Federal Register / Vol. 75, No. 189 / Thursday, September 30, 2010 / Rules and Regulations 60309 

■ Therefore, under the Federal Food, 

Drug, and Cosmetic Act and under 

authority delegated to the Commissioner 

of Food and Drugs and redelegated to 

the Center for Veterinary Medicine, 21 

CFR part 558 is amended as follows: 

PART 558—NEW ANIMAL DRUGS FOR 

USE IN ANIMAL FEEDS 

■ 1. The authority citation for 21 CFR 

part 558 continues to read as follows: 

Authority: 21 U.S.C. 360b, 371. 

§ 558.342 [Amended] 

■ 2. In § 558.342, in the table in 

paragraphs (e)(1)(v), (e)(1)(vi), and 

(e)(1)(vii), in the ‘‘Sponsor’’ column, 

remove ‘‘000009,’’. 

Dated: September 24, 2010. 

Steven D. Vaughn, 

Director, Office of New Animal Drug 

Evaluation, Center for Veterinary Medicine. 

[FR Doc. 2010–24480 Filed 9–29–10; 8:45 am] 

BILLING CODE 4160–01–S 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Parts 1 and 602 

[TD 9501] 

RIN 1545–BI28 

Furnishing Identifying Number of Tax 

Return Preparer 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final rule. 

SUMMARY: This document contains final 

regulations under section 6109 of the 

Internal Revenue Code (Code) that 

provide guidance on how the IRS will 

define the identifying number of tax 

return preparers and set forth 

requirements on tax return preparers to 

furnish an identifying number on tax 

returns and claims for refund of tax they 

prepare. Additional provisions of the 

regulations provide that tax return 

preparers must apply for and regularly 

renew their preparer identifying number 

as the IRS may prescribe in forms, 

instructions, or other guidance. 

DATES: Effective Date: These regulations 

are effective on September 30, 2010. 

Applicability Date: For dates of 

applicability, see § 1.6109–2(i). 

FOR FURTHER INFORMATION CONTACT: 

Stuart Murray at (202) 622–4940 (not a 

toll-free number). 

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act 

The collection of information 

contained in these final regulations has 

been reviewed and approved by the 

Office of Management and Budget in 

accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

3507(d)) under control number 1545– 

2176. The collection of information in 

these final regulations is in § 1.6109– 

2(d) and (e). This information is 

required in order for the IRS to issue 

identifying numbers to tax return 

preparers who are eligible to receive 

them. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless the collection of information 

displays a valid control number. 

Books or records relating to a 

collection of information must be 

retained as long as their contents may 

become material in the administration 

of any internal revenue law. Generally, 

tax returns and tax return information 

are confidential, as required by 26 

U.S.C. 6103. 

Background 

This document contains final 

amendments to regulations under 

section 6109 of the Code relating to 

furnishing a tax return preparer’s 

identifying number on tax returns and 

claims for refund of tax. Section 

6109(a)(4) requires tax return preparers 

to furnish on tax returns and claims for 

refund of tax an identifying number, as 

prescribed, to ensure proper 

identification of the preparer, the 

preparer’s employer, or both. In 

addition, section 6109(c) authorizes the 

Secretary ‘‘to require such information 

as may be necessary to assign an 

identifying number to any person.’’ The 

requirement to furnish an identifying 

number on tax returns and claims for 

refund of tax applies to information 

returns described in § 301.7701–15(b)(4) 

and to electronically filed tax returns. 

In 2009 the IRS conducted a 

comprehensive review of tax return 

preparers, culminating in Publication 

4832, Return Preparer Review (Rev. 12– 

2009) (the Report). The Report 

recommended that tax return preparers 

be required to obtain and use a preparer 

tax identification number (PTIN) as the 

exclusive preparer identifying number. 

The Report also recommended that the 

IRS establish new eligibility standards 

to prepare tax returns—including 

testing, continuing education, and 

Federal tax compliance checks. The 

proposed regulations adopted several of 

the recommendations made in the 

Report. The Treasury Department and 

the IRS conclude that adopting these 

provisions in the final regulations will 

increase tax compliance and help to 

ensure that tax return preparers are 

knowledgeable, skilled, and ethical. 

To implement recommendations 

made in the Report, on March 26, 2010, 

the Treasury Department and the IRS 

published in the Federal Register (75 

FR 14539) a notice of proposed 

rulemaking (REG–134235–08) proposing 

amendments to § 1.6109–2 regarding the 

identifying number that a tax return 

preparer must furnish on tax returns 

and claims for refund of tax. A public 

hearing was held on the proposed 

regulations on May 6, 2010. The IRS 

received written public comments 

responding to the proposed regulations. 

Summary of Comments and 

Explanation of Revisions 

Over 200 written comments were 

received in response to the notice of 

proposed rulemaking. All comments 

were considered and are available for 

public inspection. Most of the 

comments are summarized in this 

preamble. 

