Tax professionals preparing federal tax returns or claims for refunds must have a Preparer Tax Identification Number (PTIN) from the IRS. PTINs are preparer-specific and are required to be renewed annually. Failure to have a valid PTIN could result in penalties, injunction, and disciplinary action by the IRS Office of Professional Responsibility. PTINs expire on December 31 of the calendar year for which they are issued.
The cost to renew or obtain a PTIN is $19.75, which includes a user fee and a contractor fee. The fee is non-refundable and can be paid by bank account or credit card. Renewing a PTIN can be done online through the IRS website, which takes approximately 15 minutes. First-time applicants can also apply for a PTIN online or by filing Form W-12. Paper applications can take up to six weeks to process, so applicants should plan accordingly.
Applicants will need to provide personal and business information, as well as details about any felony convictions or tax obligations issues. Social Security Numbers are required to apply for a PTIN, but there are exceptions for U.S. citizens with religious objections and foreign preparers. PTIN status can be checked online to ensure that the application has been processed.
It is important to renew PTINs before they expire to avoid any issues with preparing federal tax returns. Tax professionals can utilize the online renewal process on the IRS website or file Form W-12 for renewal. Foreign preparers and U.S. citizens with religious objections to obtaining a Social Security Number can still obtain a PTIN by following specific procedures outlined by the IRS.
Tax professionals should be aware of the distinction between PTINs and Electronic Filing Identification Numbers (EFINs). EFINs are issued to individuals or firms approved as authorized IRS e-file providers, while PTINs are only issued to individuals. Renewing or obtaining a PTIN is a crucial step for tax professionals to ensure that they can continue preparing federal tax returns and claims for refunds.
