User Fees Relating to Enrolled Agents and Enrolled Retirement Plan Agents, 76940-76943 [2010-31033]
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Federal Register / Vol. 75, No. 237 / Friday, December 10, 2010 / Proposed Rules
Tier 3 defense articles are those that
provide a significant military or
intelligence advantage, or make a
significant contribution to the
indigenous development, production,
use, or enhancement of a Tier 1, 2, or
3 item.
For defense articles currently
controlled on the USML, the public is
asked to identify the items they believe
do not fall within the scope of any of the
criteria’s tiers and explain why they
believe such items are not within the
scope of the criteria. These items may be
candidates to be moved to the CCL.
Items controlled pursuant to
multilateral agreement, i.e., the
Wassenaar Arrangement, the Missile
Technology Control Regime, the
Australia Group, the Chemical Weapons
Convention, and the Nuclear Suppliers
Group, that do not meet the availability
or ‘‘military or intelligence advantage’’
control criteria in Tiers 1, 2 or 3 will be
identified by the U.S. Government as
Tier 3 items until and unless their
control status is adjusted consistent
with the procedures of the applicable
multilateral agreement.
The following are definitions of
several of the key terms and phrases
used in the tiered criteria set forth
above. The term ‘‘almost exclusively
available’’ means that the item is only
available from a very small number of
other countries that have in place
effective export controls on the item.
The term ‘‘critical’’ means providing a
capability with respect to which the
United States cannot afford to fall to
parity and that would pose a grave
threat to national security if not
controlled (i.e., a ‘‘crown jewel’’).
Examples of ‘‘grave threat to national
security’’ include: Armed hostilities
against the United States or its allies;
disruption of foreign relations vitally
affecting the national security; the
compromise of vital national defense
plans or complex crypto-logic and
communications intelligence systems;
the revelation of sensitive intelligence
operations; the disclosure of scientific
or technological developments vital to
national security; or critical assistance
to foreign development and/or
acquisition of WMD.
The term ‘‘substantial’’ means
providing a capability with respect to
which the United States must maintain
parity and that would pose a serious
threat to national security if not
controlled. Examples of a ‘‘serious threat
to the national security’’ include:
Disruption of foreign relations
significantly affecting the national
security; significant impairment of a
program or policy directly related to the
national security; revelation of
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significant military plans or intelligence
operations; compromise of scientific or
technological developments relating to
national security; or substantial
assistance to foreign development or
acquisition of a WMD.
The term ‘‘significant’’ means
providing a capability that could be
reasonably expected to cause damage to
national security if not controlled.
Dated: November 30, 2010.
Ellen O. Tauscher,
Under Secretary, Arms Control and
International Security, Department of State.
On page 75442, in the preamble,
column 2, under the heading
‘‘Comments and Public Hearing’’, line 17
from the bottom of the page, the
language ‘‘for Tuesday, January 7, 2011
at 10 a.m.’’ is corrected to read ‘‘for
Friday, January 7, 2011 at 10 a.m.’’
Guy Traynor,
Federal Register Liaison, Publications and
Regulations Branch, Legal Processing
Division, Associate Chief Counsel (Procedure
and Administration).
[FR Doc. 2010–31028 Filed 12–9–10; 8:45 am]
BILLING CODE 4830–01–P
[FR Doc. 2010–30994 Filed 12–8–10; 4:15 pm]
BILLING CODE 4710–25–P
DEPARTMENT OF THE TREASURY
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 300
Internal Revenue Service
[REG–124018–10]
26 CFR Parts 1 and 301
RIN 1545–BJ65
[REG–100194–10]
User Fees Relating to Enrolled Agents
and Enrolled Retirement Plan Agents
RIN 1545–BJ52
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of proposed rulemaking
and notice of public hearing.
Specified Tax Return Preparers
Required To File Individual Income Tax
Returns Using Magnetic Media;
Correction
AGENCY:
Internal Revenue Service (IRS),
Treasury.
ACTION: Correction to notice of proposed
rulemaking and notice of public
hearing.
SUMMARY:
AGENCY:
This document contains a
correction to a notice of proposed
rulemaking (REG–100194–10) that was
published in the Federal Register on
Friday, December 3, 2010 (75 FR 75439).
The proposed regulations provide
further guidance relating to the
requirement for ‘‘specified tax return
prepares,’’.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Keith L. Brau at (202) 622–4940 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The notice of proposed rulemaking
that is the subject of this document is
under section 6011 of the Internal
Revenue Code.
Need for Correction
As published, the notice of proposed
rulemaking (REG–100194–10) contains
an error that is misleading and is in
need of clarification.
Correction to Publication
Accordingly, the notice of proposed
rulemaking which was the subject of FR
Doc. 2010–30500 is corrected as follows:
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This document contains
proposed amendments to the
regulations relating to the imposition of
user fees for enrolled agents and
enrolled retirement plan agents. The
proposed regulations separate the
enrolled retirement plan agent user fees
from the enrolled agent user fees and
lower the initial enrollment and renewal
of enrollment fees for enrolled agents
and enrolled retirement plan agents.