1. Requiring the Use of PTINs 

The final regulations adopt the 

proposed amendments to § 1.6109–2, 

which provide that for tax returns or 

refund claims filed after December 31, 

2010, tax return preparers must obtain 

and exclusively use the identifying 

number prescribed by the IRS in forms, 

instructions, or other guidance, rather 

than a social security number (SSN), as 

the identifying number to be included 

with the tax return preparer’s signature 

on a tax return or claim for refund. Prior 

to these final regulations, the identifying 

number of a tax return preparer was the 

tax return preparer’s SSN or an 

alternative number as prescribed by the 

IRS. The alternative number that the IRS 

has prescribed is a PTIN. After 

December 31, 2010, tax return preparers 

can only use a PTIN (or other number 

that the IRS prescribes in the future as 

a replacement to the PTIN) and may not 

use an SSN as a preparer identifying 

number unless the IRS directs 

otherwise. For tax returns or claims for 

refund filed before January 1, 2011, the 

identifying number of a tax return 

preparer will remain the preparer’s SSN 

or PTIN. 

The requirement to use a PTIN will 

allow the IRS to better identify tax 

return preparers, centralize information, 

and effectively administer the rules 

relating to tax return preparers. The 

final regulations will also benefit 

taxpayers and tax return preparers and 

help maintain the confidentiality of 

SSNs. Most of the comments received 


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60310 Federal Register / Vol. 75, No. 189 / Thursday, September 30, 2010 / Rules and Regulations 

on the notice of proposed rulemaking 

support the requirement to use a PTIN 

as the exclusive identifying number for 

tax return preparers beginning next 

year. 

Under the final regulations, a tax 

return preparer must sign and furnish a 

PTIN on a tax return or claim for refund 

if the tax return preparer has primary 

responsibility for the overall substantive 

accuracy of the preparation of the tax 

return or claim for refund. If a signing 

tax return preparer has an employment 

arrangement or association with another 

person, then that other person’s 

employer identification number (EIN) 

must also be included on the tax return 

or refund claim. 

Tax return preparers who are required 

but fail to include a PTIN on a tax return 

or refund claim, or fail to include the 

EIN of any person with whom they have 

an employment arrangement or 

association, are subject to a penalty 

under section 6695(c), unless the failure 

to include an identifying number is due 

to reasonable cause and not due to 

willful neglect. 

a. Supervised Tax Return Preparers Who 

Do Not Sign Tax Returns 

The proposed regulations provided 

that for purposes of the provisions of 

§ 1.6109–2 that would be applicable 

after December 31, 2010, the term tax 

return preparer means any individual 

who is compensated for preparing, or 

assisting in the preparation of, all or 

substantially all of a tax return or claim 

for refund of tax. The proposed 

regulations further provided that a tax 

return preparer for purposes of these 

provisions excludes an individual who 

is not defined as a nonsigning tax return 

preparer in § 301.7701–15(b)(2). A 

nonsigning tax return preparer is 

defined in § 301.7701–15(b)(2) as any 

tax return preparer who, while not a 

signing tax return preparer (the 

individual who has the primary 

responsibility for the overall substantive 

accuracy of the preparation of a tax 

return or claim for refund of tax), 

prepares all or a substantial portion of 

a tax return or claim for refund. 

Some commentators recommended 

that individuals who prepare or assist in 

preparing all or substantially all of a tax 

return or claim for refund should not be 

required to obtain a PTIN if they do not 

sign the tax return or claim for refund 

and if they act under the supervision of 

another tax return preparer who 

substantively reviews the tax return or 

claim for refund and signs it. 

Commentators explained, for example, 

that in some accounting firms, 

employees who have passed the 

Uniform Certified Public Accountant 

Examination and are working toward 

their license as a certified public 

accountant are often involved in, or 

assist with, the preparation of tax 

returns. Although these employees do 

not sign tax returns or claims for refund 

as a tax return preparer, under the 

regulations as proposed, they are tax 

return preparers who must have a PTIN 

after December 31, 2010, if they prepare 

all or substantially all of a tax return or 

claim for refund. The commentators 

proposed an exemption for these 

individuals. 

The Chief Counsel for Advocacy of 

the Small Business Administration 

(SBA) submitted similar comments, on 

behalf of small businesses, on the 

proposed amendments to § 1.6109–2 as 

applied to tax return preparers who do 

not sign tax returns or claims for refund, 

in particular the provisions requiring 

tax return preparers to obtain and renew 

a PTIN as the IRS may prescribe. The 

SBA heard from small accounting firms 

that those firms would incur a 

substantial financial burden if the 

regulations include certified public 

accountant candidates and other 

paraprofessional employees who are 

involved in tax return preparation under 

the supervision of a certified public 

accountant who is a signing tax return 

preparer. The SBA also observed that 

requiring these individuals to register 

with the IRS as tax return preparers 

would not improve the accuracy of tax 

returns prepared in small accounting 

firms because the firms and certified 

public accountants within these firms 

are already subject to ethical and 

competency rules administered by state 

boards of accountancy, as well as 

Treasury Department Circular No. 230, 

31 CFR Part 10. The SBA recommended 

that the regulations either exclude 

outright employees of firms engaged in 

certified public accountancy who are 

nonsigning tax return preparers or 

exclude these employees if they are 

supervised by a certified public 

accountant, attorney, or enrolled agent. 

These final regulations are intended 

to address two overarching objectives. 

The first overarching objective is to 

provide some assurance to taxpayers 

that a tax return was prepared by an 

individual who has passed a minimum 

competency examination to practice 

before the IRS as a tax return preparer, 

has undergone certain suitability 

checks, and is subject to enforceable 

rules of practice. The second 

overarching objective is to further the 

interests of tax administration by 

improving the accuracy of tax returns 

and claims for refund and by increasing 

overall tax compliance. 

