Tax Preparers Would Pay Fee for ID Number Under IRS Rules (2)

Paid tax returns preparers would again have to pay an annual fee to obtain or renew mandatory ID numbers under proposed IRS regulations.

The proposal follows the D.C. Circuit’s 2019 ruling in Montrois v. United States, which held that the agency could reinstate fees for preparer tax identification number. That ruling resolved a class action brought by a group of tax preparers who challenged the fee.

The IRS in proposed regulations (REG-117138-17) released Wednesday suggested an annual fee of $21, plus an additional processing charge for third-party vendors. The last time preparers had to pay a fee ...