Tuesday, December 14, 2010

IRS Releases Proposed Regulations that Would Reduce Enrolled Agent Fees

According to their newest press release, the IRS has proposed regulations that would reduce the fees enrolled agents pay to register and renew their status. Enrolled agents and enrolled retirement plan agents must renew their status, and pay the fees, every three years.

    The reduction is related to the preparer tax identification number requirements implemented last month which establish a new registration process and fee for all return preparers.

    The proposed regulations (REG-124018-10) would reduce the fee for application and renewal for enrolled agents and enrolled retirement plan agents from $125 to $30. The reduction reflects the fact that the processes used to review enrollment and renewal of enrollment applications are partially duplicative of the new process for reviewing a PTIN application, which costs $64.25.

    Individuals granted status as an enrolled agent or enrolled retirement plan agent must renew enrollment every three years. The renewal schedule is based on the last digit of the individual’s social security number or tax identification number.

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

    Delay of Renewal Period for Certain Enrolled Agents

    In anticipation of these proposed regulations, the IRS recently announced in Announcement 2010-81 a delay of the renewal period for enrolled agents whose tax identification numbers end in 4, 5, or 6. The IRS is not accepting or processing applications for renewal of enrollment until further guidance is issued.

Continue reading at IRS.gov...

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