THE IRS LOSES LAWSUIT OVER PTIN FEES
Posted By: Jennifer O'Neill // Jun 15, 2017
The IRS may need to refund hundreds of millions of dollars after a Federal District Court ruled in favor of tax preparers who filed a class-action lawsuit against the Internal Revenue Service.
The U.S District of Columbia ruled that the IRS has the authority to require the use of PTINs but does not have the authority to charge user fees. This is due to a set of regulations issued in 2010.
In 2014, CPAs, Adam Steele and Brittany Montrois filed suit against the IRS over PTIN fees. This suit was on behalf of over 700,000 individual practitioners who are forced to pay for a PTIN every year.
The IRS is estimated to have to pay back nearly $245 million since 2010. The IRS is working with the Department of Justice on how to proceed. Because of this PTIN registration and renewal is currently suspended.
Stephanie L. Kashino