!"#$ !

&' ""

UNITLD STATLS DISTRICT COURT
IOR THL DISTRICT OI COLUMIA

ADAM STLLLL,
RITTANY MONTROIS, and )
A CIass of Moie Than )
7OO,OOO SiniIaiIy Silualed )
IndividuaIs and usinesses, )
)
IIainliffs )
v. ) CIVIL ACTION
) IILL NO. 1:cv-14-1523
UNITLD STATLS OI AMLRICA )
)
Defendanl. ) COMILAINT-CLASS ACTION


"#$%&'()$&%* +$,$-.-#$
COML NOW IIainliffs and fiIe lhis conpIainl againsl Defendanl,
UNITLD STATLS OI AMLRICA, lo iecovei annuaI paynenls deIinealed
as usei fees lo ieceive and ienev a piepaiei lax idenlificalion nunlei
(PTIN) lo le pIaced on lax ieluins piepaied ly lax ieluin piepaieis foi
olheis foi conpensalion, and lo piohilil lhe U.S. Tieasuiy Depailnenl
(Treasury) fion chaiging such fees in lhe fuluie.

!"#$ # &' ""

1.
IIainliffs piepaie lax ieluins foi olheis foi conpensalion and: (a)
paid lhe iniliaI ITIN issuance usei fee, oi (l) paid lhe iniliaI ITIN issuance
usei fee and one oi noie ITIN ienevaI usei fees.
2.
IIainliffs seek iefunds of aII usei fees paid, pIus inleiesl, vilh iespecl
lo lhose IIainliffs vho have aIieady paid such fees. IIainliffs aIso ask lhe
Couil lo issue an injunclion piohililing lhe Defendanl and any agency of
lhe Defendanl fion chaiging usei fees in oidei lo ieceive an iniliaI ITIN oi
annuaIIy ienev a ITIN. IinaIIy, IIainliffs ask lhe Couil lo issue an
injunclion piohililing Tieasuiy fion asking noie infoinalion lhan is
necessaiy lo issue a ITIN, and iequiiing Tieasuiy lo ask foi such necessaiy
infoinalion onIy once. AIleinalive iequesls aie sel foilh in lhe Counls al
lhe end of lhis ConpIainl.

$/- 0,%$"-+
3.
Naned IIainliff Adan SleeIe iesides in enidji, Minnesola.
4.
Adan SleeIe is a ceilified pulIic accounlanl (CIA) Iicensed ly lhe
Slale of Minnesola. He has leen a Minnesola CIA since 1998.
!"#$ " &' ""

5.
Adan SleeIe ieguIaiIy piepaies, and has, foi nany yeais, piepaied
lax ieluins foi conpensalion.
6.
As a Minnesola CIA, Adan SleeIe has nel Minnesola CIA Iicensing
iequiienenls foi each yeai since 1998.
7.
As a Minnesola CIA, Adan SleeIe nusl conpIele peiiodic ienevaI
foins and annuaIIy ienev his fiin peinil. As a Minnesola CIA, Adan
SleeIe vas oi is iequiied lo, anong olhei lhings: (a) pass an iniliaI
conpelency lesl, (l) neel Slale-specified elhics iequiienenls, and (c) lake
annuaI Conlinuing IiofessionaI Lducalion (CIL) couises.
8.
Naned IIainliff iillany Monliois iesides in McDonough, Ceoigia.
9.
iillany Monliois is a CIA Iicensed ly lhe Slale of Ceoigia. She has
leen a Ceoigia CIA since 2O11.
1O.
iillany Monliois, lhiough iillany L. Monliois, CIA, I.C., ieguIaiIy
piepaies, and has foi nany yeais piepaied, lax ieluins foi conpensalion.

!"#$ $ &' ""

11.
As a Ceoigia CIA, iillany Monliois has nel lhe Ceoigia CIA
Iicensing iequiienenls foi each yeai since 2O11.
12.
As a Ceoigia CIA, iillany Monliois nusl conpIele peiiodic
ienevaI foins and seni-annuaIIy ienev hei fiin peinil. As a Ceoigia
CIA, iillany Monliois vas oi is iequiied lo, anong olhei lhings: (a) pass
an iniliaI conpelency lesl, and (l) lake annuaI CIL couises.
13.
The IIainliff cIass is conposed of individuaIs vho piepaie lax
ieluins foi olheis foi conpensalion and fiins (incIuding pailneiships) and
conpanies lhe enpIoyees oi sone oi aII of lhe ovneis of vhich piepaie lax
ieluins foi olheis foi conpensalion, and vho: (a) paid lhe iniliaI ITIN
issuance usei fee, oi (l) paid lhe iniliaI ITIN issuance usei fee and one oi
noie ITIN ienevaI usei fees. Hovevei, AIIen uckIey and AIIen uckIey
LLC aie excIuded fion lhe cIass.
14.
The Defendanl has, lhiough lhe Depailnenl of Tieasuiy (Tieasuiy)
and lhe InleinaI Revenue Seivice (IRS), chaiged lhe cIass iepiesenlalives
and olheis vho piepaie lax ieluins, annuaI usei fees foi issuance and
annuaI ienevaI of a ITIN. Il has aIso iequiied fiIing of Ioin W-12 vilh
iespecl lo iniliaI issuance and annuaI ienevaI of ITINs.
!"#$ % &' ""

