You Can Save a Dollar on PTIN Renewal
The IRS just announced that the PTIN renewal will cost $10 this year
We know that inflation has been high the last few years, but the IRS just announced that the PTIN renewal fee for this year will be $10 instead of the $11 charge from last year.
The IRS had charged a much higher fee a few years ago, but the Steele v. US and the Montrois v. US cases determined that fee was excessive and required the IRS to determine the cost of providing the PTIN service.
Thus, the fee was reduced and each year the IRS determines their cost of administering the program.
The IRS looked at various factors in arriving at the fee including:
Direct Cost Estimation of about $17.6 million,
Overhead Allocation of about $11 million,
Total Cost Calculation of about $28.8 million. and
The Per-Unit Fee of $10.18 which was rounded down to $10.
The IRS fee is 10, however, there is an additional third-party processing fee of $8.75 so it appears the final fee will be $18.75