Final Regs Reduce User Fees For Enrolled Agents And Enrolled Retirement Plan Agents

T.D. 9523, 04/14/2011; Reg. §300.0, Reg. §300.4, Reg. §300.5, Reg. §300.6, Reg. §300.9, Reg. §300.10, Reg. §300.11

IRS has issued final regs that separate the enrolled retirement plan agent user fees from the enrolled agent user fees. In addition, under the final regs, the initial enrollment and renewal of enrollment fees for both are reduced from $125 to $30. These regs are effective Apr. 19, 2011.

Background. 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. An individual must also pay a $125 nonrefundable user fee to renew enrollment every 3 years. In addition, a user fee of $11 per part is currently imposed to take the Special Enrollment Examination (SEE), which individuals must pass to become an enrolled agent through examination, or the Enrolled Retirement Plan Agent Special Enrollment Examination (ERPA-SEE), which individuals must pass to become an enrolled retirement plan agent through examination.

Late in 2010, IRS issued proposed regs reducing the initial enrollment and renewal of enrollment user fees for enrolled agents and enrolled retirement plan agents to $30 from $125. In addition, the proposed regs separated the enrolled retirement plan agent user fees from the enrolled agent user fees.

The reduction in user fees was necessary to account for the reallocation of portions of the enrolled agent and enrolled retirement plan agent renewal processes to the preparer tax identification number (PTIN) application and renewal process. The costs to the government for the reallocated portions of the enrolled agent and enrolled retirement plan agents initial enrollment and renewal of enrollment processes are now recovered by the user fee to apply for or renew a PTIN. (T.D. 9523, 04/14/2011)

Final regs. The final regs adopt the proposed regs without substantive modification. They coordinate the user fees imposed on enrolled agents and enrolled retirement plan agents with the new user fee to apply for or renew a PTIN. The final regs 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 were imposed in former Reg §300.5 and Reg §300.6. The final regs also separate the user fee to take the ERPA-SEE to become an enrolled retirement plan agent (Reg. §300.9) from the user fee to take the SEE to become an enrolled agent (Reg. §300.4), which were both imposed in former Reg §300.4.

The final regs 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 and suitability checks) previously conducted as part of the enrolled agent and enrolled retirement plan agent initial enrollment and renewal of enrollment processes, are now conducted as part of the PTIN application and renewal process. Specifically, the final regs reduce the enrolled agent initial enrollment user fee to $30 (Reg. §300.5), and reduce the enrolled agent renewal of enrollment user fee to $30. (Reg. §300.6) The enrolled retirement plan agent initial enrollment user fee is reduced to $30 (Reg. §300.10), and the enrolled retirement plan agent renewal of enrollment user fee would be reduced to $30. (Reg. §300.11)

References: For preparers' identification number, see FTC 2d/FIN ¶S-1522.3; United States Tax Reporter ¶61,094.02; TaxDesk ¶867,012; TG ¶71006.1.