Preparer Tax Identification Number (PTIN) User Fee Update, 66792-66795 [2015-27789]

Download as PDF 66792 Federal Register / Vol. 80, No. 210 / Friday, October 30, 2015 / Rules and Regulations 2015–22–04 Fiberglas-Technik Rudolf Lindner GmbH & Co. KG: Amendment 38–18309; Docket No. FAA–2015–3300; Directorate Identifier 2015–CE–024–AD. (a) Effective Date This airworthiness directive (AD) becomes effective December 4, 2015. (b) Affected ADs None. (c) Applicability This AD applies to Fiberglas-Technik Rudolf Lindner GmbH & Co. KG Models G103 TWIN ASTIR, G103 TWIN II, and G103A TWIN II ACRO gliders, all manufacturer serial numbers, certificated in any category. (d) Subject Air Transport Association of America (ATA) Code 27: Flight Controls. Lhorne on DSK5TPTVN1PROD with RULES (e) Reason This AD was prompted by mandatory continuing airworthiness information (MCAI) originated by an aviation authority of another country to identify and correct an unsafe condition on an aviation product. The MCAI describes the unsafe condition as a broken bell-crank installed in the air brake control system. We are issuing this AD to detect and correct a broken bell-crank which could lead to failure of the air brake system, possibly resulting in reduced control. (f) Actions and Compliance Unless already done, do the following actions: (1) Within 30 days after December 4, 2015 (the effective date of this AD) and repetitively thereafter at intervals not to exceed 12 months, inspect the locking forces of the air brake control unit, and, if any discrepancy is found, before further flight, correct the locking forces. Do the inspection and correction of any discrepancy following the instructions of Fiberglas-Technik Rudolf Lindner Service Bulletin (SB–G08), Edition April 24, 2015; and Fiberglas-Technik Rudolf Lindner Anweisung (English translation: Instructions), (A/I–G08), Ausgabe (English translation: Edition) April 24, 2015. Note 1 to paragraph (f)(1) of this AD: This service information contains German to English translation. The European Aviation Safety Agency (EASA) used the English translation in referencing the document. For enforceability purposes, we will refer to the Fiberglas-Technik Rudolf Lindner service information as it appears on the document. (2) Within 60 days after December 4, 2015 (the effective date of this AD), inspect the bell-crank installed in the air brake control system, and, if any cracks are found, before further flight, replace the bell-crank with a serviceable part. Do the inspection and replacement following the instructions of Fiberglas-Technik Rudolf Lindner Service Bulletin (SB–G08), Edition April 24, 2015; and Fiberglas-Technik Rudolf Lindner Anweisung (English translation: Instructions), (A/I–G08), Ausgabe (English translation: Edition) April 24, 2015. Note 2 to paragraph (f)(2) of this AD: In the lower wing surface inspection, openings VerDate Sep<11>2014 14:41 Oct 29, 2015 Jkt 238001 near the bell-crank may be installed to simplify the inspection and make a possible replacement of the bell-crank possible. This optional installation is described in GROB Luft Und Raumfahrt Service Bulletin 315–45/ 2, dated December 21, 1995; and FiberglasTechnik Rudolf Lindner Service Bulletin (SB–G07), Edition April 24, 2015. (3) Within 30 days after replacing a bellcrank as required by paragraph (f)(2) of this AD or within the next 30 days after December 4, 2015 (the effective date of this AD), whichever occurs later, report the inspection results of the removed bell-crank to Fiberglas-Technik Rudolf Lindner GmbH & Co. KG. You may find contact information for Fiberglas-Technik Rudolf Lindner GmbH & Co. KG in paragraph (h) of this AD. (g) Other FAA AD Provisions The following provisions also apply to this AD: (1) Alternative Methods of Compliance (AMOCs): The Manager, Standards Office, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. Send information to ATTN: Jim Rutherford, Aerospace Engineer, FAA, Small Airplane Directorate, 901 Locust, Room 301, Kansas City, Missouri 64106; telephone: (816) 329–4165; fax: (816) 329– 4090; email: jim.rutherford@faa.gov. Before using any approved AMOC on any glider to which the AMOC applies, notify your appropriate principal inspector (PI) in the FAA Flight Standards District Office (FSDO), or lacking a PI, your local FSDO. (2) Airworthy Product: For any requirement in this AD to obtain corrective actions from a manufacturer or other source, use these actions if they are FAA-approved. Corrective actions are considered FAA-approved if they are approved by the State of Design Authority (or their delegated agent). You are required to assure the product is airworthy before it is returned to service. (3) Reporting Requirements: For any reporting requirement in this AD, a federal agency may not conduct or sponsor, and a person is not required to respond to, nor shall a person be subject to a penalty for failure to comply with a collection of information subject to the requirements of the Paperwork Reduction Act unless that collection of information displays a current valid OMB Control Number. The OMB Control Number for this information collection is 2120–0056. Public reporting for this collection of information is estimated to be approximately 5 minutes per response, including the time for reviewing instructions, completing and reviewing the collection of information. All responses to this collection of information are mandatory. Comments concerning the accuracy of this burden and suggestions for reducing the burden should be directed to the FAA at: 800 Independence Ave. SW., Washington, DC 20591, Attn: Information Collection Clearance Officer, AES–200. (h) Related Information Refer to MCAI European Aviation Safety Agency (EASA) AD No.: 2015–0116, dated June 24, 2015; GROB Luft Und Raumfahrt Service Bulletin 315–45/2, dated December PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 21, 1995; and Fiberglas-Technik Rudolf Lindner Service Bulletin (SB–G07), Edition April 24, 2015, for related information. You may examine the MCAI on the Internet at http://www.regulations.gov/ #!documentDetail;D=FAA-2015-3300-0003. (i) Material Incorporated by Reference (1) The Director of the Federal Register approved the incorporation by reference (IBR) of the service information listed in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51. (2) You must use this service information as applicable to do the actions required by this AD, unless the AD specifies otherwise. (i) Fiberglas-Technik Rudolf Lindner Service Bulletin (SB–G08), Edition April 24, 2015; and (ii) Fiberglas-Technik Rudolf Lindner Anweisung (English translation: Instructions), (A/I–G08), Ausgabe (English translation: Edition) April 24, 2015. (3) For Fiberglas-Technik Rudolf Lindner GmbH & Co. KG service information identified in this AD, contact FiberglasTechnik Rudolf Lindner GmbH & Co. KG, Steige 3, D–88487 Walpertshofen, Germany; phone: ++49 (0) 7353/22 43; fax: ++49 (0) 7353/30 96; email: info@LTB-Lindner.com; Internet: http://www.ltb-lindner.com. (4) You may view this service information at the FAA, Small Airplane Directorate, 901 Locust, Kansas City, Missouri 64106. For information on the availability of this material at the FAA, call (816) 329–4148. In addition, you can access this service information on the Internet at http:// www.regulations.gov by searching for and locating Docket No. FAA–2015–3300. (5) You may view this service information that is incorporated by reference at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202–741–6030, or go to: http:// www.archives.gov/federal-register/cfr/ibrlocations.html. Issued in Kansas City, Missouri on October 22, 2015. Melvin Johnson, Acting Manager, Small Airplane Directorate, Aircraft Certification Service. [FR Doc. 2015–27440 Filed 10–29–15; 8:45 am] BILLING CODE 4910–13–P DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 300 [T.D. 9742] RIN 1545–BN03 Preparer Tax Identification Number (PTIN) User Fee Update Internal Revenue Service (IRS), Treasury. ACTION: Temporary regulations. AGENCY: E:\FR\FM\30OCR1.SGM 30OCR1 Federal Register / Vol. 80, No. 210 / Friday, October 30, 2015 / Rules and Regulations This document contains temporary regulations relating to the imposition of certain user fees on tax return preparers. The temporary regulations reduce the user fee to apply for or renew a preparer tax identification number (PTIN) and affect individuals who apply for or renew a PTIN. The Independent Offices Appropriations Act of 1952 authorizes the charging of user fees. The text of the temporary regulations also serves as the text of the proposed regulations (REG– 121496–15) set forth in the notice of proposed rulemaking on this subject in the Proposed Rules section of this issue of the Federal Register. DATES: Effective Date: These regulations are effective on October 30, 2015. Applicability Date: For date of applicability, see paragraph (d) of these temporary regulations. FOR FURTHER INFORMATION CONTACT: Concerning the temporary regulations, Hollie M. Marx at (202) 317–6844; concerning cost methodology, Eva J. Williams at (202) 803–9728. SUPPLEMENTARY INFORMATION: SUMMARY: Lhorne on DSK5TPTVN1PROD with RULES Background The Independent Offices Appropriations Act of 1952 (IOAA), which is codified at 31 U.S.C. 9701, authorizes agencies to prescribe regulations that establish user fees for services provided by the agency. The charges must be fair and must be based on the costs to the government, the value of the service to the recipient, the public policy or interest served, and other relevant facts. The IOAA provides that regulations implementing user fees are subject to policies prescribed by the President; these policies are set forth in the Office of Management and Budget Circular A–25, 58 FR 38142 (July 15, 1993) (OMB Circular A–25). Under OMB Circular A–25, federal agencies that provide services that confer benefits on identifiable recipients are to establish user fees that recover the full cost of providing the special benefit. 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 direct and indirect costs of providing the service, unless the Office of Management and Budget grants an exception. OMB Circular A–25 provides that agencies are to review user fees biennially and update them as necessary. PTIN Requirement Section 6109(a)(4) of the Internal Revenue Code authorizes the Secretary VerDate Sep<11>2014 14:41 Oct 29, 2015 Jkt 238001 to prescribe regulations for the inclusion of a tax return preparer’s identifying number on a return, statement, or other document required to be filed with the IRS. On September 30, 2010, the Treasury Department and IRS published final regulations under section 6109 (REG–134235–08) in the Federal Register (TD 9501) (75 FR 60315) (PTIN regulations) to provide that, for returns or claims for refund filed after December 31, 2010, the identifying number of a tax return preparer is the individual’s PTIN or such other number prescribed by the IRS in forms, instructions, or other appropriate guidance. The PTIN regulations require a tax return preparer who prepares or who assists in preparing all or substantially all of a tax return or claim for refund after December 31, 2010 to have a PTIN. The PTIN regulations also state that the IRS will set forth in forms, instructions or other appropriate guidance PTIN application and renewal procedures, including the payment of a user fee. The PTIN regulations further state that the IRS may conduct a Federal tax compliance check on an individual who applies for or renews a PTIN. In accordance with section 1.6109– 2(d) of the PTIN regulations, the IRS has set forth application and renewal procedures in Form