WASHINGTON — The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have announced new interim final regulations and a notice of proposed rulemaking to reduce the user fee imposed on tax professionals who apply for or renew a Preparer Tax Identification Number (PTIN). The change reflects the agency’s ongoing effort to align fees with actual program costs.
Biennial Review Leads to Fee Adjustment
Following a biennial review conducted by the IRS Return Preparer Office in 2025, the agency determined that the full cost of issuing or renewing a PTIN should be lowered.
The fee will drop from $11 to $10, in addition to $8.75 payable to a third-party contractor that supports the PTIN system. This adjustment ensures tax professionals are charged a fair, cost-based fee.
When the New Fee Takes Effect
The newly established $10 user fee will take effect at the start of the next PTIN renewal cycle on October 16, 2025. The PTIN fee is non-refundable, and tax professionals are reminded that failure to obtain and use a valid PTIN may result in penalties. The IRS continues to emphasize the importance of compliance with preparer identification requirements.
Expected Number of PTIN Applicants
The IRS projects that over 900,000 individuals will apply for an initial or renewal PTIN during each of the next three renewal cycles.
This includes both paid tax preparers and enrolled agents who must maintain an active PTIN to prepare returns or represent clients before the IRS. The reduction in fees is expected to collectively save tax professionals millions of dollars nationwide.
Public Comments and Hearing Requests
Treasury and the IRS are inviting public comments and requests for a public hearing regarding the proposed rulemaking. All submissions must be received by October 30, 2025.
Commenters are encouraged to use the Federal e-Rulemaking Portal and should reference “IRS” and “REG-108673-25.” This process ensures transparency and provides tax professionals and stakeholders an opportunity to share feedback.
How to Submit Comments
Comments can be submitted electronically through the Federal e-Rulemaking Portal at www.regulations.gov. Written submissions should be addressed to:
CC:PA:01:PR (REG-108673-25), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.
Requests for a public hearing must follow the procedures outlined in the “Comments and Requests for a Public Hearing” section of the proposed rulemaking notice.
PTIN Requirements for Tax Professionals
A Preparer Tax Identification Number (PTIN) is required for anyone who prepares or assists in preparing federal tax returns or claims for refund for compensation.
Tax professionals must include their PTIN on each return or claim they file with the IRS. The requirement applies to all paid preparers and enrolled agents, ensuring accountability and professionalism in tax preparation.
Maintaining Active PTIN Status
All PTINs expire annually on December 31 of the calendar year for which they are issued. To maintain an active status, tax professionals must renew their PTINs each year before the expiration date. The IRS advises preparers to begin the renewal process well in advance of the deadline to avoid delays during peak filing season.
How to Apply or Renew Online
The IRS recommends that paid tax return preparers and enrolled agents apply for or renew their PTINs through the IRS online PTIN system. The online process is straightforward and typically takes about 15 minutes to complete. Applicants can pay the fee electronically and receive their PTIN confirmation immediately upon approval.
Paper Application Option
While the online portal is the fastest option, a paper application is also available. Tax professionals can submit Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application and Renewal, along with the appropriate payment.
However, applicants should be aware that paper forms may take up to six weeks to process, compared to near-instant approval online.
Importance of PTIN Compliance
Having a valid PTIN is essential for anyone who prepares federal tax returns for compensation. The PTIN helps the IRS track preparer activity, reduce fraud, and maintain accurate oversight of the tax preparation industry. Failure to obtain or renew a PTIN can result in penalties and the inability to legally prepare tax returns.
Supporting the Professional Tax Community
The fee reduction demonstrates the IRS’s commitment to supporting the nation’s tax professionals while maintaining program integrity. By aligning user fees with actual administrative costs, the agency ensures fairness and transparency. The change also reflects the IRS’s broader effort to streamline operations and modernize services for preparers and taxpayers alike.
Learn More
Tax professionals can visit IRS.gov/PTIN to apply for or renew their PTIN online, download Form W-12, or read the interim final regulations and proposed rulemaking notice.
The site also includes detailed FAQs, processing updates, and information about maintaining active PTIN status. Staying informed helps preparers comply with IRS requirements and serve clients efficiently.
FAQs
What change did the IRS announce about the PTIN fee?
The IRS and the Department of the Treasury announced a reduction in the Preparer Tax Identification Number (PTIN) user fee. Beginning October 16, 2025, the fee will decrease from $11 to $10, plus $8.75 payable to a third-party contractor. This adjustment follows a biennial review to align fees with program costs.
When does the new PTIN user fee take effect?
The reduced $10 PTIN user fee takes effect with the start of the next PTIN renewal cycle on October 16, 2025. The PTIN fee is non-refundable, and all paid tax preparers and enrolled agents must maintain a valid PTIN to remain in compliance.
Who needs a PTIN?
Anyone who prepares or helps prepare federal tax returns or refund claims for compensation must have a valid PTIN. Enrolled agents must also maintain an active PTIN to continue practicing before the IRS.
How can I apply for or renew a PTIN?
You can apply for or renew your PTIN through the IRS online PTIN system, which takes about 15 minutes to complete. A paper option—Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application and Renewal—is also available, though it may take up to six weeks to process.
How many tax professionals apply for PTINs each year?
The IRS projects that more than 900,000 individuals will apply for or renew a PTIN during each of the next three renewal cycles. This includes both paid preparers and enrolled agents.
How can the public submit comments on the proposed rule?
Public comments and requests for a hearing must be submitted by October 30, 2025. Comments can be filed electronically through the Federal e-Rulemaking Portal at www.regulations.gov by referencing ‘IRS’ and ‘REG-108673-25’. Paper submissions should be mailed to the IRS at P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.
