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IRS Seeks to Increase Fees for Enrolled Agents

By:
Ruth Singleton
Published Date:
Mar 8, 2022

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The IRS is proposing to raise the enrollment and renewal fees for enrolled agents, Accounting Today reported. The  fee for examinations is already set to increase.

An enrolled agent is a person who has earned the privilege of representing taxpayers before the IRS by either passing a three-part comprehensive IRS test covering individual and business tax returns, or through experience as a former IRS employee. Enrolled agents, like CPAs and attorneys, have unlimited practice rights. This means that they are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can represent clients before.  

IRS set out the increases it seeks in proposed regulations that it posted last week. The agency seeks to raise the enrollment and renewal user fee for enrolled agents to $140 from $67, and similarly to increase the renewal user fee for enrolled retirement plan agents to $140 from $67. These regulations would affect individuals who are currently or applying to become enrolled agents or who are already enrolled retirement plan agents.  

Accounting Today cited the Current Federal Tax Developments blog and Tax Notes in reporting that some fees are already set to go up for enrolled agents. The IRS posted final regulations last week to increase the amount of the user fee for each part of the special enrollment examination for enrolled agents to $99 from $81, plus an amount payable to a third-party contractor. 

The IRS is seeking more revenue in order to cope with its backlog of millions of unprocessed tax returns left over from last year and the many demands of the current tax season. It plans to hire an additional 10,000 employees using funding that was appropriated by Congress, according to the Washington Post, most of it coming from COVID-19 relief funds that have not yet been spent. According to Accounting Today, the increase in fees for enrolled agents should bring in some much-needed revenue, but not enough to make a substantial impact on the IRS’s overall budget. 

The IRS is asking for electronic or written comments on the proposal by May 11. A public hearing will be held by teleconference on May 9, at 10a.m. EST. Requests to speak and outlines of topics to be discussed at the public hearing must be received by May2. If no outlines are received by May 2, the public hearing will be cancelled. Requests to attend the public hearing must be received by 5 p.m. EST on May 9. The telephonic hearing will be made accessible to people with disabilities. Requests for special assistance during the telephonic hearing must be received by May 6. 

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