IRS sets hearing on reduced PTIN user fee

The Internal Revenue Service (IRS) is moving forward with a small but notable change that affects every paid tax return preparer. The IRS has scheduled a public hearing on proposed regulations related to the preparer tax identification number (PTIN) user fee. The Treasury and the IRS previously issued interim final regulations reducing the IRS portion of the PTIN fee from $11 to $10, plus a separate amount paid to a third-party contractor. The April hearing gives stakeholders a chance to comment on the proposed related rulemaking.

What is the PTIN and why does it matter?

Anyone who prepares or assists in preparing federal tax returns for compensation must have a valid PTIN. It’s a core requirement under IRS rules and plays an important role in tracking preparers, enforcing compliance and maintaining standards across the profession. Without a valid PTIN, a preparer cannot legally prepare returns for pay. That makes any change to PTIN requirements, including fees, relevant to all practitioners.

What the proposed change does

The Treasury and the IRS previously issued interim final regulations reducing the IRS portion of the PTIN fee by $1, lowering it from $11 to $10. Preparers still pay an additional amount to the third-party vendor that processes PTIN applications and renewals. Readers who want more background can read NATP’s earlier overview of the lower PTIN user fee.

This adjustment follows a broader pattern. Over the years, PTIN fees have been challenged, reviewed and recalculated to better reflect the IRS’ actual costs of administering the program. The current proposal continues that effort to align fees with cost recovery, rather than generating excess revenue. 

Details of the public hearing

The IRS has scheduled a public hearing for April 24, 2026, at 10 a.m. ET in Washington, D.C. Each speaker will be given 10 minutes. The deadline to request to speak at the hearing was April 2, 2026. Practitioners may still want to monitor the hearing and watch for next steps in the rulemaking process.

Participants can attend in person or by telephone, but advance notice is required. If no one submits an outline by the deadline, the hearing will be canceled. This process is standard for proposed regulations. It gives practitioners, organizations and stakeholders a chance to weigh in before rules are finalized.

Why this matters for tax professionals

Even though the dollar amount is small, this proposal highlights a few important points:

1. IRS fee scrutiny continues: The IRS is under ongoing pressure to justify user fees. Adjustments like this show that the agency is reviewing costs carefully and making incremental changes when appropriate.
2. Compliance costs still add up: While $1 may not impact a single preparer, firms with multiple preparers will see a cumulative effect. Every required fee, renewal and administrative step contributes to the overall cost of doing business.
3. Participation in the rulemaking process matters: This hearing is an opportunity for tax professionals to provide input. Whether the issue is fee structure, administrative burden or broader concerns about the PTIN system, the IRS is required to consider public comments before finalizing regulations.
4. Signals of broader administrative trends: Changes to PTIN fees often reflect larger shifts in how the IRS manages programs and contracts with third-party vendors. Paying attention to these updates can help practitioners anticipate future changes.

What practitioners should do now

Tax professionals don’t need to take immediate action unless they want to participate in the hearing. However, it’s a good time to:

➔ Stay informed on PTIN renewal requirements 

➔ Monitor final regulations once issued 

➔ Consider whether to submit comments or feedback 

Firms and professional organizations may especially want to weigh in, as even small regulatory changes can have long-term implications.

The bottom line on the PTIN hearing

The PTIN user fee reduction is modest, but the hearing reflects the IRS’ continued effort to align fees with actual costs and maintain transparency. For tax professionals, it serves as a reminder that even routine requirements like PTIN renewals are subject to regulatory review and change.

Staying engaged in these developments helps ensure that practitioners are not only compliant, but also informed participants in the rulemaking process that shapes their profession. NATP will continue tracking PTIN developments and other IRS changes affecting preparers.