[Federal Register Volume 72, Number 245 (Friday, December 21, 2007)]
[Rules and Regulations]
[Pages 72606-72607]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-6156]


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

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 300

[TD 9370]
RIN 1545-BG88


User Fees Relating to Enrollment To Perform Actuarial Services

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

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

SUMMARY: This document contains final regulations relating to user fees 
for the initial and renewed enrollment to become an enrolled actuary. 
The charging of user fees is authorized by the Independent Offices 
Appropriations Act (IOAA) of 1952.

DATES: Effective Date: These regulations are effective on December 21, 
2007.
    Applicability Date: For date of applicability, see Sec.  300.0(c).

FOR FURTHER INFORMATION CONTACT: Concerning cost methodology, Eva J. 
Williams at (202) 435-5514; concerning the final regulations, Kimberly 
Mattonen at (202) 622-4940 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    The Employee Retirement Income Security Act of 1974 (Pub. L. 93-
406) ordered the Secretary of Labor and the Secretary of Treasury to 
establish a Joint Board for the Enrollment of Actuaries. 29 U.S.C. 
1241. The Joint Board shall, by regulation, establish reasonable 
standards and qualifications for persons performing actuarial services 
and the Joint Board shall enroll such individuals who, upon 
application, satisfy such standards and qualifications. 29 U.S.C. 
1242(a). The regulations at 20 CFR Part 901, Subpart B address 
eligibility for enrollment and renewal of enrollment. Pursuant to the 
Joint Board's bylaws, the Secretary of the Treasury is to appoint an 
Executive Director to the Board who has the delegated authority to 
administer the Board's enrollment program. The Secretary of the 
Treasury has delegated these functions to the Internal Revenue Service 
and the costs of these activities are borne by the Service.
    20 CFR 901.11(d)(4) provides for a reasonable non-refundable fee 
for applications for renewal of enrollment. Form 5434-A, ``Application 
for Renewal of Enrollment'' presently states that the renewal fee is 
$25. Final 26 CFR 300.7 and 300.8 establish separate $250 user fees for 
the enrollment and renewal of enrollment process. These fees represent 
the IRS's costs in administering the program, and the $250 fee for 
renewal of enrollment will supplant the $25 fee.

Authority

    The IOAA of 1952 (31 U.S.C. 9701) authorizes agencies to prescribe 
regulations that establish charges for services provided by the agency. 
The charges must be fair and 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 of 1952 provides 
that regulations implementing user fees are subject to policies 
prescribed by the President, which are currently set forth in OMB 
Circular A-25, 58 FR 38142 (July 15, 1993) (the OMB Circular).
    The OMB Circular encourages user fees for government-provided 
services that confer benefits on identifiable recipients over and above 
those benefits received by the general public. Under the OMB Circular, 
an agency that seeks to impose a user fee for government-provided 
services must calculate its full cost of providing those services. In 
general, a user fee should be set at an amount in order for the agency 
to recover the cost of providing the special service, unless the Office 
of

[[Page 72607]]

Management and Budget grants an exception. Pursuant to the guidelines 
in the OMB Circular, the IRS has calculated its cost of providing 
services under the enrolled actuaries program. The IRS has determined 
that the full cost of administering the enrollment and re-enrollment 
processes is $250 per enrolled actuary per process.
    The final user fees will be implemented under the authority of the 
IOAA of 1952 and the OMB Circular.
    On October 31, 2007, a notice of proposed rulemaking (REG-134923-
07) was published in the Federal Register [72 FR 61583]. No comments 
were received from the public in response to the notice of proposed 
rulemaking. No public hearing was requested or held. The proposed 
regulations are adopted by this Treasury decision.