W–12, IRS Paid Preparer Tax Identification Number (PTIN) Application and Renewal, and the Form W–12 Instructions. Individuals may also apply for or renew a PTIN and pay the user fee online at irs.gov/ptin. The annual PTIN application and renewal period generally begins in the fall (on October 15 in previous years) of the year preceding the filing season to which the PTIN relates. A third-party vendor processes applications to obtain or renew a PTIN and charges a reasonable fee that is separate from the user fee charged by the government. Requiring the use of PTINs improves tax administration and tax compliance and benefits tax return preparers by allowing them to provide an identifying number on the return that is not an SSN. Requiring the use of PTINs enables the IRS to better collect and track data on tax return preparers, including the number of persons who prepare returns, the qualifications of those who prepare returns, and the number of returns each person prepares. PTIN use allows the IRS to more easily identify and communicate with tax return preparers who make errors on returns, which benefits tax return preparers by improving compliance and therefore reducing the number of client returns that are examined. The PTIN also enables the IRS to more easily locate PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 66793 and review returns prepared by a tax return preparer when instances of misconduct or potential misconduct are detected, which aids tax administration and compliance. These aids to tax administration and compliance in turn benefit taxpayers and tax return preparers by working to reduce preparer error and misconduct. Section 1.6109–2(d) states that only individuals authorized to practice before the IRS under 31 U.S.C. 330 are eligible to obtain a PTIN. Under section 1.6109–2(h), the IRS may prescribe in forms, instructions, or other appropriate guidance exceptions to the requirements of the PTIN regulations, including the requirement that an individual must be authorized to practice before the IRS to be eligible to receive a PTIN. On December 30, 2010, the IRS released Notice 2011–6 (2011–3 IRB 315 (Jan. 17, 2011)), which stated that, until December 31, 2013, a provisional PTIN could be renewed upon proper application and payment of the applicable user fee, even if the individual holding the provisional PTIN was not authorized to practice before the IRS. On June 3, 2011, the Treasury Department and the IRS published in the Federal Register (76 FR 32286) amendments to Treasury Department Circular No. 230 (31 CFR part 10), to regulate all tax return preparers under 31 U.S.C. 330. In Loving v. IRS, 917 F.Supp.2d 67 (D.D.C. 2013), the district court concluded that the IRS and Treasury Department lacked statutory authority to regulate tax return preparation as practice before the IRS under 31 U.S.C. 330 and enjoined the IRS and Treasury from enforcing the regulation of registered tax return preparers. The district court subsequently modified its order to clarify that the IRS’s authority to require that tax return preparers obtain a PTIN is unaffected by the injunction. Loving v. IRS, 920 F.Supp.2d 108, 109 (D.D.C. 2013) (stating ‘‘Congress has specifically authorized the PTIN scheme by statute . . . [and that] scheme, therefore, does not fall within the scope of the injunction and may proceed as promulgated.’’). The United States Court of Appeals for the District of Columbia Circuit affirmed the district court’s decision and order for injunction. Loving v. IRS, 742 F.3d 1013 (D.C. Cir. 2014). PTIN User Fee Final regulations (REG–139343–08) published in the Federal Register (TD 9503) (75 FR 60316) (PTIN user fee regulations) on September 30, 2010, established a $50 user fee to apply for E:\FR\FM\30OCR1.SGM 30OCR1 66794 Federal Register / Vol. 80, No. 210 / Friday, October 30, 2015 / Rules and Regulations or renew a PTIN. The $50 user fee was based on an annual PTIN renewal period and an estimate that 1.2 million individuals would be applying for or renewing a PTIN each year. The IRS and Treasury Department determined that a $50 user fee to apply for or renew a PTIN would recover the full direct and indirect costs that the government incurs to administer the PTIN application and renewal process. The initial determination of a $50 annual fee took into account certain costs that the IRS ascertained it would incur to provide the special benefit associated with the provision of PTINs. As explained in the PTIN user fee regulations, the initial projected costs included the development and maintenance of the IRS information technology system that would interface with a third-party vendor, the development and maintenance of internal applications that would have the capacity to process and administer the anticipated increase in PTIN applications, customer service support activities, which included Web site development and maintenance and call center staffing to respond to questions regarding PTIN usage and renewal. The $50 user fee was also determined to recover costs for personnel, administrative, and management support needed to evaluate and address tax compliance issues of individuals applying for and renewing a PTIN, to investigate and address conduct and suitability issues, and otherwise support and enforce the programs that required an individual to apply for and renew a PTIN. The vendor’s fee, currently set at $14.25 for new applications and $13 for renewal applications, is paid directly to the vendor and covers the costs incurred by the vendor to process applications and renewals. The agency user fee and the vendor fee pay for different aspects of the PTIN program, each of which is essential to the program. Lhorne on DSK5TPTVN1PROD with RULES Explanation of Provisions Pursuant to the guidelines in OMB Circular A–25, the IRS has re-calculated its