The proposed regulations affect
individuals who are or apply to become
enrolled agents or enrolled retirement
plan agents. The charging of user fees is
authorized by the Independent Offices
Appropriations Act of 1952.
DATES: Written or electronic comments
must be received by January 10, 2011.
Outlines of topics to be discussed at the
public hearing scheduled for January 14,
2011, at 10 a.m. must be received by
January 5, 2011.
ADDRESSES: Send submissions to:
CC:PA:LPD:PR (REG–124018–10), room
5205, Internal Revenue Service, PO Box
7604, Ben Franklin Station, Washington,
DC 20044. Submissions may be handdelivered Monday through Friday
between the hours of 8 a.m. and 4 p.m.
to CC:PA:LPD:PR (REG–124018–10),
Courier’s Desk, Internal Revenue
Service, 1111 Constitution Avenue,
NW., Washington, DC or sent
electronically via the Federal
eRulemaking Portal at https://
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Federal Register / Vol. 75, No. 237 / Friday, December 10, 2010 / Proposed Rules
www.regulations.gov (IRS REG–124018–
10). The public hearing will be held in
the IRS Auditorium, Internal Revenue
Building, 1111 Constitution Avenue,
NW., Washington, DC.
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations,
Emily M. Lesniak at (202) 622–4570;
concerning cost methodology, Eva J.
Williams at (202) 435–5514; concerning
submission of comments, the public
hearing, or to be placed on the building
access list to attend the public hearing,
Richard A. Hurst at
Richard.A.Hurst@irscounsel.treas.gov or
(202) 622–7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
jdjones on DSK8KYBLC1PROD with PROPOSALS-1
Background and Explanation of
Provisions
Section 330 of title 31 of the United
States Code authorizes the Secretary of
the Treasury to regulate the practice of
representatives before the Treasury
Department. Pursuant to section 330 of
title 31, the Secretary has published
regulations governing practice before
the IRS in 31 CFR part 10 and reprinted
the regulations as Treasury Department
Circular No. 230 (Circular 230). Circular
230 is administered by the IRS Office of
Professional Responsibility (OPR).
Section 10.4(a) of Circular 230
authorizes the Director of OPR to grant
status as an enrolled agent to applicants
who demonstrate special competence in
tax matters by passing a written
examination administered by, or
administered under the oversight of, the
Director of OPR and who have not
engaged in any conduct that would
justify suspension or disbarment under
Circular 230. Every year OPR develops
and administers a Special Enrollment
Examination (SEE) that individuals
must pass to become an enrolled agent
through examination.
Section 10.4(b) of Circular 230
authorizes the Director of OPR to grant
status as an enrolled retirement plan
agent to applicants who demonstrate
special competence in qualified
retirement plan matters by passing a
written examination administered by, or
under the oversight of, the Director of
OPR and who have not engaged in any
conduct that would justify suspension
or disbarment under Circular 230. Every
year OPR develops and administers an
Enrolled Retirement Plan Agent Special
Enrollment Examination (ERPA–SEE)
that individuals must pass to become an
enrolled retirement plan agent through
examination.
Section 10.4(b) also authorizes the
Director of OPR to grant full or limited
enrollment as an enrolled agent or full
enrollment as an enrolled retirement
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plan agent to a former IRS employee if
the former employee has not engaged in
any conduct that would justify the
suspension or disbarment of any
practitioner under the provisions of
Circular 230 and the employee meets
certain other requirements. These
requirements include minimum length
of employment with the IRS and
substantive tax expertise. Application
for enrollment based on former
employment with the IRS must be made
within three years from the date of
separation from such employment and
the applicant is not required to pass the
SEE or the ERPA–SEE, unless a former
employee who previously was granted
limited enrollment status wants to
qualify for full enrollment.
Once eligible for enrollment as an
enrolled agent or enrolled retirement
plan agent, whether by examination or
former employment with the IRS, an
individual must file an application for
enrollment with the Director of OPR. An
individual granted status as an enrolled
agent or enrolled retirement plan agent
as provided in § 10.6(d) must renew
enrollment every three years to maintain
active enrollment and be able to practice
before the IRS. In order to qualify for
renewal, an applicant must certify the
completion of the continuing education
requirements set forth in § 10.6(e) of
Circular 230 and compliance with
certain ethical standards in Circular 230
and State regulatory agencies.
As part of the application to become
an enrolled agent or enrolled retirement
plan agent, an individual must currently
pay a nonrefundable user fee of $125.
This user fee is authorized under
§ 300.5. An individual also must pay a
$125 nonrefundable user fee to renew
enrollment, which is authorized under
§ 300.6. An individual must renew
enrollment every three years. In
addition, a user fee of $11 per part is
currently imposed to take the SEE or the
ERPA–SEE. The user fee to take the SEE
and ERPA–SEE is currently authorized
under § 300.4.
