In case you are one in every of greater than 759,000 federal tax return preparers within the US, your Preparer Tax Identification Quantity (PTIN) will expire December 31. It should be renewed earlier than you put together shopper tax returns subsequent yr. This will likely sound like simply one other factor so as to add to your endless to-do checklist, however the excellent news is, if you happen to renew it now, it should not take you greater than quarter-hour. Why not get it out of the best way earlier than the vacations?
We have put collectively this transient information to PTINs to reply a number of generally requested questions reminiscent of who wants a PTIN, how a PTIN differs from different, related IRS-issued identification numbers, and the right way to apply for a PTIN for the primary time. In case you are solely fascinated with studying the right way to renew your PTIN in quarter-hour, you possibly can scroll right down to the final part of this publish.
What’s a PTIN?
A PTIN is an 8-digit identification quantity the IRS points all paid tax preparers. It should be used when making ready and submitting shoppers’ tax returns, however it’s required on many different IRS types as nicely.
Be mindful, a PTIN is totally different from a Centralized Authorization File (CAF) quantity. A CAF quantity is an identification quantity that can also be particular to tax preparers however is barely wanted by preparers who want to entry their shopper’s confidential info or signify their shopper earlier than the IRS.
A PTIN can also be totally different from an Digital Submitting Identification Quantity (EFIN). An EFIN is issued to particular person tax preparers or corporations which are approved IRS e-file suppliers. It needs to be included with any digital return information despatched to the IRS. Most tax preparers want each a PTIN and EFIN.
Who wants a PTIN?
Not all tax and accounting professionals want a PTIN. You solely want a PTIN if you’re not less than 18 years previous and fall into a number of of those classes:
- All people who receives a commission to arrange tax returns
- All people who receives a commission to help in making ready tax returns
- All enrolled brokers, whether or not they put together tax returns or not
- Those that intend to develop into an enrolled agent
PTINs can’t be shared by teams or places of work. All people must have their very own. In the event you should not have a legitimate PTIN and wish one, you can be penalized by the IRS. Beneath IRC Sec. 6695(c), the penalty for not offering a legitimate PTIN on the tax returns you put together is $50 for every failure to conform. You’ll be able to accrue a most of $25,500 in a calendar yr for this penalty. Apart from penalties, injunction might also be imposed, or the IRS’ Workplace of Skilled Duty make take disciplinary motion. Moreover, you’ll not be permitted to file tax returns in your shoppers.
In the event you put together tax returns for no compensation, for instance if you happen to volunteer at a Volunteer Earnings Tax Help (VITA) web site, you don’t want a PTIN.
In case you are making use of for a PTIN for the primary time, you possibly can navigate to the IRS PTIN System right here. You’ll want to have the next info prepared for fast utility:
- Social Safety Quantity
- Private info reminiscent of identify, mailing tackle, and date of beginning
- Enterprise info reminiscent of identify, mailing tackle, and cellphone quantity
- Earlier yr’s particular person tax return (identify, tackle, submitting standing)
- Explanations for felony convictions, if any
- Explanations for issues together with your US tax obligations, if any
- Any US-based skilled certification info reminiscent of CPA, EA, legal professional, and so on. It’s best to embody certification quantity, jurisdiction of issuance, and expiration date.
After getting gathered your info, you merely create an account and apply. You’ll be able to log into your account to test the standing of your PTIN, however basically, your PTIN will seemingly be issued to you instantly after you apply. Felony convictions and points together with your tax obligations might stop you from having the ability to acquire one.
Additionally, an excellent factor to notice is that if you happen to file your taxes eight weeks or much less previous to the time you apply for a PTIN, you have to to make use of an earlier yr’s particular person tax return.
After you create a PTIN account, you’ll obtain a Letter 4743 from the IRS to make sure it was you who created the account. If it was you, no motion is critical in your finish. If it was not you, contact the PTIN Helpline.
If you have already got a PTIN account and simply must renew your quantity, you have to to offer related info to a first-time applicant, with a number of exceptions. You have to the next info prepared for fast PTIN renewal:
- Private info (identify and mailing tackle)
- Enterprise info (identify and mailing tackle)
- Explanations for felony convictions, if any
- Explanations for issues together with your US tax obligations, if any
- Any US-based skilled certification info reminiscent of CPA, EA, legal professional, and so on. It’s best to embody certification quantity, jurisdiction of issuance, and expiration date.
- Credit score Card, for the $30.75 renewal payment
You’ll be able to log into your account and get began with renewal right here. In the event you log in and don’t see a “PTIN Renewal” possibility, contact the PTIN Helpline.
In the event you want, you possibly can mail in your Kind W-12 to the IRS fairly than use a web-based account, however your renewal will take 4 to 6 weeks to course of. Alongside together with your W-12 kind, you should submit an accepted model of your Social Safety Card together with one different government-issued doc that incorporates a present photograph ID. Confer with Kind W-12 directions for full info relating to acceptable supporting documentation and utility necessities. In the event you do select to mail within the kind, ship it to this tackle:
IRS Tax Professional PTIN Processing Middle
PO Field 380638
San Antonio, TX 78268
On the lookout for extra details about widespread, IRS-issued identification numbers? Take a look at IRS Issued Identification Numbers Defined: TIN, ITIN, PTIN, CAF Quantity.
Wanting extra content material concerning the accounting business? Subscribe to our e-mail publication. 