0-%$"#-#$ 1,)$+
15.
In 2O1O, Adan SleeIe fiIed IRS Ioin W-12 and paid Tieasuiy $64.25
lo ieceive a ITIN foi uliIizalion in 2O11.
16.
In 2O11, iillany Monliois, lhiough iillany Monliois, CIA, I.C.,
paid Tieasuiy $64.25 lo ieceive a ITIN foi uliIizalion in 2O11.
17.
In 2O11, Adan SleeIe paid Tieasuiy $63 lo ienev his ITIN foi 2O12.
His ITIN did nol change fion lhe ITIN he ieceived foi 2O11.
18.
In 2O12, iillany Monliois, lhiough iillany Monliois, CIA, I.C.,
paid Tieasuiy $63 lo ienev hei ITINs foi 2O12. Hei ITIN did nol change
fion lhe ITIN she ieceived foi 2O11.
19.
In 2O13, lolh Adan SleeIe and iillany Monliois (lhiough iillany
Monliois, CIA, I.C.) paid Tieasuiy $63 lo ienev lheii ITINs foi 2O13.
Theii ITINs did nol change fion lhe ITINs ieceived foi 2O11 and 2O12.
2O.
Iiioi lo Maich 2, 2O14, Adan SleeIe fiIed lhiee (3) sepaiale iefund
cIains, iequesling ieinluisenenl of lhe ITIN usei fees paid foi 2O11-2O13.
!"#$ & &' ""

21.
Adan SleeIe did nol ieceive a iefund cIain iejeclion nolice oi
appiovaI nolice fion lhe U.S. Depailnenl of lhe Tieasuiy (Treasury)
vilh iespecl lo his iniliaI ITIN fee paynenl of $64.25 oi his lvo ITIN
ienevaI fee paynenls of $63.

"%+2$%-,+(%* ,)$"&#+ "# "++(-
3


(
The foIIoving cilalion and shoil foin iefeiences lo IRS/Tieasuiy docunenls appeai
lhioughoul lhis conpIainl:
145678 )9:7:94; +<45: 1456
IRS Publication 4832 , Return Preparer Review (Rev.
12-2OO9)
IulIicalion 4832
Nolice of Iioposed RuIenaking, !"#$%&'%$(
*+,$-%./%$( 0"12,# 3. 456 7,-"#$ 8#,95#,#, 75 Fed. Reg.
14539 (Maich 26, 2O1O)
Iioposed ReguIalions
Nolice of Iioposed RuIenaking, :&,# !,,& 7,;5-%$( -3
<$#3;;1,$- 5$+ 8#,95#,# 456 *+,$-%.%=5-%3$ 0"12,#&, 75
Ied. Reg. 4311O (}uIy 23, 2O1O)
Iioposed Usei Iee
ReguIalions
Notice of Proposed Rulemaking, 7,(";5-%3$&
>3?,#$%$( 8#5=-%=, @,.3#, -', *$-,#$5; 7,?,$", A,#?%=,,
75 Ied. Reg. 51713 (Aug. 23, 2O1O)
Iioposed CiicuIai
23O ReguIalions
Final Regulations, !"#$%&'%$( *+,$-%./%$( 0"12,# 3.
456 7,-"#$ 8#,95#,#, 75 Fed. Reg. 60309 (Sept. 30,
2O1O)
IinaI ReguIalions
Final Regulations, 7,(";5-%3$& >3?,#$%$( 8#5=-%=,
@,.3#, -', *$-,#$5; 7,?,$", A,#?%=, 76 Fed. Reg. 32286
(}une 3, 2O11)
IinaI CiicuIai 23O
ReguIalions

!"#$ ' &' ""

22.
In }anuaiy 2O1O, lhe IRS issued IRS Publication 4832, Report
Iiepaiei Reviev (Rev. 12-2009) |hereinafter IulIicalion 4832j.
2
This
docunenl, vhich is nol Iav, pioposed ceilain aclions le laken lo ieguIale
lhe lax ieluin piepaialion indusliy.
23.
IulIicalion 4832 slales (al 1, 8): "CuiienlIy, any peison nay piepaie
a fedeiaI lax ieluin foi anolhei foi a fee."
24.
Wilh lhe exceplion of peisons piohililed fion piepaiing lax ieluins
ly couil oidei, lhe quoled senlence of lhe innedialeIy pieceding
paiagiaph vas coiiecl upon lhe dale of issuance of IulIicalion 4832, and il
has ienained coiiecl lhiough lhe piesenl dale.
25.
No iecenlIy enacled IegisIalion Ied lo piepaialion and issuance of
IulIicalion 4832. Inslead, lhis pulIicalion is puieIy an IRS-geneialed
pioducl. No Iav has leen enacled since issuance of IulIicalion 4832 lhal
vouId peinil Tieasuiy oi any fedeiaI agency lo piohilil anyone fion
piepaiing lax ieluins foi conpensalion. No Iav exisled piioi lo lhe
issuance of IulIicalion 4832 lhal vouId have peinilled any Tieasuiy oi

)
IulIicalion 4832 can le found al hllp://vvv.iis.gov/pul/iis-pdf/p4832.pdf.
!"#$ ( &' ""

any fedeiaI agency lo issue a ieguIalion oi ieguIalions lhal vouId have
piohililed anyone fion piepaiing lax ieluins foi conpensalion.
26.
IulIicalion 4832 ieconnended lhal lhe lax ieluin piepaialion
indusliy le ieguIaled in a pailicuIai nannei, incIuding IRS lesling of
ceilain piepaieis lo deleinine eIigiliIily lo le alIe lo piepaie ieluins foi
olheis foi conpensalion and annuaI conlinuing piofessionaI educalion
requirements for those persons who passed the IRS test.
27.
IieviousIy, lhe IRS iequiied lax ieluin piepaieis lo incIude an
idenlifying nunlei of piepaied ieluins. Reluin piepaieis couId use lheii
SociaI Secuiily Nunlei oi ollain (foi fiee) a ITIN fion lhe IRS.
28.
IulIicalion 4832 ieconnended lhal, in oidei lo aid lhe IRS,
individuaIs vho piepaie lax ieluins le iequiied lo acquiie a Tieasuiy-
piovided ITIN, and le chaiged upon issuance and eveiy lhiee yeais
lheieaflei foi lhe ITIN.
29.
On Maich 26, 2O1O, lhe IRS issued Notice of Proposed Rulemaking,
!"#$%&'%$( *+,$-%./%$( 0"12,# 3. 456 7,-"#$ 8#,95#,#, 75 Fed. Reg. 14539
|hereinafter Proposed Regulationsj. The Iioposed ReguIalions vouId, if
!"#$ ) &' ""

