IRS Lowers PTIN Fee: What Tax Professionals Need to Know
- MyTAXPrepOffice Editorial Group
- 2 days ago
- 2 min read
A notable change is coming for the tax preparation community: the IRS has issued interim final regulations (T.D. 10035) and a proposed regulation (REG-108673-25) that reduce the PTIN application/renewal user fee.
What’s Changing: The New Fee Structure
The base user fee for obtaining or renewing a PTIN will be $10 (down from $11).
A third-party contractor fee of $8.75 remains. So the total cost to apply or renew will be $18.75.
That contractor fee may change in 2026 when the current contract expires.
Why the Change?
The IRS estimates that over the fiscal years 2026–2028, costs associated with providing PTIN services—covering labor, training, overhead, and other expenses—will total about $28.8 million. With an estimated 2.8 million applications (new or renewals) over that period, the cost per application works out to about $10.18. That calculation underlies the new $10 user fee.
Timing & Renewal Considerations
PTIN renewals begin mid-October each year for the following year. Current PTINs expire on December 31 of the calendar year in which they are issued.
The change affects the user fee portion; the contractor surcharge continues to apply.
Implications for Tax Professionals
1. Slight cost saving, but not dramatic: Dropping the user fee from $11 to $10 is positive—but the total cost of $18.75 (with contractor fee) means the reduction is modest. Still, it’s helpful for those renewing annually.
2. Watch for contractor fee changes: Since the contractor surcharge may be renegotiated in 2026, your total cost could shift again. Stay alert for IRS updates.
3. Budgeting & planning: Whether you're a solo preparer or managing a firm, updating your renewal cost assumptions is wise. Factor in the new fee when estimating expenses for next year.
4. Communication reminders: Clients who are also preparers (or preparers you refer) may not immediately notice the change. If you offer preparer support or training, let them know about the fee adjustment.
Bottom Line
The IRS’s reduction in the user component of the PTIN fee is a welcome change, though partly offset by the contractor surcharge. The adjustment reflects updated cost estimates and aims to keep the PTIN program financially sustainable. As tax pros, it’s a cue to adjust your expectations, costs, and communications accordingly.
Disclaimer: This article is for informational and educational purposes only and does not constitute legal tax advice. Advanced Tax Solutions is not liable or responsible for any damages resulting from or related to your use of this information. It is your responsibility to refer to official IRS documentation for information regarding any tax laws or tax information shown here.
