The Internal Revenue Service (IRS) has announced that the renewal period for Preparer Tax Identification Numbers (PTINs) is underway for the nearly 800,000 active tax return preparers across the United States. The IRS is encouraging all professionals who prepare or assist in preparing federal tax returns or claims for refunds for compensation to take this crucial step toward filing season readiness.
A valid PTIN from the IRS is mandatory for all such professionals, and it must be included as their identifying number on any return or claim for refund filed with the IRS. All PTINs issued for the year 2023 will expire on December 31, 2023.
The fee to renew or obtain a PTIN for 2024 stands at $19.75, comprising an $11 application or renewal fee and an $8.75 fee payable to the third-party contractor. The PTIN fee is non-refundable, and failure to have and use a valid PTIN may result in penalties.
The IRS recommends using the online renewal process, which typically takes about 15 minutes to complete. Although a paper option is available via Form W-12, the processing time can extend up to six weeks.
The online system provides several features, including checking continuing education, viewing a summary of the number of filed returns on which their PTIN has appeared in the current year, receiving communications through a secure mailbox from the IRS Return Preparer Office, and tracking progress for participation in the IRS Annual Filing Season Program.
Newcomers to the tax profession can also apply for their initial PTIN online.
The IRS also offers the Annual Filing Season Program, a voluntary initiative aimed at tax return preparers who are not enrolled agents, attorneys, or CPAs. This program encourages non-credentialed tax return preparers to undertake continuing education courses to enhance their knowledge and filing season readiness.
After fulfilling the program requirements, the tax return preparer receives an Annual Filing Season Program Record of Completion from the IRS and is included in a public directory of tax return preparers with credentials and select qualifications on the IRS website.
The IRS also emphasizes the value of the enrolled agent credential, a certification issued to tax professionals demonstrating special competence in federal tax planning, individual and business tax return preparation, and representation matters. Non-credentialed tax return preparers are encouraged to consider obtaining this credential as they advance their professional careers. Regardless of whether they prepare tax returns, all enrolled agents must renew their PTIN annually to maintain their active status.
To apply for an initial PTIN online, visit IRS.gov/taxpros.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and Microsoft Start.