Compliance
Compliance Alert: New PTIN Fee & Phase-Out of Paper Refund Checks
Here are two critical IRS compliance changes—PTIN fee reduction and ending paper tax refund checks—and what professionals and taxpayers need to act on now.
By NomadicTax Research Team • 5-8 min read • November 13, 2025
## Overview
Two recent IRS policy changes with immediate compliance impacts:
- The PTIN fee for tax professionals has been reduced under new interim final regulations. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-regulations-to-reduce-the-amount-of-the-user-fee-for-tax-professionals-who-apply-for-or-renew-a-ptin?utm_source=openai))
- Paper refund checks for individual taxpayers are being phased out starting **September 30, 2025**, per Executive Order 14247. ([eitc.irs.gov](https://www.eitc.irs.gov/newsroom/topics-in-the-news?utm_source=openai))
Both affect deadlines, operational procedures, and documentation requirements for tax pros and individual taxpayers.
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## PTIN Fee Revision: What Preparers Must Know
### What Changed
- The user fee to apply or renew a **Preparer Tax Identification Number (PTIN)** has been reduced from **$11 to $10**, effective **September 30, 2025**. This includes fees paid to a contractor. ([irs.gov](https://www.irs.gov/irb/2025-42_IRB?utm_source=openai))
- Interim final regulations (REG-108673-25 / TD 10035) cover this change; comments were invited through **October 30, 2025**. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-regulations-to-reduce-the-amount-of-the-user-fee-for-tax-professionals-who-apply-for-or-renew-a-ptin?utm_source=openai))
### Implications for Tax Preparers
- Ensure renewals filed on or after September 30 use the reduced $10 fee; old invoices may be incorrect otherwise.
- Keep proof of PTIN renewal dates—since effective date matters for compliance.
- Watch for any changes in contractor fees later in 2026 when contracts are renegotiated.
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## Phase-Out of Paper Tax Refund Checks
### Key Details
- IRS will phase out paper refund checks starting **September 30, 2025**, for individual taxpayers, to the extent permitted by law, under Executive Order 14247. ([eitc.irs.gov](https://www.eitc.irs.gov/newsroom/topics-in-the-news?utm_source=openai))
- Taxpayers will be urged to provide direct deposit information and use electronic refund methods.
### What Taxpayers Should Do
- If you haven’t opted into direct deposit, do so. Ensure bank routing and account numbers are current on your return.
- Use established e-payment methods for refunds, where possible.
- Avoid delays and errors—wrong bank info can delay refunds as paper fallback becomes limited.
- Tax professionals should inform clients of these changes and include instructions/forms to update account info.
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## Combined Compliance Checklist
- Tax professionals: Renew your PTINs after September 30, 2025 with the new fee schedule.
- Taxpayers: Confirm your direct deposit details ahead of filing your return.
- Enroll/advise clients early, especially those filing extension returns.
- Maintain documented communication if paper refund is unavoidable—IRS may allow it “as permitted by law,” but details are subject to interpretation.
- Review IRS notices or mail for refunds—they may now exclude paper check fallback.
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## Bottom Line
These two changes may seem minor individually, but in practice they have important operational and financial implications. Keep up with deadlines, adjust systems, and ensure that clients or employees are aware. Better compliance now will mean smoother IRS interactions later.