The proposed regulations coordinate
the user fees imposed on enrolled agents
and enrolled retirement plan agents
with the new user fee to apply for or
renew a preparer tax identification
number (PTIN). The Treasury
Department and the IRS are
implementing recommendations in
Publication 4832, ‘‘Return Preparer
Review,’’ which was published on
January 4, 2010. Based on these
recommendations, the Treasury
Department and the IRS recently
published final regulations under
section 6109 (TD 9501, 75 FR 60309,
September 30, 2010) that require tax
return preparers who prepare all or
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76941
substantially all of a tax return or claim
for refund for compensation to obtain a
PTIN. Individuals applying for or
renewing a PTIN are required to pay a
$50 IRS user fee and a $14.25 vendor
fee. The final regulations establishing
the IRS user fee to apply for or renew
a PTIN were published on September
30, 2010 (TD 9503).
The process for reviewing an enrolled
agent or an enrolled retirement plan
agent initial enrollment or renewal of
enrollment application is, in some ways,
duplicative of the new process for
reviewing a PTIN application. For
example, the tax compliance checks and
suitability checks conducted as part of
a PTIN application are the same tax
compliance checks and suitability
checks currently performed as part of
the process for becoming an enrolled
agent or enrolled retirement plan agent.
To avoid any potential duplication and
unnecessary expense for individuals
applying to become an enrolled agent or
an enrolled retirement plan agent, the
Treasury Department and the IRS intend
to require all enrolled agents and
enrolled retirement plan agents to
obtain a PTIN. The Treasury Department
and the IRS further intend to eliminate
the tax compliance checks and
suitability checks from the initial
enrollment and renewal of enrollment
process for enrolled agents and enrolled
retirement plan agents because these
checks will be performed as part of the
requirement to obtain a PTIN. Thus, the
Treasury Department and the IRS are
eliminating the portion of the initial
enrollment and renewal of enrollment
user fees that recover the costs to
perform the tax compliance checks and
suitability checks (and any other review
conducted as part of the PTIN
application process).
Accordingly, the proposed regulations
separate the initial enrollment and
renewal of enrollment user fees imposed
on enrolled agents from the initial
enrollment and renewal of enrollment
user fees imposed on enrolled
retirement plan agents, which are all
currently imposed in §§ 300.5 and
300.6. (The proposed regulations also
separate the user fee to take the ERPA–
SEE to become an enrolled retirement
plan agent from the user fee to take the
SEE to become an enrolled agent, which
are both currently imposed in § 300.4.)
The proposed regulations also reduce
both the enrolled agent and enrolled
retirement plan agent initial enrollment
and renewal of enrollment user fees to
reflect that the review procedures
(including tax compliance checks and
suitability checks), previously
conducted as part of the enrolled agent
and enrolled retirement plan agent
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Federal Register / Vol. 75, No. 237 / Friday, December 10, 2010 / Proposed Rules
jdjones on DSK8KYBLC1PROD with PROPOSALS-1
initial enrollment and renewal of
enrollment processes, will now be
conducted as part of the PTIN
application and renewal process. In
particular, the proposed regulations
amend § 300.5 to reduce the enrolled
agent initial enrollment user fee to $30
and § 300.6 to reduce the enrolled agent
renewal of enrollment user fee to $30.
The enrolled retirement plan agent
initial enrollment user fee is found in
proposed § 300.10 and is $30. The
enrolled retirement plan agent renewal
of enrollment user fee is found in
proposed § 300.11 and also is $30.
The initial enrollment and renewal of
enrollment user fees imposed on
enrolled agents and enrolled retirement
plan agents in the proposed regulations
reflect only the costs of the review
processes that are not conducted as part
of the PTIN application or renewal
processes. The costs include processing
the enrolled agent and enrolled
retirement plan agent initial enrollment
and renewal of enrollment applications,
processing the accompanying user fees,
and conducting a search for any
violations of professional rules and
standards of conduct.
Authority
The Independent Offices
Appropriations Act (IOAA) of 1952,
which is codified at 31 U.S.C. 9701,
authorizes agencies to prescribe
regulations that establish charges for
services provided by the agency, which
includes charging user fees. 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 Office of Management
and Budget Circular A–25, 58 FR 38142
(July 15, 1993) (the OMB Circular).
The OMB Circular encourages user
fees for government-provided services
that confer benefits on identifiable
recipients over and above those benefits
received by the general public. Under
the OMB Circular, an agency that seeks
to impose a user fee for governmentprovided services must calculate the full
cost of providing those services. In
general, a user fee should be set at an
amount that allows the agency to
recover the full cost of providing the
special service, unless the Office of
Management and Budget grants an
exception.
Pursuant to the guidelines in the OMB
Circular, the IRS has calculated its cost
of providing services under the enrolled
agent and enrolled retirement plan agent
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program and PTIN application process.
The full cost of administering these
programs will be charged and the
proposed user fees will be implemented
under the authority of the IOAA and the
OMB Circular.
Proposed Effective/Applicability Date
The Administrative Procedure Act
provides that substantive rules 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.
The Treasury Department and the IRS
recently finalized regulations that
require all tax return preparers who
prepare all or substantially all of a tax
return or claim for refund for
compensation to use a PTIN as their
identifying number (TD 9501). The
Treasury Department and the IRS also
finalized regulations that require tax
return preparers to pay a $64.25 user fee
to apply for or renew a PTIN (TD 9503,
75 FR 60316, September 30, 2010). Tax
return preparers who prepare all or
substantially all of a tax return or claim
for refund must obtain or renew their
PTIN for the 2011 tax season.