The final regulations define a tax 

return preparer in § 1.6109–2(g) as an 

individual who prepares for 

compensation, or assists in preparing, 

all or substantially all of a tax return or 

claim for refund of tax. The final 

regulations retain this definition from 

the proposed regulations without 

including the requested exemption. It is 

critical to the IRS’s tax administration 

efforts that, in the first instance, the IRS 

is readily able to identify all individuals 

who are involved in preparing all or 

substantially all of a tax return or claim 

for refund. Additionally, by requiring 

regular renewal of a PTIN, tax return 

preparers will confirm their continuing 

competence and suitability to be tax 

return preparers. Accordingly, were the 

Treasury Department and the IRS to 

provide an exemption in these 

regulations for a sizeable segment of tax 

return preparers, it would undercut 

effective oversight by the IRS of the tax 

return preparer community. An 

exemption for some tax return 

preparers, as requested in the 

comments, would allow the exempt 

individuals to prepare tax returns and 

claims for refund without identifying 

themselves to the IRS as tax return 

preparers and without undergoing 

competency examinations and 

suitability checks and being subject to 

enforceable rules of practice. 

b. Licensed Tax Return Preparers, Tax 

Return Preparers of Longstanding, and 

Those Who Prepare a Small Number of 

Tax Returns 

In the proposed regulations, no 

distinction was made between tax 

return preparers licensed by a state 

authority as tax return preparers and 

unlicensed tax return preparers. A 

number of comments were received 

from state-licensed tax return preparers, 

particularly from those who are 

Licensed Tax Preparers or Licensed Tax 

Consultants in Oregon. These comments 

almost uniformly requested that statelicensed tax return preparers be 

‘‘grandfathered’’ into the regulations and 

not be required to apply for a PTIN, 

renew an existing PTIN, or comply with 

requirements that the IRS may prescribe 

to obtain or renew a PTIN after 

December 31, 2010. Other commentators 

asked that the IRS consider an 

exemption from the regulations for tax 

return preparers who have been 

preparers for a certain period of years or 

who prepare annually a volume of tax 

returns below a certain (relatively small) 

number. Some commentators, however, 

were opposed to exemptions or 

grandfather provisions. 

The Report discussed at some length 

state licensing and regulation of tax 


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Federal Register / Vol. 75, No. 189 / Thursday, September 30, 2010 / Rules and Regulations 60311 

return preparers, including state-bystate descriptions, but in the Report’s 

recommendations, exemptions were not 

made for tax return preparers licensed 

or otherwise regulated under a state 

program. The Report also concluded 

that the IRS would not provide 

‘‘grandfather’’ exemptions based on 

experience in preparing tax returns. The 

proposed regulations, consistent with 

the Report’s recommendations, did not 

include any exemption for state-based 

licensure, length of experience, or 

number of tax returns prepared. 

After careful consideration of the 

comments received on this issue, the 

final regulations do not include any 

exemption for state-based licensure, 

length of experience, or number of tax 

returns prepared. The Treasury 

Department and the IRS conclude that 

tax return preparers who prepare tax 

returns and claims for refund for 

compensation should be subject to 

uniform standards of qualification and 

practice. When obtaining the services of 

a tax return preparation business, 

taxpayers should be assisted by tax 

return preparers subject to the same 

Federal regulations, regardless of a 

taxpayer’s state of residence or variable 

circumstances such as the size of the 

business or the number of years a tax 

return preparer has been in the industry. 

c. Volunteers and Other Unpaid Tax 

Return Preparers 

The proposed regulations did not 

include volunteers and other unpaid tax 

return preparers as tax return preparers 

required to obtain a PTIN. Consistent 

with the definition of a tax return 

preparer under section 7701(a)(36), 

which requires a compensation element 

for an individual to be a tax return 

preparer, the definition of tax return 

preparer in the proposed regulations 

excluded an individual described in 

§ 301.7701–15(f), which lists, among 

others, any individual who provides 

assistance in the preparation of tax 

returns as part of a Volunteer Income 

Tax Assistance (VITA), Tax Counseling 

for the Elderly (TCE), or Low-Income 

Taxpayer Clinic (LITC) program. Section 

301.7701–15(f)(1)(xii) also excludes 

from the definition of a tax return 

preparer anyone who prepares a tax 

return or claim for refund without an 

explicit or implicit agreement for 

compensation. An insubstantial gift, 

favor, or service received for the 

preparation of a tax return or refund 

claim is not considered compensation. 

Several commentators recommended 

that the final regulations require 

volunteer tax return preparers to obtain 

a PTIN. According to the commentators, 

putting volunteers under the regulations 

would provide several benefits, 

including increased tax compliance and 

improvement of the volunteer programs. 

Although commentators suggested that 

the PTIN and other requirements 

applicable to paid tax return preparers 

also apply to volunteers, it was noted 

that associated fees could be waived for 

volunteers. The comments also noted 

that extending the regulations to all tax 

return preparers who hold themselves 

out to the public as tax return preparers 

would unambiguously include 

individuals who prepare tax returns for 

customers purportedly for ‘‘free’’ but 

incident to a customer’s purchase of a 

product or other service. 

