User Fees Relating to Enrolled Actuaries, 60357-60362 [2022-21458]

Agencies

• Internal Revenue Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 87, Number 192 (Wednesday, October 5, 2022)]
[Proposed Rules]
[Pages 60357-60362]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-21458]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 300

[REG-100719-21]
RIN 1545-BQ26


User Fees Relating to Enrolled Actuaries

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking and notice of public hearing.

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[[Page 60358]]

SUMMARY: This document contains proposed amendments to the regulations 
relating to imposing user fees for enrolled actuaries. The proposed 
regulations increase both the enrollment and renewal of enrollment user 
fees for enrolled actuaries from $250.00 to $680.00. The proposed 
regulations affect individuals who apply to become an enrolled actuary 
or seek to renew their enrollment. The Independent Offices 
Appropriation Act of 1952 authorizes charging user fees.

DATES: Electronic or written comments must be received by December 5, 
2022. The public hearing is being held by teleconference on December 
16, 2022 at 10 a.m. EDT. Requests to speak and outlines of topics to be 
discussed at the public hearing must be received by December 14, 2022. 
If no outlines are received by December 5, 2022, the public hearing 
will be cancelled. Requests to attend the public hearing must be 
received by 5:00 p.m. EDT on December 14, 2022. The telephonic hearing 
will be made accessible to people with disabilities. Requests for 
special assistance during the telephonic hearing must be received by 
December 13, 2022.

ADDRESSES: Commenters are strongly encouraged to submit public comments 
electronically. Submit electronic submissions via the Federal 
eRulemaking Portal at www.regulations.gov (indicate IRS and REG-100719-
21) by following the online instructions for submitting comments. Once 
submitted to the Federal eRulemaking Portal, comments cannot be edited 
or withdrawn. Send paper submissions to: CC:PA:LPD:PR (REG-100719-21), 
Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin 
Station, Washington, DC 20044. The IRS will publish any comments 
submitted to the public docket.
    For those requesting to speak during the hearing, send an outline 
of topic submissions electronically via the Federal eRulemaking Portal 
at www.regulations.gov (indicate IRS and REG-100719-21).
    Individuals who want to testify by telephone at the public hearing 
must send an email to [email protected] to receive the telephone 
number and access code for the hearing. The subject line of the email 
must contain the regulation number REG-100719-21 and the word TESTIFY. 
For example, the subject line may say: Request to TESTIFY at Hearing 
for REG-100719-21. The email should include a copy of the speaker's 
public comments and outline of topics. Individuals who want to attend 
the public hearing by telephone must also send an email to 
[email protected] to receive the telephone number and access code 
for the hearing. The subject line of the email must contain the 
regulation number REG-100719-21 and the word ATTEND. For example, the 
subject line may say: Request to ATTEND Hearing for REG-100719-21. To 
request special assistance during the telephonic hearing contact the 
Publications and Regulations Branch of the Office of Associate Chief 
Counsel (Procedure and Administration) by sending an email to 
[email protected] (preferred) or by telephone at (202) 317-5177 
(not a toll-free number).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Carolyn M. Lee at 202-317-6845; concerning cost methodology, Michael A. 
Weber at (202) 803-9738; concerning submission of comments, the 
hearing, and the access code to attend the hearing by telephone, Regina 
Johnson at (202) 317-5177 (not toll-free numbers), or 
[email protected].

SUPPLEMENTARY INFORMATION:

Background and Explanation of Provisions

    This document contains proposed amendments to 26 CFR part 300 
regarding user fees.
    Regulations establish certain requirements for individuals who seek 
to provide actuarial services under the Employee Retirement Income 
Security Act of 1974 (ERISA) Pub. L. 93-406, Title III, Sec.  3042, 
Sept. 2, 1974, 88 Stat. 1002. To account for its costs of providing 
enrolled actuary enrollment and renewal of enrollment services, the IRS 
charges a user fee to apply for enrollment or renew enrollment as an 
enrolled actuary. This proposal would increase the amount of the user 
fee from $250.00 per enrollment application or renewal application to 
$680.00 per enrollment application or renewal application.

