Are you ready to embark on a journey that will unlock your potential as a compensated tax preparer in the United States? Excellent! Because today, we're going to dive deep into how to obtain your Preparer Tax Identification Number (PTIN) from the IRS, a crucial step for anyone looking to prepare federal tax returns for a fee. It's not just a number; it's your official badge of recognition from the Internal Revenue Service, a prerequisite for nearly all paid tax professionals.
The Importance of a PTIN
Before we get into the "how-to," let's quickly understand why you need a PTIN. Since January 1, 2011, it has been mandatory for all paid tax return preparers to have a valid PTIN. This means if you're getting compensated for preparing, or even assisting in the preparation of, all or substantially all of a federal tax return or claim for refund, you must have one. Without it, you could face penalties and disciplinary actions from the IRS Office of Professional Responsibility. So, let's get you squared away!
Step 1: Determine If You Need a PTIN (and Get Excited!)
This is where you come in! Are you planning to prepare federal tax returns for clients and receive payment for your services? If your answer is a resounding yes, then you absolutely need a PTIN.
Think about it: Are you an aspiring tax professional, a seasoned CPA, an Enrolled Agent, or someone looking to help others navigate the complexities of tax season for a fee? If so, this guide is for you! Even if you already have a professional credential like a CPA license or are an attorney, you still need a PTIN if you're compensated for preparing returns.
- Who definitely needs a PTIN?
- Anyone who is paid to prepare or assist in preparing federal tax returns or claims for refund.
- All Enrolled Agents (EAs), regardless of whether they prepare tax returns for compensation.
- Who might not need a PTIN?
- Individuals preparing their own tax returns or joint returns with their spouse.
- Those volunteering their tax preparation services (without compensation).
- Employees who help gather information or prepare their company's tax return as part of their normal job duties, without being specifically paid for tax preparation services.
If you've determined you need one, fantastic! Let's move on to gathering your essentials.
Step 2: Gather Your Essential Information and Documents
Preparation is key! Before you begin the online application, having all your information ready will make the process much smoother and quicker.
Sub-heading: Personal and Business Details
- Your Social Security Number (SSN): This is a primary requirement for U.S. citizens.
- Personal Information:
- Your full legal name (as it appears on your tax return).
- Your mailing address.
- Your date of birth.
- Business Information (if applicable):
- Your business name.
- Your business mailing address.
- Your business telephone number.
- Your Employment Identification Number (EIN), if you have one for your business.
Sub-heading: Prior Tax Information and Professional Credentials
- Previous Year's Individual Tax Return: Have a copy handy as you might need information like your filing status and address from it.
- Explanation for Tax Obligations or Felony Convictions (if applicable): If you have any unaddressed tax obligations or felony convictions, be prepared to provide explanations. Don't worry, a conviction doesn't necessarily disqualify you, but full disclosure is required.
- Professional Certification Information (if applicable): If you hold any professional credentials such as a Certified Public Accountant (CPA), Attorney, Enrolled Agent (EA), or other state licenses, you'll need:
- The certification number.
- The jurisdiction of issuance (e.g., state).
- The expiration date (if applicable).
Sub-heading: Special Cases (Foreign Persons or Religious Objectors)
- For Foreign Persons Without an SSN: If you are a foreign person without a U.S. Social Security Number and are not eligible to obtain one, you will need to file Form 8946, PTIN Supplemental Application For Foreign Persons Without a Social Security Number. You will also need to provide supporting documentation to establish your identity and foreign status, such as a passport or other government-issued ID. These documents may need to be original or notarized copies.
- For U.S. Citizens Without an SSN Due to Religious Objection: If you are a U.S. citizen who does not have an SSN due to a conscientious religious objection, you'll need to complete Form 8945, PTIN Supplemental Application For U.S. Citizens Without a Social Security Number Due To Conscientious Religious Objection,
in addition to Form W-12.
Having all this information at your fingertips will ensure a smooth and quick application process.
Step 3: Create Your IRS PTIN Account Online
The IRS strongly encourages applying for a PTIN online, as it's the fastest way to get your number – often within 15 minutes!
Sub-heading: Accessing the IRS PTIN System
- Navigate to the Official IRS Website: Open your web browser and go to the IRS's dedicated PTIN page. You can usually find this by searching "IRS PTIN" or by going directly to irs.gov/tax-professionals/ptin-requirements-for-tax-return- preparers.
- Locate the "Register for a PTIN" or "Apply for a PTIN" Link: On the PTIN page, look for a prominent link that directs you to create an account or apply for a new PTIN.
- Start the Account Creation Process: You will be prompted to create an online account. This typically involves:
- Providing a unique User ID and Password. Choose something secure and memorable!
- Entering your email address. This is important for receiving communications and a temporary password for initial setup.
- Setting up security questions and answers.
Sub-heading: Setting Up Your Profile
- Verify Your Email: After creating your initial account, the system will often send a temporary password to your provided email address. You'll need to use this to log in for the first time and then set a permanent password.