The final regulations adopt the same 

definition of tax return preparer as in 

the proposed regulations. The Treasury 

Department and the IRS conclude that 

the final regulations are properly 

limited to paid tax return preparers. The 

focus on paid tax return preparation in 

the Report and in these regulations is 

consistent with both the current reality 

of tax return preparation and applicable 

legal provisions, including § 301.7701– 

15(f). As noted by the figures in the 

Report, volunteer tax return preparers 

are a small fraction of all tax return 

preparers and the tax returns prepared 

by volunteers are a small fraction of all 

prepared tax returns. 

Only volunteers or other truly unpaid 

tax return preparers, however, are not 

tax return preparers for purposes of 

these regulations. As an example, 

individuals who prepare tax returns 

without compensation for relatives or 

friends as a personal favor are not 

within the definition of the term tax 

return preparer. 

The Treasury Department and the IRS 

conclude that arrangements for tax 

return preparation as part of a sales 

transaction are inherently agreements to 

prepare tax returns for compensation 

under these regulations, 

notwithstanding any claim by tax return 

preparers that the tax return or refund 

claim preparation is not separately 

compensated. No change in these 

regulations is necessary to reflect this 

result. As a result, an individual who, 

in connection with a sale of goods or 

services, prepares all or substantially all 

of a tax return or claim for refund filed 

after December 31, 2010, and who does 

not furnish a valid PTIN on the tax 

return or claim for refund may be liable 

for the section 6695(c) penalty, unless 

the failure to furnish a valid PTIN was 

due to reasonable cause and not due to 

willful neglect. 

d. Tax Return Preparation Software 

The proposed regulations did not 

specifically include any provisions on 

commercially available tax return 

preparation software or software 

developers. Several commentators 

expressed the concern that some tax 

return preparers use tax return 

preparation software to prepare multiple 

‘‘self-prepared’’ tax returns for clients in 

order to hide the tax return preparers’ 

involvement and avoid identifying 

themselves on the tax returns. The 

commentators proposed that the final 

regulations include limits on the 

purchase or use of software, such as a 

requirement built into the software to 

enter a PTIN to use the software to 

prepare more than one tax return. 

The final regulations do not include 

any provisions with respect to software. 

Software developers are not tax return 

preparers for purposes of these final 

regulations, and the regulation of 

software is beyond the scope of these 

amendments to § 1.6109–2. 

e. Requiring the Use of a PTIN After 

December 31, 2010 

Under the proposed regulations, the 

amendments to § 1.6109–2 would apply 

to tax returns and claims for refund filed 

after December 31, 2010. For tax returns 

and claims for refund filed before then, 

the existing provisions of § 1.6109–2 

apply. Some commentators questioned 

whether, as a matter of implementation, 

January 1, 2011, is a realistic date for the 

requirements of these regulations. The 

final regulations maintain the 

distinction between tax returns and 

claims for refund filed on or before 

December 31, 2010, and those filed after 

that date. To the extent a transitional 

period may be necessary, the Treasury 

Department and the IRS may, under 

§ 1.6109–2(h) of the final regulations, 

prescribe in other guidance interim 

procedures for tax return preparers to 

apply for a PTIN or register with the 

IRS. 

2. Eligibility To Receive a PTIN 

a. Foreign Tax Return Preparers 

The proposed regulations did not 

specifically address foreign tax return 

preparers who prepare tax returns or 

refund claims. A frequent question in 

the public comments was whether the 

regulations as proposed would apply to 

foreign tax return preparers. These 

commentators also asked whether 

foreign tax return preparers who do not 

have an SSN will be eligible for a PTIN. 

Currently, both Form W–7P, 

‘‘Application for Preparer Tax 

Identification Number,’’ and the existing 

online process at http://www.irs.gov that 

can be used to apply for a PTIN require 

an applicant to provide the applicant’s 

SSN. Many foreign tax return preparers 


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60312 Federal Register / Vol. 75, No. 189 / Thursday, September 30, 2010 / Rules and Regulations 

are uncertain as to how they will obtain 

a PTIN, if they are required to have a 

PTIN. 

The final regulations apply to tax 

return preparers regardless of United 

States or foreign citizenship or 

residency. The IRS will establish a 

process to obtain a PTIN for tax return 

preparers who do not have SSNs. The 

Treasury Department and the IRS intend 

to issue transitional guidance before 

December 31, 2010, which describes the 

process to obtain a PTIN for foreign and 

other tax return preparers who do not 

have SSNs. 

b. User Fees 

The proposed regulations provided 

that, in applying for a PTIN, tax return 

preparers must pay a user fee that the 

IRS prescribes in forms, instructions, or 

other guidance. The proposed 

regulations also provided for the IRS to 

prescribe the manner for renewing a 

PTIN, including the payment of a user 

fee. Some commentators objected to the 

proposed requirement of a user fee to 

obtain or renew a PTIN. Sole proprietors 

and small preparation firms commented 

that a user fee, combined with the 

potential costs of minimum competency 

testing and for continuing education, 

would materially increase their business 

expenses. 

The final regulations adopt the 

proposed provisions under which the 

IRS may prescribe requirements to 

apply for or renew a PTIN, including the 

payment of a user fee. By statute (31 

U.S.C. 9701), Congress authorized 

Federal agencies to establish user fees. 

