IRS trims PTIN fee as renewal season nears

The IRS on Monday issued interim final regulations (T.D. 10035) and proposed regulations (REG-108673-25) that reduce the fee to apply for or renew a preparer tax identification number (PTIN) to $10 from $11.

With the addition of a third-party contractor fee of $8.75, the total annual fee to apply for or renew a PTIN will be $18.75.

Anyone who prepares or assists in the preparation of a federal tax return or claim for refund for compensation must have a valid PTIN and needs to include the PTIN as their identifying number on any return or claim for refund filed with the IRS.

PTIN renewals begin mid-October each year for the following year. PTINs expire on Dec. 31 of the calendar year for which they are issued.

The IRS arrived at the $10 user fee by estimating that the cost of providing PTINs for fiscal year 2026 through fiscal year 2028 is almost $28.8 million, including labor and benefits, travel, training, supplies, and overhead. With the number of applicants over those three years estimated at just over 2.8 million, the cost per application comes out to $10.18.

The $8.75 third-party contractor fee may change in 2026 when the current contract expires and the amount is recomputed, the IRS said previously. This fee is for costs related to the contractor’s activities for the issuance, renewal, and maintenance of PTINs, the IRS said. The 2023 PTIN fee of $30.75 included a contractor fee of $9.75.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.