Circular 230 requires that, to maintain
active enrollment to practice before the
IRS, enrolled agents must renew
enrollment every third year after initial
enrollment is granted. The renewal
schedules are staggered with
approximately one third of enrolled
agents renewing every year. Enrolled
agents with social security numbers or
tax identification numbers ending in 4,
5, or 6 are currently scheduled to renew
their enrollment beginning on
November 1, 2010 and ending on
January 31, 2011. To enable these
enrolled agents to renew their
enrollment at the reduced fee, the IRS
issued Announcement 2010–81 on
October 14, 2010, which delayed the
renewal period for enrolled agents with
social security numbers or tax
identification numbers ending in 4, 5, or
6. The renewal process cannot be
reinstated until this regulation is
finalized; otherwise, these enrolled
agents will pay twice for the IRS to
perform the compliance and suitability
checks. To minimize the disruption to
the enrolled agent program caused by
the delay of renewal, the renewal
process must be reinstated 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.
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Special Analyses
It has been determined that this notice
of proposed rulemaking is not a
significant regulatory action as defined
in Executive Order 12866. It is hereby
certified that this regulation will not
have a significant economic impact on
a substantial number of small entities.
Accordingly, a regulatory flexibility
analysis is not required. This
certification is based upon the
information that follows. The proposed
regulation does not place an additional
filing requirement on enrolled agents or
enrolled retirement plan agents and
decreases the enrollment costs already
in effect. Thus, this regulation should
reduce the economic impact imposed by
the current enrolled agent and enrolled
retirement plan agent user fees.
Pursuant to section 7805(f) of the
Code, this notice of proposed
rulemaking has been submitted to the
Chief Counsel for Advocacy of the Small
Business Administration for comment
on its impact on small business.
Comments and Public Hearing
Before these proposed regulations are
adopted as final regulations,
consideration will be given to any
written (a signed original and eight (8)
copies) or electronic comments that are
submitted timely to the IRS. The
Treasury Department and the IRS
request comments on the clarity of the
proposed regulations and how they can
be made easier to understand. All
comments will be available for public
inspection and copying.
A public hearing has been scheduled
for January 14, 2011, beginning at 10
a.m. in the IRS Auditorium, Internal
Revenue Building, 1111 Constitution
Avenue, NW., Washington, DC. Due to
building security procedures, visitors
must enter at the Constitution Avenue
entrance. All visitors must present
photo identification to enter the
building. Because of access restrictions,
visitors will not be admitted beyond the
immediate entrance area more than 30
minutes before the hearing starts. For
information about having your name
placed on the building access list to
attend the hearing, see the FOR FURTHER
INFORMATION CONTACT section of this
preamble.
The rules of 26 CFR 601.601(a)(3)
apply to the hearing. Persons who wish
to present oral comments at the hearing
must submit written or electronic
comments and an outline of the topics
to be discussed and the time to be
devoted to each topic by January 5,
2011. A period of 10 minutes will be
allocated to each person for making
comments.
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Federal Register / Vol. 75, No. 237 / Friday, December 10, 2010 / Proposed Rules
An agenda showing the scheduling of
the speakers will be prepared after the
deadline for receiving outlines has
passed. Copies of the agenda will be
available free of charge at the hearing.
Drafting Information
The principal author of these
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.
Authority: 31 U.S.C. 9701.
Par. 2. Section 300.0 is amended by:
1. Redesignating paragraph (b)(9) as
paragraph (b)(12).
2. Adding new paragraph (b)(9).
3. Adding paragraphs (b)(10) and
(b)(11).
The additions and revisions read as
follows.
User fees; in general.
*
*
*
*
*
(b) * * *
(9) Taking the special enrollment
examination to become an enrolled
retirement plan agent.
(10) Enrolling an enrolled retirement
plan agent.
(11) Renewing the enrollment of an
enrolled retirement plan agent.
*
*
*
*
*
Par. 3. Section 300.4 is amended by
revising the heading to read as follows:
§ 300.4 Enrolled agent special enrollment
examination fee.
*
*
*
*
*
Par. 4. Section 300.5 is amended by
revising paragraphs (b) and (d) to read
as follows:
Enrollment of enrolled agent fee.
jdjones on DSK8KYBLC1PROD with PROPOSALS-1
*
*
*
*
*
(b) Fee. The fee for initially enrolling
as an enrolled agent with the IRS Office
of Professional Responsibility is $30.
*
*
*
*
*
(d) Effective/applicability date. This
section is applicable the date that final
regulations are published in the Federal
Register.
Par. 5. Section 300.6 is amended by
revising paragraphs (b) and (d) to read
as follows:
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*
(a) Applicability. This section applies
to the renewal of enrollment of enrolled
retirement plan agents with the IRS
Office of Professional Responsibility
pursuant to 31 CFR 10.5(b).
(b) Fee. The fee for renewal of
enrollment as an enrolled retirement
plan agent with the IRS Office of
Professional Responsibility is $30.
(c) Person liable for the fee. The
person liable for the renewal of
enrollment fee is the person renewing
enrollment as an enrolled retirement
plan agent with the IRS Office of
Professional Responsibility.