The Treasury Department and the IRS 

will prescribe in regulations the 

requirement to pay a user fee, the 

amount of any fee, and the time and 

manner of payment. A user fee to obtain 

or renew a PTIN will be necessary to 

recover the costs that the IRS will incur 

to implement and administer the 

processes to apply for and renew a 

PTIN. The amount of a user fee will be 

reasonable and based on accepted 

methods of calculation that reflect the 

costs to the government, the value of the 

service to the recipient, the public 

policy or interest served, and other 

relevant factors. 

3. Terminology 

a. Preparation of All or Substantially All 

of a Tax Return or Claim for Refund 

The requirement to obtain a PTIN 

applies to individuals who for 

compensation prepare, or assist in 

preparing, all or substantially all of a tax 

return or claim for refund. Section 

1.6109–2(g) of the proposed regulations 

identified the following non-exclusive 

list of factors to determine whether an 

individual prepared or assisted in 

preparing all or substantially all of a tax 

return or claim for refund: 

The complexity of the work 

performed by the individual relative to 

the overall complexity of the tax return 

or claim for refund of tax; 

The amount of the items of income, 

deductions, or losses attributable to the 

work performed by the individual 

relative to the total amount of income, 

deductions, or losses required to be 

correctly reported on the tax return or 

claim for refund of tax; and 

The amount of tax or credit 

attributable to the work performed by 

the individual relative to the total tax 

liability required to be correctly 

reported on the tax return or claim for 

refund of tax. 

Examples are included in the 

proposed regulations to illustrate the 

provisions of paragraph (g). The final 

regulations retain these provisions, 

including the examples, consistent with 

the definition of a tax return preparer 

adopted in paragraph (g) of the final 

regulations. As explained, this 

definition of tax return preparer for 

purposes of these regulations is 

necessary for meaningful oversight of 

tax return preparation. The factors in 

paragraph (g) provide guidance for 

applying the test of whether an 

individual has prepared or assisted with 

preparing all or substantially all of a tax 

return or claim for refund. Paragraph (g) 

of the final regulations, however, also 

adds a sentence not in the proposed 

regulations to clarify that the 

preparation of a form, statement, or 

schedule, such as Schedule EIC (Form 

1040), ‘‘Earned Income Credit,’’ may 

constitute the preparation of all or 

substantially all of a tax return or claim 

for refund based on the application of 

the factors in paragraph (g). 

Paragraph (h) of the final regulations 

clarifies that the IRS may specify in 

other appropriate guidance the returns, 

schedules, and other forms to which 

these regulations will apply. 

b. Registered Tax Return Preparers 

As provided in the proposed 

regulations, to obtain a PTIN or other 

prescribed identifying number, a tax 

return preparer must be an attorney, 

certified public accountant, enrolled 

agent, or registered tax return preparer 

authorized to practice before the IRS 

under 31 U.S.C. 330 and Circular 230. 

This requirement will apply after 

December 31, 2010, unless the IRS 

prescribes exceptions, such as for a 

transitional period, as necessary for 

effective tax administration. A number 

of the comments noted a concern that 

the term registered tax return preparer 

is likely to cause confusion in the 

marketplace for tax return preparation. 

The commentators are concerned that 

this designation for a certain group of 

tax return preparers, when listed with 

attorneys, certified public accountants, 

and enrolled agents, may lead the public 

to mistakenly infer that registered tax 

return preparers have credentials and 

qualifications similar to those of 

attorneys, certified public accountants, 

and enrolled agents. Several 

commentators observed that some 

registered tax return preparers might 

even attempt to exploit this confusion to 

their commercial advantage. To avoid 

the potential for misperception, the 

commentators advocate that the IRS 

explain the distinctions between 

registered tax return preparers and other 

practitioners authorized to practice 

before the IRS under Circular 230. At 

least one commentator also 

recommended changing the term to 

‘‘authorized tax return preparers.’’ 

The final regulations adopt the term 

registered tax return preparer. The 

Treasury Department and the IRS 

conclude that the term does not 

reasonably imply that registered tax 

return preparers are authorized to 

practice law or certified public 

accountancy or act as enrolled agents or 

that the term will cause material 

confusion or misunderstanding by the 

public. 

The role of registered tax return 

preparers and their authority to practice 

before the IRS will be addressed in 

amendments to Circular 230. The 

requirements and process to become a 

registered tax return preparer will be set 

forth in forms, instructions, and other 

appropriate guidance. In that regard, 

some commentators that employ tax 

return preparers requested that the IRS 

allow the employers to mass register 

their employees (with a means for 

employers to subsequently validate 

through the IRS an employee’s standing 

as a registered tax return preparer with 

a current PTIN). The purpose of these 

final regulations, however, is not to 

provide guidance on the specific 

process for registration. 

Special Analyses 

It has been determined that these final 

regulations are not a significant 

regulatory action as defined in 

Executive Order 12866. Therefore, a 

regulatory assessment is not required. It 

has also been determined that section 

553(b) of the Administrative Procedure 

Act (5 U.S.C. chapter 5) does not apply 

to these regulations. 

It has been determined that a final 

regulatory flexibility analysis under 5 


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Federal Register / Vol. 75, No. 189 / Thursday, September 30, 2010 / Rules and Regulations 60313 

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 submitted 

comments on the notice of proposed 

rulemaking, which are discussed 

elsewhere in this preamble. 