A. Enrolled Actuaries

    ERISA directed the Secretary of Labor and the Secretary of the 
Treasury to establish a Joint Board for the Enrollment of Actuaries 
(Joint Board). 29 U.S.C. 1241. The Joint Board consists of three 
members and one alternate member appointed by the Secretary of the 
Treasury, two members and one alternate member appointed by the 
Secretary of Labor, and one non-voting representative designated by the 
Director of the Pension Benefit Guaranty Corporation. Pursuant to the 
Joint Board's bylaws, the Secretary of the Treasury appoints an 
Executive Director who has the delegated authority to administer the 
Joint Board's enrollment and renewal of enrollment processes. The 
Secretary of the Treasury delegated these functions to the IRS and the 
costs of these activities are borne by the IRS. The Executive Director, 
an IRS Return Preparer Office (RPO) employee, administers the 
enrollment and renewal of enrollment processes for the Joint Board.
    Pursuant to 29 U.S.C. 1242(a), the Joint Board establishes 
reasonable standards and qualifications for persons performing 
actuarial services and is empowered to enroll such individuals who, 
upon application, satisfy these standards and qualifications. The 
regulations at 20 CFR part 901, subpart B prescribe eligibility 
requirements for enrollment and renewal of enrollment. An enrolled 
actuary is any individual who has satisfied the standards and 
qualifications as set forth in the regulations of the Joint Board and 
who has been approved by the Joint Board to perform actuarial services 
required under ERISA.
    Before conferring status as an enrolled actuary to an individual, 
the Joint Board must verify the individual fulfills certain 
requirements related to experience, basic actuarial knowledge, and 
pension actuarial knowledge. 20 CFR 901.12(a). The RPO Joint Board 
staff oversees this verification as part of its responsibility to 
administer the enrollment application and renewal application processes 
for the Joint Board. An applicant may be denied enrollment for 
disreputable conduct (20 CFR 901.12(f)(1)), conviction of specified 
offenses (20 CFR 901.12(f)(2)), submitting false or misleading 
information on the enrollment application (20 CFR 901.12(f)(3)), or 
knowingly submitting false or misleading information on any report 
presenting actuarial information to any person (id.). An individual 
applying for enrollment as an enrolled actuary must submit a Form 5434, 
Joint Board for the Enrollment of Actuaries--Application for 
Enrollment, and pay the current non-refundable $250.00 user fee. 20 CFR 
901.10(a).
    Enrollment is for a three-year term. 20 CFR 901.1(k). Before the 
Joint Board will renew an actuary's enrollment, the enrolled actuary 
must certify he or she has satisfied continuing professional education 
(CPE) requirements as prescribed by the regulations of the Joint Board, 
including a minimum of 36 (thirty-six) hours of CPE in prescribed core 
and non-core subject matter courses during the three-year enrollment 
cycle. 20 CFR 901.11(e).

[[Page 60359]]

Core subject matter is program content and knowledge integral and 
necessary to the satisfactory performance of pension actuarial services 
and actuarial certifications under ERISA and the Internal Revenue Code, 
and includes content concerning the ethical standards of performance 
for actuarial services. 20 CFR 901.11(f)(1)(i). An individual applying 
to renew enrollment as an enrolled actuary must submit a Form 5434-A, 
Joint Board for the Enrollment of Actuaries--Application for Renewal of 
Enrollment, and pay the current non-refundable $250.00 user fee. 20 CFR 
901.11(d). The RPO Joint Board staff verifies the enrolled actuary's 
certification as part of its responsibilities to administer the 
enrollment and renewal of enrollment processes for the Joint Board.
    Section 330 of Title 31 of the United States Code authorizes the 
Secretary of the Treasury to regulate the practice of representatives 
before the Department of the Treasury (Treasury Department) and 
requires that an individual seeking to practice demonstrate necessary 
qualifications, competency, and good character and reputation. The 
rules governing practice before the IRS are published in 31 CFR, 
Subtitle A, part 10, and reprinted as Treasury Department Circular No. 
230 (Circular 230). Under section 10.3(d)(1) of Circular 230, any 
individual who is enrolled as an actuary by the Joint Board and who is 
not currently under suspension or disbarment from practice before the 
IRS may practice before the IRS. Section 10.3(d)(2) provides that an 
enrolled actuary's authority to practice before the IRS is limited to 
matters involving certain provisions of the Internal Revenue Code.