(d) Effective/applicability date. This
section is applicable the date that final
regulations are published in the Federal
Register.
*
*
*
*
(b) Fee. The fee for renewal of
enrollment as an enrolled agent with the
IRS Office of Professional Responsibility
is $30.
*
*
*
*
*
(d) Effective/applicability date. This
section is applicable the date that final
regulations are published in the Federal
Register.
[Redesignated as § 300.12]
§ 300.9 Enrolled retirement plan agent
special enrollment examination fee.
Paragraph 1. The authority citation
for part 300 continues to read in part as
follows:
§ 300.5
§ 300.11 Renewal of enrollment of enrolled
retirement plan agent fee.
Par. 6. Redesignate § 300.9 as
§ 300.12.
Par. 7 Add new § 300.9 to read as
follows:
PART 300—USER FEES
§ 300.0
§ 300.6 Renewal of enrollment of enrolled
agent fee.
§ 300.9
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 300 is
proposed to be amended as follows:
76943
(a) Applicability. This section applies
to the special enrollment examination to
become an enrolled retirement plan
agent pursuant to 31 CFR 10.4(b).
(b) Fee. The fee for taking the enrolled
retirement plan agent special enrollment
examination is $11 per part, which is
the cost to the government for
overseeing the examination and does
not include any fees charged by the
administrator of the examination.
(c) Person liable for the fee. The
person liable for the enrolled retirement
plan agent special enrollment
examination fee is the applicant taking
the examination.
(d) Effective/applicability date. This
section is applicable the date that final
regulations are published in the Federal
Register.
Par. 7. Section 300.10 is added to read
as follows:
§ 300.10 Enrollment of enrolled retirement
plan agent fee.
(a) Applicability. This section applies
to the initial enrollment of enrolled
retirement plan agents with the IRS
Office of Professional Responsibility
pursuant to 31 CFR 10.5(b).
(b) Fee. The fee for initially enrolling
as an enrolled retirement plan agent
with the IRS Office of Professional
Responsibility is $30.
(c) Person liable for the fee. The
person liable for the enrollment fee is
the applicant filing for enrollment as an
enrolled retirement plan agent with the
IRS Office of Professional
Responsibility.
(d) Effective/applicability date. This
section is applicable the date that final
regulations are published in the Federal
Register.
Par. 8. Section 300.11 is added to read
as follows:
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Steven T. Miller,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. 2010–31033 Filed 12–7–10; 4:15 pm]
BILLING CODE 4830–01–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket No. USCG–2010–0794]
RIN 1625–AA11
Regulated Navigation Area; Hudson
River South of the Troy Locks, NY
Coast Guard, DHS.
Notice of proposed rulemaking.
AGENCY:
ACTION:
The Coast Guard proposes to
establish a Regulated Navigation Area
(RNA) on the navigable waters of the
Hudson River in New York, south of the
Troy Locks. This action is necessary to
promote navigational safety, provide for
the safety of life and property, and
facilitate the reasonable demands of
commerce. This action would impose
restrictions on vessels operating within
the waters of the Hudson River south of
the Troy Locks when ice is a threat to
navigation.
DATES: Comments and related material
must be received by the Coast Guard on
or before January 10, 2011. Requests for
public meetings must be received by the
Coast Guard on or before December 27,
2010.
ADDRESSES: You may submit comments
identified by docket number USCG–
2010–0794 using any one of the
following methods:
(1) Federal eRulemaking Portal:
https://www.regulations.gov.
SUMMARY:
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]]>Agencies
[Federal Register Volume 75, Number 237 (Friday, December 10, 2010)]
[Proposed Rules]
[Pages 76940-76943]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-31033]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 300
[REG-124018-10]
RIN 1545-BJ65
User Fees Relating to Enrolled Agents and Enrolled Retirement
Plan Agents
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking and notice of public hearing.
-----------------------------------------------------------------------
SUMMARY: This document contains proposed amendments to the regulations
relating to the imposition of user fees for enrolled agents and
enrolled retirement plan agents. The proposed regulations separate the
enrolled retirement plan agent user fees from the enrolled agent user
fees and lower the initial enrollment and renewal of enrollment fees
for enrolled agents and enrolled retirement plan agents. The proposed
regulations affect individuals who are or apply to become enrolled
agents or enrolled retirement plan agents. The charging of user fees is
authorized by the Independent Offices Appropriations Act of 1952.
DATES: Written or electronic comments must be received by January 10,
2011. Outlines of topics to be discussed at the public hearing
scheduled for January 14, 2011, at 10 a.m. must be received by January
5, 2011.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-124018-10), room
5205, Internal Revenue Service, PO Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may be hand-delivered Monday through
Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-
124018-10), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue, NW., Washington, DC or sent electronically via the Federal
eRulemaking Portal at https://
[[Page 76941]]
www.regulations.gov (IRS REG-124018-10). The public hearing will be
held in the IRS Auditorium, Internal Revenue Building, 1111
Constitution Avenue, NW., Washington, DC.
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Emily M. Lesniak at (202) 622-4570; concerning cost methodology, Eva J.
