60316 Federal Register / Vol. 75, No. 189 / Thursday, September 30, 2010 / Rules and Regulations 

forms, instructions, or other appropriate 

guidance. Employee A is a tax return 

preparer even if Employee A relies on tax 

preparation software to prepare the return. 

Example 3. C is an employee of a firm that 

prepares tax returns and claims for refund of 

tax for compensation. C is responsible for 

preparing a Form 1040, ‘‘U.S. Individual 

Income Tax Return,’’ for a client. C obtains 

the information necessary for the preparation 

of the tax return during a meeting with the 

client, and makes determinations with 

respect to the proper application of the tax 

laws to the information in order to determine 

the client’s tax liability. C completes the tax 

return and sends the completed return to 

employee D, who reviews the return for 

accuracy before signing it. Both C and D are 

tax return preparers required to apply for a 

PTIN or other identifying number as the 

Internal Revenue Service may prescribe in 

forms, instructions, or other appropriate 

guidance. 

Example 4. E is an employee at a firm 

which prepares tax returns and claims for 

refund of tax for compensation. The firm is 

engaged by a corporation to prepare its 

Federal income tax return on Form 1120, 

‘‘U.S. Corporation Income Tax Return.’’ 

Among the documentation that the 

corporation provides to E in connection with 

the preparation of the tax return is 

documentation relating to the corporation’s 

potential eligibility to claim a recently 

enacted tax credit for the taxable year. In 

preparing the return, and specifically for 

purposes of the new tax credit, E (with the 

corporation’s consent) obtains advice from F, 

a subject matter expert on this and similar 

credits. F advises E as to the corporation’s 

entitlement to the credit and provides his 

calculation of the amount of the credit. Based 

on this advice from F, E prepares the 

corporation’s Form 1120 claiming the tax 

credit in the amount recommended by F. The 

additional credit is one of many tax credits 

and deductions claimed on the tax return, 

and determining the credit amount does not 

constitute preparation of all or substantially 

all of the corporation’s tax return under this 

paragraph (g). F will not be considered to 

have prepared all or substantially all of the 

corporation’s tax return, and F is not a tax 

return preparer required to apply for a PTIN 

or other identifying number as the Internal 

Revenue Service may prescribe in forms, 

instructions, or other appropriate guidance. 

The analysis is the same whether or not the 

tax credit is a substantial portion of the 

return under § 301.7701–15 of this chapter 

(as opposed to substantially all of the return), 

and whether or not F is in the same firm with 

E. E is a tax return preparer required to apply 

for a PTIN or other identifying number as the 

Internal Revenue Service may prescribe in 

forms, instructions, or other appropriate 

guidance. 

(h) The Internal Revenue Service, 

through forms, instructions, or other 

appropriate guidance, may prescribe 

exceptions to the requirements of this 

section, including the requirement that 

an individual be authorized to practice 

before the Internal Revenue Service 

before receiving a preparer tax 

identification number or other 

prescribed identifying number, as 

necessary in the interest of effective tax 

administration. The Internal Revenue 

Service, through other appropriate 

guidance, may also specify specific 

returns, schedules, and other forms that 

qualify as tax returns or claims for 

refund for purposes of these regulations. 

(i) Effective/applicability date. 

Paragraph (a)(1) of this section is 

applicable to tax returns and claims for 

refund filed after December 31, 2008. 

Paragraph (a)(2)(i) of this section is 

applicable to tax returns and claims for 

refund filed on or before December 31, 

2010. Paragraph (a)(2)(ii) of this section 

is applicable to tax returns and claims 

for refund filed after December 31, 2010. 

Paragraph (d) of this section is 

applicable to tax return preparers after 

December 31, 2010. Paragraphs (e) 

through (h) of this section are effective 

after September 30, 2010. 

PART 602—OMB CONTROL NUMBERS 

UNDER THE PAPERWORK 

REDUCTION ACT 

■ Par. 3. The authority citation for part 

602 continues to read as follows: 

Authority: 26 U.S.C. 7805. 

■ Par. 4. In § 602.101, paragraph (b) is 

amended by revising the entry for 

‘‘1.6109–2’’ in the table to read as 

follows: 

§ 602.101 OMB Control numbers. 

* * * * * 

(b) * * * 

CFR part or section 

where identified and 

described 

Current OMB 

control No. 

* * * * * 

1.6109–2 ....................... 1545–2176 

* * * * * 

Steven T. Miller, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: August 11, 2010. 

Michael Mundaca, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. 2010–24653 Filed 9–28–10; 11:15 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 300 

[TD 9503] 

RIN 1545–BI71 

User Fees Relating to Enrollment and 

Preparer Tax Identification Numbers 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final rule. 