cost of providing services under the PTIN application and renewal process. The IRS has determined that the full cost of administering the PTIN program going forward has been reduced from $50 to $33 per application or renewal. Individuals who prepare or assist in preparing all or substantially all of a tax return or claim for refund for compensation are required to have a PTIN. The ability to prepare tax returns and claims for refund for compensation is a special benefit, for which the IRS VerDate Sep<11>2014 14:41 Oct 29, 2015 Jkt 238001 may charge a user fee to recover the full costs of providing the special benefit. The amount of the user fee is $33 for both initial PTIN applications and renewals because the activities the IRS is required to perform to issue a new PTIN or renew an existing PTIN are the same. Pursuant to the authority granted in section 6109(c), the IRS has determined that it requires certain information to assign (or, in the case of a renewal, re-assign) a PTIN to an individual. The required information is set forth in the Form W–12 and Form W–12 Instructions. The PTIN user fee is based on direct costs of the PTIN program, which include staffing and contract-related costs for activities, processes, and procedures related to the electronic and paper registration and renewal submissions; tax compliance and background checks; professional designation checks; foreign preparer processing; compliance and IRS complaint activities; information technology and contract-related expenses; and communications. The PTIN user fee also takes into account various indirect program costs, including management and support costs. The reduction in the fee amount is attributable to several factors, which include the reduced number of PTIN holders (approximately 700,000) from the number originally projected (1.2 million) in 2010, which reduced associated costs; the absorption of certain development costs in the early years of the program; and the fact that certain activities that would have been required to regulate registered tax return preparers will not be performed. In particular, the determination of the user fee no longer includes expenses for personnel who perform functions primarily related to continuing education and testing for registered tax return preparers. Additionally, expenses related to personnel who perform continuing education and testing for enrolled agents and enrolled retirement plan agents were also removed from the user fee. Individuals who apply for or renew a PTIN will continue to pay a fee directly to a third-party vendor, which is separate from the user fee described in this Treasury decision. The vendor fee is increasing from $14.25 for original applications and $13 for renewal applications to $17 for original applications and $17 for renewal applications. Special Analyses It has been determined that this Treasury decision is not a significant PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 regulatory action as defined in Executive Order 12866, as supplemented by Executive Order 13563. Historically, the annual PTIN application and renewal period has begun on October 15. For 2015, the date has been postponed to November 1. There is insufficient time before November 1 to provide an opportunity for notice and public comment and issue a final regulation prior to that date. To enable the reduced fee amount to be in effect for PTINs issued or renewed by tax return preparers preparing returns in 2016, the IRS and Treasury find that there is good cause to dispense with (1) notice and public comment pursuant to 5 U.S.C. 553(b) and (c) and (2) a delayed effective date pursuant to 5 U.S.C. 553(d). It would be impracticable, unnecessary, and contrary to the public interest to continue to charge the current fee when the IRS has determined pursuant to the biennial review conducted under OMB Circular A–25 that the fee should be reduced going forward. The IRS and Treasury Department will consider public comments submitted in response to the cross-referenced notice of proposed rulemaking published elsewhere in this issue of the Federal Register and will promulgate a final rule after considering those comments. For applicability of the Regulatory Flexibility Act, please refer to the crossreferenced notice of proposed rulemaking published elsewhere in this issue of the Federal Register. Pursuant to section 7805(f), this Treasury decision has been submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business. Drafting Information The principal author of these regulations is Hollie M. Marx, Office of the Associate Chief Counsel (Procedure and Administration). List of Subjects in 26 CFR Part 300 Reporting and recordkeeping requirements, User fees. Adoption of Amendments to the Regulations Accordingly, 26 CFR part 300 is amended as follows: ■ Paragraph 1. The authority citation for part 300 continues to read as follows: Authority: 31 U.S.C. 9701. Par. 2. Section 300.13 is amended by removing and reserving paragraph (b) to read as follows: ■ E:\FR\FM\30OCR1.SGM 30OCR1 Federal Register / Vol. 80, No. 210 / Friday, October 30, 2015 / Rules and Regulations § 300.13 Fee for obtaining a preparer tax identification number. * * * * * (b) Fee. [Reserved] * * * * * ■ Par. 3. Section 300.13T is added to read as follows: § 300.13T Fee for obtaining a preparer tax identification number. (a) [Reserved] (b) Fee. The fee to apply for or renew a preparer tax identification number is $33 per year, which is the cost to the government for processing the application for a preparer tax identification number and does not include any fees charged by the vendor. (c) [Reserved] (d) Effective/applicability date. This section will be applicable for all PTIN applications filed on or after November 1, 2015. Karen M. Schiller, Acting Deputy Commissioner for Services and