Tax Return Preparers, Don’t Leave Your Clients Stranded This Upcoming Filing Season

All Paid Return Preparers Must Have a Preparer Tax Identification Number

A Preparer Tax Identification Number (PTIN) generally is required for anyone who is paid to prepare or help to prepare all, or substantially all, of a federal tax return, claim for refund, or other tax form submitted to the IRS, unless specifically excepted. In addition, all enrolled agents are required to obtain a PTIN. For more information on who needs a PTIN, see the frequently asked questions on IRS.gov.

The PTIN serves as the paid preparer’s identifying number required by Internal Revenue Code (IRC) § 6109(a)(4). On Form 1040, the PTIN is entered in the section labeled “Paid Preparer Use Only.”

Failure to enter a valid PTIN on a tax return could result in penalties under IRC § 6695(c). Furthermore, if you are subject to Circular 230 (i.e., an attorney, certified public accountant, enrolled agent, enrolled actuary, enrolled retirement plan agent, or Annual Filing Season Program participant) and willfully prepare all or substantially all of a tax return or claim for refund without a valid PTIN, the IRS Office of Professional Responsibility can impose sanctions.

PTINs must be renewed every year. Current PTINs will expire on December 31, 2024. To avoid a lapse, current PTIN holders should act now to renew their PTIN.

The cost to obtain or renew a PTIN for 2025 is $19.75.

How to Obtain or Renew a PTIN

Apply or Renew Online

The fastest way for return preparers to obtain or renew a PTIN is online. The online application process on the IRS’s Tax Professional PTIN System takes around 15 minutes. If you don’t have an account, you’ll need to create one. The application will ask for personal and business information. If you’re renewing your PTIN, it will review answers you provided last year.

If you apply online, you’ll generally get your PTIN immediately after you complete the application.

Using the online Tax Professional PTIN System has added benefits, including the ability to:

• Check the status of continuing education;
• View a summary of the number of filed returns using a PTIN in the current year;
• Receive communications through a secure mailbox from the IRS Return Preparer Office; and
• Track progress for participation in the IRS Annual Filing Season Program.

Apply by Mail

Return preparers may also obtain or renew a PTIN by mail. To do so, complete and file IRS Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application and Renewal.

Mailed applications take about four to six weeks to process, so practitioners that wish to renew by mail should act quickly.

Conclusion

Return preparers play an important role in helping taxpayers meet their tax obligations each year. Be sure you renew your PTIN before it expires at the end of the year.