IRS Tax
and Levy News
June 1, 2017-IRS
Tax Preparer Identification "FEE" illegal.
The IRS has been requiring tax return preparers to both obtain and pay fees for preparer tax identification numbers (PTINs).
The fee is $50.00 as of June, 2017.
In a class action brought against the United States, challenging regulations promulgated by the Treasury Department and the Internal Revenue Service, the UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA held that although the
IRS has the authority to require the use of PTINs, it
does not have the authority to charge fees for issuing
PTINs.
The response by the
IRS has been to advise that its PTIN System is Down. The IRS web site (Tax Professionals Section) (as of June 5, 2017 advises):
"On June 1, 2017, the United States District Court for the District of Columbia upheld the Internal Revenue Service’s authority to require the use of a Preparer Tax Identification Number (PTIN), but enjoined the IRS from charging a user fee for the issuance and renewal of PTINs. As a result of this order, PTIN registration and renewal is currently suspended.
The IRS, working with the Department of Justice, is considering how to proceed. As additional information becomes available, it will be posted on our Tax Pros page."
The case is STEELE, ET AL. v. UNITED STATES OF AMERICA (June
1, 2017) a copy of which is
HERE.
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