B. User Fee Authority

    The Independent Offices Appropriation Act of 1952 (IOAA) (31 U.S.C. 
9701) authorizes each agency to promulgate regulations establishing the 
charge for services the agency provides (user fees). The IOAA states 
that the services provided by an agency should be self-sustaining to 
the extent possible. 31 U.S.C. 9701(a). The IOAA provides that user fee 
regulations are subject to policies prescribed by the President. The 
policies are currently set forth in the Office of Management and Budget 
(OMB) Circular A-25 (OMB Circular A-25), 58 FR 38142 (July 15, 1993).
    Section 6a(1) of OMB Circular A-25 states that when a service 
offered by an agency confers special benefits to identifiable 
recipients beyond those accruing to the general public, the agency is 
to charge a user fee to recover the full cost of providing the service. 
Section 8e of OMB Circular A-25 requires agencies to review user fees 
biennially and update the fees as necessary to reflect changes in the 
cost of providing the underlying services. During the biennial review, 
an agency must calculate the full cost of providing each service, 
taking into account all direct and indirect costs to any part of the 
U.S. government. Under section 6d(1) of OMB Circular A-25, the full 
cost of providing a service includes, but is not limited to, an 
appropriate share of salaries, medical insurance and retirement 
benefits, management costs, and physical overhead, and other indirect 
costs, including rents, utilities, and travel associated with providing 
the service.
    An agency should set the user fee at an amount that recovers the 
full cost of providing the service unless the agency requests, and the 
OMB grants, an exception to the full-cost requirement. Under section 
6c(2) of OMB Circular A-25, the OMB may grant exceptions when the cost 
of collecting the fees would represent an unduly large part of the fee 
for the activity or when any other condition exists that, in the 
opinion of the agency head, justifies an exception. When the OMB grants 
an exception, the agency does not collect the full cost of providing 
the service and must fund the remaining cost of providing the service 
from other available funding sources. Consequently, the agency 
subsidizes the cost of the service to the recipients of reduced-fee 
services even though the service confers a special benefit on those 
recipients who would otherwise be required to pay the full cost of 
providing the service as provided for by the IOAA and OMB Circular A-
25.

C. Enrolled Actuary User Fee

    An individual who has been granted new enrollment or renewal of 
enrollment as an enrolled actuary by the Joint Board may perform 
actuarial services under ERISA and practice before the IRS as provided 
by section 10.3(d) of Circular 230. The enrollment confers benefits on 
individuals who are enrolled actuaries beyond those that accrue to the 
general public. Because these are specific benefits not available to 
the general public, the IRS charges a user fee to recover the full cost 
associated with the administration of the enrollment and renewal of 
enrollment processes.
    Final regulations (TD 9370) published in the Federal Register (72 
FR 72606-01) on December 21, 2007, established the current $250.00 user 
fee for the enrollment application and renewal of enrollment 
application processes for enrolled actuaries. At that time, the 
Treasury Department and the IRS determined that a $250.00 user fee per 
application to enroll or renew enrollment as an enrolled actuary would 
recover the full direct and indirect costs the government would incur 
to administer the enrollment and renewal of enrollment processes.
    As required by OMB Circular A-25, the IRS has conducted biennial 
reviews of this user fee since it was established by regulation in 
2007. These reviews either resulted in a user fee calculation of 
approximately $250.00 or otherwise did not result in the Treasury 
Department and the IRS increasing the fee. In 2021 the IRS conducted a 
biennial review and calculated its costs associated with administering 
the enrolled actuary enrollment and renewal of enrollment processes. As 
discussed in Section D of this preamble, during the review, the IRS 
took into account increases in labor, benefits, and overhead costs 
incurred in connection with providing services to individuals who 
enroll or renew enrollment as enrolled actuaries since the user fee was 
promulgated in 2007. The costs include activities related to verifying 
that an individual meets the requirements for enrollment or renewal of 
enrollment as an enrolled actuary. The RPO also took into account a re-
allocation of certain labor costs in their methodology to include costs 
associated with certain human capital matters, formalizing policies and 
procedures, and other administrative support. The number of employees, 
the percentage allocation of time spent by employees performing 
activities directly related to the enrollment or renewal of enrollment 
processes, and the associated oversight and support labor costs were 
increased from those costs underlying the current $250.00 user fee.
    The costs to the RPO Joint Board staff of performing enrollment and 
renewal of enrollment processes are the same. The IRS determined that 
the full cost of administering the enrollment and renewal of enrollment 
processes increased from $250.00 to $680.00 per enrollment or renewal 
of enrollment. The proposed fee is an increase of $143.33 per year for 
the three-year enrollment period.