adopled, iequiie individuaIs vho piepaie lax ieluins lo acquiie and
annuaIIy ienev a ITIN.
3O.
The pieanlIe lo lhe Iioposed ReguIalions slales: The Repoil |i.e.,
IulIicalion 4832j ieconnended, in pail, lhal lax ieluin piepaieis le
iequiied lo ollain and use a ITIN as lhe excIusive piepaiei idenlifying
nunlei and undeigo a lax-conpIiance check. As discussed leIov, lhe
pioposed ieguIalions inpIenenl lhose ieconnendalions.
31.
On }uIy 23, 2O1O, lhe IRS issued a nolice of pioposed iuIenaking and
notice of public hearing titled User Fees Relating to Enrollment and
Iiepaiei Tax Idenlificalion Nunleis, 75 Ied. Reg. 4311O (}uIy 23, 2O1O)
[hereinafter Proposed User Fee Regulations]. The ieguIalions pioposed
lhal lax ieluin piepaieis le chaiged $5O lo acquiie a ITIN and, lheieaflei,
$5O annuaIIy lo ienev a ITIN.
32.
The pieanlIe lo lhe Iioposed Usei Iee ReguIalions desciiled in lhe
preceding paragraph provides: The IRS is implementing the
recommendations of Publication 4832 . . .


!"#$ !* &' ""

33.
On September 30, 2010, the IRS issued Final Regulations, !"#$%&'%$(
*+,$-%./%$( 0"12,# 3. 456 7,-"#$ 8#,95#,#, 75 Fed. Reg. 60309 |heieinaflei
Final Regulationsj, iequiiing individuaIs vho piepaie lax ieluins lo
acquiie and annuaIIy ienev a ITIN, and pay $5O foi ITIN issuance and
$5O pei yeai lheieaflei foi ienevaI.
34.
Undei lhe IinaI ReguIalions, ITINs expiie annuaIIy and nusl le
ieneved each yeai.
35.
The pieanlIe lo lhe IinaI ReguIalions slaled: Individuals who
ollain a ITIN ieceive lhe aliIily lo piepaie aII oi sulslanliaIIy aII of a lax
return or claim for refund. The pieanlIe lo lhe IinaI ReguIalions noled
lhal connenlalois queslioned IRSs IegaI aulhoiily lo leslov (oi vilhhoId)
lhe aliIily lo piepaie lax ieluins. NonelheIess, vilhoul ciling any IegaI
aulhoiily eslalIishing ils aliIily lo leslov (oi vilhhoId) the ability to
piepaie lax ieluins, lhe IRS slaled lhal il had such IegaI aulhoiily.
36.
In addilion, as pail of lhe inilialive aiising oul of IulIicalion 4832,
lhe IRS aIso pulIished pioposed ieguIalions anending lhe Tieasuiy
Depailnenl Circular 230 iuIes goveining iepiesenlalives lefoie lhe
InleinaI Revenue Seivice lo, foi lhe fiisl line evei, incIude lax ieluin
!"#$ !! &' ""

piepaialion in lhe Iisl of ieguIaled aclivilies. Notice of Proposed
RuIenaking, 7,(";5-%3$& >3?,#$%$( 8#5=-%=, @,.3#, -', *$-,#$5; 7,?,$",
A,#?%=,, 75 Fed. Reg. 51713 (Aug. 23, 2010) |hereinafter Proposed CiicuIai
230 Regulationsj. The Iioposed CiicuIai 23O ReguIalions iequiied lhal
ceilain peisons lake a lesl, pass lhe lesl, acquiie a ITIN and lake ceilain
conlinuing educalion couises in oidei lo le peinilled lo piepaie lax
ieluins foi conpensalion.
37.
The pieanlIe lo lhe Iioposed CiicuIai 23O ReguIalions slales: This
docunenl pioposes anendnenls lo CiicuIai 23O lased upon ceilain of lhe
ieconnendalions in lhe Repoil |i.e., IulIicalion 4832j.
38.
On }une 3, 2O11, lhe alove-desciiled poilions of lhe Iioposed
CiicuIai 23O ReguIalions (i.e., lesling, conlinuing educalion and ITINs)
veie issued as finaI ieguIalions. Final Regulations, 7,(";5-%3$& >3?,#$%$(
8#5=-%=, @,.3#, -', *$-,#$5; 7,?,$", A,#?%=, 76 Fed. Reg. 32286 (June 30, 2011)
|hereinafter Final Circular 230 Regulationsj.
39.
SulslanliaI poilions of lhe IinaI CiicuIai 23O ReguIalions, incIuding
lhe lesling and conlinuing educalion iequiienenls, veie sliuck dovn as
unIavfuI in B3?%$( ?C *$-,#$5; 7,?,$", A,#?%=,, 917 I. Supp. 2d 67 (D.D.C.
2O13), affd 742 I.3d 1O14 (D.C. Cii. 2O14). Anong olhei lhings, B3?%$( heId
!"#$ !# &' ""

lhal lax ieluin piepaialion is nol suljecl lo ieguIalion undei 31 U.S.C. 33O
lecause piepaiing a lax ieluin is nol iepiesenling a peison lefoie
Tieasuiy.
4O.
ITIN fees, and lhe IavfuIness of such fees, veie nol in issue in
B3?%$(.
41.
Once issued, a ITIN does nol change.
42.
When a piaclilionei ienevs a ITIN, lhe nunlei (ITIN) lhal appIied
in lhe pieceding yeai conlinues lo le lhe nunlei, iegaidIess of lhe
infoinalion piovided lo lhe IRS oi ils agenl ly lhe piaclilionei in lhe
ienevaI piocess.
43.
The IinaI CiicuIai 23O ReguIalions slaled lhal a ITIN is iequiied lo
piepaie lax ieluins on lehaIf of individuaIs, conpanies and olhei enlilies
foi conpensalion.
44.
The IinaI CiicuIai 23O ReguIalions added a category to the Who
may practice section of Circular 230 to, for the first time ever, include a
category titled registered tax return preparers.
!"#$ !" &' ""