Enforcement. Approved: October 16, 2015. Mark J. Mazur, Assistant Secretary of the Treasury (Tax Policy). [FR Doc. 2015–27789 Filed 10–29–15; 8:45 am] BILLING CODE 4830–01–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 180 [EPA–HQ–OPP–2014–0607; FRL–9934–88] Metaflumizone; Pesticide Tolerance Environmental Protection Agency (EPA). ACTION: Final rule. AGENCY: This regulation establishes a tolerance for the combined residues of the insecticide metaflumizone in or on the raw agricultural commodities citrus (crop group 10–10) at 0.04 parts per million (ppm); pome fruit (crop group 11–10) at 0.04 ppm; stone fruit (crop group 12–12) at 0.04 ppm; and tree nut (crop group 14–12) at 0.04 ppm. BASF Corporation requested these tolerances under the Federal Food, Drug, and Cosmetic Act (FFDCA). DATES: This regulation is effective October 30, 2015. Objections and requests for hearings must be received on or before December 29, 2015, and must be filed in accordance with the instructions provided in 40 CFR part 178 (see also Unit I.C. of the SUPPLEMENTARY INFORMATION. ADDRESSES: The docket for this action, identified by docket identification (ID) Lhorne on DSK5TPTVN1PROD with RULES SUMMARY: VerDate Sep<11>2014 14:41 Oct 29, 2015 Jkt 238001 number EPA–HQ–OPP–2014–0607, is available at http://www.regulations.gov or at the Office of Pesticide Programs Regulatory Public Docket (OPP Docket) in the Environmental Protection Agency Docket Center (EPA/DC), West William Jefferson Clinton Bldg., Rm. 3334, 1301 Constitution Ave. NW., Washington, DC 20460–0001. The Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the Public Reading Room is (202) 566–1744, and the telephone number for the OPP Docket is (703) 305–5805. Please review the visitor instructions and additional information about the docket available at http://www.epa.gov/dockets. FOR FURTHER INFORMATION CONTACT: Susan Lewis, Registration Division (7505P), Office of Pesticide Programs, Environmental Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460–0001; main telephone number: (703) 305–7090; email address: RDFRNotices@epa.gov. SUPPLEMENTARY INFORMATION: I. General Information A. Does this action apply to me? You may be potentially affected by this action if you are an agricultural producer, food manufacturer, or pesticide manufacturer. The following list of North American Industrial Classification System (NAICS) codes is not intended to be exhaustive, but rather provides a guide to help readers determine whether this document applies to them. Potentially affected entities may include: • Crop production (NAICS code 111), e.g., agricultural workers; greenhouse, nursery, and floriculture workers; farmers. • Animal production (NAICS code 112), e.g., cattle ranchers and farmers, dairy cattle farmers, livestock farmers. • Food manufacturing (NAICS code 311), e.g., agricultural workers; farmers; greenhouse, nursery, and floriculture workers; ranchers; pesticide applicators. • Pesticide manufacturing (NAICS code 32532), e.g., agricultural workers; commercial applicators; farmers; greenhouse, nursery, and floriculture workers; residential users. B. How can I get electronic access to other related information? You may access a frequently updated electronic version of 40 CFR part 180 through the Government Printing Office’s e-CFR cite at http:// www.ecfr.gov/cgi-bin/textidx?&c=ecfr&tpl=/ecfrbrowse/Title40/ 40tab_02.tpl. PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 66795 C. How can I file an objection or hearing request? Under FFDCA section 408(g), 21 U.S.C. 346a, any person may file an objection to any aspect of this regulation and may also request a hearing on those objections. You must file your objection or request a hearing on this regulation in accordance with the instructions provided in 40 CFR part 178. To ensure proper receipt by EPA, you must identify docket ID number EPA–HQ– OPP–2014–0607 in the subject line on the first page of your submission. All requests must be in writing, and must be received by the Hearing Clerk on or before December 29, 2015. Addresses for mail and hand delivery of objections and hearing requests are provided in 40 CFR 178.25(b). In addition to filing an objection or hearing request with the Hearing Clerk as described in 40 CFR part 178, please submit a copy of the filing (excluding any Confidential Business Information (CBI)) for inclusion in the public docket. Information not marked confidential pursuant to 40 CFR part 2 may be disclosed publicly by EPA without prior notice. Submit the non-CBI copy of your objection or hearing request, identified by docket ID number EPA–HQ–OPP– 2014–0607, by one of the following methods: • Federal eRulemaking Portal: http:// www.regulations.gov. Follow the online instructions for submitting comments. Do not submit electronically any information you consider to be CBI or other information whose disclosure is restricted by statute. • Mail: OPP Docket, Environmental Protection Agency Docket Center (EPA/ DC), (28221T), 1200 Pennsylvania Ave. NW., Washington, DC 20460–0001. • Hand Delivery: To make special arrangements for hand delivery or delivery of boxed information, please follow the instructions at http:// www.epa.gov/dockets/contacts.html. Additional instructions on commenting or visiting the docket, along with more information about dockets generally, is available at http://www.epa.gov/ dockets. II. Background and Statutory Findings In the Federal Register of December 17, 2014 (79 FR 75107) (FRL–9918–90), EPA issued a document pursuant to FFDCA section 408(d)(3), 21 U.S.C. 346a(d)(3), announcing the filing of a pesticide petition (PP #4F8286) by BASF Corporation, P.O. Box 13528, Research Triangle Park, NC 27709. The petition requested that 40 CFR 180.657 be amended by establishing a tolerance for the combined residues of the E:\FR\FM\30OCR1.SGM 30OCR1

