As part of the IRS announcement today on the new PTIN regulations, we now what it will cost tax professionals to either re-register their PTINs or to obtain a new PTIN: $64.25.
Compensated tax return preparers would pay a $64.25 user fee the first year for a PTIN based on two underlying costs. The IRS proposes to collect $50 per user to pay for outreach, technology, and compliance efforts associated with the new program. And the third-party vendor will receive $14.25 per user to operate the online system and provide customer support.
As I noted in the previous post, there is opposition to the new regulation, so it may be a month or two before we have to start paying the $64.25.
Additionally, the IRS announced changes to Circular 230, the means that the IRS regulates tax professionals.
The proposed regulations (REG-138637-07) would clarify the definition of practice, establish a new registered tax return preparer designation and the eligibility requirements for becoming a registered tax return preparer, repropose standards with respect to the preparation of tax returns, revise rules regarding continuing education providers, and amend multiple other sections of Circular 230.
Tax professionals and other interested parties have until Oct. 7, 2010, to submit comments regarding the proposed regulations.
I haven’t found the new proposed regulations online (yet); I’ll likely post about them once I read the proposal.
Tags: PreparerRegistration, PTINs