D. Calculation of User Fees Generally

    The IRS follows generally accepted accounting principles (GAAP) in 
calculating the full cost of administering the enrolled actuary 
enrollment and renewal of enrollment processes. The Federal Accounting 
Standards Advisory Board (FASAB) is the body that establishes GAAP that 
apply for Federal reporting entities, such as the IRS.

[[Page 60360]]

FASAB publishes the FASAB Handbook of Federal Accounting Standards and 
Other Pronouncements, as Amended (Current Handbook), which is available 
at https://files.fasab.gov/pdffiles/2021_%20FASAB_%20Handbook.pdf. The 
Current Handbook includes the Statement of Federal Financial Accounting 
Standards (SFFAS) 4: Managerial Cost Accounting Standards and Concepts.
    SFFAS 4 establishes internal costing standards under GAAP to 
accurately measure and manage the full cost of Federal programs, and 
the methodology below is in accordance with SFFAS 4.
1. Cost Center Allocation
    The IRS determines the cost of its services and the activities 
involved in providing them through a cost accounting system that tracks 
costs to organizational units. The lowest organizational unit in the 
IRS's cost accounting system is a cost center. Cost centers are usually 
separate offices that are distinguished by subject-matter area of 
responsibility or geographic region. All costs of operating a cost 
center are recorded in the IRS's cost accounting system. The costs 
charged to a cost center are the direct costs for the cost center's 
activities in addition to allocated overhead. Some cost centers work on 
different services across the IRS and are not fully dedicated to the 
services for which the IRS charges user fees.
2. Cost Estimation of Direct Costs
    The IRS uses various cost measurement techniques to estimate the 
costs attributable to the enrolled actuary enrollment and renewal of 
enrollment processes. These techniques include using various 
timekeeping systems to measure the time required to accomplish 
activities, or using information provided by subject matter experts on 
the time devoted to a program. To determine the labor and benefits 
costs incurred to provide the service of enrolling actuaries, the IRS 
estimated the number of full-time employees required to conduct 
activities related to administering the enrollment and renewal of 
enrollment processes. The number of full-time employees is based on 
both current employment numbers and future hiring estimates. Other 
direct costs associated with administering the enrollment and renewal 
of enrollment processes include travel, training, and supplies.
3. Overhead
    When the indirect cost of a service or activity is not specifically 
identified from the cost accounting system, an overhead rate is added 
to the identifiable direct cost to arrive at full cost. Overhead is the 
indirect cost of operating an organization that is not specifically 
identifiable with a single activity. Overhead includes costs of 
resources that are jointly or commonly consumed by one or more 
organizational unit's activities but are not specifically identifiable 
to a single activity.
    These costs can include:
     General management and administrative services of 
sustaining and supporting organizations.
     Facilities management and ground maintenance services 
(security, rent, utilities, and building maintenance).
     Procurement and contracting services.
     Financial management and accounting services.
     Information technology services.
     Services to acquire and operate property, plants, and 
equipment.
     Publication, reproduction, graphics and video services.
     Research, analytical, and statistical services.
     Human resources/personnel services.
     Library and legal services.
    To calculate the overhead allocable to a specific service, the IRS 
multiplies an overhead rate by the estimated direct costs of the 
service. The IRS calculates the overhead rate annually based on the 
Statement of Net Cost included in the IRS annual financial statements. 
The financial statements are audited by the Government Accountability 
Office. The overhead rate is the ratio of the IRS's indirect costs 
divided by direct costs of its organizational units. Indirect costs are 
labor, benefits, and non-labor costs (excluding IT related to taxpayer 
services, enforcement, and business system modernization) from the 
supporting and sustaining organizational units. Direct costs are labor, 
benefits, and non-labor costs for the IRS's organizational units that 
interact directly with taxpayers.
    For the enrolled actuary user fee review, an overhead rate of 58.83 
percent was used. The rate was calculated based on the Fiscal Year (FY) 
2020 Statement of Net Cost as follows:

Total Indirect Costs..................................    $4,274,512,375
Total Direct Costs....................................    $7,265,460,800
Overhead Rate.........................................            58.83%
 

E. Calculation of Enrolled Actuary Enrollment and Renewal of Enrollment 
User Fees

1. Cost Estimate
    The IRS projected the estimated costs of direct labor and benefits 
based on the actual salary and benefits of employees who devote time to 
conducting enrolled actuary enrollment and renewal of enrollment 
processes, reduced to reflect the percentage of time each individual 
spends on those activities. The RPO's managers estimated the percentage 
of time these employees devote to conducting enrolled actuary 
enrollment and renewal of enrollment activities based on their 
knowledge of actual program assignments. Four employees devote an 
average of sixty-five percent of their time over the three-year 
enrollment cycle to enrolled actuary enrollment or renewal of 
enrollment activities. Prior biennial review costing analyses had 
understated the cost by only taking into account an average of forty 
percent of their time to enrolled actuary enrollment or renewal of 
enrollment activities. Additional staffing costs include oversight and 
support associated with these functions.
    The baseline for the labor and benefits estimate was the actual 
salary and benefits for FY 2021. From this baseline, the IRS estimated 
the direct labor and benefits costs over the next three years using an 
inflation factor for FYs 2022, 2023, and 2024. The IRS used a three-
year projection because the increase in future labor and benefits costs 
are reliably predictable representations of the actual costs that will 
be incurred by the RPO. These estimated direct labor and benefits costs 
were then reduced to reflect the percentage of time each individual 
devoted to enrolled actuary enrollment and renewal of enrollment 
activities and are set out in the following table:

------------------------------------------------------------------------
                                                        Estimated costs
                        Year                           for direct labor
                                                         and benefits
------------------------------------------------------------------------
2022................................................            $546,457
2023................................................             557,659
2024................................................             569,101
                                                     -------------------
  Total.............................................           1,673,217
------------------------------------------------------------------------

    In addition, the IRS estimated $3,500 in direct costs for each year 
for travel, training, and supplies, or $10,500 total in this category 
for the three-year projection.
    The total estimated direct costs for the three years is $1,683,717. 
After estimating the total direct costs, the IRS applied the FY 2021 
overhead rate of 58.83 percent to the estimated direct costs to 
calculate indirect costs of $990,531, for a total cost for the three-
year period of $2,674,248.
    The calculation of the total cost of the enrolled actuary 
enrollment and renewal of enrollment program for 2022 through 2024 is 
shown below:

[[Page 60361]]



Direct Costs............................................      $1,683,717
Overhead at 58.83%......................................       + 990,531
                                                         ---------------
  Total Costs...........................................       2,674,248
 

2. Volume of Applications
    The number of applicants during FYs 2018, 2019, and 2020 were 214, 
132, and 3,584, respectively. The higher number of applicants in 2020 
follows the historical norm of most renewals of enrollment occurring 
every third year. The total number of applications for the three years 
was 3,930. The IRS used this historical three-year volume to estimate 
the number of applicants for FYs 2022, 2023, and 2024.

