PTIN stands for Preparer Tax Identification Number. The IRS requires every person who prepares or assists in preparing a federal tax return for compensation to have one. No PTIN, no paid tax preparation.
How to Get One
Go to irs.gov and search for “PTIN.” The online application asks for your Social Security number, your personal tax information from the prior year, and a fee of about $19.75. Most applicants receive their PTIN the same day. There is no exam and no education requirement.
What It Does
Your PTIN goes on every return you prepare. It’s printed on the return next to your signature. The IRS uses it to track who prepared what. If a return has errors, the IRS can trace it back to you through your PTIN.
What It Doesn’t Do
A PTIN does not make you a CPA, an enrolled agent, or an attorney. It does not give you the right to represent clients before the IRS (beyond a very limited scope if you complete the Annual Filing Season Program for returns you personally prepared). It is a registration, not a license, and it does not certify that you have any particular level of competence.
Annual Renewal
You must renew your PTIN every year. The renewal window typically opens in the fall (October or November), and you want to renew before January 1 so you’re ready for filing season. The renewal fee is the same as the initial application, about $19.75.
The AFSP Add-On
After you get your PTIN, consider the Annual Filing Season Program. It requires 18 hours of continuing education annually and gives you a Record of Completion, limited representation rights, and a listing in the IRS’s directory of tax professionals. It’s voluntary but well worth the effort.
What May Be Coming
Federal legislation is pending that would authorize the IRS to impose minimum competency standards on all paid preparers. If enacted, your PTIN alone may not be enough. Preparers who have already invested in training and completed the AFSP will be ahead of the curve.
For training that goes well beyond what the PTIN requires, visit musespring.com.