SUMMARY: This document contains 

amendments to the regulations relating 

to the imposition of certain user fees on 

certain tax practitioners. The final 

regulations establish a new user fee for 

individuals who apply for or renew a 

preparer tax identification number 

(PTIN). The final regulations affect 

individuals who apply for or renew a 

PTIN. 

DATES: Effective Date: These regulations 

are effective on September 30, 2010. 

Applicability Date: For dates of 

applicability see §§ 300.1(d), 300.2(d), 

300.3(d), 300.4(d), 300.5(d), 300.6(d), 

300.7(d), 300.8(d), and 300.9(d). 

FOR FURTHER INFORMATION CONTACT: 

Concerning the final regulations, Emily 

M. Lesniak at (202) 622–4570; 

concerning cost methodology Eva J. 

Williams at (202) 435–5514 (not toll-free 

numbers). 

SUPPLEMENTARY INFORMATION: 

Background 

This document contains final 

regulations relating to the imposition of 

a user fee to apply for or renew a PTIN 

and the reorganization of the effective 

date provisions under §§ 300.0 through 

300.8. Section 300.9 establishes a $50 

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 establishing user fees for 

services provided by the agency. 

Regulations prescribing user fees are 

subject to the policies of the President, 

which are currently set forth in the 

Office of Management and Budget 

Circular A–25 (the OMB Circular), 58 

FR 38142 (July 15, 1993). The OMB 

Circular requires agencies seeking to 

impose user fees for providing special 

benefits to identifiable recipients to 

calculate the full cost of providing those 

benefits. 

On September 30, 2010, the Treasury 

Department and the IRS published in 

the Federal Register final regulations 

under section 6109 (TD 9501) that 


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require tax return preparers who 

prepare all or substantially all of a tax 

return or claim for refund to use a PTIN 

as their identifying number. These 

regulations also provide that to be 

eligible to receive a PTIN, a tax return 

preparer must be an attorney, certified 

public accountant, enrolled agent, or 

registered tax return preparer. 

On July 23, 2010, the Treasury 

Department and the IRS published in 

the Federal Register (75 FR 43110) a 

notice of proposed rulemaking (REG– 

139343–08) proposing amendments to 

part 300 of title 26 of the Code of 

Federal Regulations. New § 300.9 of 

these regulations proposed to establish 

a $50 user fee to apply for or renew a 

PTIN. These regulations do not include 

any fees charged by the vendor, which 

vendor fee is now calculated to be 

$14.25. Additionally, these regulations 

proposed to reorganize the effective date 

provisions of §§ 300.0 through 300.8. A 

public hearing regarding the proposed 

regulations was held on August 24, 

2010. The IRS also received written 

public comments in response to the 

proposed regulations. 

After careful consideration of all 

written public comments and 

statements made during the public 

hearing, the Treasury Department and 

the IRS have decided to adopt without 

modification the proposed regulations 

that establish a $50 user fee to apply for 

or renew a PTIN, recovering the full cost 

to the IRS for administering the PTIN 

application and renewal program. The 

Treasury Department and the IRS also 

have decided to adopt without 

modification the proposed regulations 

reorganizing the effective date 

provisions under §§ 300.0 through 

300.8. 

Summary of Comments 

Over 10,000 written comments were 

received in response to the notice of 

proposed rulemaking. The comments 

were considered and are available for 

public inspection upon request. The 

comments related to the $50 user fee to 

apply for or renew a PTIN, the related 

PTIN regulations under section 6109, or 

the proposed amendments to 

regulations governing practice before 

the IRS under 31 CFR part 10 (Circular 

230). No comments were received 

regarding the reorganization of the 

effective date provisions. Many of the 

comments are summarized in this 

preamble. 

To the extent comments received with 

respect to the user fee regulation raise 

issues pertaining to the PTIN 

regulations under section 6109 or 

Circular 230, the Treasury Department 

and the IRS are considering and 

addressing those comments in 

connection with the relevant 

regulations. Accordingly, the summary 

of comments below addresses only 

those comments that seek modification 

or clarification of the user fee as set 

forth in the proposed regulations. 

1. Tax Return Preparers Who Already 

Are Subject to Fees 

The Treasury Department and the IRS 

received numerous comments stating 

that tax return preparers who are 

attorneys, certified public accountants, 

or enrolled agents already are required 

to maintain licenses and pay numerous 

fees associated with obtaining and 

maintaining their licenses. Some 

commentators also stated that regulation 

of currently unenrolled tax return 

preparers or imposing a user fee to 

apply for or renew a PTIN for currently 

unenrolled tax return preparers was 

acceptable, but individuals who are 

regulated currently should not be 

required to obtain a PTIN or pay a user 

fee. Other similar comments requested 

that licensed tax consultants in Oregon 

be grandfathered into the new 

regulatory scheme and that individuals 

who currently have a PTIN be exempt 

from the requirements to apply for and 

renew a PTIN. 

