In Allen Buckley and Allen Buckley LLC v. United States, a U.S. district court in the Northern District of Georgia (not yet published) granted summary judgment in favor of the Defendant, upholding an Eleventh Circuit decision that affirmed the validity of imposing a user fee to obtain a preparer tax identification number (“PTIN”). The Plaintiff had argued that there was no statutory authorization for the PTIN user fees charged by the Treasury Department. Internal Revenue Code § 6109 generally authorizes the I.R.S. to issue identifying numbers, including to tax return preparers, and provides authority for administrative regulations. In interpreting the statute, the Court found that § 6109(a)(4) authorizes Treasury to issue regulations and assess user fees for the PTIN programs, including for annual renewal fees, so long as they were not arbitrary or excessive.
U.S. District Court clears way for PTIN user fees
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