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 for 

tax administration. The final regulations 

are needed to identify tax return 

preparers and the tax returns and claims 

for refund that they prepare, to aid the 

IRS’s oversight of tax return preparers, 

and to administer requirements 

intended to ensure that tax return 

preparers are competent, trained, and 

conform to rules of practice. Mandating 

a single type of identifying number for 

all tax return preparers and assigning a 

prescribed identifying number to 

registered tax return preparers is critical 

to effective oversight. 

Taxpayers’ reliance on paid tax return 

preparers has grown steadily in recent 

decades, and a large number of U.S. 

taxpayers rely on paid tax return 

preparers for assistance in meeting the 

taxpayers’ income tax filing obligations. 

Beyond preparing tax returns, tax return 

preparers also help educate taxpayers 

about the tax laws and facilitate 

electronic filing. Tax return preparers 

provide advice to taxpayers, identify 

items or issues for which the law or 

guidance is unclear, and inform 

taxpayers of the benefits and risks of 

positions taken on a tax return, and the 

tax treatment or reporting of items and 

transactions. Competent tax return 

preparers who are well educated in the 

rules and subject matter of their field 

can prevent costly errors, potentially 

saving a taxpayer from unwanted 

problems later on and relieving the IRS 

from expending valuable examination 

and collection resources. 

Given the important role that tax 

return preparers play in Federal tax 

administration, the IRS has a significant 

interest in being able to accurately 

identify tax return preparers and 

monitor their tax return preparation 

activities. The final regulations, 

therefore, enable the IRS to more 

accurately identify tax return preparers 

and improve the IRS’s ability to 

associate filed tax returns and refund 

claims with the responsible tax return 

preparer. The final regulations are 

intended to accomplish this result, and 

thereby advance tax administration, by 

requiring all individuals who are paid to 

prepare all or substantially all of a tax 

return or claim for refund of tax to 

obtain a preparer identifying number 

prescribed by the IRS. Pursuant to the 

final regulations, the IRS will require 

individuals who sign tax returns or 

claims for refund to furnish the tax 

return preparer’s PTIN on a tax return 

or claim for refund when the return or 

refund claim is signed. The final 

regulations also provide that the IRS 

may require tax return preparers to 

apply for, and regularly renew, their 

PTINs. Under the final regulations, the 

IRS may prescribe a user fee payable 

when applying for a number and for 

renewal. 

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 

The IRS did not receive specific 

comments from the public responding 

to the initial regulatory flexibility 

analysis in the proposed regulations that 

preceded these final regulations. The 

IRS did receive comments from the 

public on the proposed amendments to 

§ 1.6109–2. A summary of the comments 

is set forth elsewhere in this preamble, 

along with the Treasury Department’s 

and the IRS’s assessment of the issues 

raised in the comments and descriptions 

of any revisions resulting from 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 apply to 

individuals who prepare tax returns and 

claims for refund of tax. The estimated 

number of paid tax return preparers is 

as high as 1.2 million, which means the 

final regulations are likely to impact a 

large number of individuals. Most paid 

tax return preparers are employed by 

firms. A substantial number of paid tax 

return preparers are employed at small 

tax return preparation firms or are selfemployed tax return preparers. Any 

economic impact of these regulations on 

small entities generally will be on selfemployed tax return preparers who 

prepare and sign tax returns or on small 

businesses that employ one or more 

individuals who prepare tax returns. 

The appropriate NAICS codes for 

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 

SBA’s 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 SBA’s 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 final 

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 

The final regulations do not directly 

impose any reporting, recordkeeping, or 

similar requirements on any small 

entities. Rather, the final regulations 

provide that the IRS may prescribe in 

forms, instructions, or other guidance 

(including regulations) requirements for 

PTINs issued to tax return preparers, 

regular renewal of PTINs, and payment 

of a user fee when applying for or 

renewing a PTIN. In addition, other 

guidance may require certain tax return 

preparers to complete competency 

testing, complete continuing education 


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60314 Federal Register / Vol. 75, No. 189 / Thursday, September 30, 2010 / Rules and Regulations 

courses, and adhere to established rules 

of practice governing attorneys, certified 

public accountants, enrolled agents, 

enrolled actuaries, and enrolled 

retirement plan agents. 

Applying for a PTIN and subsequent 

renewal will require reporting of certain 

information, but they are not expected 

to require recordkeeping. No particular 

or special professional skills will be 

necessary. These activities also will not 

require the purchase or use of any 

special business equipment or software. 

To the extent it will be necessary to 

apply for a PTIN (or similar identifying 

number that may subsequently replace a 

PTIN) online at http://www.irs.gov, most 

if not all tax return preparation 

businesses have computers and Internet 

access. The IRS estimates that applying 

for a PTIN will take 10 to 20 minutes 

per individual, with an average of 15 

minutes per individual. 

Under amendments to Circular 230 

that the IRS will issue to implement 

recommendations in the Report, tax 

return preparers who apply to be 

registered tax return preparers and who 

regularly renew their status may be 

subject to recordkeeping requirements 

because they may be required to 

maintain specified records, such as 

documentation and educational 

materials relating to completion of 

continuing education courses. These 

requirements do not involve any 

specific professional skills other than 

general recordkeeping abilities already 

needed to own and operate a small 

business or to competently act as a tax 

return preparer. It is estimated that tax 

return preparers will annually spend 

approximately 30 minutes to 1 hour in 

maintaining records relating to the 

continuing education requirements, 

depending on individual circumstances. 