45.
In 2O14, aflei lhe B3?%$( decision lecane finaI, Tieasuiy issued a
docunenl lilIed Guidance to Practitioners Regarding Professional
OlIigalions under Treasury Circular 230. This docunenl excIudes
registered lax ieluin piepaieis fion lhe Iisl of peisons ieguIaled undei
CiicuIai 23O.
46.
In peilinenl pail, 26 U.S.C. 61O9(a)(4) piovides: "A ieluin oi cIain
foi iefund piepaied ly a lax ieluin piepaiei shaII leai such idenlifying
nunlei foi secuiing piopei idenlificalion of such piepaiei, his enpIoyei,
oi lolh, as nay le piesciiled."
47.
The IegisIalive hisloiy of 26 U.S.C. 61O9(a)(4) piovided lhal lhe
PTIN requirement was created to . . . enable the IRS to identify all returns
piepaied ly an specific individuaI in cases vheie lhe IRS has discoveied
some returns improperly prepared by that individual.
48.
Nolhing in lhe IegisIalive hisloiy of 26 U.S.C. 61O9(a)(4) indicales
lhal lhe piovision vas enacled lo heIp oi piovide a speciaI lenefil lo lax
ieluin piepaieis.

!"#$ !$ &' ""

49.
Undei 26 U.S.C. 61O9(c), Tieasuiy is aulhoiized lo iequiie lax ieluin
piepaieis lo piovide idenlifying infoinalion necessaiy foi Tieasuiy lo
issue a ITIN, lul no addilionaI infoinalion can le iequiied.
5O.
26 CIR 3O1.61O9-1(a)(ii) provides: Uses. Social Security numbers,
IRS individuaI laxpayei idenlificalion nunleis and IRS adoplion laxpayei
idenlificalion numbers are used to identify persons.
51.
Ioi an individuaI vilh a SociaI Secuiily nunlei (SSN) oi a Taxpayei
Idenlificalion Nunlei (TIN), a ITIN can le issued foIIoving ieceipl of lhe
individuals name, SSN or TIN, and addiess.
52.
Undei 26 U.S.C. 61O9(d), alsenl a Tieasuiy ieguIalion iequiiing a
diffeienl idenlifying nunlei, an individuals SSN is his identifying number
foi puiposes of lhe iequiienenls of 26 U.S.C. 61O9, incIuding lhe ITIN
iequiienenl of 26 U.S.C. 61O9(a)(4).
53.
Ioi Tieasuiy idenlificalion puiposes, a peison's ITIN is lased on his
SSN. Lach individuals SSN is unique (i.e., no two individuals in the
fedeiaI lax syslen have lhe sane SSN oi TIN).
!"#$ !% &' ""

54.
ReguIalions issued in }anuaiy 2OO9 peinilled a piepaiei lo onil his
ITIN (incIuding possilIy his SociaI Secuiily nunlei) fion lhe copy of lhe
ieluin he piovided lo lhe laxpayei.
55.
A lhoiough penaIly syslen exisls foi faiIuie lo incIude one's ITIN on
a piepaied ieluin, incIuding a $5O pei ieluin penaIly (up lo a naxinun of
$25,OOO pei yeai) and a piovision (26 U.S.C. 74O7) aIIoving lhe U.S.
Tieasuiy Depailnenl sue a piepaiei and seek an injunclion iequiiing lhe
piepaiei lo incIude a ITIN on piepaied ieluins. Seclion 74O7 fuilhei
piovides foi possilIe pievenlion of fuluie ieluin piepaialion aliIily foi
iepealed faiIuie lo incIude a ITIN on ieluins foIIoving an oidei lhal lhe
ITIN le discIosed on piepaied ieluins. Many olhei penaIlies exisl in lhe
InleinaI Revenue Code lhal polenliaIIy appIy lo lax ieluin piepaieis.
56.
AIlhough ieguIalions issued in 2O1O sel lhe ITIN issuance and
ienevaI fees al $5O, addilionaI fees veie added aflei issuance of lhe
ieguIalions, adding addilionaI chaiges lo le paid lo one oi noie lhiid
paily vendois.


!"#$ !& &' ""

57.
Neilhei lhe Iioposed ReguIalions noi lhe IinaI ReguIalions ieIaling
lo lhe ITIN and ITIN fees specified aclivilies oi seivices lhal lhe IRS
vouId peifoin in conneclion vilh lhe usei fees il coIIecled.
58.
The IRS lasis foi chaiging of fees foi ITINs vas fiisl slaled in lhe
pieanlIe lo lhe IinaI CiicuIai 23O ReguIalions.
59.
The pieanlIe lo lhe IinaI CiicuIai 23O ReguIalions piovided lhal lhe
ITIN issuance fee vas sel al $64.25, incIuding a $14.25 chaige paid lo a
lhiid paily lo "adninislei lhe ITIN appIicalion and ienevaI piocess."
6O.
AnnuaI ienevaI fees incIude $13 paid lo a lhiid paily lo adninislei
lhe ITIN ienevaI and $5O paid lo lhe IRS lo peifoin aclivilies lhal veie
iuIed unIavfuI ly lhe B3?%$( decision. Thus, lhe lolaI annuaI ienevaI fee is
$63.
61.
The incienenlaI cosl lo Tieasuiy lo issue a ITIN is $14.25, and such
cosl is paid lo a lhiid paily.


