Frequently Asked Questions
- What is this Lawsuit about?
- What is a Class Action and who is involved?
- Why is this Lawsuit a Class Action?
- Has the Court decided who is right?
- Is there any money available now?
- Am I part of this class?
- I'm still not sure if I am included.
- Do Class Members have a lawyer in this case?
- If I am a Class Member, should I get my own lawyer?
- How will the lawyers be paid?
- Will Class Members get money after the appeal or other resolution?
- Are more details available?
- What is this Lawsuit about?
This lawsuit alleges that the United States government unlawfully charged tax return preparers a fee to obtain a preparer tax identification number (“PTIN”) or, in the alternative, that the fees to obtain a PTIN were excessive. On June 1, 2017, the District Court ruled on the parties’ cross-motions for summary judgment, determining that the government may continue to require PTINs, but may not charge fees for the issuance or renewal of PTINs. It also enjoined the government from charging those fees in the future, and ordered the government to refund all PTIN fees paid to date. The government subsequently appealed. On March 1, 2019, the Court of Appeals for the D.C. Circuit ruled in favor of the government, vacating the District Court’s grant of summary judgment. The D.C. Circuit then remanded the case to the District Court for further proceedings, “including an assessment of whether the amount of the PTIN fee unreasonably exceeds the costs to the IRS to issue and maintain PTINs.” Montrois v. United States, 916 F.3d 1056, 1057 (D.C. Cir. 2019).
Top - What is a Class Action and who is involved?
In a Class Action lawsuit, one or more people called “Class Representatives” (in this case Adam Steele, Brittany Montrois, and Joseph Henchman) sue on behalf of other people who have similar claims. The people together are a “Class” or “Class Members.” The people who sued—and all the Class Members like them—are called the Plaintiffs. The government, which they sued, is called the Defendant. One court resolves the issues for everyone in the Class—except for those people who choose to exclude themselves from the Class.
In this case, the Class consists of individuals who, according to the government’s records, paid a fee to apply for or renew a PTIN.
Top - Why is this Lawsuit a Class Action?
The Court decided that this lawsuit can proceed as a Class Action because it meets the requirements of Federal Rule of Civil Procedure 23, which governs Class Actions in federal district courts. Specifically, the Court found that:
- The Class is so numerous that joining all Class Members is impracticable;
- There are legal questions and facts that are common to the Class;
- The Class Representatives’ claims are typical of the claims of the rest of the Class;
- The Class Representatives and the lawyers representing the Class will fairly and adequately represent the Class’s interests;
- The common legal questions and facts are more important than questions that affect only individuals; and
- This class action will be more efficient than having many individual lawsuits.
More information about why the Court is allowing this lawsuit to proceed as a Class Action is in the Court’s rulings on Motion for Class Certification and on the Motion for Reconsideration, which are available here.
Top - Has the Court decided who is right?
On January 23, 2023, the District Court ruled on the parties’ cross-motions for summary judgment finding that the PTIN and vendor fees for FY 2011 through 2017 were unlawfully excessive under the IOAA. The District Court then remanded the case to the government to determine an appropriate refund.
On January 22, 2024, the government filed a Notice of Refund Estimation which provided for a total proposed refund of approximately $167,000,000. Plaintiffs subsequently filed a motion challenging the government’s determinations on remand and seeking to vacate the challenged agency actions. On August 12, 2024, the District Court granted in part and denied in part Plaintiffs’ motion and once again remanded the case to the government to determine an appropriate refund.
Top - Is there any money available now?
The case still has not been decided. There is no guarantee that money will ever be obtained. If it is, you will be notified.
Top - Am I part of this class?
The Class is defined as all individuals and entities who have paid an initial and/or renewal fee for a PTIN, excluding Allen Buckley, Allen Buckley LLC, and Christopher Rizek.
Top - I'm still not sure if I am included.
If you are still not sure whether you are included, you can get free help by calling or writing to either the lawyers in this case or the Class Action Administrator, at the contact information listed in question 12.
Top - Do Class Members have a lawyer in this case?
Yes, the Court decided that the law firm of Motley Rice LLC of Mount Pleasant, South Carolina is qualified to represent all Class Members. This law firm is called “Class Counsel.” They are experienced in handling other Class Actions.
More information about Motley Rice LLC, its practice, and its lawyers’ experience is available here.
The law firms of The Law Office of Allen Buckley LLC and Gupta Wessler PLLC are also acting as counsel in this matter.
Top - If I am a Class Member, should I get my own lawyer?
You do not need to hire your own lawyer because Class Counsel is working on your behalf. But, if you want your own lawyer, you will have to pay that lawyer. For example, you can ask him or her to appear in Court for you if you want someone other than Class Counsel to speak for you.
Top - How will the lawyers be paid?
If Class Counsel get money or benefits for the Class, they may ask the Court for fees and expenses. If the Court grants Class Counsel’s request, Class Counsel’s and their co-counsel’s fees and expenses would be deducted from any money obtained for the Class. By participating in the Class, you agree to pay Class Counsel together with their co-counsel up to 30 percent of the total recovery in attorney fees and expenses.
Top - Will Class Members get money after the appeal or other resolution?
If the Plaintiffs obtain money or benefits as a result of a judgment or a settlement, Class Members will be notified about how to obtain a share. We do not know how long this will take.
Top - Are more details available?
You can review the filings in the case including the Complaint, Defendant’s Answer, the Court’s Order Certifying the Class, the Court’s Summary Judgment Opinions, and the Court’s Remand Opinion here.
You may also obtain more information by calling 1-866-483-8621, or by writing to PTIN Fees Class Action Administrator, P.O. Box 301172, Los Angeles, CA 90030-1172.
You may speak to one of the lawyers by calling 1-800-967-0768.
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