A separate regulation addressing 

reasonable user fees has been proposed. 

Tax return preparers may be required to 

pay a user fee when first applying for a 

PTIN and at every renewal. Small 

entities may be affected by these costs 

if the entities choose to pay some or all 

of these fees for their employees. 

Under the amendments to Circular 

230, tax return preparers may also incur 

costs for commercial continuing 

education courses and minimum 

competency examinations, plus 

incidental costs, such as for travel and 

accommodations, in order to maintain 

their status as registered tax return 

preparers under Circular 230. Course 

prices can vary greatly, from free to 

hundreds of dollars. Many small tax 

return preparation firms may choose, as 

with the user fee, to bear these costs for 

their employees. In some cases, small 

entities may lose sales and profits while 

their employed tax return preparers 

attend training or educational classes or 

are studying and sitting for 

examinations. Some small entities that 

employ tax return preparers may even 

need to alter their business operations if 

a significant number of their employees 

cannot satisfy the necessary registration 

and competency requirements. The 

Treasury Department and the IRS 

conclude, however, that only a small 

percentage of small entities, if any, may 

need to cease doing business or 

radically change their business model 

due to the final regulations. 

Although each of the reporting and 

recordkeeping requirements and the 

costs identified above (in connection 

with the final regulations and the other 

anticipated guidance necessary to 

implement the Report) is not expected 

to singly result in a significant economic 

impact, taken together it is anticipated 

that they may have a significant 

economic impact on a substantial 

number of small entities. 

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 that 

would enable the IRS to accurately 

identify tax return preparers, other than 

through the use of a PTIN, as provided 

in the regulations. 

The Treasury Department and the IRS 

considered alternatives at multiple 

points. These final regulations are, in 

large measure, an outgrowth of, and in 

part carry out, the Report, which 

extensively reviewed different 

approaches to improving how the IRS 

oversees and interacts with tax return 

preparers. As part of the Report, the IRS 

received a large volume of comments on 

the issue of increased oversight of tax 

return preparers generally and on the 

proposed recommendation requiring tax 

return preparers to use a uniform 

prescribed identifying number. The 

comments were received from all 

categories of interested stakeholders, 

including tax professional groups 

representing large and small entities, 

IRS advisory groups, tax return 

preparers, and the public. The input 

received from this large and diverse 

community overwhelmingly expressed 

support for the proposed requirements. 

Among the alternatives contemplated 

at the time were: 

(1) Requiring all paid tax return 

preparers to comply with the ethical 

standards in Circular 230 or an ethics 

code similar to Circular 230, but not 

requiring any paid preparers to 

demonstrate their qualification and 

competency; 

(2) Requiring tax return preparers who 

are not currently authorized to practice 

before the IRS to register with the IRS, 

complete annual continuing education 

requirements, and meet certain ethical 

standards, but not to pass a minimum 

competency examination; 

(3) Requiring all paid tax return 

preparers to pass a minimum 

competency examination and meet 

other registration requirements; and 

(4) Requiring all paid tax return 

preparers who are not currently 

authorized to practice before the IRS to 

pass a minimum competency 

examination and meet other registration 

requirements, but ‘‘grandfather in’’ tax 

return preparers who have accurately 

and competently prepared tax returns 

for a certain period of years. 

These and other issues were raised in 

the public comments to the proposed 

regulations and were carefully 

considered in developing the final 

regulations. After consideration of all of 

the various alternatives and the 

responses received in the public 

comment process, the Treasury 

Department and the IRS conclude that 

the provisions of the final regulations 

will most effectively promote sound tax 

administration. Establishing a single, 

prescribed identifying number for tax 

return preparers will enable the IRS to 

accurately identify tax return preparers, 

match preparers with the tax returns 

and claims for refund they prepare, and 

better administer the tax laws with 

respect to tax return preparers and their 

clients. 

Under the final regulations and the 

additional guidance described, the IRS 

will establish a process intended to 

assign PTINs only to qualified, 

competent, and ethical tax return 


jdjones on DSK8KYBLC1PROD with RULES
Federal Register / Vol. 75, No. 189 / Thursday, September 30, 2010 / Rules and Regulations 60315 

preparers. The testing requirements that 

may be set forth in other guidance will 

establish a benchmark of minimum 

competency necessary for tax return 

preparers to obtain their professional 

credentials, while the purpose of the 

continuing education provisions is to 

require tax return preparers to remain 

current on the Federal tax laws and 

continue to develop their tax 

knowledge. The extension in other, 

prospective guidance of the rules in 

Circular 230 to any paid tax return 

preparer will require all practitioners to 

meet certain ethical standards and allow 

the IRS to suspend or otherwise 

appropriately discipline tax return 

preparers who engage in unethical or 

disreputable conduct. Accordingly, the 

implementation of qualification and 

competency standards is expected to 

increase tax compliance and allow 

taxpayers to be confident that the tax 

return preparers to whom they turn for 

assistance are knowledgeable, skilled, 

and ethical. 

Drafting Information 

The principal author of these final 

regulations is Stuart Murray of the 

Office of the Associate Chief Counsel, 

Procedure and Administration. 

List of Subjects 

26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

26 CFR Part 602 

Reporting and recordkeeping 

requirements. 