- Follow On-Screen Prompts: The system will guide you through entering your personal and business information that you gathered in Step 2. Double-check every entry for accuracy! Small errors can cause delays.
Step 4: Complete the Online PTIN Application
Once your account is set up, you're ready to fill out the actual PTIN application.
Sub-heading: Filling Out the Application Form
- Log In to Your PTIN Account: Use your newly created User ID and password to log back into the IRS online PTIN system.
- Select "Register for a PTIN" or "Apply for a New PTIN": From the main menu, choose the option to apply for a new PTIN.
- Enter All Required Information: The online form will mirror the details you prepared in Step 2. This includes:
- Your Social Security Number (SSN).
- Personal details: Name, mailing address, date of birth.
- Business details: Name, address, phone.
- Prior year's tax return information.
- Explanations for any tax compliance issues or felony convictions.
- Professional credential information (CPA, EA, Attorney, etc.).
- Attestation that you are current on your individual and business federal taxes.
Sub-heading: Review and Payment
- Review Your Application: Before submission, carefully review all the information you've entered. Make sure there are no typos or inaccuracies. An error here could lead to delays or issues later.
- Pay the Application Fee: As of the latest information, the fee for obtaining or renewing a PTIN is $19.75 (this includes the IRS fee and a fee for the third-party contractor). This fee is non-refundable. You can typically pay using a credit/debit/ATM card or an eCheck. Follow the prompts for payment.
- Submit Your Application: Once you've reviewed everything and made the payment, click the "Submit" or "Complete Application" button.
Step 5: Receive Your PTIN!
Congratulations! If you've completed the online application and payment successfully, you should receive your PTIN almost immediately.
Sub-heading: Instant Confirmation and What to Do Next
- Immediate Issuance: Most applicants who apply online will receive their PTIN right after completing the application and payment.
- Print or Save Confirmation: The IRS system will display a confirmation message containing your new PTIN. It's highly recommended to print this page or save it as a PDF for your records. The IRS generally does not email you a copy of your completed application.
- Check Your PTIN Inbox: The IRS will also send a welcome message containing your PTIN to your secure online PTIN account inbox.
- Begin Preparing Returns: Once you have your PTIN, you can officially begin preparing federal tax returns for compensation and include your PTIN on each return.
Sub-heading: What if you apply by mail?
While online application is highly recommended for its speed, you can apply for a PTIN by mail using Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application. However, be aware that this method takes significantly longer, typically four to six weeks for processing.
- Mail your completed Form W-12 and the fee (check or money order) to the address provided in the Form W-12 instructions.
PTIN Renewal: Don't Forget!
Remember, your PTIN is not a one-time thing. All PTINs expire on December 31st each year. This means you'll need to renew your PTIN annually to continue preparing tax returns for compensation. The IRS usually begins accepting renewals around mid-October for the upcoming tax season. The renewal process is similar to the initial application but often even quicker if you already have an online account.
10 Related FAQ Questions
Here are some frequently asked questions about PTINs, with quick answers:
How to check the status of my PTIN application?
You can generally check the status of your online PTIN application by logging into your IRS PTIN account. For paper applications (Form W-12), allow 4-6 weeks for processing, then you can call the PTIN helpline.
How to renew my PTIN online?
Log in to your online PTIN account on IRS.gov, select "Renew my PTIN" from the main menu, verify your information, answer a few questions, and pay the renewal fee.
How to update my PTIN account information?
Log in to your online PTIN account, select the "Edit Account Information" tile, and choose the specific information you wish to update (e.g., address, phone number, professional credentials).
How to change my name on my PTIN account?
Name change requests can be submitted online through your PTIN account (under "Account Actions" in "Edit Account Information") or in writing with supporting documentation (like a marriage certificate or divorce decree) mailed to the IRS.
How to get a PTIN if I don't have a Social Security Number (SSN)?
If you are a foreign person not eligible for an SSN, you'll need to file Form W-12 along with Form 8946 and provide supporting identity documentation.
How to get a PTIN if I have a religious objection to an SSN?
U.S. citizens with a conscientious religious objection to obtaining an SSN must complete Form W-12 and Form 8945.
How to find out if a tax preparer has a valid PTIN?
The IRS provides a public directory of federal tax return preparers with credentials and select qualifications on their website, where you can search for preparers by name, ZIP code, and credentials.
How to contact the IRS about PTIN questions?
You can typically find contact information for the IRS PTIN helpline on the IRS website (irs.gov/ptin). For U.S. calls, the number is generally 1-877-613-PTIN (7846).
How to determine if I need both a PTIN and an EFIN?
A PTIN is for individual paid tax preparers, while an Electronic Filing Identification Number (EFIN) is a six-digit ID issued by the IRS to firms and individuals who intend to e-file tax returns. If you prepare more than 11 tax returns in a year, you are required to e-file and will likely need an EFIN in addition to your PTIN.
How to avoid penalties for not having a PTIN?
Always obtain and maintain a valid, current PTIN before preparing any federal tax returns for compensation. Failure to do so can result in significant penalties and disciplinary action from the IRS.
