[Federal Register: December 21, 2007 (Volume 72, Number 245)]
[Rules and Regulations]
[Page 72606-72607]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21de07-7]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 300
[TD 9370]
RIN 1545-BG88
User Fees Relating to Enrollment To Perform Actuarial Services
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations.
-----------------------------------------------------------------------
SUMMARY: This document contains final regulations relating to user fees
for the initial and renewed enrollment to become an enrolled actuary.
The charging of user fees is authorized by the Independent Offices
Appropriations Act (IOAA) of 1952.
DATES: Effective Date: These regulations are effective on December 21,
2007.
Applicability Date: For date of applicability, see Sec. 300.0(c).
FOR FURTHER INFORMATION CONTACT: Concerning cost methodology, Eva J.
Williams at (202) 435-5514; concerning the final regulations, Kimberly
Mattonen at (202) 622-4940 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
The Employee Retirement Income Security Act of 1974 (Pub. L. 93-
406) ordered the Secretary of Labor and the Secretary of Treasury to
establish a Joint Board for the Enrollment of Actuaries. 29 U.S.C.
1241. The Joint Board shall, by regulation, establish reasonable
standards and qualifications for persons performing actuarial services
and the Joint Board shall enroll such individuals who, upon
application, satisfy such standards and qualifications. 29 U.S.C.
1242(a). The regulations at 20 CFR Part 901, Subpart B address
eligibility for enrollment and renewal of enrollment. Pursuant to the
Joint Board's bylaws, the Secretary of the Treasury is to appoint an
Executive Director to the Board who has the delegated authority to
administer the Board's enrollment program. The Secretary of the
Treasury has delegated these functions to the Internal Revenue Service
and the costs of these activities are borne by the Service.
20 CFR 901.11(d)(4) provides for a reasonable non-refundable fee
for applications for renewal of enrollment. Form 5434-A, ``Application
for Renewal of Enrollment'' presently states that the renewal fee is
$25. Final 26 CFR 300.7 and 300.8 establish separate $250 user fees for
the enrollment and renewal of enrollment process. These fees represent
the IRS's costs in administering the program, and the $250 fee for
renewal of enrollment will supplant the $25 fee.
Authority
The IOAA of 1952 (31 U.S.C. 9701) authorizes agencies to prescribe
regulations that establish charges for services provided by the agency.
The charges must be fair and be based on the costs to the Government,
the value of the service to the recipient, the public policy or
interest served, and other relevant facts. The IOAA of 1952 provides
that regulations implementing user fees are subject to policies
prescribed by the President, which are currently set forth in OMB
Circular A-25, 58 FR 38142 (July 15, 1993) (the OMB Circular).
The OMB Circular encourages user fees for government-provided
services that confer benefits on identifiable recipients over and above
those benefits received by the general public. Under the OMB Circular,
an agency that seeks to impose a user fee for government-provided
services must calculate its full cost of providing those services. In
general, a user fee should be set at an amount in order for the agency
to recover the cost of providing the special service, unless the Office
of
[[Page 72607]]
Management and Budget grants an exception. Pursuant to the guidelines
in the OMB Circular, the IRS has calculated its cost of providing
services under the enrolled actuaries program. The IRS has determined
that the full cost of administering the enrollment and re-enrollment
processes is $250 per enrolled actuary per process.
The final user fees will be implemented under the authority of the
IOAA of 1952 and the OMB Circular.
On October 31, 2007, a notice of proposed rulemaking (REG-134923-
07) was published in the Federal Register [72 FR 61583]. No comments
were received from the public in response to the notice of proposed
rulemaking. No public hearing was requested or held. The proposed
regulations are adopted by this Treasury decision.
