The way to Get a PTIN

Do you might have a legitimate PTIN? Getting or renewing a Preparer Tax Identification Quantity (PTIN) is required for getting ready or aiding in getting ready a return or refund declare. This text offers a step-by-step information on the right way to get a PTIN, together with the applying course of, charges, and renewal necessities.

Whether or not you’re a seasoned accountant or providing tax preparation companies for the primary time, you want an up-to-date PTIN to keep away from penalties. 

Skip Forward

What’s a Preparer Tax Identification Quantity (PTIN)?

A PTIN is a sort of taxpayer identification quantity that paid tax preparers should use to file shoppers’ federal tax returns or claims for refund. The IRS points Preparer Tax Identification Numbers. Paid tax preparers should embody PTINs on the tax returns they put together. 

As of January 1, 2011, PTINs are obligatory. Apply for a PTIN when you, for compensation, put together all or considerably all of any federal tax return or declare for refund. You could additionally pay a non-refundable charge. 

Your preparer quantity is barely legitimate for the present calendar 12 months. You could renew your figuring out quantity and pay the non-refundable charge yearly.

What number of digits is a PTIN?

The PTIN is a novel eight-digit quantity that begins with the letter P (e.g., P12345678). 

Use the chart beneath to see how the PTIN format varies from a Social Safety quantity and an Employer Identification Quantity (EIN), that are nine-digit numbers.

What’s the distinction between EFIN and PTIN?

You might also want an Digital Submitting Identification Quantity, or EFIN. An EFIN is a quantity the IRS points to people or corporations which are licensed IRS e-file suppliers. 

The IRS points PTINs to people, whereas EFINs are issued to people or corporations. Not like a preparer quantity, an EFIN doesn’t expire, and there’s no charge to use. 

In keeping with the IRS, most tax preparers want each an EFIN and a PTIN. 

Who wants a PTIN?

You could get hold of a Preparer Tax Identification Quantity if you’re paid to organize or help in getting ready all or considerably all the following:

• Federal tax return
• Declare for refund
• Different tax varieties submitted to the IRS*

*Exceptions embody Kind SS-4 and Kind W-2 sequence of returns. You’ll be able to view a full listing of exceptions on the IRS web site. 

Licensed public accountants, attorneys, and Enrolled Retirement Plan Brokers generally want PTINs.  

You don’t want a PTIN if you don’t put together, for compensation, all or considerably all of a federal tax return or declare for refund. For instance, you don’t want a preparer quantity when you solely advise shoppers about points mirrored on a declare for refund and are usually not required to signal. For extra info, seek the advice of the IRS. 

Can a number of people or one workplace share a PTIN?

No, people can not share a PTIN. Each relevant paid tax preparer should have a novel preparer quantity. 

You’ll be able to solely have one Preparer Tax Identification Quantity. 

What occurs if I don’t get a PTIN?

Acquiring a PTIN (and renewing it yearly) is a authorized requirement when you put together tax returns for compensation. 

You might be topic to the next actions from the IRS Workplace of Skilled Duty if you don’t get a PTIN:

• Penalties
• Injunctions
• Disciplinary motion

Apply for or renew your PTIN earlier than you settle for cost from shoppers regarding federal tax return preparation. 

The way to get a PTIN

You’ll be able to apply for PTIN on-line or by mail. Be ready to offer the next info when making use of to your PTIN:

• Social Safety quantity
• Title, mailing handle, and date of beginning
• Enterprise title, mailing handle, and telephone quantity
• Earlier 12 months’s tax return 
• Details about previous felony convictions, if relevant
• Details about any U.S.-based skilled certifications (e.g., CPA), together with your certification quantity, jurisdiction of issuance, and expiration date

The way to apply on-line for a PTIN

You’ll be able to apply to your PTIN and pay the non-refundable charge on-line by creating an account with the IRS. 

Learn to get a PTIN by following these steps:

1. Go to IRS.gov/taxpros
2. Below “PTIN System,” click on “Renew or Register” 
3. Choose “Create an Account” and comply with the prompts to obtain your non permanent password
4. Log in and comply with the prompts
5. Choose the “Register for a PTIN” button

The way to apply by mail for a PTIN

You’ll be able to apply to your PTIN by mail while you fill out Kind W-12, IRS Paid Preparer Tax Identification Quantity (PTIN), and mail it to the IRS. 