Having a PTIN is a special benefit that 

allows specified tax return preparers to 

prepare all or substantially all of a tax 

return or claim for refund for 

compensation. The OMB Circular 

encourages user fees for governmentprovided services that confer special 

benefits on identifiable recipients over 

and above those benefits received by the 

general public. A user fee must be set at 

an amount that allows the agency to 

recover the full cost of providing the 

special services unless the Office of 

Management and Budget grants an 

exception. 

The same special benefit is conferred 

on all persons who obtain a PTIN, and 

the cost to the government is the same 

for providing PTINs to attorneys, 

certified public accountants, and 

enrolled agents as it is for providing 

PTINs to formerly unenrolled tax return 

preparers. Under the OMB Circular, 

absent special approval, the IRS must 

recover the full costs for providing the 

special benefits associated with a PTIN. 

The IRS cannot charge a user fee solely 

to tax return preparers who are not 

otherwise licensed as an attorney, 

certified public accountant, or enrolled 

agent. Although many comments sought 

exceptions to the user fee, one 

commentator encouraged the Treasury 

Department and the IRS to maintain a 

uniform user fee for obtaining a PTIN. 

Consequently, the Treasury Department 

and the IRS are adopting the proposed 

regulations and requiring all tax return 

preparers to pay a user fee to apply for 

or renew a PTIN. 

2. Calculation of the User Fee 

The Treasury Department and the IRS 

received a comment that the proposed 

regulations do not comply with the 

provisions of IOAA because a PTIN is 

not a service or thing of value to a tax 

return preparer. The commentator also 

stated that the proposed regulations do 

not comply with the general policies for 

implementing user fees, as provided in 

the OMB Circular, because providing a 

PTIN to a tax return preparer benefits 

the general public by tracking 

incompetent and unscrupulous tax 

return preparers and that the IRS 

already meets a goal of the OMB 

Circular because it is already selfsustaining, as the IRS collects more 

taxes than it costs to run the agency. 

The IOAA authorizes agencies to 

prescribe regulations that establish 

charges 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 currently set forth in 

the OMB Circular. The OMB Circular 

encourages user fees for governmentprovided 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 the full cost of providing those 

services. 

The user fee was determined to be 

consistent with the IOAA and the OMB 

Circular. A PTIN both confers a special 

benefit on an identifiable recipient and 

is a service or thing of value to a tax 

return preparer. A PTIN confers a 

special benefit because without a PTIN, 

a tax return preparer could not receive 

compensation for preparing all or 

substantially all of a federal tax return 

or claim for refund. Because only 

attorneys, certified public accountants, 

enrolled agents, and registered tax 

return preparers are eligible to obtain a 

PTIN, only a subset of the general public 

is entitled to a PTIN and the special 

benefit of receiving compensation for 

the preparation of a return that it 

confers. This analysis is consistent with 

the current practice of charging a user 

fee on individuals seeking to become 

enrolled agents. Being an enrolled agent 

confers special benefits; and, therefore, 


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the IRS currently charges a user fee on 

applicants seeking those special 

benefits. 

Further, while it is anticipated that 

requiring tax return preparers to obtain 

a PTIN will benefit tax administration 

generally, only the tax return preparer 

who receives the PTIN can take 

advantage of the special benefit 

associated with having a PTIN. The 

OMB Circular provides that a 

government agency should recover the 

full cost of providing a special benefit 

when the general public receives a 

benefit as a necessary consequence of 

the government providing a special 

benefit to an identifiable recipient. 

The OMB Circular also provides that 

one of the objectives of establishing a 

user fee is to ‘‘ensure that each service, 

sale, or use of Government goods or 

resources provided by an agency to 

specific recipients be self-sustaining.’’ 

As described above, the issuance of a 

PTIN provides a special benefit to the 

specific tax return preparer who 

receives the PTIN. The administration of 

the PTIN application and renewal 

program requires the use of IRS services, 

goods, and resources. For the PTIN 

application and renewal program to be 

self-sustaining, the IRS must charge a 

user fee to recover the costs of providing 

the special benefits associated with 

PTIN. The fact that the IRS collects tax 

revenue for use by the government as a 

whole does not affect the analysis of 

whether the PTIN application and 

renewal program is self-sustaining. 

Thus, the Treasury Department and the 

IRS are complying with the provisions 

of the IOAA and the OMB Circular by 

implementing a user fee to recover the 

costs associated with the issuance of 

PTINs. 

3. Renewing a PTIN 

Several commentators objected to 

renewing their PTIN on a yearly basis 

and requested longer renewal periods. 