Special Analyses

    It has been determined that this final rule is not a significant 
regulatory action as defined in Executive Order 12866. Therefore, a 
regulatory assessment is not required. It is hereby certified that 
these regulations will not have a significant economic impact on a 
substantial number of small entities. Accordingly, a regulatory 
flexibility analysis is not required. This certification is based on 
the information that follows. These final rules affect enrolled 
actuaries, of which there are currently 4,600 active. The economic 
impact of these regulations on any small entity would result from a 
small entity, including a sole proprietor, being required to pay a fee 
prescribed by these regulations in order to obtain a particular 
service. The appropriate NAICS codes for enrolled actuaries relate to 
Insurance Other (524298) and Administrative and General Management 
Consulting, Including Financial Consulting (541611). Entities 
identified under these codes are considered small under the SBA size 
standards (13 CFR 121.201) if their annual revenue is less than $6.5 
million. The IRS estimates that as many as 2,070 enrolled actuaries may 
be operating as or employed by small entities. Therefore, the IRS has 
determined that these final rules will affect a substantial number of 
small entities. The dollar amounts of the fees are not, however, 
substantial enough to have a significant economic impact on any entity 
subject to the fees. The amounts of the fees are commensurate with, if 
not less than, the amount charged by professional organizations. 
Persons who elect to apply for enrollment or renewal of enrollment also 
receive benefits from obtaining the enrolled actuary designation. 
Pursuant to section 7805(f) of the Internal Revenue Code, the NPRM 
preceding this regulation was submitted to the Chief Counsel for 
Advocacy of the Small Business Administration for comment on its 
impact.

Drafting Information

    The principal author of these regulations is Kimberly A. Mattonen 
of the Office of the Associate Chief Counsel (Procedure & 
Administration).

List of Subjects in 26 CFR Part 300

    Reporting and recordkeeping requirements, User fees.

Adoption of Amendments to the Regulations

0
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 300.0 is amended as follows:
0
1. Paragraphs (b)(7) and (b)(8) are added.
0
2. Paragraph (c) is revised.
0
The additions and revision read as follows:


Sec.  300.0  User fees, in general.

* * * * *
    (b) * * *
    (7) Enrolling an enrolled actuary.
    (8) Renewing the enrollment of an enrolled actuary.
    (c) Effective/applicability date. This part 300 is applicable March 
16, 1995, except that the user fee for processing offers in compromise 
is applicable November 1, 2003; the user fee for the special enrollment 
examination, enrollment, and renewal of enrollment for enrolled agents 
is applicable November 6, 2006; the user fee for entering into 
installment agreements on or after January 1, 2007, is applicable 
January 1, 2007; the user fee for restructuring or reinstatement of an 
installment agreement on or after January 1, 2007, is applicable 
January 1, 2007; and the user fee for the enrollment and renewal of 
enrollment for enrolled actuaries is applicable January 22, 2008.
0
Par. 3. Section 300.7 is added to read as follows:


Sec.  300.7  Enrollment of enrolled actuary fee.

    (a) Applicability. This section applies to the initial enrollment 
of enrolled actuaries with the Joint Board for the Enrollment of 
Actuaries pursuant to 20 CFR Part 901.
    (b) Fee. The fee for initially enrolling as an enrolled actuary 
with the Joint Board for the Enrollment of Actuaries is $250.00.
    (c) Person liable for the fee. The person liable for the enrollment 
fee is the applicant filing for enrollment as an enrolled actuary with 
the Joint Board for the Enrollment of Actuaries.
0
Par. 5. Section 300.8 is added to read as follows:


Sec.  300.8  Renewal of enrollment of enrolled actuary fee.

    (a) Applicability. This section applies to the renewal of 
enrollment of enrolled actuaries with the Joint Board for the 
Enrollment of Actuaries pursuant to 20 CFR Part 901.
    (b) Fee. The fee for renewal of enrollment as an enrolled actuary 
with the Joint Board for the Enrollment of Actuaries is $250.00.
    (c) Person liable for the fee. The person liable for the renewal of 
enrollment fee is the person renewing their enrollment as an enrolled 
actuary with the Joint Board for the Enrollment of Actuaries.

Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
Eric Solomon,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 07-6156 Filed 12-18-07; 2:32 pm]
BILLING CODE 4830-01-P