What Does PTIN Stand For and Who Needs to Get One?

A Preparer Tax Identification Number, or PTIN, is a nine-digit number issued by the Internal Revenue Service (IRS). It serves as an official identifier for professionals who are compensated for preparing federal tax returns. The IRS requires this number to be included on every return a paid preparer files, which helps the agency track preparer activity and ensure compliance.

Who Must Obtain a PTIN

The requirement to obtain a PTIN applies to any individual who prepares or assists in preparing a U.S. federal tax return for compensation. This rule encompasses professionals, including Certified Public Accountants (CPAs), Enrolled Agents (EAs), and attorneys who offer tax preparation services. It also applies to preparers who do not hold a professional credential but are paid for their work. Every preparer in an office setting who is compensated for this service must have their own PTIN.

Certain individuals are not required to obtain a PTIN. This includes people who prepare their own tax returns or those who prepare returns for friends or family members without receiving payment. Volunteers at programs like the Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) are also exempt. Individuals who only perform clerical duties, such as data entry, and do not make substantive decisions about the tax return are not considered preparers.

Information Required for a PTIN Application

Applicants will need their Social Security Number and personal details, including legal name, mailing address, and date of birth. You must also provide information about your business, such as the business name, address, and telephone number. For identity verification, you will need access to your prior year’s individual income tax return. If you hold any professional credentials, such as a CPA license, you must provide the certification details, including the license number and jurisdiction of issuance. Applicants must also be prepared to provide explanations for any past felony convictions or issues with their tax obligations.

The PTIN Application and Renewal Process

The application process is initiated by creating an account through the IRS’s online PTIN system, which takes about 15 minutes to complete. A non-refundable fee of $19.75 is required to finalize the application, and payment can be made online using a credit card, debit card, or e-check. For those unable to apply online, a paper Form W-12 can be submitted, but processing takes four to six weeks.

All PTINs expire annually on December 31. Preparers must renew their number each year to remain authorized to prepare federal tax returns for compensation. The renewal period opens in mid-October, and the process is completed through the same online IRS portal used for the initial application.