Williams at (202) 435-5514; concerning submission of comments, the
public hearing, or to be placed on the building access list to attend
the public hearing, Richard A. Hurst at
Richard.A.Hurst@irscounsel.treas.gov or (202) 622-7180 (not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
Background and Explanation of Provisions
Section 330 of title 31 of the United States Code authorizes the
Secretary of the Treasury to regulate the practice of representatives
before the Treasury Department. Pursuant to section 330 of title 31,
the Secretary has published regulations governing practice before the
IRS in 31 CFR part 10 and reprinted the regulations as Treasury
Department Circular No. 230 (Circular 230). Circular 230 is
administered by the IRS Office of Professional Responsibility (OPR).
Section 10.4(a) of Circular 230 authorizes the Director of OPR to
grant status as an enrolled agent to applicants who demonstrate special
competence in tax matters by passing a written examination administered
by, or administered under the oversight of, the Director of OPR and who
have not engaged in any conduct that would justify suspension or
disbarment under Circular 230. Every year OPR develops and administers
a Special Enrollment Examination (SEE) that individuals must pass to
become an enrolled agent through examination.
Section 10.4(b) of Circular 230 authorizes the Director of OPR to
grant status as an enrolled retirement plan agent to applicants who
demonstrate special competence in qualified retirement plan matters by
passing a written examination administered by, or under the oversight
of, the Director of OPR and who have not engaged in any conduct that
would justify suspension or disbarment under Circular 230. Every year
OPR develops and administers an Enrolled Retirement Plan Agent Special
Enrollment Examination (ERPA-SEE) that individuals must pass to become
an enrolled retirement plan agent through examination.
Section 10.4(b) also authorizes the Director of OPR to grant full
or limited enrollment as an enrolled agent or full enrollment as an
enrolled retirement plan agent to a former IRS employee if the former
employee has not engaged in any conduct that would justify the
suspension or disbarment of any practitioner under the provisions of
Circular 230 and the employee meets certain other requirements. These
requirements include minimum length of employment with the IRS and
substantive tax expertise. Application for enrollment based on former
employment with the IRS must be made within three years from the date
of separation from such employment and the applicant is not required to
pass the SEE or the ERPA-SEE, unless a former employee who previously
was granted limited enrollment status wants to qualify for full
enrollment.
Once eligible for enrollment as an enrolled agent or enrolled
retirement plan agent, whether by examination or former employment with
the IRS, an individual must file an application for enrollment with the
Director of OPR. An individual granted status as an enrolled agent or
enrolled retirement plan agent as provided in Sec. 10.6(d) must renew
enrollment every three years to maintain active enrollment and be able
to practice before the IRS. In order to qualify for renewal, an
applicant must certify the completion of the continuing education
requirements set forth in Sec. 10.6(e) of Circular 230 and compliance
with certain ethical standards in Circular 230 and State regulatory
agencies.
As part of the application to become an enrolled agent or enrolled
retirement plan agent, an individual must currently pay a nonrefundable
user fee of $125. This user fee is authorized under Sec. 300.5. An
individual also must pay a $125 nonrefundable user fee to renew
enrollment, which is authorized under Sec. 300.6. An individual must
renew enrollment every three years. In addition, a user fee of $11 per
part is currently imposed to take the SEE or the ERPA-SEE. The user fee
to take the SEE and ERPA-SEE is currently authorized under Sec. 300.4.
The proposed regulations coordinate the user fees imposed on
enrolled agents and enrolled retirement plan agents with the new user
fee to apply for or renew a preparer tax identification number (PTIN).
The Treasury Department and the IRS are implementing recommendations in
Publication 4832, ``Return Preparer Review,'' which was published on
January 4, 2010. Based on these recommendations, the Treasury
Department and the IRS recently published final regulations under
section 6109 (TD 9501, 75 FR 60309, September 30, 2010) that require
tax return preparers who prepare all or substantially all of a tax
return or claim for refund for compensation to obtain a PTIN.
Individuals applying for or renewing a PTIN are required to pay a $50
IRS user fee and a $14.25 vendor fee. The final regulations
establishing the IRS user fee to apply for or renew a PTIN were
published on September 30, 2010 (TD 9503).
The process for reviewing an enrolled agent or an enrolled
retirement plan agent initial enrollment or renewal of enrollment
application is, in some ways, duplicative of the new process for
reviewing a PTIN application. For example, the tax compliance checks
and suitability checks conducted as part of a PTIN application are the
same tax compliance checks and suitability checks currently performed
as part of the process for becoming an enrolled agent or enrolled
retirement plan agent. To avoid any potential duplication and
unnecessary expense for individuals applying to become an enrolled
agent or an enrolled retirement plan agent, the Treasury Department and
the IRS intend to require all enrolled agents and enrolled retirement
plan agents to obtain a PTIN. The Treasury Department and the IRS
further intend to eliminate the tax compliance checks and suitability
checks from the initial enrollment and renewal of enrollment process
for enrolled agents and enrolled retirement plan agents because these
checks will be performed as part of the requirement to obtain a PTIN.
Thus, the Treasury Department and the IRS are eliminating the portion
of the initial enrollment and renewal of enrollment user fees that
recover the costs to perform the tax compliance checks and suitability
checks (and any other review conducted as part of the PTIN application
process).