3. Unit Cost per Application

    To arrive at the total cost per application, the IRS divided the 
estimated three-year total of enrolled actuaries costs by the total 
volume of applications expected over the same three-year period to 
determine a per-application cost of $680.00, as shown below:

Total Costs.............................................      $2,674,248
Number of Applications..................................         / 3,930
                                                         ---------------
Cost per Application....................................            $680
 

Special Analyses

I. Regulatory Planning and Review

    These regulations are not significant and are not subject to review 
under section 6(b) of Executive Order 12866 pursuant to the Memorandum 
of Agreement (April 11, 2018) between the Treasury Department and the 
Office of Management and Budget regarding review of tax regulations.

II. Initial Regulatory Flexibility Analysis

    When an agency issues a rulemaking proposal, the Regulatory 
Flexibility Act (5 U.S.C. chapter 6), (RFA) requires the agency ``to 
prepare and make available for public comment an initial regulatory 
flexibility analysis'' that will ``describe the impact of the proposed 
rule on small entities.'' See 5 U.S.C. 603(a). Section 605 of the RFA 
provides an exception to the requirement if the agency certifies that 
the proposed rulemaking will not have a significant economic impact on 
a substantial number of small entities. A small entity is defined as a 
small business, small nonprofit organization, or small governmental 
jurisdiction. See 5 U.S.C. 601(3) through (6). The Treasury Department 
and the IRS conclude that the proposed regulations, if promulgated, may 
have a significant economic impact on a substantial number of small 
entities. As a result, an initial regulatory flexibility analysis is 
required.
    Description of the reasons why action by the agency is being 
considered.
    The change in enrolled actuary user fees is being considered in 
compliance with Section 6a(1) of OMB Circular A-25, which states that 
when a service offered by an agency confers special benefits to 
identifiable recipients beyond those accruing to the general public, 
the agency is to charge a user fee to recover the full cost of 
providing the service. Enrollment as an enrolled actuary confers 
special benefits to identifiable recipients; such ``identifiable 
recipients'' are new and renewing enrolled actuaries authorized to 
provide pension actuarial services and actuarial calculations under 
ERISA and the Internal Revenue Code. The IRS incurs costs associated 
with enrollment and renewal of enrollment verification and approval 
processes. The Treasury Department and the IRS previously determined 
that the full cost to the IRS of the enrollment and renewal of 
enrollment processes was $250.00 for each enrollment and each renewal 
of enrollment. In accordance with OMB Circular A-25, the Treasury 
Department and the IRS conducted a biennial review of the enrolled 
actuary user fee amount in 2021 and determined that the full cost to 
the IRS of the enrollment and renewal of enrollment processes for each 
enrolled actuary candidate is $680.00 per enrollment and renewal of 
enrollment, an increase of $143.33 per year for the three-year 
enrollment period.
    Succinct statement of the objectives of, and the legal basis for, 
the proposed rule.
    The objective of the proposed regulations is to recover the costs 
to the government associated with providing the services conferring the 
special benefit that accrues to an individual whom the Joint Board 
enrolls as a new or renewing enrolled actuary. When performing its 
duties, the RPO Joint Board staff conducts enrollment and renewal of 
enrollment processes including verifying that the individual applying 
for new or renewed enrolled actuary status fulfills certain 
requirements related to experience, basic actuarial knowledge, and 
pension actuarial knowledge. In addition, with respect to an individual 
seeking to renew as an enrolled actuary, the RPO Joint Board staff must 
verify that the renewing enrolled actuary properly certified that he or 
she satisfied continuing professional education (CPE) requirements as 
prescribed by the regulations of the Joint Board. Section 6a(1) of OMB 
Circular A-25 states that when a service offered by an agency confers 
special benefits to identifiable recipients beyond those accruing to 
the general public, the agency is to charge a user fee to recover the 
full cost of providing the service. An individual who is enrolled as an 
actuary by the Joint Board is conferred the special benefits of being 
authorized to perform actuarial services under ERISA and to practice 
before the IRS as provided by section 10.3(d) of Circular 230. These 
benefits are not available to the general public.
    The legal basis for the fee for initial enrollment and the fee for 
renewal of enrollment as an enrolled actuary with the Joint Board is 
section 9701 of title 31.
    Description of and, where feasible, an estimate of the number of 
small entities to which the proposed rule will apply.
    The proposed regulations affect actuaries who apply for enrollment 
as an enrolled actuary or renewal of enrollment with the Joint Board. 
Only individuals, not businesses, can apply for new enrollment or to 
renew enrolled actuary certification. Therefore, the economic impact of 
these regulations on any small entity generally will be the result of 
an individual actuary owning a small business, or a small business 
employing an actuary and requiring the individual to apply for enrolled 
actuary status or renew as an enrolled actuary with the Joint Board. An 
estimate of the number of small entities to which the proposed rule 
will apply is not available.
    The appropriate NAICS codes for enrolled actuaries are those that 
relate to the performance of pension actuarial services and actuarial 
certifications under ERISA and the Internal Revenue Code: NAICS code 
524298, other insurance related activities; NAICS code 525110, employee 
benefit plans, retirement plans, pension funds and plans; and NAICS 
code 541611, administrative management and general management 
consulting services. The Small Business Administration establishes size 
standards for concerns considered to be small, as provided by 13 CFR 
121.201. Pursuant to 13 CFR 121.201, concerns within NAICS 524298 are 
considered to be small if their annual receipts are less than or equal 
to $27.0 million; NAICS 525110, $35.0 million; and NAICS 541611, $21.5 
million.
    A description of the projected recordkeeping, and other compliance 
requirements of the proposed rule, including an estimate of the classes 
of small entities that will be subject to such requirements that the 
type of professional skills necessary for preparation of the report or 
record.

