Enrolled Agent Application, Renewal Fees to Double (NPRM REG-122898-17)

Becoming and remaining an enrolled agent or enrolled retirement plan agent will soon cost more. The IRS is proposing to more than double the fees for becoming and renewing as an enrolled agent to $67. Also, the fee for renewing as a enrolled retirement plan agent will increase.

Enrolled Agents

Nonattorneys and nonCPAs can get permission to practice before the IRS. These individuals, known as enrolled agents, must show:

  1. good character;
  2. good reputation;
  3. they are able to provide a valuable service; and
  4. their competency to advise and assist persons in presenting their cases.

Once eligible for enrollment, an individual must apply for enrollment and pay a user fee. Currently, the nonrefundable user fee is $30.

To maintain their right to practice before the IRS, enrolled agents and enrolled retirement plan agents must:

  • apply to renew their enrollment every three years, and
  • pay a nonrefundable user fee.

Increasing Costs

The IRS bases the application and renewal fees on its actual cost for administering the EA program. These costs include:

  • federal tax-compliance checks,
  • suitability checks,
  • continuing education and test-related activities,
  • labor costs for processing new and renewal applications, and
  • operating a dedicated toll-free helpline for enrollment and renewal matters.

To determine the new user fee, the IRS projected its costs for the EA program for fiscal years 2018-2020. Based on its projections, the IRS’s costs for the EA program will increase to $67 per new or renewal application. Therefore, the IRS is proposing to increase the EA new or renewal fee from $30 to $67.

Comments Requested

The IRS must receive written or electronic comments before January 18, 2019. The IRS must receive requests to speak and outlines of topics for the public hearing, scheduled for January 24, 2019, at 10:00 a.m., by January 18, 2019.

Proposed Regulations, NPRM REG-122898-17

 

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CCHTaxGroup

All stories by: CCHTaxGroup