In Adam Steele et al v US, the US District Court for the District of Columbia held that IRS can require tax preparers to obtain a PTIN but cannot charge a fee for PTINs. The Intro/Abstract from the decision is as follows:
Plaintiffs bring this class action against the United States to challenge regulations promulgated by the Treasury Department and the Internal Revenue Service requiring tax return preparers to obtain and pay fees for preparer tax identification numbers (PTINs). Both parties have moved for partial summary judgment on the first issue raised in plaintiffs’ lawsuit: whether Treasury and the IRS have the authority to require that all tax return preparers obtain and pay for a PTIN. For the reasons stated below, the Court finds that although the IRS has the authority to require the use of PTINs, it does not have the authority to charge fees for issuing PTINs. The Court will grant in part and deny in part both parties’ summary judgment motions.
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.