Agencies

[Federal Register Volume 80, Number 210 (Friday, October 30, 2015)]
[Rules and Regulations]
[Pages 66792-66795]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-27789]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 300

[T.D. 9742]
RIN 1545-BN03


Preparer Tax Identification Number (PTIN) User Fee Update

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Temporary regulations.

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[[Page 66793]]

SUMMARY: This document contains temporary regulations relating to the 
imposition of certain user fees on tax return preparers. The temporary 
regulations reduce the user fee to apply for or renew a preparer tax 
identification number (PTIN) and affect individuals who apply for or 
renew a PTIN. The Independent Offices Appropriations Act of 1952 
authorizes the charging of user fees. The text of the temporary 
regulations also serves as the text of the proposed regulations (REG-
121496-15) set forth in the notice of proposed rulemaking on this 
subject in the Proposed Rules section of this issue of the Federal 
Register.

DATES: Effective Date: These regulations are effective on October 30, 
2015.
    Applicability Date: For date of applicability, see paragraph (d) of 
these temporary regulations.

FOR FURTHER INFORMATION CONTACT: Concerning the temporary regulations, 
Hollie M. Marx at (202) 317-6844; concerning cost methodology, Eva J. 
Williams at (202) 803-9728.

SUPPLEMENTARY INFORMATION: 

Background

    The Independent Offices Appropriations Act of 1952 (IOAA), which is 
codified at 31 U.S.C. 9701, authorizes agencies to prescribe 
regulations that establish user fees for services provided by the 
agency. The charges must be fair and must be based on the costs to the 
government, the value of the service to the recipient, the public 
policy or interest served, and other relevant facts. The IOAA provides 
that regulations implementing user fees are subject to policies 
prescribed by the President; these policies are set forth in the Office 
of Management and Budget Circular A-25, 58 FR 38142 (July 15, 1993) 
(OMB Circular A-25).
    Under OMB Circular A-25, federal agencies that provide services 
that confer benefits on identifiable recipients are to establish user 
fees that recover the full cost of providing the special benefit. 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 direct and indirect costs of providing the service, unless the 
Office of Management and Budget grants an exception. OMB Circular A-25 
provides that agencies are to review user fees biennially and update 
them as necessary.

