Even though most Americans don’t have tax season on their minds just yet, the IRS is hard at work getting ready for the 2011 tax return season.
New PTIN Requirements – Are Social Security Numbers Allowed?
According to the IRS, it has already begun reminding tax preparers with existing Preparer Tax Identification Numbers (PTINs) to renew their registrations. That is because, as of January 1, 2011, a newly-issued PTIN will be mandatory for all paid tax preparers in the U.S. who wish to prepare tax returns as of that date.
After December 31, 2010, a Social Security Number will no longer be a valid tax preparer identification number.
Get a Paid Preparer Tax Identification Number with Online PTIN Registration & Renewal
The new online IRS Tax Professional PTIN Sign-up System has been available since late September 2010.
The IRS is requiring new PTIN applications from everyone, regardless of prior registration, in order to keep all applications under a single system, closing loopholes and allowing the IRS to keep better tabs on all paid tax preparers. Accordingly, anyone who received a PTIN prior to September 28, 2010 must reapply under the new system.
Some call it a renewal system; others call it a registration system. It is one in the same since everyone must go through this portal to obtain a PTIN under the new system.
Choose IRS Tax Professional PTIN Sign-up System or File Form W-12 by Mail
The IRS is heavily promoting its online PTIN renewal & registration system; however, IRS Form W-12 is available for those who prefer filing by mail.
The IRS claims that the online PTIN renewal process takes only fifteen minutes to complete. So far, it seems to go down periodically for maintenance (for instance, it was down from 10 p.m. EST Thursday, October 28th until 1 a.m. on Friday, October 29th). Applicants shouldn’t have too many problems with PTIN registration, other than encountering these predetermined site outages.
To make the process as painless as possible, the IRS has even posted a YouTube video explaining the PTIN application process.
How to Access the New PTIN Application & PTIN Renewal Portal Online
New and existing PTIN registrations start at the same place. Here is a direct link to the IRS’s Tax Professional PTIN Sign-up System. If this link defaults to the New PTIN Requirements for Tax Return Preparers page, then that means the PTIN Sign-up System is down for maintenance.
New United States Federal Government PTIN Requirements – Regulations Effective 1/1/2011
It is imperative that anyone who wishes to prepare tax returns in 2011 for a fee obtain a PTIN. The IRS will not allow preparers to use their Social Security Numbers, nor indicate that a “PTIN Has Been Applied For” or something similar in the PTIN space of a federal income tax return.
For more information about the new PTIN requirements, see the following articles:
New IRS Tax Preparer Requirements – PTIN Registration Required – Get an overview of the PTIN registration program in the U.S. and learn about the impending competency exam and continuing education requirements.
IRS Form W-12 – PTIN Application Form – If you’d rather file by mail, here you will find a link to the paper registration form. Note that processing time will be four to six weeks instead of minutes.
Who Needs a Paid Preparer Tax ID Number? – Find out who is and isn't required to get an IRS tax ID number.
IRS Tax Preparer Requirements Resources:
Internal Revenue Bulletin, IR-2010-106. IRS Begins Notifying Tax Return Preparers on PTIN Renewals. Retrieved from irs.gov on October 28, 2010.
Tax Professionals section of the IRS website, irs.gov/taxpros
Lena Gott - Lena Gott is a Certified Public Accountant who gives practical financial advice to her readers.
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