At this time the Treasury Department 

and the IRS have determined that an 

annual renewal of a PTIN is the most 

effective procedure. The user fee to 

renew a PTIN is, however, part of the 

larger implementation of 

recommendations in Publication 4832, 

‘‘Return Preparer Review,’’ which was 

published on January 4, 2010, to be 

effective for the 2011 Federal tax filing 

season (January–April 2011). These 

recommendations include revisions to 

Circular 230 implementing the 

registered tax return preparer program 

and revisions to the regulations under 

section 6109 requiring all tax return 

preparers to obtain and use a PTIN as 

their identifying number. As these 

programs are implemented, the IRS will 

continually monitor their 

administration and make appropriate 

adjustments to increase effectiveness. 

Thus, in the future, the Treasury 

Department and the IRS will review the 

requirement to annually renew a PTIN 

and will make modifications, as 

appropriate. 

4. The Amount of the User Fee 

Many commentators objected to the 

amount of the user fee. Some stated that 

the user fee should be smaller or that tax 

return preparers who prepare a limited 

number of returns should pay a smaller 

user fee. Other commentators 

characterized the user fee as a tax or a 

revenue raiser. 

As stated earlier in this preamble, 

under the OMB Circular, the IRS must 

recover the full cost of providing a 

PTIN. The full cost to the government to 

administer the PTIN application and 

renewal program was calculated to be 

$50 per application or renewal. The user 

fee does not provide funds beyond the 

cost to process PTIN applications. Thus, 

the user fee to apply for or renew a PTIN 

does not provide additional revenue to 

the IRS that can be allocated to other 

programs. The PTIN user fee merely 

offsets costs the IRS incurs to provide 

the special benefits associated with 

having a PTIN. 

The cost of processing PTIN 

applications is not affected by the 

number of tax returns that a tax return 

preparer prepares during a given tax 

season. For example, the cost to the IRS 

to process the PTIN applications of 

individuals who prepare over 500 tax 

returns per year, approximately 100 tax 

returns per year, or under 10 tax returns 

per year is the same. The IRS will 

perform the same tax compliance and 

suitability checks on these individuals 

and will provide these individuals with 

the same PTIN support services. The 

IRS must also maintain the same data in 

its PTIN database regarding these 

individuals and develop the same 

reconsideration process for these 

individuals in the event their PTIN 

applications are denied. Because the 

cost to the IRS is not dependent on the 

quantity of returns that an individual 

tax return preparer prepares, the final 

regulations adopt the $50 user fee for all 

tax return preparers to apply for or 

renew a PTIN. 

5. Burden Imposed by the User Fee 

Some commentators stated that the 

$50 user fee will be a burden on their 

businesses or that the cost to apply for 

or renew a PTIN will be passed on to 

clients. The IRS recognizes that some 

individuals who prepare a small 

number of tax returns may stop 

preparing tax returns or that the PTIN 

user fee may be passed on to clients. 

The IRS, however, believes that the 

implementation of the registered tax 

return preparer program and the 

requirement to use a PTIN as provided 

in the section 6109 regulations will 

benefit taxpayers and tax administration 

as a whole. The registered tax return 

preparer program will ensure that tax 

return preparers meet and maintain a 

minimum level of competency. The 

requirement to use a PTIN will provide 

the IRS an effective way to monitor tax 

return preparers and enforce the 

regulation of tax return preparers. The 

Treasury Department and the IRS 

believe that a user fee to apply for or 

renew a PTIN is necessary to recover the 

cost that the IRS will incur to 

implement and administer the PTIN 

application and renewal program. 

Other commentators suggested that 

the user fee to apply for or renew a PTIN 

would cause some tax return preparers 

to revert to using their social security 

number when preparing tax returns 

rather than a PTIN, which would 

contravene the identity protection 

currently provided by PTINs. The 

regulations under section 6109, 

however, require tax return preparers to 

use a PTIN as their sole identifying 

number when preparing tax returns or 

claims for refund for compensation. 

Thus, tax return preparers are not 

allowed to use their social security 

numbers as an identifying number when 

preparing tax returns or claims for 

refund. 

6. Use of a Third Party Vendor 

Several commentators objected to 

providing identifying information to the 

third party vendor, and numerous 

commentators objected to paying a 

separate fee to the vendor. 

