What is Preparer Tax Identification Number?
IRS Preparer Tax Identification Number (PTIN) is a unique 8-digit identification number given to tax professionals or tax preparers who prepare IRS forms on behalf of their clients. Any individual who is compensated for preparing, calculating and filing income tax returns on behalf of individuals and business are required to have a valid PTIN. Most IRS forms require a PTIN when filing.
Why is an IRS PTIN Important?
The IRS first introduced PTIN in 1999 to protect the privacy of tax preparers. Since then, this initiative has led to a more secure method of identification and reduced reliance on Social Security numbers.
The primary purpose of PTINs is to provide a way for the IRS to track and regulate tax return preparers. By requiring tax professionals to use PTINs, it enhances the accuracy and compliance of the tax return process. They also allow the IRS to identify and communicate with tax professionals regarding their responsibilities.
For tax professionals, having a PTIN is a regulatory requirement and adds to their professional credibility.
Applying For a PTIN
In order to apply for a PTIN, the tax preparer must have the following information:
- Social Security number
- Personal information (name, mailing address, date of birth)
- Business information (name, mailing address, telephone number)
- Previous year’s individual tax return (name, address, filing status)
- Explanations for felony convictions (if any)
- Explanations for problems with U.S. individual or business tax obligations (if any)
- Credit/Debit/ATM card
- Any U.S.-based professional certification information (If applicable).
Once all the information is gathered, follow these easy steps to obtain a PTIN:
Step 1 – Create an account by providing a name and email address.
Step 2– Complete the online application by providing personal information, previous year’s tax return, credentials, and more.
Step 3– Pay the $19.75 fee by credit/debit/ATM card or eCheck.
Step 4– After completion of the online application, the PTIN will be provided.
Renewing a PTIN
PTIN applicants must renew their PTIN every calendar year for it to be valid. Failure to renew and have a current PTIN could result in penalties, injunction, and/or disciplinary action by the IRS Office of Professional Responsibility.
Renew your PTIN in 3 easy steps:
Step 1– Log in to existing PTIN account
Step 2– Complete the online renewal application by verifying personal information and answering a few questions.
Step 3– Pay the $19.75 renewal fee and upon completion, the PTIN will be renewed.