!"#$ !' &' ""

62.
The incienenlaI cosl lo Tieasuiy lo ienev a ITIN is $13, and such
cosl is paid lo a lhiid paily.
63.
In lhe pieanlIe lo lhe IinaI CiicuIai 23O ReguIalions, Tieasuiy
eslinaled ievenue fion lhe usei fee chaiged foi ITINs and specified lhe
lhings lo le done foi lhe fees. The pieanlIe piovided lhal il anlicipaled
8OO,OOO lo 1,2OO,OOO ITINs vouId le issued oi ieneved annuaIIy and lax
ieluin piepaieis vouId annuaIIy pay $51 MiIIion lo $77 MiIIion foi ITIN
issuance and ienevaI. The anlicipaled expenses payalIe lo vendois "lo
adninislei lhe ITIN appIicalion and ienevaI piocess" vas $11 MiIIion lo
$17 MiIIion. The fees lo le ielained ly lhe IRS, al a iale of $5O pei ITIN,
veie eslinaled al $59,427,633.
64.
The pieanlIe lo lhe IinaI CiicuIai 23O ReguIalions slaled lhe IRS
vouId use lhe $59,427,633 of lhe fees coIIecled foi lhe foIIoving aclivilies:
(1) cosls of adninisleiing iegislialion caids oi ceilificales foi each
iegisleied piepaiei, (l) cosls associaled vilh piesciiling foins,
insliuclions, oi olhei guidance vilh iespecl lo iegisleied piepaieis, and (c)
lax conpIiance and suilaliIily checks.


!"#$ !( &' ""

65.
Regislialion caids oi ceilificales have nol leen issued vilh iespecl lo
ITINs. Inslead, individuaIs ieceiving a ITIN have leen nolified of lhe
ITIN via Iellei oi enaiI. In 2O12, lhe second page of lhe ITIN
acknovIedgenenl Iellei incIuded a seclion vhich vas appioxinaleIy lvo
inches ly lhiee inches vilh iounded coineis lhal Iisled Tieasuiy
idenlifying infoinalion and lhe nane of lhe ITIN iecipienl, lhe ITIN,
Treasurys file number and the PTINs expiration date.
66.
HisloiicaIIy, lhe IRS has nevei chaiged foi issuing lax insliuclions,
issuing guidance lo laxpayeis oi lax ieluin piepaieis, oi foi ciealion (oi
disseninalion) of lax foins.
67.
Tax conpIiance and suilaliIily checks have nol leen conducled vilh
iespecl lo anyone in conneclion vilh issuance oi ienevaI of ITINs.
68.
The IinaI CiicuIai 23O ReguIalions piovided lhal alloineys and CIAs
vouId nol le suljecl lo lhe lax conpIiance checks and suilaliIily checks.



!"#$ !) &' ""

69.
Accoiding lo CaioI A. CanpleII, Diiecloi of lhe Reluin Iiepaialion
Office of lhe IRS, lhe IRS had coIIecled noie lhan $1O5,OOO,OOO in ITIN and
conpelency lesling usei fees lhiough 2O12.
7O.
Tieasuiy, lhe IRS, oi anolhei fedeiaI agency has soId lhe ITIN
dalalase lo vendois.
71.
Vendois have used lhe ITIN dalalase lhal lhey puichased in
allenpls lo seII goods and seivices lo peison vho paid foi a ITIN.
72.
Accoiding lo a 2O1O ailicIe in 4', D5&'%$(-3$ <651%$,# ly Tinolhy I.
Cainey, lhe foinei (i.e., incIuding in 2OO7) CLO of H&R Iock (Maik Linsl)
vas hiied in 2OO9 as lhe Depuly Connissionei of lhe IRS, and Mi. Linsl
acted as co-leader of the IRS Publication 4832 project.
73.
In 2O11, lhe IRS issued IRS Nolice 2O11-6.
74.
Anong olhei lhings, IRS Nolice 2O11-6 exenpled enpIoyees of nany
Iaige lax ieluin piepaialion conpanies olhei lhan CIA fiins (e.g., H&R
Iock) fion lhe lesling and conlinuing educalion iequiienenls, piovided
!"#$ #* &' ""

ITINs veie acquiied and ITIN fees veie paid ly aII lax ieluin piepaieis
and individuaIs of such conpanies vho heIped piepaie lax ieluins, and
fuilhei piovided lhal aII of such enpIoyees vho veie nol a CIA, alloiney
or enrolled agent (EA) veie supeivised ly a peison vho vas a CIA,
alloiney oi LA.
75.
IRS Ioin W-12 nusl le conpIeled lo acquiie a ITIN and lo ienev a
ITIN foi each yeai aflei iniliaI issuance.
76.
The foIIoving queslions aie incIuded in lhe cuiienl Ioin W-12: liilh
dale, enaiI addiess, pasl feIony conviclions, fedeiaI lax conpIiance slalus,
piofessionaI ciedenliaIs, vhelhei Ioin 1O4O is piepaied, vhelhei lhe
piepaiei is supeivised ly soneone, and vhelhei lhe lax ieluin piepaiei is
seIf-enpIoyed oi an ovnei of a lax piepaialion lusiness.
77.
Olhei lhan nane, addiess and SSN, none of lhe queslions on Ioin
W-12 aie necessaiy lo issue a ITIN.
78.
In aII slales, in oidei lo lecone a CIA, a conpelency lesl nusl le
passed.

