IRS Proposes Reduced Enrolled Agents Fees

by Mike Godfrey, Tax-News.com, Washington

10 December 2010

The United States Internal Revenue Service (IRS) has released proposed regulations that would reduce fees related to application and renewal for enrolled agents and enrolled retirement plan agents.

The reduction is related to the implementation of the preparer tax identification number (PTIN) requirements, which establish a new registration process and fee for all return preparers. The proposed regulations would reduce the fee for application and renewal for enrolled agents and enrolled retirement plan agents from USD125 to USD30; reflecting the fact that the processes used to review those applications are partially duplicative of the new process for reviewing a PTIN application.

Tax professionals and other interested parties have until January 10, 2011, to submit comments regarding the proposed regulations.

Individuals granted status as an enrolled agent or enrolled retirement plan agent must renew enrolment every three years. The renewal schedule is based on the last digit of the individual’s social security number or tax identification number. However, in anticipation of the proposed regulations, the IRS recently announced a delay of the renewal period for certain enrolled agents.

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