[[Page 60362]]

    No reporting or recordkeeping requirements are projected to be 
associated with the proposed regulations.
    Identification, to the extent practicable, of all relevant Federal 
rules that may duplicate, overlap, or conflict with the proposed rule.
    The IRS is not aware of any Federal rules that duplicate, overlap, 
or conflict with the proposed rule.
    Description of any significant alternatives to the proposed rule 
that accomplish the stated objectives of applicable statutes and that 
minimize any significant economic impact of the proposed rule on small 
entities, including a discussion of significant alternatives.
    The IOAA authorizes the government to charge user fees for agency 
services, subject to policies designated by the President. OMB Circular 
A-25 implements presidential policies regarding user fees and 
encourages user fees when a government agency provides services that 
confer a special benefit to a member of the public. In the IOAA, 
Congress has stated a preference that the costs of providing such 
services should be self-sustaining. OMB Circular A-25 expressly states 
that the agency providing such services generally must charge a user 
fee to recover the full cost of providing the service.
    The IRS, acting through the RPO Joint Board staff, provides 
services which confer special benefits to the enrolled actuaries who 
will be subject to these user fees. Individuals who wish to perform 
pension actuarial services and actuarial certifications under ERISA and 
the Internal Revenue Code and practice before the IRS must satisfy the 
standards and qualifications as set forth in the regulations of the 
Joint Board for persons performing actuarial services required under 
ERISA. Only after the Joint Board verifies that an individual satisfied 
the stated standards and qualifications--either as a new enrolled 
actuary applicant or a renewing enrolled actuary--will the individual 
be enrolled as an enrolled actuary. An enrolled actuary must renew his 
or her certification every three years to ensure the required 
competence and compliance with ethical standards of performance for 
actuarial service.
    Due to the costs of administering the new enrollment and renewal of 
enrollment processes, and the expressed preference in the IOAA that 
government services conferring special benefits be self-sustaining, 
there is no viable alternative to imposing a user fee.
III. Unfunded Mandates Reform Act
    Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) 
requires that agencies assess anticipated costs and benefits and take 
certain other actions before issuing a final rule that includes any 
Federal mandate that may result in expenditures in any one year by a 
state, local, or tribal government, in the aggregate, or by the private 
sector, of $100 million in 1995 dollars, updated annually for 
inflation. This rule does not include any Federal mandate that may 
result in expenditures by state, local, or tribal governments, or by 
the private sector in excess of that threshold.
IV. Executive Order 13132: Federalism
    Executive Order 13132 (Federalism) prohibits an agency from 
publishing any rule that has federalism implications if the rule either 
imposes substantial, direct compliance costs on state and local 
governments, and is not required by statute, or preempts state law, 
unless the agency meets the consultation and funding requirements of 
section 6 of the Executive Order. These proposed regulations do not 
have federalism implications and do not impose substantial direct 
compliance costs on state and local governments or preempt state law 
within the meaning of the Executive Order.