Mail your accomplished Kind W-12, together with a verify or cash order for the non-refundable software charge, to:

IRS Tax Skilled PTIN Processing Middle

PO Field 380638

San Antonio, TX 78268

Understand that making use of for a PTIN by mail will take longer to obtain your quantity than when you apply on-line. 

How a lot does an IRS PTIN price?

There’s a non-refundable software or renewal charge for a PTIN. The price of a PTIN can range by 12 months. 

For 2024, the overall charge is $19.75. This consists of an $11 charge per software or renewal and an $8.75 charge payable to the third-party contractor. 

Embrace the complete cost along with your software or annual renewal. 

How lengthy does it take to get a PTIN from IRS?

How lengthy it takes to obtain your Preparer Tax Identification Quantity is dependent upon the way you apply.

The net software takes about quarter-hour to finish, and also you usually obtain your PTIN instantly after.

Making use of by way of mail can take roughly six weeks for the IRS to course of your software. 

Do you need to renew your PTIN yearly?

Sure. You could renew your PTIN and pay the charge yearly to take care of an energetic standing. 

How lengthy is a PTIN legitimate?

The PTIN is barely legitimate through the calendar 12 months you obtain it. PTINs expire on December 31.

What occurs if I don’t renew my PTIN by December 31?

You can not legally put together federal tax returns, refund claims, or different relevant tax varieties for compensation if you don’t renew your PTIN.

The way to renew a PTIN on-line

You’ll be able to renew your PTIN on-line by taking the next steps:

1. Go to IRS.gov/taxpros
2. Below “PTIN System,” click on “Renew or Register” 
3. Log in to your PTIN account utilizing your person ID and password
4. Choose the “Renew my PTIN” button

You’ll obtain affirmation from the IRS of your PTIN renewal. 

You may as well use your PTIN account to do issues like see the variety of filed returns that embody your PTIN and verify your persevering with schooling. 

Don’t need to renew your PTIN on-line? You may as well renew your PTIN by filling out Kind W-12 and mailing it to the IRS. 

What if I’ve bother logging in to my PTIN account?

Can’t bear in mind your PTIN login info? Listed here are a number of troubleshooting suggestions to bear in mind:

• Your person ID is probably going your e mail handle. 
• The IRS will e mail your person ID to you if you choose “Forgot Person ID” when making an attempt to log in.
• The IRS will e mail you a hyperlink to reset your password if you choose “Forgot Password” when making an attempt to log in.
• You’ll be able to contact the PTIN Data Line at 877-613-7846 when you now not have entry to the e-mail handle you used to arrange your PTIN. 

The way to replace your PTIN

Have a change of handle or a reputation change? You’ll be able to simply replace your info on-line in your PTIN account. 

Data it’s possible you’ll have to replace consists of:

• Mailing addresses
• Cellphone numbers
• Enterprise title
• Enterprise web site hyperlink
• E mail handle
• Your title (should additionally submit supporting paperwork, corresponding to a wedding certificates)

You’ll be able to study extra about updating your PTIN info, together with mailing choices, on the IRS web site. 

Do you want a PTIN to deal with your shoppers’ payroll?

You could have a PTIN if you’re a payroll service supplier (PSP). 

A PSP is somebody who:

• Prepares shoppers’ paychecks,
• Prepares Kinds 940 and 941 utilizing the consumer’s EIN and has them signed by the consumer,
• Makes federal tax deposits, AND/OR
• Prepares Kinds W-2 for the consumer’s workers utilizing the consumer’s EIN

Or, you’ll be able to depart the heavy lifting to Patriot Software program’s Full Service Payroll. We’ll calculate your shoppers’ payroll taxes and, as a licensed Reporting Agent, deal with tax filings and deposits on their behalf. 

If you be part of our Accomplice Program for accountants, CPAs, and bookkeepers, you will get discounted pricing on our Full Service Payroll. Study extra about our payroll software program for accountants. 

This isn’t meant as authorized recommendation; for extra info, please click on right here.