The IRS has issued proposed regulations under §6109. The proposed regulations establish a $50 user fee for individuals who apply for or renew a preparer tax identification number (PTIN). The IRS is stressing that this $50 user fee is ONLY the IRS portion of the fee. Accenture, the vendor chosen to administer the PTIN application and renewal process, will charge a reasonable fee that is independent of the user fee charged by the government. That portion of the fee has not been determined at this time. The IRS also wishes to point out that this does not mean there will be two fees, rather the total fee will something more than the $50 as set forth in the regulations with $50 allocated to the IRS and the remainder allocated to Accenture.

The user fee will be payable annually instead of every three years as previously reported. The IRS plans to issue additional regulations in the future that will provide guidance on a reduced user fee for enrolled agents.

Interested parties have until August 23, 2010, to submit comments on these regulations. You can submit comments via mail to:

CC:PA:LPD:PR (REG-139343-08), room 5205
Internal Revenue Service
PO Box 7604, Ben Franklin Station
Washington, D.C. 20044

Electronic submissions can be sent via the Federal eRulemaking Portal (IRS REG-139343-08).

The full text of the regulations is available on NATP’s website.