Special Analyses
It has been determined that this final rule is not a significant
regulatory action as defined in Executive Order 12866. Therefore, a
regulatory assessment is not required. It is hereby certified that
these regulations will not have a significant economic impact on a
substantial number of small entities. Accordingly, a regulatory
flexibility analysis is not required. This certification is based on
the information that follows. These final rules affect enrolled
actuaries, of which there are currently 4,600 active. The economic
impact of these regulations on any small entity would result from a
small entity, including a sole proprietor, being required to pay a fee
prescribed by these regulations in order to obtain a particular
service. The appropriate NAICS codes for enrolled actuaries relate to
Insurance Other (524298) and Administrative and General Management
Consulting, Including Financial Consulting (541611). Entities
identified under these codes are considered small under the SBA size
standards (13 CFR 121.201) if their annual revenue is less than $6.5
million. The IRS estimates that as many as 2,070 enrolled actuaries may
be operating as or employed by small entities. Therefore, the IRS has
determined that these final rules will affect a substantial number of
small entities. The dollar amounts of the fees are not, however,
substantial enough to have a significant economic impact on any entity
subject to the fees. The amounts of the fees are commensurate with, if
not less than, the amount charged by professional organizations.
Persons who elect to apply for enrollment or renewal of enrollment also
receive benefits from obtaining the enrolled actuary designation.
Pursuant to section 7805(f) of the Internal Revenue Code, the NPRM
preceding this regulation was submitted to the Chief Counsel for
Advocacy of the Small Business Administration for comment on its
impact.
Drafting Information
The principal author of these regulations is Kimberly A. Mattonen
of the Office of the Associate Chief Counsel (Procedure &
Administration).
List of Subjects in 26 CFR Part 300
Reporting and recordkeeping requirements, User fees.
Adoption of Amendments to the Regulations
0
Accordingly, 26 CFR Part 300 is amended as follows:
PART 300--USER FEES
0
Paragraph 1. The authority citation for part 300 continues to read as
follows:
Authority: 31 U.S.C. 9701.
0
Par. 2. Section 300.0 is amended as follows:
0
1. Paragraphs (b)(7) and (b)(8) are added.
0
2. Paragraph (c) is revised.
0
The additions and revision read as follows:
Sec. 300.0 User fees, in general.
* * * * *
(b) * * *
(7) Enrolling an enrolled actuary.
(8) Renewing the enrollment of an enrolled actuary.
(c) Effective/applicability date. This part 300 is applicable March
16, 1995, except that the user fee for processing offers in compromise
is applicable November 1, 2003; the user fee for the special enrollment
examination, enrollment, and renewal of enrollment for enrolled agents
is applicable November 6, 2006; the user fee for entering into
installment agreements on or after January 1, 2007, is applicable
January 1, 2007; the user fee for restructuring or reinstatement of an
installment agreement on or after January 1, 2007, is applicable
January 1, 2007; and the user fee for the enrollment and renewal of
enrollment for enrolled actuaries is applicable January 22, 2008.
0
Par. 3. Section 300.7 is added to read as follows:
Sec. 300.7 Enrollment of enrolled actuary fee.
(a) Applicability. This section applies to the initial enrollment
of enrolled actuaries with the Joint Board for the Enrollment of
Actuaries pursuant to 20 CFR Part 901.
(b) Fee. The fee for initially enrolling as an enrolled actuary
with the Joint Board for the Enrollment of Actuaries is $250.00.
(c) Person liable for the fee. The person liable for the enrollment
fee is the applicant filing for enrollment as an enrolled actuary with
the Joint Board for the Enrollment of Actuaries.
0
Par. 5. Section 300.8 is added to read as follows:
Sec. 300.8 Renewal of enrollment of enrolled actuary fee.
(a) Applicability. This section applies to the renewal of
enrollment of enrolled actuaries with the Joint Board for the
Enrollment of Actuaries pursuant to 20 CFR Part 901.
(b) Fee. The fee for renewal of enrollment as an enrolled actuary
with the Joint Board for the Enrollment of Actuaries is $250.00.
(c) Person liable for the fee. The person liable for the renewal of
enrollment fee is the person renewing their enrollment as an enrolled
actuary with the Joint Board for the Enrollment of Actuaries.
Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
Eric Solomon,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 07-6156 Filed 12-18-07; 2:32 pm]
BILLING CODE 4830-01-P