Tax Preparers Have Until December to Opt Out of PTIN Class Action Suit

Chris Gaetano
Published Date:
Oct 14, 2016

Anyone who has ever paid the IRS money to register their Preparer Tax Identification Number (PTIN) will have until December to opt out of being represented as a plaintiff in a class action lawsuit over whether the government has the authority to charge a fee to obtain or renew a PTIN, and whether the fees are too expensive according to The Journal of Accountancy. The three tax preparers who filed the initial suit argued that the IRS has no authority to charge fees because the preparers receive no special benefits in return for them, and that even if the IRS did have the authority, the fees themselves are far in excess of the costs it takes for the IRS to issuer the PTIN in the first place. 

The class action notice says that tax preparers who paid the IRS to get or renew a PTIN will be included as a plaintiff in the class action suit unless they deliberately opt out by Dec. 7. If the preparer opts out, then they will get no benefits from the suit itself but will also retain the right to launch an individual claim against the service over PTINs; if the preparer does nothing, then they will be counted as a plaintiff and retain the possibility of money or other benefits as a result of court action, though will lose the right to sue the U.S. separately about the same claims in the lawsuit. 

Click here to see more of the latest news from the NYSSCPA.