PTIN Requirement

    Section 6109(a)(4) of the Internal Revenue Code authorizes the 
Secretary to prescribe regulations for the inclusion of a tax return 
preparer's identifying number on a return, statement, or other document 
required to be filed with the IRS. On September 30, 2010, the Treasury 
Department and IRS published final regulations under section 6109 (REG-
134235-08) in the Federal Register (TD 9501) (75 FR 60315) (PTIN 
regulations) to provide that, for returns or claims for refund filed 
after December 31, 2010, the identifying number of a tax return 
preparer is the individual's PTIN or such other number prescribed by 
the IRS in forms, instructions, or other appropriate guidance. The PTIN 
regulations require a tax return preparer who prepares or who assists 
in preparing all or substantially all of a tax return or claim for 
refund after December 31, 2010 to have a PTIN. The PTIN regulations 
also state that the IRS will set forth in forms, instructions or other 
appropriate guidance PTIN application and renewal procedures, including 
the payment of a user fee. The PTIN regulations further state that the 
IRS may conduct a Federal tax compliance check on an individual who 
applies for or renews a PTIN.
    In accordance with section 1.6109-2(d) of the PTIN regulations, the 
IRS has set forth application and renewal procedures in Form W-12, IRS 
Paid Preparer Tax Identification Number (PTIN) Application and Renewal, 
and the Form W-12 Instructions. Individuals may also apply for or renew 
a PTIN and pay the user fee online at irs.gov/ptin. The annual PTIN 
application and renewal period generally begins in the fall (on October 
15 in previous years) of the year preceding the filing season to which 
the PTIN relates. A third-party vendor processes applications to obtain 
or renew a PTIN and charges a reasonable fee that is separate from the 
user fee charged by the government.
    Requiring the use of PTINs improves tax administration and tax 
compliance and benefits tax return preparers by allowing them to 
provide an identifying number on the return that is not an SSN. 
Requiring the use of PTINs enables the IRS to better collect and track 
data on tax return preparers, including the number of persons who 
prepare returns, the qualifications of those who prepare returns, and 
the number of returns each person prepares. PTIN use allows the IRS to 
more easily identify and communicate with tax return preparers who make 
errors on returns, which benefits tax return preparers by improving 
compliance and therefore reducing the number of client returns that are 
examined. The PTIN also enables the IRS to more easily locate and 
review returns prepared by a tax return preparer when instances of 
misconduct or potential misconduct are detected, which aids tax 
administration and compliance. These aids to tax administration and 
compliance in turn benefit taxpayers and tax return preparers by 
working to reduce preparer error and misconduct.
    Section 1.6109-2(d) states that only individuals authorized to 
practice before the IRS under 31 U.S.C. 330 are eligible to obtain a 
PTIN. Under section 1.6109-2(h), the IRS may prescribe in forms, 
instructions, or other appropriate guidance exceptions to the 
requirements of the PTIN regulations, including the requirement that an 
individual must be authorized to practice before the IRS to be eligible 
to receive a PTIN. On December 30, 2010, the IRS released Notice 2011-6 
(2011-3 IRB 315 (Jan. 17, 2011)), which stated that, until December 31, 
2013, a provisional PTIN could be renewed upon proper application and 
payment of the applicable user fee, even if the individual holding the 
provisional PTIN was not authorized to practice before the IRS.
    On June 3, 2011, the Treasury Department and the IRS published in 
the Federal Register (76 FR 32286) amendments to Treasury Department 
Circular No. 230 (31 CFR part 10), to regulate all tax return preparers 
under 31 U.S.C. 330. In Loving v. IRS, 917 F.Supp.2d 67 (D.D.C. 2013), 
the district court concluded that the IRS and Treasury Department 
lacked statutory authority to regulate tax return preparation as 
practice before the IRS under 31 U.S.C. 330 and enjoined the IRS and 
Treasury from enforcing the regulation of registered tax return 
preparers. The district court subsequently modified its order to 
clarify that the IRS's authority to require that tax return preparers 
obtain a PTIN is unaffected by the injunction. Loving v. IRS, 920 
F.Supp.2d 108, 109 (D.D.C. 2013) (stating ``Congress has specifically 
authorized the PTIN scheme by statute . . . [and that] scheme, 
therefore, does not fall within the scope of the injunction and may 
proceed as promulgated.''). The United States Court of Appeals for the 
District of Columbia Circuit affirmed the district court's decision and 
order for injunction. Loving v. IRS, 742 F.3d 1013 (D.C. Cir. 2014).

PTIN User Fee

    Final regulations (REG-139343-08) published in the Federal Register 
(TD 9503) (75 FR 60316) (PTIN user fee regulations) on September 30, 
2010, established a $50 user fee to apply for

[[Page 66794]]

or renew a PTIN. The $50 user fee was based on an annual PTIN renewal 
period and an estimate that 1.2 million individuals would be applying 
for or renewing a PTIN each year.
    The IRS and Treasury Department determined that a $50 user fee to 
apply for or renew a PTIN would recover the full direct and indirect 
costs that the government incurs to administer the PTIN application and 
renewal process. The initial determination of a $50 annual fee took 
into account certain costs that the IRS ascertained it would incur to 
provide the special benefit associated with the provision of PTINs. As 
explained in the PTIN user fee regulations, the initial projected costs 
included the development and maintenance of the IRS information 
technology system that would interface with a third-party vendor, the 
development and maintenance of internal applications that would have 
the capacity to process and administer the anticipated increase in PTIN 
applications, customer service support activities, which included Web 
site development and maintenance and call center staffing to respond to 
questions regarding PTIN usage and renewal. The $50 user fee was also 
determined to recover costs for personnel, administrative, and 
management support needed to evaluate and address tax compliance issues 
of individuals applying for and renewing a PTIN, to investigate and 
address conduct and suitability issues, and otherwise support and 
enforce the programs that required an individual to apply for and renew 
a PTIN.
    The vendor's fee, currently set at $14.25 for new applications and 
$13 for renewal applications, is paid directly to the vendor and covers 
the costs incurred by the vendor to process applications and renewals. 
The agency user fee and the vendor fee pay for different aspects of the 
PTIN program, each of which is essential to the program.

