Atlanta Attorney/CPA Files Lawsuit Challenging PTIN User Fees

ATLANTA, GA, January 28, 2013 (Press-News.org) On January 25, 2013, Allen Buckley, an Atlanta attorney/CPA filed suit in the U.S. District Court for the Eastern District of Tennessee, challenging charging of user fees by the U.S. Treasury Department to issue and annually renew Preparer Tax Identification Numbers ("PTINs").

Beginning in 2010, after the IRS recommended the tax return preparation industry be regulated in a new manner not approved by Congress, regulations were issued to implement IRS's recommendations. One of the regulations included the requirement that a PTIN be obtained, and that fees be charged for issuance and annual renewal of the PTIN. The IRS's recommendation called for renewal every three years, but the regulations provided for annual renewal. The initial fee is $64.25 and the annual renewal fee is $63.

The suit seeks a declaratory judgment that charging of fees for initial issuance of a PTIN and annual renewal thereof is unlawful, and also asks for a permanent injunction, preventing the Treasury Department from charging issuance and renewal fees.

Allen Buckley said: "The user fee statute is the basis for charging of fees. Numerous requirements exist for the user fee statute to be used to charge fees, including requirements that the fees are paid voluntarily and a special benefit is received by the payer. Neither of these requirements has been met in this case."

On January 18, 2013, the U.S. District Court for the District of Columbia ruled in Loving v. Internal Revenue Service that a large part of the new regulatory scheme, including testing and annual continuing education of many preparers, is unlawful. A permanent injunction was granted to prevent implementation. However, PTIN fees were not considered.
Allen Buckley can be reached for comment at (770) 319-0110.

The Law Office of Allen Buckley LLC represents individuals and companies with respect to adminstrative law, employee benefits, tax, estate planning, health care, business and litigation matters.

Website: http://allenbuckleylaw.com