What Is a PTIN and Who Needs to Have One?
Understand the mandatory IRS identification for paid tax preparers. Learn who requires this credential, how to obtain it, and ensure ongoing compliance for your practice.
A Preparer Tax Identification Number (PTIN) is a unique identification number issued by the Internal Revenue Service (IRS) to individuals who prepare federal tax returns for compensation. It serves as the preparer’s official identification when filing tax documents, helping the IRS identify and track individuals for accountability and compliance within the tax industry.
Understanding the PTIN
The PTIN is a mandatory identification number for all individuals who prepare or assist in preparing federal tax returns or claims for refund for compensation. It helps the IRS maintain oversight of the tax preparation industry and track individuals for accountability and compliance. The PTIN was introduced to protect the privacy of tax preparers, allowing them to use this number instead of their Social Security Number (SSN) on tax forms.
Who Requires a PTIN
A PTIN is required for any individual who prepares federal tax returns or claims for refund for compensation. This includes tax professionals such as Certified Public Accountants (CPAs), Enrolled Agents (EAs), and attorneys. Exceptions include individuals preparing their own or joint returns, or those preparing taxes for friends and family without receiving payment. Employees who only provide typing, reproduction, or other mechanical assistance without exercising discretion or judgment on tax positions are generally not required to have a PTIN.
Obtaining Your PTIN
To apply for a PTIN, gather your Social Security Number (SSN), full legal name, mailing address, date of birth, and contact information. If applicable, have your prior year’s tax return information and professional credentials (like a CPA license or Enrolled Agent enrollment number, including jurisdiction and expiration dates) ready. Be prepared to explain any past felony convictions or issues with U.S. tax obligations.
The official PTIN application is available on the IRS website. To apply online, you will create an account on the IRS website, then navigate to the PTIN system to begin the new PTIN application. Complete all informational fields accurately using the details you gathered beforehand. After filling out the application, you will submit it through the online system and pay the associated non-refundable fee, which is currently $19.75, consisting of an $11 user fee and an $8.75 fee for a third-party contractor. Online applications typically process immediately, providing your PTIN within about 15 minutes, while paper applications using Form W-12 can take approximately four to six weeks to process.
Renewing and Maintaining Your PTIN
PTINs must be renewed annually to remain valid, typically expiring on December 31st of the year for which they are issued. The renewal period usually begins around mid-October each year, allowing preparers to renew for the upcoming tax season. The renewal process is similar to the initial application and can be completed online through the IRS Tax Professional PTIN System.
Renewing online is generally quick, taking about 15 minutes, and provides immediate confirmation. If information like your mailing address, phone number, business details, or professional credentials changes, these updates can be made by logging into your PTIN account and selecting the “Edit Account Information” option. Timely renewal is important to avoid penalties and ensure you can continue preparing federal tax returns for compensation without interruption.