October 3 2023

IRS Reduces Fee for Obtaining, Renewing Preparer Tax Identification Numbers

Source: IBFD Tax Research Platform News

Tax preparers applying for or renewing their preparer tax identification number (PTIN) will pay a reduced fee of USD 11, plus a USD 8.75 third party contractor fee, starting 19 October 2023. The IRS announced the reduced rate in interim final regulations relating to the imposition and calculation of user fees on tax return preparers. Previously, the PTIN fee was USD 30.75.

Tax return preparers who prepare or assist in preparing all or substantially all of a tax return or claim for refund after 31 December 2010 must have a PTIN.

The IRS re-calculates the PTIN fee every few years using various cost models. The interim final regulations provide an explanation and breakdown of the IRS's newest cost model for re-determining costs that the government continues to incur for providing PTINs and administering the PTIN program. The reduced USD 11 fee is based on expected program costs for fiscal years 2024 through 2026 and the projected number of PTIN applications over the same period.