PTIN Fees

[Christian]

Well the Service has lost another one in federal court. All PTIN fees will have to be refunded.  I figure I've paid almost $400 since they were imposed in 2010. Hope I live long enough to get it back ! 

[ILLMAS]

Please post source.

[Christian]

It was posted on Yahoo News and was published in today's Forbes Magaizine.

[Christian]

Nope Forbes.Com. My guess they will appeal so they likely won't refund for ages. 

[BulldogTom]

Thanks for the info.  This has been one of the things that has pissed me off since they implemented it.  Glad they lost.

Tom
Newark, CA

[Jack from Ohio]

Don't spend the money yet.  Be sure to include it in your will. It will be at least that long before a solid final decision is reached.  You know how good the IRS is at delaying things.

[Gail in Virginia]

Even if the ruling stands, I figure my PTIN fees since 2010 have amounted to about $400 (roughly, I did not go back and look.)  This was brought as a class action suit.  So does the IRS pay the attorneys who brought the suit, they take 1/3 plus costs off the top and then divide the rest between those preparers who elect to be part of the class?  So of the $400 I have spent, would I get maybe $200? Or less?

[Catherine]

1 hour ago, Gail in Virginia said:

So of the $400 I have spent, would I get maybe $200? Or less?

If other class action suits are an indication, I'd say about enough for a cup of fancy coffee... maybe $7.  Twenty years from now.

[Yardley CPA]

http://www.journalofaccountancy.com/news/2017/jun/circuit-court-strikes-down-ptin-user-fees-201716814.html?utm_source=mnl:alerts&utm_medium=email&utm_campaign=05Jun2017&utm_content=button

[MDEA]

I have paid the fees for my employees since they started. I assume the fees will be sent to them.

[Max W]

The court can order the IRS to pay plaintiff's attorney fees.  Let's hope so.

[Gail in Virginia]

I still wouldn't count on on getting much, if anything, back. And if we do get anything back, it will be taxable in most cases. 

[taxxcpa]

25 minutes ago, Gail in Virginia said:

I still wouldn't count on on getting much, if anything, back. And if we do get anything back, it will be taxable in most cases. 

Taxable but will they send a 1099?

[Christian]

My reading is they will refund the full fee to all who paid it. If memory serves me they did not appeal the RTRP ruling but I may be wrong. They did fully refund the test fee. It would be a strange feeling for me to receive a check from the IRS .

[Roberts]

The only class action suit that ever got me any money was for Liberty Tax I think. They called my cell phone and my wife's wanting to talk about me working there and they were sued. I got two checks for $50 each.

My small claims lawsuit against TRX Tax software earned me a refund of what I paid them.

[Catherine]

I got $13 and change from a class action suit some years ago.  Yeah, they sound great - but the only ones who profit, it seems, are the lawyers.  Maybe the bad guy gets spanked.

[Tax Prep by Deb]

I was involved in a class action suit with JCPenny's and basically had to do nothing except say keep me in.  It finally settled and I ended up with $845.00 dollars in an e-gift card.  Didn't really believe it, but went on their website and put in the number and pin number and there it was.  I've been using it ever since and still have a balance.  So I guess my point is you just never know.  If they send them to me I will always respond, but I must say this is the biggest one yet!

[Lee B]

Three or four years ago I received $ 4,954 from a class action lawsuit against Charles Schwab.

It was related to the non disclosure of the risk associated with a certain kind of investment,

in which my IRA was invested.

[Catherine]

Jeepers, sounds like I have been involved in the wrong kind of class action suits!  I couldn't even buy a large pizza with my settlement!

[Roberts]

oohhh, I'm currently in a Google Adwords class action lawsuit.

I'm retiring when I get the check!

[NECPA in NEBRASKA]

I just received a check for $12 from a Mcafee class action suit! It's better than nothing. I don't even want to know what the attorneys take was.

[jklcpa]

From Accounting Today this article is quoted below in its entirety and says that IRS has reopened the PTIN system, issuing and renewing for the 2017 season at no charge, and is working with the DOJ on how to proceed. 

 

Quote

The Internal Revenue Service reopened its Preparer Tax Identification Number system Wednesday after closing it earlier this month because it lost a lawsuit over registration and renewal fees. 

On June 1, 2017, the U.S. District Court for the District of Columbia upheld the IRS’s authority to require the use of a PTIN by tax preparers, but told the IRS it couldn't charge a user fee for issuing and renewing PTINs.  As a result, the IRS suspended PTIN registration and renewal on June 2 (see IRS loses lawsuit over PTIN fees, suspends PTIN system, and may be forced to refund preparers).

The IRS said Wednesday it is working with the Department of Justice and considering how to proceed, but meanwhile it will make PTINs available while deciding how to address the court order. 

The IRS said it is resuming the issuance of PTINS, without charge, Wednesday. As more information becomes available, it will be posted on the IRS's Tax Pros page.

 

[Abby Normal]

Just logged in to PTIN system and renewing is not an option. We didn't used to have to renew every year. Maybe it will go back to that?

[grandmabee]

they never open renewal for the next year until December late November.

But you should be able to apply for NEW user PTIN.

[jklcpa]

1 hour ago, Abby Normal said:

Just logged in to PTIN system and renewing is not an option. We didn't used to have to renew every year. Maybe it will go back to that?

Right, I looked at that too. No-charge PTINs are for new applications and renewals for the 2017 season according to the IRS site. Who hasn't renewed for 2017 yet?!   

Personally I think that the PTIN should be as it was originally intended, to be as a replacement for our SSNs so that those aren't shown on the returns we prepare. I also think that regulating tax preparers without other credentials (those without JD, EA or CPA) should be handled at the state level as part of states' professional licensing and regulation.