An early event that follows aggregation of the high affinity receptor for IgE (Fc⑀RI) is the phosphorylation of protein tyrosines, especially those on the -and ␥-subunits of the receptor. Disaggregation of the receptors leads to their rapid dephosphorylation, but even stably aggregated receptors undergo continual rounds of phosphorylation and dephosphorylation. We developed assays to study dephosphorylation of the receptors and other cellular proteins. Whole cell extracts dephosphorylated both subunits of the receptors rapidly and were as active against aggregated as against disaggregated Fc⑀RI. Upon disaggregation, the in vivo dephosphorylation of the Fc⑀RI and several other proteins followed first-order kinetics with closely similar rate constants despite substantial differences in the extent of phosphorylation. These results suggest that the level of phosphorylation of Fc⑀RI is largely controlled by the aggregation-induced action of kinase(s) and not from changes in susceptibility to or activity of the phosphatases. Much of the total phosphatase is lost when the cells are permeabilized, but the rate of dephosphorylation of disaggregated Fc⑀RI was comparable in intact and permeabilized cells. Thus, much of the activity utilized by the cell to dephosphorylate the Fc⑀RI is likely to be associated with the plasma membrane.The high affinity IgE receptor on mast cells and basophils (Fc⑀RI) has a central role in mediating allergic responses (1, 2). Aggregation of the receptors results in phosphorylation of protein tyrosines as an early event that leads to a variety of later cellular phenomena (3, 4). The receptor itself lacks sequences typical for intrinsic protein-tyrosine kinase activity (5), and experimentally, receptors purified by affinity columns or well washed immunoprecipitates show virtually no kinase activity in vitro (6, 7). However, a variety of studies have implicated a kinase weakly associated with the receptor (6,8,9). In rats, the critical initial kinase appears to be Lyn (9). The receptorassociated Lyn from resting cells displays tyrosine kinase activity toward exogenous substrates, but little or no phosphorylation of the receptor itself is observed unless the receptors are aggregated (10 -13). These observations and those made on the effect of inhibitors of phosphatases (12,14) imply that proteintyrosine phosphatases (PTPs) 1 are continuously modulating the resting system. The studies with inhibitors and other experimental approaches (15) show that the PTPs also continuously act on aggregated receptors. Finally, when individual receptors dissociate from the aggregate, e.g. by addition of monomeric hapten after stimulation by multivalent antigen, rapid dephosphorylation of the receptor and of other cellular proteins is observed (7, 10 -13).The PTPs involved in these processes remain undefined, and the purpose of the current study was to investigate some of their characteristics. We first developed an in vitro assay to test the PTP activity in total cell lysate toward receptors that had been phosp...