!"#$ #! &' ""

79.
In aII 5O slales, once a peison is Iicensed as a CIA, iecuiiing fees
nusl le paid lo lhe slale and annuaI conlinuing educalion couises nusl le
laken lo nainlain lhe Iicense.
8O.
In oidei lo lecone an LA quaIified lo iepiesenl peisons lefoie
Tieasuiy, a conpelency lesl nusl le passed and a fee nusl le paid lo
Tieasuiy.
81.
Once a peison lecones an LA, in oidei foi LA slalus lo le ielained,
geneiaIIy iecuiiing fees nusl le paid lo lhe IRS and annuaI conlinuing
educalion couises nusl le laken.
82.
ased on infoinalion piovided ly a foinei IRS enpIoyee vho nov
iepiesenls peisons in lax conlioveisy nalleis as an LA lul, does nol
piepaie lax ieluins, lhe IRS is nov iequiiing LAs vho do nol piepaie lax
ieluins lo acquiie and ienev a ITIN.
83.
In 2O11, }esse L. iannen, III, I.C. fiIed a iefund cIain vilh iespecl lo
his iniliaI ITIN appIicalion, and lhal iefund cIain vas denied.

!"#$ ## &' ""

84.
Iiioi lo 2O13, AIIen uckIey fiIed iefund cIains vilh iespecl lo lhe
iniliaI ITIN fee paid ly AIIen uckIey and a ITIN ienevaI fee paid ly
AIIen uckIey LLC, and lhe InleinaI Revenue Seivice neilhei accepled noi
iejecled lhe iefund cIains.

=,+"+ ($">"?-' 1&% )/,%@"#@ 1--+
85.
The aIIeged lasis foi IegaIily of lhe usei fees foi issuance and ienevaI
of ITINs, ciled in lhe Iioposed Usei Iee ReguIalions, is lhe usei fee
slalule, 31 U.S.C. 97O1.
86.
Undei lhe usei fee slalule, 31 U.S.C. 97O1, fees nay le chaiged ly
agencies foi ceilain "seivices and lhings of vaIue" piovided ly agencies.
This slalule peinils agency heads lo piesciile ieguIalions eslalIishing
chaiges foi seivices oi lhings of vaIue piovided ly lhe agency. Such
ieguIalions aie suljecl lo poIicies piesciiled ly lhe Iiesidenl and nusl le
as unifoin and piaclicalIe.



!"#$ #" &' ""

87.
Lach chaige undei lhe usei fee slalule nusl le faii and lased on: (a)
cosls lo lhe goveinnenl, (l) lhe vaIue of lhe seivice oi lhing lo lhe
iecipienl, (c) pulIic poIicy oi inleiesl seived, and (d) olhei ieIevanl facls.

),+- >,A %-B("%-.-#$+ 1&% )/,%@"#@ (+-% 1--+
88.
AppIicalIe case Iav hoIds lhal faiiness is deleinined ly anaIyzing
lhe cosls incuiied ly lhe fedeiaI goveinnenl foi lhe lhing piovided.
89.
The usei fee slalule has leen appIied lo voIunlaiy paynenl silualions
vheiein ly Iav soneone does nol have a iighl lo sonelhing, such as
uliIizalion of goveinnenl piopeily.
9O.
Undei aulhoiily of lhe U.S. Supiene Couil, incIuding !,+,#5; 83E,#
F311%&&%3$ ?C 0,E <$(;5$+ 83E,# F3195$/, 415 U.S. 345 (1974), a "speciaI
lenefil" nusl exisl in oidei foi soneone lo le chaiged a usei fee undei lhe
usei fee slalule, 31 U.S.C. 97O1. This lenefil nusl le a peisonaI lenefil,
nol an indusliy lenefil oi a geneiaI pulIic lenefil. Iuilheinoie, undei
lhese aulhoiilies, a usei fee cannol le chaiged vilh iespecl lo an
invoIunlaiy aclivily. Undei 05-%3$5; F52;, 4,;,?%&%3$ G&&3=%5-%3$ ?C :$%-,+
!"#$ #$ &' ""

A-5-,&, 415 U.S. 336 (1974), inposilion of a usei fee in excess of lhe anounl
iequiied lo piovide a speciaI lenefil lo lhe payei is unIavfuI.
91.
The Iav does nol peinil usei fees undei 31 U.S.C. 97O1 lo le
chaiged vilh iespecl lo fuIfiIInenl of a iequiienenl lhal is suljecl lo a
penaIly enfoicenenl schene lecause no speciaI lenefil is gianled and lhe
lhing lhal is done is done invoIunlaiiIy.
92.
Accoiding lo H3-3# I,'%=;, H5$".5=-"#,#& G&&3=%5-%3$ ?C A-5-, !5#1
H"-"5; G"-3132%;, F3., 463 U.S. 29, 5O (1983), lhe ieason given ly a fedeiaI
agency foi ils aclions is vhal nusl le anaIyzed lo deleinine vhelhei
ieguIaloiy aclion is IavfuI.
93.
No speciaI lenefil is piovided lo a lax ieluin piepaiei vho ollains
oi ienevs a ITIN lecause, in accoidance vilh lhe B3?%$( case and lhe U.S.
Conslilulion, a lax ieluin piepaiei has a iighl lo piepaie ieluins foi olheis
foi conpensalion.
94.
Tax ieluins piepaieis vho had acquiied a ITIN piioi lo lhe nev
(2O1O/2O11) ieguIaloiy schene pionpled ly IulIicalion 4832 conlinued lo
!"#$ #% &' ""