Explanation of Provisions

    Pursuant to the guidelines in OMB Circular A-25, the IRS has re-
calculated its cost of providing services under the PTIN application 
and renewal process. The IRS has determined that the full cost of 
administering the PTIN program going forward has been reduced from $50 
to $33 per application or renewal. Individuals who prepare or assist in 
preparing all or substantially all of a tax return or claim for refund 
for compensation are required to have a PTIN. The ability to prepare 
tax returns and claims for refund for compensation is a special 
benefit, for which the IRS may charge a user fee to recover the full 
costs of providing the special benefit.
    The amount of the user fee is $33 for both initial PTIN 
applications and renewals because the activities the IRS is required to 
perform to issue a new PTIN or renew an existing PTIN are the same. 
Pursuant to the authority granted in section 6109(c), the IRS has 
determined that it requires certain information to assign (or, in the 
case of a renewal, re-assign) a PTIN to an individual. The required 
information is set forth in the Form W-12 and Form W-12 Instructions.
    The PTIN user fee is based on direct costs of the PTIN program, 
which include staffing and contract-related costs for activities, 
processes, and procedures related to the electronic and paper 
registration and renewal submissions; tax compliance and background 
checks; professional designation checks; foreign preparer processing; 
compliance and IRS complaint activities; information technology and 
contract-related expenses; and communications. The PTIN user fee also 
takes into account various indirect program costs, including management 
and support costs.
    The reduction in the fee amount is attributable to several factors, 
which include the reduced number of PTIN holders (approximately 
700,000) from the number originally projected (1.2 million) in 2010, 
which reduced associated costs; the absorption of certain development 
costs in the early years of the program; and the fact that certain 
activities that would have been required to regulate registered tax 
return preparers will not be performed. In particular, the 
determination of the user fee no longer includes expenses for personnel 
who perform functions primarily related to continuing education and 
testing for registered tax return preparers. Additionally, expenses 
related to personnel who perform continuing education and testing for 
enrolled agents and enrolled retirement plan agents were also removed 
from the user fee.
    Individuals who apply for or renew a PTIN will continue to pay a 
fee directly to a third-party vendor, which is separate from the user 
fee described in this Treasury decision. The vendor fee is increasing 
from $14.25 for original applications and $13 for renewal applications 
to $17 for original applications and $17 for renewal applications.

Special Analyses

    It has been determined that this Treasury decision is not a 
significant regulatory action as defined in Executive Order 12866, as 
supplemented by Executive Order 13563.
    Historically, the annual PTIN application and renewal period has 
begun on October 15. For 2015, the date has been postponed to November 
1. There is insufficient time before November 1 to provide an 
opportunity for notice and public comment and issue a final regulation 
prior to that date. To enable the reduced fee amount to be in effect 
for PTINs issued or renewed by tax return preparers preparing returns 
in 2016, the IRS and Treasury find that there is good cause to dispense 
with (1) notice and public comment pursuant to 5 U.S.C. 553(b) and (c) 
and (2) a delayed effective date pursuant to 5 U.S.C. 553(d). It would 
be impracticable, unnecessary, and contrary to the public interest to 
continue to charge the current fee when the IRS has determined pursuant 
to the biennial review conducted under OMB Circular A-25 that the fee 
should be reduced going forward. The IRS and Treasury Department will 
consider public comments submitted in response to the cross-referenced 
notice of proposed rulemaking published elsewhere in this issue of the 
Federal Register and will promulgate a final rule after considering 
those comments.
    For applicability of the Regulatory Flexibility Act, please refer 
to the cross-referenced notice of proposed rulemaking published 
elsewhere in this issue of the Federal Register. Pursuant to section 
7805(f), this Treasury decision has been submitted to the Chief Counsel 
for Advocacy of the Small Business Administration for comment on its 
impact on small business.

Drafting Information

    The principal author of these regulations is Hollie M. Marx, Office 
of the Associate Chief Counsel (Procedure and Administration).

List of Subjects in 26 CFR Part 300

    Reporting and recordkeeping requirements, User fees.

Adoption of Amendments to the Regulations

    Accordingly, 26 CFR part 300 is amended as follows:

0
Paragraph 1. The authority citation for part 300 continues to read as 
follows:

    Authority: 31 U.S.C. 9701.


0
Par. 2. Section 300.13 is amended by removing and reserving paragraph 
(b) to read as follows:

[[Page 66795]]

Sec.  300.13  Fee for obtaining a preparer tax identification number.

* * * * *
    (b) Fee. [Reserved]
* * * * *

0
Par. 3. Section 300.13T is added to read as follows:


Sec.  300.13T  Fee for obtaining a preparer tax identification number.

    (a) [Reserved]
    (b) Fee. The fee to apply for or renew a preparer tax 
identification number is $33 per year, which is the cost to the 
government for processing the application for a preparer tax 
identification number and does not include any fees charged by the 
vendor.
    (c) [Reserved]
    (d) Effective/applicability date. This section will be applicable 
for all PTIN applications filed on or after November 1, 2015.

Karen M. Schiller,
Acting Deputy Commissioner for Services and Enforcement.
    Approved: October 16, 2015.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2015-27789 Filed 10-29-15; 8:45 am]
BILLING CODE 4830-01-P