Jesse E. Brannen, III, P.C. v. United States
2012 U.S. App. LEXIS 11536
11th Cir.2012Background
- Brannen appeals district court dismissal of his claim that Treasury lacked authority to impose a PTIN user fee.
- Brannen paid a PTIN fee in 2010 and later sought a refund which was rejected.
- Brannen argues 26 U.S.C. §6109 authorizes numbers but not fees for preparer numbers.
- 31 U.S.C. §9701 permits agency charges for services of value only if a identifiable “special benefit” is conferred.
- The court holds §9701 and §6109 authorize the PTIN regime because PTINs provide a special benefit and are mandated by regulation, upholding the fee.
- Court affirms the district court’s decision describing the fee as authorized by statute and supported by the PTIN framework
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the PTIN user fee is statutorily authorized | Brannen argues no statute authorizes a PTIN fee | Government argues §9701 and §6109 authorize fees for a special benefit | Yes, authorized |
Key Cases Cited
- National Cable Television Ass'n, Inc. v. United States, 415 U.S. 336 (1974) (fee authority requires special benefit and identifies service/value to recipient)
- Federal Power Commission v. New England Power Co., 415 U.S. 345 (1974) (fees permitted only where recipient gains special benefit beyond general public)