use lhe sane ITIN, lul lhey veie annuaIIy chaiged lo ienev such ITIN
annuaIIy aflei 2O1O.
95.
IncIuding nunleis and Ielleis, a ITIN has lhe sane nunlei of digils
as an SSN.
(#>,A1(>#-++
96.
Tax ieluin piepaieis have unIavfuIIy leen iequiied ly lhe IRS lo
pay lhe IRS lo acquiie a ITIN and lo pay lhe IRS lo ienev lhe acquiied
ITIN, lecause lhe IRS has iequiied lhen lo acquiie a ITIN, and penaIlies
polenliaIIy appIy foi faiIuie acquiie a ITIN and pIace il on piepaied lax
ieluins.
97.
The IinaI ReguIalions slale lhal lhe speciaI lenefil lax ieluin
piepaieis ieceive in exchange foi lhe fee is lhe iighl lo piepaie ieluins and
iefund cIains foi conpensalion. Hovevei, as specificaIIy and coiieclIy
poinled oul in IulIicalion 4832 in lvo pIaces (pages 1 and 8), lhal iighl
exisls and has aIvays exisled. Thus, lheie is no lenefil and lheie is no
speciaI lenefil. AccoidingIy, chaiging of fees lo issue a ITIN is unIavfuI.


!"#$ #& &' ""

98.
Since lheie is no IavfuI lasis foi iequiiing ienevaI of a ITIN,
chaiging usei fees foi ienevaI of a ITIN is unIavfuI.
99.
Since aII lhal is necessaiy lo issue a ITIN is nane, SSN (oi TIN) and
addiess, iequiiing lax ieluin piepaieis lo piovide any addilionaI
infoinalion is unIavfuI.
1OO.
AIleinaliveIy, if chaiging an iniliaI usei fee foi lhe Iiniled puipose of
issuing a ITIN is nol unIavfuI, lhe iniliaI issuance usei fee anounl
(cuiienlIy $64.25) is excessive ly $5O lecause lhe aclivilies lhe IRS asseiled
il vouId fund vilh lhe $5O pei peison fee (a) veie iuIed lo le unIavfuI ly
B3?%$(, and (l) vilh lhe exceplion of issuing Ioin W-12 and ieIaled
guidance, have nol leen done. AccoidingIy, lhis fee is unIavfuI lo lhe
exlenl il exceeds $14.25.
1O1.
AIso aIleinaliveIy, if lhe ITIN ienevaI usei fee (cuiienlIy $63) is nol
unIavfuI, il is excessive ly $5O foi lhe ieasons specified in lhe pieceding
paiagiaph and lhus is unIavfuI lo lhe exlenl of $5O.


!"#$ #' &' ""

C(%"+'")$"&# ,#' D-#(-
1O2.
This Couil has suljecl nallei juiisdiclion of lhis aclion undei 28
U.S.C 1331, 5 U.S.C. 7O2 and 5 U.S.C 7O6. AIleinaliveIy, lhis Couil has
suljecl nallei juiisdiclion undei 28 U.S.C. 1346.
1O3.
This aclion is foi equilalIe ieIief and ieslilulion of nonies unIavfuIIy
exacled ly lhe IRS fion pIainliffs. The Secielaiy of lhe Tieasuiy, }ack Lev,
is peisonaIIy iesponsilIe foi conpIiance.
1O4.
This Couil has juiisdiclion ovei aII pailies lo lhis Iavsuil, and venue
is appiopiiale in lhis Disliicl puisuanl lo 28 U.S.C. 1391. Conceining
venue, in Slaffoid v. iiggs, 444 U.S. 527, 544 (198O), lhe U.S. Supiene
Court stated: Without doubt, under 1391(e), venue Iies in eveiy one of
the 95 federal districts . . .

)>,++ ,)$"&# ,>>-@,$"&#+
1O5.
The IIainliffs liing lhis aclion puisuanl lo RuIe 23 and, in pailicuIai,
RuIe 23(l) (1), of lhe IedeiaI RuIes of CiviI Iioceduie. CIass ceilificalion is
aIso appiopiiale undei RuIe 23(l) (2).
!"#$ #( &' ""

1O6.
The cIass is so nuneious lhal joindei of aII nenleis is inpiaclicaI.
The nunlei of pIainliffs is leIieved lo le lelveen 7OO,OOO and 1,2OO,OOO.
The lolaI soughl lo le iecoveied is leIieved lo exceed $13O,OOO,OOO.
1O7.
The queslions of Iav connon lo aII pIainliffs aie lhe foIIoving:
Is il IavfuI foi Tieasuiy lo iequiie paynenl of lhe $64.25 usei fee ly
lhe IIainliffs in oidei lo ollain a ITIN`
Is il IavfuI foi Tieasuiy lo iequiie paynenl of lhe $63 usei fee ly
IIainliffs lo ienev a ITIN`
Is il IavfuI foi Tieasuiy lo annuaIIy iequiie lax ieluin piepaieis lo
conpIele Ioin W-12, vhen such foin asks infoinalion leyond vhal
is iequiied lo issue a ITIN`
1O8.
The pioseculion of sepaiale aclions ly individuaI nenleis of lhe
cIass vouId cieale a iisk of inconsislenl oi vaiying adjudicalions vilh
iespecl lo individuaI nenleis of lhe cIass vhich vouId inpose
inconpalilIe slandaids of conducl foi Defendanl. In addilion, lhe
pioseculion of sepaiale aclions ly individuaIs of lhe cIass vouId cieale a
iisk of adjudicalions vilh iespecl lo individuaI cIass nenleis vhich, as a
piaclicaI nallei vouId le disposilive of lhe inleiesls of lhe olhei nenleis
nol pailies lo such individuaI adjudicalions oi vhich couId sulslanliaIIy
inpaii oi inpede lheii aliIily lo piolecl lheii inleiesls.
!"#$ #) &' ""