Accordingly, the proposed regulations separate the initial
enrollment and renewal of enrollment user fees imposed on enrolled
agents from the initial enrollment and renewal of enrollment user fees
imposed on enrolled retirement plan agents, which are all currently
imposed in Sec. Sec. 300.5 and 300.6. (The proposed regulations also
separate the user fee to take the ERPA-SEE to become an enrolled
retirement plan agent from the user fee to take the SEE to become an
enrolled agent, which are both currently imposed in Sec. 300.4.)
The proposed regulations also reduce both the enrolled agent and
enrolled retirement plan agent initial enrollment and renewal of
enrollment user fees to reflect that the review procedures (including
tax compliance checks and suitability checks), previously conducted as
part of the enrolled agent and enrolled retirement plan agent
[[Page 76942]]
initial enrollment and renewal of enrollment processes, will now be
conducted as part of the PTIN application and renewal process. In
particular, the proposed regulations amend Sec. 300.5 to reduce the
enrolled agent initial enrollment user fee to $30 and Sec. 300.6 to
reduce the enrolled agent renewal of enrollment user fee to $30. The
enrolled retirement plan agent initial enrollment user fee is found in
proposed Sec. 300.10 and is $30. The enrolled retirement plan agent
renewal of enrollment user fee is found in proposed Sec. 300.11 and
also is $30.
The initial enrollment and renewal of enrollment user fees imposed
on enrolled agents and enrolled retirement plan agents in the proposed
regulations reflect only the costs of the review processes that are not
conducted as part of the PTIN application or renewal processes. The
costs include processing the enrolled agent and enrolled retirement
plan agent initial enrollment and renewal of enrollment applications,
processing the accompanying user fees, and conducting a search for any
violations of professional rules and standards of conduct.
Authority
The Independent Offices Appropriations Act (IOAA) of 1952, which is
codified at 31 U.S.C. 9701, authorizes agencies to prescribe
regulations that establish charges for services provided by the agency,
which includes charging user fees. 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 Office of Management and Budget Circular A-
25, 58 FR 38142 (July 15, 1993) (the OMB Circular).
The OMB Circular encourages user fees for government-provided
services that confer benefits on identifiable recipients over and above
those benefits received by the general public. Under the OMB Circular,
an agency that seeks to impose a user fee for government-provided
services must calculate the full cost of providing those services. In
general, a user fee should be set at an amount that allows the agency
to recover the full cost of providing the special service, unless the
Office of Management and Budget grants an exception.
Pursuant to the guidelines in the OMB Circular, the IRS has
calculated its cost of providing services under the enrolled agent and
enrolled retirement plan agent program and PTIN application process.
The full cost of administering these programs will be charged and the
proposed user fees will be implemented under the authority of the IOAA
and the OMB Circular.
Proposed Effective/Applicability Date
The Administrative Procedure Act provides that substantive rules
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.
The Treasury Department and the IRS recently finalized regulations
that require all tax return preparers who prepare all or substantially
all of a tax return or claim for refund for compensation to use a PTIN
as their identifying number (TD 9501). The Treasury Department and the
IRS also finalized regulations that require tax return preparers to pay
a $64.25 user fee to apply for or renew a PTIN (TD 9503, 75 FR 60316,
September 30, 2010). Tax return preparers who prepare all or
substantially all of a tax return or claim for refund must obtain or
renew their PTIN for the 2011 tax season.
Circular 230 requires that, to maintain active enrollment to
practice before the IRS, enrolled agents must renew enrollment every
third year after initial enrollment is granted. The renewal schedules
are staggered with approximately one third of enrolled agents renewing
every year. Enrolled agents with social security numbers or tax
identification numbers ending in 4, 5, or 6 are currently scheduled to
renew their enrollment beginning on November 1, 2010 and ending on
January 31, 2011. To enable these enrolled agents to renew their
enrollment at the reduced fee, the IRS issued Announcement 2010-81 on
October 14, 2010, which delayed the renewal period for enrolled agents
with social security numbers or tax identification numbers ending in 4,
5, or 6. The renewal process cannot be reinstated until this regulation
is finalized; otherwise, these enrolled agents will pay twice for the
IRS to perform the compliance and suitability checks. To minimize the
disruption to the enrolled agent program caused by the delay of
renewal, the renewal process must be reinstated 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 this notice of proposed rulemaking is
not a significant regulatory action as defined in Executive Order
12866. It is hereby certified that this regulation will not have a
significant economic impact on a substantial number of small entities.
Accordingly, a regulatory flexibility analysis is not required. This
certification is based upon the information that follows. The proposed
regulation does not place an additional filing requirement on enrolled
agents or enrolled retirement plan agents and decreases the enrollment
costs already in effect. Thus, this regulation should reduce the
economic impact imposed by the current enrolled agent and enrolled
retirement plan agent user fees.
Pursuant to section 7805(f) of the Code, this notice of proposed
rulemaking has been submitted to the Chief Counsel for Advocacy of the
Small Business Administration for comment on its impact on small
business.