The third party vendor is statutorily 

and contractually obligated to protect all 

personally identifiable information. The 

vendor is subject to the confidentiality 

and disclosure provisions of section 

6103. The vendor also must comply 

with the provisions of the Federal 

Information Security Management Act; 

the E–Government Act of 2002; IRS 

Acquisitions Procedures; the Federal 

Acquisitions Regulations; the Taxpayer 

Browsing Protection Act of 1997; and 

the Privacy Act of 1974, which is 

codified at 5 U.S.C. 552a, regarding all 

non-tax information. The vendor must 

comply with numerous policies of the 

Office of Management and Budget, 

including OMB Circular No. A–130, 

Security and Federal Automated 

Information Resources Appendix III; 

OMB Circular policy M–06–16, 

Protection of Sensitive Agency 


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Information; OMB Circular Policy M– 

06–15, Safeguarding Personally 

Identifiable Information; and OMB 

Circular Policy M–06–19, Reporting 

Incidents Involving Personally 

Identifiable Information. 

The vendor faces significant 

consequences for the unauthorized 

inspection or disclosure of confidential 

tax information. These consequences 

include, among others, that an officer or 

employee of the vendor may be subject 

to civil damages; civil or criminal 

sanctions, such as sanctions imposed by 

18 U.S.C. 641 and 3571; or penalties as 

prescribed in sections 7213, 7213A, and 

7431. 

The vendor’s fee, currently set at 

$14.25, covers the costs incurred by the 

vendor to administer the application 

and renewal process. These costs are 

separate from the costs to the IRS for 

administering the PTIN application and 

renewal program, which are recovered 

in the $50 user fee. The respective fees 

pay for different aspects of 

administering the PTIN program, each 

of which is essential to providing PTINs 

to tax return preparers. Additionally, 

under the vendor’s contract with the 

IRS, the vendor’s fee is reviewed and 

approved by the IRS. 

After consideration of all of the public 

comments and statements made during 

the public hearing, the Treasury 

Department and the IRS have adopted 

the proposed regulations in full. 

Effective/Applicability Date 

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)). Final regulations may be 

effective prior to thirty days after 

publication if the publishing agency 

finds that there is good cause for an 

earlier effective date. 

This regulation is part of the IRS’ 

effort to implement the 

recommendations in the ‘‘Return 

Preparer Review.’’ The review 

concluded that obtaining more complete 

and accurate information on individual 

tax return preparers and improved IRS 

oversight of tax return preparers and 

their preparation of tax returns and 

claims for refund is necessary for 

effective tax administration. The PTIN is 

the mechanism that allows the IRS to 

obtain more complete and accurate 

information on tax return preparers. 

Thus, the issuance of a PTIN is a 

threshold requirement to implementing 

the recommendations in the report. 

This regulation must be effective 

significantly in advance of the 

beginning of the 2011 filing season to 

enable the IRS to charge a user fee to 

recover the cost of administering the 

program under which all individuals 

who prepare all or substantially all of a 

tax return or claim for refund of tax are 

required to obtain a PTIN for use during 

the 2011 Federal tax filing season. For 

all tax return preparers to receive a 

PTIN prior to the 2011 filing season, the 

IRS must begin registering preparers as 

quickly as possible. Thus, the Treasury 

Department and the IRS find that there 

is good cause for these regulations to be 

effective upon the publication of a 

Treasury decision adopting these rules 

as final regulations in the Federal 

Register. 

Special Analyses 

It has been determined that these final 

regulations are a significant regulatory 

action as defined in Executive Order 

12866. 

It has been determined that a final 

regulatory flexibility analysis under 5 

U.S.C. 604 is required for this final rule. 

The analysis is set forth under the 

heading, ‘‘Final Regulatory Flexibility 

Analysis.’’ 

Pursuant to section 7805(f) of the 

Code, the notice of proposed rulemaking 

preceding these final regulations was 

submitted to the Chief Counsel for 

Advocacy of the Small Business 

Administration for comment on its 

impact on small business. The Chief 

Counsel for Advocacy did not submit 

comments on the notice of proposed 

rulemaking. 

Final Regulatory Flexibility Analysis 

When an agency either promulgates a 

final rule that follows a required notice 

of proposed rulemaking or promulgates 

a final interpretative rule involving the 

internal revenue laws as described in 5 

U.S.C. 603(a), the Regulatory Flexibility 

Act (5 U.S.C. chapter 6) requires the 

agency to ‘‘prepare a final regulatory 

flexibility analysis.’’ A final regulatory 

flexibility analysis must, pursuant to 5 

U.S.C. 604(a), contain the five elements 

listed in this final regulatory flexibility 

analysis. For purposes of this final 

regulatory flexibility analysis, a small 

entity is defined as a small business, 

small nonprofit organization, or small 

governmental jurisdiction. 5 U.S.C. 

601(3)–(6). The Treasury Department 

and the IRS conclude that the final 

regulations (together with other 

contemplated guidance provided for in 

these regulations) will impact a 

substantial number of small entities and 

the economic impact will be significant. 