1O9.
Tieasuiy has acled oi iefused lo acl on giounds lhal appIy geneiaIIy
lo lhe cIass, so lhal siniIai ieIief is appiopiiale iespecling lhe cIass as a
vhoIe.
11O.
The cIass is so nuneious lhal joindei of aII nenleis is inpiaclicaI.
Theie aie queslions of Iav connon lo lhe cIass. The cIains and defensive
of lhe iepiesenlalive pailies aie lypicaI of lhe cIains oi defenses of lhe
cIass. The iepiesenlalives viII faiiIy and adequaleIy piolecl lhe inleiesls of
lhe cIass.
111.
The IIainliffs aie enlilIed lo injunclive ieIief piohililing Tieasuiy
fion chaiging ITIN issuance and ienevaI usei fees in lhe fuluie.
112.
The IIainliffs vho have paid lhe fee(s) aie enlilIed lo a iefund of lhe
usei fee(s) paid via ieslilulion, and lheie aie no facluaI issues in dispule
(i.e., lhe cIass is conposed of peopIe vho have paid ITIN usei fees).
113.
AII disposilive queslions of Iav and facl aie connon lo lhe IIainliff
cIass. }udiciaI econony and case nanagenenl diclale lhal lhe case
pioceeds as a cIass aclion.
!"#$ "* &' ""

114.
The naned IIainliffs incuiied lhe usei fees (lolh lhe iniliaI fee and
lvo ienevaI fees) and, vilh iespecl lo Adan SleeIe, unsuccessfuIIy soughl
iefunds of lhe fees.
%-B(-+$-' %->"-1
WHLRLIORL, lhe IIainliffs piay foi lhe foIIoving ieIief againsl lhe
Defendanl:
Counl 1: A decIaialoiy judgnenl ly lhe Couil lhal Tieasuiy is
vilhoul slaluloiy aulhoiily lo chaige usei fees foi issuance of a ITIN,
Counl 2: A decIaialoiy judgnenl ly lhe Couil lhal Tieasuiy is
vilhoul slaluloiy aulhoiily lo chaige usei fees foi ienevaI of a ITIN, and
lhal aII ienevaI iequiienenls shouId cease,
Counl 3: ShouId lhe Couil deleinine lhal il is nol unIavfuI foi
Tieasuiy lo chaige foi issuance of a ITIN, a decIaialoiy judgnenl ly lhe
Couil lhal lhe usei fees chaiged foi issuance of a ITIN aie excessive and
unIavfuI lo lhe exlenl lhey aie excessive,
Counl 4: ShouId lhe Couil deleinine lhal il is nol unIavfuI foi
Tieasuiy lo iequiie annuaI ienevaI of a ITIN and lo chaige foi ienevaI of
a ITIN, a decIaialoiy judgnenl ly lhe Couil lhal lhe usei fees chaiged foi
ienevaI of a ITIN aie excessive and unIavfuI lo lhe exlenl lhey aie
excessive,
!"#$ "! &' ""

Counl 5: As ieslilulion oi danages, lhe Couil oidei Tieasuiy lo
iefund lo IIainliffs any usei fees paid lo acquiie oi ienev lhe ITINs issued
lo IIainliffs, pIus inleiesl,
Counl 6: ShouId lhe Couil deleinine il is IavfuI lo chaige foi lhe
issuance of a ITIN lul lhe ITIN issuance usei fee is excessive, in Iieu of lhe
ieslilulion iequesled in Counl 5, lhe Couil oidei Tieasuiy lo iefund lo
IIainliffs, as ieslilulion oi danages, lhe excessive anounl paid, pIus
inleiesl,
Counl 7: ShouId lhe Couil deleinine il is IavfuI lo chaige foi lhe
ienevaI of a ITIN lul lhe ITIN ienevaI usei fee is excessive, in Iieu of lhe
ieslilulion iequesled in Counl 5, lhe Couil oidei Tieasuiy lo iefund lo
IIainliffs, as ieslilulion oi danages, lhe excessive anounl paid foi aII yeais
foi vhich ienevaI usei fees aie paid, pIus inleiesl,
Counl 8: A peinanenl injunclion piohililing lhe Tieasuiy
Depailnenl oi any agency oi depailnenl lheieof fion chaiging usei fees
lo issue a ITIN,
Counl 9: A peinanenl injunclion piohililing lhe Tieasuiy
Depailnenl oi any agency oi depailnenl lheieof fion chaiging usei fees
lo ienev a ITIN,
Counl 1O: ShouId lhe Couil deleinine lhal il is IavfuI lo chaige fees
lo issue a ITIN lul lhe usei fees aie excessive, a peinanenl injunclion
!"#$ "# &' ""

piohililing lhe Tieasuiy Depailnenl oi any agenl lheieof fion chaiging
excessive usei fees foi issuance of a ITIN,
Counl 11: ShouId lhe Couil deleinine lhal il is IavfuI lo chaige usei
fees lo ienev a ITIN lul lhe usei fees aie excessive, a peinanenl
injunclion piohililing lhe Tieasuiy Depailnenl oi any agenl lheieof fion
chaiging excessive usei fees foi ienevaI of a ITIN,
Counl 12: An injunclion piohililing Tieasuiy fion asking noie
infoinalion lhan is necessaiy lo issue a ITIN, and iequiiing Tieasuiy lo
ask foi such necessaiy infoinalion onIy once,
Counl 13: Avaid lo IIainliffs lhe cosls of Iiligalion, IegaI fees and
olhei penaIlies aIIoved ly Iav, incIuding ieasonalIe conpensalion lo lhe
cIass iepiesenlalives foi lheii line, effoil and iisk and ieasonalIe
conpensalion lo counseI foi lhe IIainliffs foi undeilaking lhe aclion, and
!"#$ "" &' ""

Counl 14: Avaid lhe IIainliffs aII fuilhei ieIief lhal il deens jusl and
piopei.
RespeclfuIIy sulnilled,

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DC ai Nunlei 366669
The assin Lav Iiin ILLC
Suile 3OO
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