Adoption of Amendments to the 

Regulations 

■ Accordingly, 26 CFR part 1 is 

amended as follows: 

PART 1—INCOME TAXES 

■ Paragraph 1. The authority citation 

for part 1 continues to read in part as 

follows: 

Authority: 26 U.S.C. 7805 * * * 

Section 1.6109–2 also issued under 26 

U.S.C. 6109(a). * * * 

■ Par. 2. Section 1.6109–2 is amended 

by revising the section heading, revising 

paragraphs (a)(2) and (d), and adding 

paragraphs (e), (f), (g), (h), and (i) to read 

as follows: 

§ 1.6109–2 Tax return preparers furnishing 

identifying numbers for returns or claims 

for refund and related requirements. 

(a) * * * 

(2)(i) For tax returns or claims for 

refund filed on or before December 31, 

2010, the identifying number of an 

individual tax return preparer is that 

individual’s social security number or 

such alternative number as may be 

prescribed by the Internal Revenue 

Service in forms, instructions, or other 

appropriate guidance. 

(ii) For tax returns or claims for 

refund filed after December 31, 2010, 

the identifying number of a tax return 

preparer is the individual’s preparer tax 

identification number or such other 

number prescribed by the Internal 

Revenue Service in forms, instructions, 

or other appropriate guidance. 

* * * * * 

(d) Beginning after December 31, 

2010, all tax return preparers must have 

a preparer tax identification number or 

other prescribed identifying number 

that was applied for and received at the 

time and in the manner, including the 

payment of a user fee, as may be 

prescribed by the Internal Revenue 

Service in forms, instructions, or other 

appropriate guidance. Except as 

provided in paragraph (h) of this 

section, beginning after December 31, 

2010, to obtain a preparer tax 

identification number or other 

prescribed identifying number, a tax 

return preparer must be an attorney, 

certified public accountant, enrolled 

agent, or registered tax return preparer 

authorized to practice before the 

Internal Revenue Service under 31 

U.S.C. 330 and the regulations 

thereunder. 

(e) The Internal Revenue Service may 

designate an expiration date for any 

preparer tax identification number or 

other prescribed identifying number and 

may further prescribe the time and 

manner for renewing a preparer tax 

identification number or other 

prescribed identifying number, 

including the payment of a user fee, as 

set forth in forms, instructions, or other 

appropriate guidance. The Internal 

Revenue Service may provide that any 

identifying number issued by the 

Internal Revenue Service prior to the 

effective date of this regulation will 

expire on December 31, 2010, unless 

properly renewed as set forth in forms, 

instructions, or other appropriate 

guidance, including these regulations. 

(f) As may be prescribed in forms, 

instructions, or other appropriate 

guidance, the IRS may conduct a 

Federal tax compliance check on a tax 

return preparer who applies for or 

renews a preparer tax identification 

number or other prescribed identifying 

number. 

(g) Only for purposes of paragraphs 

(d), (e), and (f) of this section, the term 

tax return preparer means any 

individual who is compensated for 

preparing, or assisting in the 

preparation of, all or substantially all of 

a tax return or claim for refund of tax. 

Factors to consider in determining 

whether an individual is a tax return 

preparer under this paragraph (g) 

include, but are not limited to, the 

complexity of the work performed by 

the individual relative to the overall 

complexity of the tax return or claim for 

refund of tax; the amount of the items 

of income, deductions, or losses 

attributable to the work performed by 

the individual relative to the total 

amount of income, deductions, or losses 

required to be correctly reported on the 

tax return or claim for refund of tax; and 

the amount of tax or credit attributable 

to the work performed by the individual 

relative to the total tax liability required 

to be correctly reported on the tax return 

or claim for refund of tax. The 

preparation of a form, statement, or 

schedule, such as Schedule EIC (Form 

1040), ‘‘Earned Income Credit,’’ may 

constitute the preparation of all or 

substantially all of a tax return or claim 

for refund based on the application of 

the foregoing factors. A tax return 

preparer does not include an individual 

who is not otherwise a tax return 

preparer as that term is defined in 

§ 301.7701–15(b)(2), or who is an 

individual described in § 301.7701– 

15(f). The provisions of this paragraph 

(g) are illustrated by the following 

examples: 

Example 1. Employee A, an individual 

employed by Tax Return Preparer B, assists 

Tax Return Preparer B in answering 

telephone calls, making copies, inputting 

client tax information gathered by B into the 

data fields of tax preparation software on a 

computer, and using the computer to file 

electronic returns of tax prepared by B. 

Although Employee A must exercise 

judgment regarding which data fields in the 

tax preparation software to use, A does not 

exercise any discretion or independent 

judgment as to the clients’ underlying tax 

positions. Employee A, therefore, merely 

provides clerical assistance or incidental 

services and 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. 

Example 2. The facts are the same as in 

Example 1, except that Employee A also 

interviews B’s clients and obtains from them 

information needed for the preparation of tax 

returns. Employee A determines the amount 

and character of entries on the returns and 

whether the information provided is 

sufficient for purposes of preparing the 

returns. For at least some of B’s clients, A 

obtains information and makes 

determinations that constitute all or 

substantially all of the tax return. Employee 

A is a tax return preparer required to apply 

for a PTIN or other identifying number as the 

Internal Revenue Service may prescribe in 


jdjones on DSK8KYBLC1PROD with RULES
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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