Comments and Public Hearing

    Before these proposed amendments to the regulations are adopted as 
final regulations, consideration will be given to comments that are 
submitted timely to the IRS as prescribed in the preamble under the 
ADDRESSES section. The Treasury Department and the IRS request comments 
on all aspects of the proposed regulations. Any comments submitted will 
be made available at www.regulations.gov and upon request.
    A public hearing is being held by teleconference on December 16, 
2022 beginning at 10 a.m. EDT. The rules of 26 CFR 601.601(a)(3) apply 
to the hearing. Persons who wish to present oral comments by telephone 
at the hearing must submit electronic or written comments and an 
outline of the topics to be addressed and the time to be devoted to 
each topic by December 5, 2022 as prescribed in the preamble under the 
ADDRESSES section.
    A period of 10 minutes will be allocated to each person for making 
comments. After the deadline for receiving outlines has passed, the IRS 
will prepare an agenda containing the schedule of speakers. Copies of 
the agenda will be made available at www.regulations.gov, search IRS 
and REG-100719-21. Copies of the agenda will also be available by 
emailing a request to [email protected]. Please put ``REG-100719-
21 Agenda Request'' in the subject line of the email.

Drafting Information

    The principal author of these regulations is Carolyn M. Lee, Office 
of the Associate Chief Counsel (Procedure and Administration). Other 
personnel from the Treasury Department and the IRS participated in the 
development of these regulations.

List of Subjects in 26 CFR Part 300

    Reporting and recordkeeping requirements, User fees.

    Accordingly, the Treasury Department and the IRS propose to amend 
26 CFR part 300 as follows:

PART 300--USER FEES

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

    Authority:  31 U.S.C. 9701.

0
2. Amend Sec.  300.7 by revising paragraphs (b) and (d) to read as 
follows:


Sec.  300.7  Enrollment of enrolled actuary fee.

* * * * *
    (b) Fee. The fee for initially enrolling as an enrolled actuary 
with the Joint Board for the Enrollment of Actuaries is $680.00.
* * * * *
    (d) Applicability date. This section is applicable beginning [DATE 
30 DAYS AFTER DATE OF PUBLICATION OF THE FINAL RULE IN THE Federal 
Register].
0
3. Amend Sec.  300.8 by revising paragraphs (b) and (d) to read as 
follows:


Sec.  300.8  Renewal of enrollment of enrolled actuary fee.

* * * * *
    (b) Fee. The fee for renewal of enrollment as an enrolled actuary 
with the Joint Board for the Enrollment of Actuaries is $680.00.
* * * * *
    (d) Applicability date. This section is applicable beginning [DATE 
30 DAYS AFTER DATE OF PUBLICATION OF THE FINAL RULE IN THE Federal 
Register].

Paul J. Mamo,
Assistant Deputy Commissioner for Services and Enforcement.
[FR Doc. 2022-21458 Filed 10-4-22; 8:45 am]
BILLING CODE 4830-01-P