All tax preparers who prepare or assist in preparing federal tax returns or claim for refunds must obtain a PTIN. The Requirement applies to all paid tax return preparers, including those who are enrolled agents, certified public accountants & attorneys. PTIN (Preparer Taxpayer Identification Number) is one of the first provisions being implemented in a new oversight program to help regulate the tax preparation industry.
Tax preparers can register immediately using a new PTIN sign-up system at www.irs.gov/taxpros. If you received your PTIN before September 28, 2010, you must register using the new system.
To receive your PTIN:
create an account – create your account by providing your name, e-mail address & security question information. Then the system will e-mail you a temporary password, which you will change when you go back to enter your information in the PTIN application.
Apply for a PTIN – To complete the online application you will need to provide certain information from your previous year’s tax return and more.
Pay Your Fee – You will then need to pay a fee of $64.25 by credit or debit card.
Get Your PTIN – Once your payment is confirmed your PTIN will be provided online. If you already have a PTIN it will remain the same, in most cases. You will receive a letter from the IRS providing you with additional information.
You cannot share a PTIN with anyone, each individual must obtain their own PTIN. Applicants will pay $64.25 for their which will be valid for one year. As part of that fee the IRS will receive $50 per user to pay for technology, compliance and outreach efforts for the new program. A third Party vendor will receive $14.25 per user to operate the online system & provide customer support.
With 60% of American households using a tax preparer to help them prepare and file their taxes, higher standards for the tax preparer community will significantly enhance protections and service for taxpayers, increase confidence in the tax system & result in greater compliance with tax laws over the long term. Currently, many tax preparers do not have to meet any government requirements before preparing a federal tax return.
The start of the PTIN registration process begins as the IRS continues to review the testing and education sections of the tax preparer initiative as recently announced in proposal regulations that would amend Treasury Circular 230. The Circular 230 regulations announced that attorneys, certified public accountants & enrolled agents would not be subject to additional testing or continuing education requirements in order to obtain a PTIN. These professionals are currently subject to strict professional standards of conduct and ethics.
Pending finalization of guidance, the IRS has under serious consideration extending similar treatment to a discrete category of people who engage in return preparation under the supervision of someone else – for example, employees who prepare all or considerably all of the return and work in certain professional firms under the supervision of one of the above individuals who signs the return.