A Statement of the Need for, and the 

Objectives of, The Final Rule 

The final regulations are necessary to 

recover the full cost to the IRS 

associated with administering the PTIN 

application and renewal program and 

providing the special benefits that are 

associated with obtaining a PTIN. 

The Treasury Department and the IRS 

are implementing regulatory changes 

that increase the oversight of the tax 

return preparer industry. These 

regulatory changes are based upon 

findings and recommendations made by 

the IRS in the ‘‘Return Preparer Review.’’ 

Based upon findings in the review, all 

individuals who prepare all or 

substantially all of a tax return or claim 

for refund will be required to use a PTIN 

as their identifying number. Except as 

provided in any transitional period, 

only attorneys, certified public 

accountants, enrolled agents, or 

registered tax return preparers may 

apply for a PTIN. Thus, only attorneys, 

certified public accountants, enrolled 

agents, and registered tax return 

preparers will be eligible to prepare all 

or substantially all of a tax return or 

claim for refund. By limiting the 

individuals who may prepare all or 

substantially all of a tax return or claim 

for refund to individuals who have a 

PTIN, the IRS is providing a special 

benefit to the individuals who obtain a 

PTIN. 

The objective of the final regulations 

is to recover the costs to the government 

that are associated with providing this 

special benefit. The costs to the 

government include the development 

and maintenance of the IRS information 

technology system that interfaces with 

the vendor; the development and 

maintenance of internal applications; 

IRS customer service support activities, 

which include development and 

maintenance of an IRS Web site and call 

center staffing; and personnel, 

administrative, and management 

support needed to evaluate and address 

tax compliance issues, investigate and 

address conduct and suitability issues, 

and otherwise support and enforce the 

programs that require individuals to 

apply for or renew a PTIN. 

Summaries of the Significant Issues 

Raised in the Public Comments 

Responding to the Initial Regulatory 

Flexibility Analysis and of the Agency’s 

Assessment of the Issues, and a 

Statement of Any Changes Made to the 

Rule as a Result of the Comments 

A summary of the comments is set 

forth elsewhere in this preamble, along 

with the Treasury Department’s and the 


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60320 Federal Register / Vol. 75, No. 189 / Thursday, September 30, 2010 / Rules and Regulations 

IRS’ assessment of the issues raised in 

the comments. 

A Description and an Estimate of the 

Number of Small Entities to Which the 

Rule Will Apply or an Explanation of 

Why an Estimate Is Not Available 

The final regulations affect all 

individuals who want to become a 

registered tax return preparer under the 

new oversight rules in Circular 230. 

Only individuals, not businesses, can 

practice before the IRS or become a 

registered tax return preparer. Thus, the 

economic impact of these regulations on 

any small entity generally will be a 

result of applicants and registered tax 

return preparers owning a small 

business or a small entity employing 

applicants or registered tax return 

preparers. 

The final regulations further affect all 

individual tax return preparers who are 

required to apply for or renew a PTIN. 

Only individuals, not businesses, can 

apply for or renew a PTIN. Thus, the 

economic impact of these regulations on 

any small entity generally will be a 

result of an individual tax return 

preparer who owns a small business and 

who is required to apply for or renew 

a PTIN, or a small business otherwise 

employing an individual tax return 

preparer who is required to apply for or 

renew a PTIN, to prepare all or 

substantially all of a tax return or claim 

for refund. 

The appropriate NAICS codes for the 

registered tax return preparer program 

and PTINs are those that relate to tax 

preparation services (NAICS code 

541213), other accounting services 

(NAICS code 541219), offices of lawyers 

(NAICS code 541110), and offices of 

certified public accountants (NAICS 

code 541211). Entities identified as tax 

preparation services and offices of 

lawyers are considered small under the 

Small Business Administration size 

standards (13 CFR 121.201) if their 

annual revenue is less than $7 million. 

Entities identified as other accounting 

services and offices of certified public 

accountants are considered small under 

the Small Business Administration size 

standards if their annual revenue is less 

than $8.5 million. The IRS estimates 

that approximately 70 to 80 percent of 

the individuals subject to these 

proposed regulations are tax return 

preparers operating as or employed by 

small entities. 

A Description of the Projected 

Reporting, Recordkeeping, and Other 

Compliance Requirements of the Rule, 

Including an Estimate of the Classes of 

Small Entities Subject to the 

Requirements and the Type of 

Professional Skills Necessary for 

Preparation of a Report or Record 

No reporting or recordkeeping 

requirements are projected to be 

associated with the final regulation. 

