTIN per original Information Number (RIN) for this
John Dalrymple, Federal Register document. The general
or renewal application, which is a
reduction from the previously
Deputy Commissioner for Services and policy for comments and other
Enforcement. submissions from members of the public
established fee of $50 per original or
renewal application, and the $33 fee Approved: July 14, 2016. is to make these submissions available
will not have a significant economic for public viewing on the Internet at
Mark J. Mazur,
impact on a small entity. http://www.regulations.gov as they are
Assistant Secretary of the Treasury (Tax
Lhorne on DSK30JT082PROD with RULES

Pursuant to section 7805(f) of the received without change, including any
Policy).
Code, the notice of proposed rulemaking personal identifiers or contact
[FR Doc. 2016–18925 Filed 8–9–16; 8:45 am] information.
that preceded these final regulations
BILLING CODE 4830–01–P
was submitted to the Chief Counsel for FOR FURTHER INFORMATION CONTACT: Ms.
Advocacy of the Small Business Tracy C. Rogers, Chief, FOIA/PA,
Administration for comment on its telephone: 703–428–7499.

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Document Created: 2016-08-10 01:59:31
Document Modified: 2016-08-10 01:59:31

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final regulations and removal of temporary regulations.
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).
FR Citation		81 FR 52766
RIN Number		1545-BN02
CFR Associated		Reporting and Recordkeeping Requirements and User Fees

81 FR 52766 - Preparer Tax Identification Number (PTIN) User Fee Update

DEPARTMENT OF THE TREASURYInternal Revenue Service

Federal Register Volume 81, Issue 154 (August 10, 2016)

DEPARTMENT OF THE TREASURY
Internal Revenue Service