As the tax season approaches, it is essential for tax professionals to renew or obtain a Preparer Tax Identification Number (PTIN) from the IRS. Any tax professional who prepares federal tax returns for compensation must have a valid PTIN and failure to do so could result in penalties and disciplinary action by the IRS Office of Professional Responsibility. PTINs expire on December 31st of the calendar year for which they are issued and must be renewed annually.
The cost to renew or obtain a PTIN is $19.75, which is the same as last year. Payment can be made by bank account or credit card, with the fee being non-refundable. Tax professionals can renew their PTIN online through the IRS website, a process that typically takes about 15 minutes to complete. Alternatively, paper applications can be filed using Form W-12, but these may take up to six weeks to process.
First-time PTIN applicants can also apply online through the IRS website, providing personal and business information as well as details about any felony convictions or tax problems. Social Security Numbers are required for all applicants, except for U.S. citizens with religious objections or foreign preparers without a U.S. address. Individuals with Individual Taxpayer Identification Numbers are not eligible for a PTIN unless they are foreign persons with a permanent non-U.S. address.
It is important not to confuse PTINs with Electronic Filing Identification Numbers (EFINs), which are issued to firms or individuals approved as authorized IRS e-file providers. PTIN status can be checked on the online account main menu, and if the information does not appear, it may indicate that a PTIN has not been issued or linked to the online account. Keeping track of PTIN renewals and ensuring all required information is up to date is essential for tax professionals to maintain compliance with IRS regulations.
As the tax season approaches, it is crucial for tax professionals to renew or obtain a Preparer Tax Identification Number (PTIN) from the IRS. PTINs must be renewed annually and failure to have a current PTIN could result in penalties and disciplinary actions by the IRS. The cost to renew or obtain a PTIN is $19.75, which can be paid by bank account or credit card, with the fee being non-refundable.
Tax professionals can renew their PTIN online through the IRS website, a process that typically takes about 15 minutes to complete. Alternatively, paper applications can be filed through Form W-12, but these may take up to six weeks to process. First-time applicants can also apply online, providing personal and business information as well as details about any felony convictions or tax problems.
Social Security Numbers are required for all PTIN applicants except for U.S. citizens with religious objections or foreign preparers without a U.S. address. It is important not to confuse PTINs with Electronic Filing Identification Numbers (EFINs) and to ensure that PTIN status is up to date and linked to the online account. Keeping track of PTIN renewals and complying with IRS regulations is essential for tax professionals as the tax season approaches.