A Description of the Steps the Agency 

Has Taken To Minimize the Significant 

Economic Impact on Small Entities 

Consistent With the Stated Objectives of 

Applicable Statutes, Including a 

Statement of the Factual, Policy, and 

Legal Reasons for Selecting Any 

Alternative Adopted in the Final Rule 

and Why Other Significant Alternatives 

Affecting the Impact on Small Entities 

That the Agency Considered Were 

Rejected 

The Treasury Department and the IRS 

are not aware of any steps that could be 

taken to minimize the economic impact 

on small entities that would also be 

consistent with the objectives of these 

final regulations. These regulations do 

not impose any more requirements on 

small entities than are necessary to 

effectively administer the internal 

revenue laws. Further, the regulations 

do not subject small entities to any 

requirements that are not also 

applicable to larger entities covered by 

the regulations. 

The Treasury Department and the IRS 

have determined that there are no viable 

alternatives to the final regulations. 

The IOAA authorizes the charging of 

user fees for agency services, subject to 

policies designated by the President. 

The OMB Circular implements 

presidential policies regarding user fees 

and encourages user fees when a 

government agency provides a special 

benefit to a member of the public. As 

Congress has not appropriated funds to 

the registered tax return preparer 

program or the PTIN application and 

renewal program, there are no viable 

alternatives to the imposition of user 

fees. 

Drafting Information 

The principal author of these final 

regulations is Emily M. Lesniak, Office 

of the Associate Chief Counsel 

(Procedure and Administration). 

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 

■ Paragraph 1. The authority citation 

for part 300 continues to read in part as 

follows: 

Authority: 31 U.S.C. 9701. 

■ Par. 2. Section 300.0 is amended by 

■ 1. Adding paragraph (b)(9). 

■ 2. Removing paragraph (c). 

■ The addition reads as follows: 

§ 300.0 User fees; in general. 

* * * * * 

(b) * * * 

(9) Applying for a preparer tax 

identification number. 

■ Par. 3. Section 300.1 is amended by 

adding paragraph (d) to read as follows: 

§ 300.1 Installment agreement fee. 

* * * * * 

(d) Effective/applicability date. This 

section is applicable beginning March 

16, 1995, except that the user fee for 

entering into installment agreements on 

or after January 1, 2007, is applicable 

January 1, 2007. 

■ Par. 4. Section 300.2 is amended by 

adding paragraph (d) to read as follows: 

§ 300.2 Restructuring or reinstatement of 

installment agreement fee. 

* * * * * 

(d) Effective/applicability date. This 

section is applicable beginning March 

16, 1995, except that the user fee for 

restructuring or reinstatement of an 

installment agreement on or after 

January 1, 2007, is applicable January 1, 

2007. 

■ Par. 5. Section 300.3 is amended by 

adding paragraph (d) to read as follows: 

§ 300.3 Offer to compromise fee. 

* * * * * 

(d) Effective/applicability date. This 

section is applicable beginning 

November 1, 2003. 

■ Par. 6. Section 300.4 is amended by 

adding paragraph (d) to read as follows: 

§ 300.4 Special enrollment examination 

fee. 

* * * * * 

(d) Effective/applicability date. This 

section is applicable beginning 

November 6, 2006. 

■ Par. 7. Section 300.5 is amended by 

adding paragraph (d) to read as follows: 

§ 300.5 Enrollment of enrolled agent fee. 

* * * * * 


jdjones on DSK8KYBLC1PROD with RULES
Federal Register / Vol. 75, No. 189 / Thursday, September 30, 2010 / Rules and Regulations 60321 

(d) Effective/applicability date. This 

section is applicable beginning 

November 6, 2006. 

■ Par. 8. Section 300.6 is amended by 

adding paragraph (d) to read as follows: 

§ 300.6 Renewal of enrollment of enrolled 

agent fee. 

* * * * * 

(d) Effective/applicability date. This 

section is applicable beginning 

November 6, 2006. 

■ Par. 9. Section 300.7 is amended by 

adding paragraph (d) to read as follows: 

§ 300.7 Enrollment of enrolled actuary fee. 

* * * * * 

(d) Effective/applicability date. This 

section is applicable beginning January 

22, 2008. 

■ Par. 10. Section 300.8 is amended by 

adding paragraph (d) to read as follows: 

§ 300.8 Renewal of enrollment of enrolled 

actuary fee. 

* * * * * 

(d) Effective/applicability date. This 

section is applicable beginning January 

22, 2008. 

■ Par. 11. Section 300.9 is added to read 

as follows: 

§ 300.9 Fee for obtaining a preparer tax 

identification number. 

(a) Applicability. This section applies 

to the application for and renewal of a 

preparer tax identification number 

pursuant to 26 CFR 1.6109–2(d). 

(b) Fee. The fee to apply for or renew 

a preparer tax identification number is 

$50 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. 

