PTIN Requirements

A PTIN, or Preparer Tax Identification Number, is a necessity for each individual who gets paid to prepare tax returns and is obtained from the IRS. By law, tax preparers are mandated to include their PTIN on every tax return they handle. In an office environment with multiple preparers, every individual should possess a distinct PTIN.

Who is Required to Obtain an IRS PTIN?

A PTIN is required for all tax professionals who earn compensation for the preparation, or assistance in the preparation, of U.S. federal tax returns. Certified public accountants, enrolled agents, participants in the Annual Filing Season Program, and other tax preparers are all subject to PTIN requirements.

Although PTIN prerequisites may appear straightforward, there are specific rules to determine who needs to acquire a PTIN:

PTIN Required if Compensated: This applies to tax professionals who earn a fee to prepare federal tax returns. For instance, if you are a volunteer preparing tax returns free of charge, you do not need a PTIN.

PTIN Required if Assisting in Tax Return Preparation: This applies if the tax professional contributes to part of a tax return and makes decisions affecting the client’s tax liability. However, interns merely performing routine data entry without making tax decisions aren’t required to have a PTIN.

How to Obtain a PTIN in Four Steps:

1. Gather Information for PTIN Registration

   Before applying for a PTIN, it is advisable to download Form W-12 and read through the instructions. Use Form W-12 as a checklist to ensure you have all the necessary information. Tax preparers should have the previous tax return and professional credentials details ready.

   Social Security Number
   • Personal and business details
   • Prior year’s individual tax return
   • Explanation for any tax obligations or felony convictions, if applicable
   • Certification details for all credentials held including CPA, attorney, enrolled agent, etc.
   
   

2. Create a PTIN Account

   For first-time PTIN applications, it is highly recommended to create a PTIN account online with the IRS. With an online account, applicants can complete the paperwork and receive their PTIN in about 15 minutes.

3. Apply for a PTIN

   The PTIN can be applied for via the IRS website or by mailing Form W-12. The online application takes roughly 15 minutes. After creating an online PTIN account, applicants log in to the PTIN system and opt to sign up using their Social Security number.

4. Receive Your PTIN

   Most tax preparers will receive their Preparer Tax Identification Number instantly upon completing the online application. If the forms were mailed, the PTIN will be received after IRS processes the application in about four to six weeks. The welcome message from the IRS containing the PTIN should be saved or printed. Also, consider printing the screens of the PTIN application after completion for your records, as the IRS will not email a copy.

PTINs must be renewed each year by tax preparers as they expire on the last day of the year, December 31. PTIN renewal can commence as early as mid-October and should be done before filing tax returns in the new year. PTINs can be renewed online or by mail.

The three steps for PTIN renewal are:

1. Log into Your PTIN Account

   Log into the PTIN System on IRS.gov. From the main menu, select the button next to PTIN Renewal and follow the on-screen prompts. Alternatively, Form W-12 can be filled out and mailed in.

2. Confirm Your PTIN Details

   Upon clicking the PTIN Renewal link, take the time to review and validate the information presented on the screen. Update any details that require alteration. Ensure you complete all fields marked with a red asterisk as these are mandatory.

3. Receive Your PTIN Renewal Confirmation

   Upon validating your information, your PTIN renewal process is complete for the year. Returning to the main menu, you’ll notice your PTIN displays an active status. The expiration year of your PTIN will also be updated, which can be viewed by clicking on Show Details. The IRS will additionally dispatch a PTIN renewal confirmation letter to your PTIN inbox.