Comments and Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any written (a signed original and eight
(8) copies) or electronic comments that are submitted timely to the
IRS. The Treasury Department and the IRS request comments on the
clarity of the proposed regulations and how they can be made easier to
understand. All comments will be available for public inspection and
copying.
A public hearing has been scheduled for January 14, 2011, beginning
at 10 a.m. in the IRS Auditorium, Internal Revenue Building, 1111
Constitution Avenue, NW., Washington, DC. Due to building security
procedures, visitors must enter at the Constitution Avenue entrance.
All visitors must present photo identification to enter the building.
Because of access restrictions, visitors will not be admitted beyond
the immediate entrance area more than 30 minutes before the hearing
starts. For information about having your name placed on the building
access list to attend the hearing, see the FOR FURTHER INFORMATION
CONTACT section of this preamble.
The rules of 26 CFR 601.601(a)(3) apply to the hearing. Persons who
wish to present oral comments at the hearing must submit written or
electronic comments and an outline of the topics to be discussed and
the time to be devoted to each topic by January 5, 2011. A period of 10
minutes will be allocated to each person for making comments.
[[Page 76943]]
An agenda showing the scheduling of the speakers will be prepared
after the deadline for receiving outlines has passed. Copies of the
agenda will be available free of charge at the hearing.
Drafting Information
The principal author of these 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.
Proposed Amendments to the Regulations
Accordingly, 26 CFR part 300 is proposed to be 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. Redesignating paragraph (b)(9) as paragraph (b)(12).
2. Adding new paragraph (b)(9).
3. Adding paragraphs (b)(10) and (b)(11).
The additions and revisions read as follows.
Sec. 300.0 User fees; in general.
* * * * *
(b) * * *
(9) Taking the special enrollment examination to become an enrolled
retirement plan agent.
(10) Enrolling an enrolled retirement plan agent.
(11) Renewing the enrollment of an enrolled retirement plan agent.
* * * * *
Par. 3. Section 300.4 is amended by revising the heading to read as
follows:
Sec. 300.4 Enrolled agent special enrollment examination fee.
* * * * *
Par. 4. Section 300.5 is amended by revising paragraphs (b) and (d)
to read as follows:
Sec. 300.5 Enrollment of enrolled agent fee.
* * * * *
(b) Fee. The fee for initially enrolling as an enrolled agent with
the IRS Office of Professional Responsibility is $30.
* * * * *
(d) Effective/applicability date. This section is applicable the
date that final regulations are published in the Federal Register.
Par. 5. Section 300.6 is amended by revising paragraphs (b) and (d)
to read as follows:
Sec. 300.6 Renewal of enrollment of enrolled agent fee.
* * * * *
(b) Fee. The fee for renewal of enrollment as an enrolled agent
with the IRS Office of Professional Responsibility is $30.
* * * * *
(d) Effective/applicability date. This section is applicable the
date that final regulations are published in the Federal Register.
Sec. 300.9 [Redesignated as Sec. 300.12]
Par. 6. Redesignate Sec. 300.9 as Sec. 300.12.
Par. 7 Add new Sec. 300.9 to read as follows:
Sec. 300.9 Enrolled retirement plan agent special enrollment
examination fee.
(a) Applicability. This section applies to the special enrollment
examination to become an enrolled retirement plan agent pursuant to 31
CFR 10.4(b).
(b) Fee. The fee for taking the enrolled retirement plan agent
special enrollment examination is $11 per part, which is the cost to
the government for overseeing the examination and does not include any
fees charged by the administrator of the examination.
(c) Person liable for the fee. The person liable for the enrolled
retirement plan agent special enrollment examination fee is the
applicant taking the examination.
(d) Effective/applicability date. This section is applicable the
date that final regulations are published in the Federal Register.
Par. 7. Section 300.10 is added to read as follows:
Sec. 300.10 Enrollment of enrolled retirement plan agent fee.
(a) Applicability. This section applies to the initial enrollment
of enrolled retirement plan agents with the IRS Office of Professional
Responsibility pursuant to 31 CFR 10.5(b).
(b) Fee. The fee for initially enrolling as an enrolled retirement
plan agent with the IRS Office of Professional Responsibility is $30.
(c) Person liable for the fee. The person liable for the enrollment
fee is the applicant filing for enrollment as an enrolled retirement
plan agent with the IRS Office of Professional Responsibility.
(d) Effective/applicability date. This section is applicable the
date that final regulations are published in the Federal Register.
Par. 8. Section 300.11 is added to read as follows:
Sec. 300.11 Renewal of enrollment of enrolled retirement plan agent
fee.
(a) Applicability. This section applies to the renewal of
enrollment of enrolled retirement plan agents with the IRS Office of
Professional Responsibility pursuant to 31 CFR 10.5(b).
(b) Fee. The fee for renewal of enrollment as an enrolled
retirement plan agent with the IRS Office of Professional
Responsibility is $30.
(c) Person liable for the fee. The person liable for the renewal of
enrollment fee is the person renewing enrollment as an enrolled
retirement plan agent with the IRS Office of Professional
Responsibility.
(d) Effective/applicability date. This section is applicable the
date that final regulations are published in the Federal Register.
Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2010-31033 Filed 12-7-10; 4:15 pm]
BILLING CODE 4830-01-P