(c) Person liable for the fee. The 

individual liable for the application or 

renewal fee is the individual applying 

for and renewing a preparer tax 

identification number from the IRS. 

(d) Effective/applicability date. This 

section is applicable beginning 

September 30, 2010. 

Steven T. Miller, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: August 24, 2010. 

Michael Mundaca, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. 2010–24652 Filed 9–28–10; 11:15 am] 

BILLING CODE 4830–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 180 

[EPA–HQ–OPP–2009–0616; FRL–8844–1] 

Spinosad; Pesticide Tolerances 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: This regulation revises 

tolerances for residues of spinosad in or 

on hog, fat; hog, meat; hog, meat 

byproducts; poultry meat byproducts. 

Elanco Animal Health (A Division of Eli 

Lilly & Company) requested these 

tolerances under the Federal Food, 

Drug, and Cosmetic Act (FFDCA). 

DATES: This regulation is effective 

September 30, 2010. Objections and 

requests for hearings must be received 

on or before November 29, 2010, and 

must be filed in accordance with the 

instructions provided in 40 CFR part 

178 (see also Unit I.C. of the 

SUPPLEMENTARY INFORMATION). 

ADDRESSES: EPA has established a 

docket for this action under docket 

identification (ID) number EPA–HQ– 

OPP–2009–0616. All documents in the 

docket are listed in the docket index 

available at http://www.regulations.gov. 

Although listed in the index, some 

information is not publicly available, 

e.g., Confidential Business Information 

(CBI) or other information whose 

disclosure is restricted by statute. 

Certain other material, such as 

copyrighted material, is not placed on 

the Internet and will be publicly 

available only in hard copy form. 

Publicly available docket materials are 

available in the electronic docket at 

http://www.regulations.gov, or, if only 

available in hard copy, at the OPP 

Regulatory Public Docket in Rm. S– 

4400, One Potomac Yard (South Bldg.), 

2777 S. Crystal Dr., Arlington, VA. The 

Docket Facility is open from 8:30 a.m. 

to 4 p.m., Monday through Friday, 

excluding legal holidays. The Docket 

Facility telephone number is (703) 305– 

5805. 

FOR FURTHER INFORMATION CONTACT: 

Samantha Hulkower, Registration 

Division (7505P), Office of Pesticide 

Programs, Environmental Protection 

Agency, 1200 Pennsylvania Ave., NW., 

Washington, DC 20460–0001; telephone 

number: (703) 603–0683; e-mail address: 

hulkower.samantha@epa.gov. 

SUPPLEMENTARY INFORMATION: 

I. General Information 

A. Does this Action Apply to Me? 

You may be potentially affected by 

this action if you are an agricultural 

producer, food manufacturer, or 

pesticide manufacturer. Potentially 

affected entities may include, but are 

not limited to those engaged in the 

following activities: 

• Crop production (NAICS code 111). 

• Animal production (NAICS code 

112). 

• Food manufacturing (NAICS code 

311). 

• Pesticide manufacturing (NAICS 

code 32532). 

This listing is not intended to be 

exhaustive, but rather to provide a guide 

for readers regarding entities likely to be 

affected by this action. Other types of 

entities not listed in this unit could also 

be affected. The North American 

Industrial Classification System 

(NAICS) codes have been provided to 

assist you and others in determining 

whether this action might apply to 

certain entities. If you have any 

questions regarding the applicability of 

this action to a particular entity, consult 

the person listed under FOR FURTHER

INFORMATION CONTACT. 

B. How Can I Get Electronic Access to 

Other Related Information? 

You may access a frequently updated 

electronic version of EPA’s tolerance 

regulations at 40 CFR part 180 through 

the Government Printing Office’s e-CFR 

site at http://www.gpoaccess.gov/ecfr. 

C. How Can I File an Objection or 

Hearing Request? 

Under FFDCA section 408(g), 21 

U.S.C. 346a, any person may file an 

objection to any aspect of this regulation 

and may also request a hearing on those 

objections. You must file your objection 

or request a hearing on this regulation 

in accordance with the instructions 

provided in 40 CFR part 178. To ensure 

proper receipt by EPA, you must 

identify docket ID number EPA–HQ– 

OPP–2009–0616 in the subject line on 

the first page of your submission. All 

objections and requests for a hearing 

must be in writing, and must be 

received by the Hearing Clerk on or 

before November 29, 2010. Addresses 

for mail and hand delivery of objections 

and hearing requests are provided in 40 

CFR 178.25(b). 

In addition to filing an objection or 

hearing request with the Hearing Clerk 

as described in 40 CFR part 178, please 

submit a copy of the filing that does not 

contain any CBI for inclusion in the 

public docket. Information not marked 

confidential pursuant to 40 CFR part 2 


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