The Internal Revenue Service is reminding tax professionals that they need to renew their Preparer Tax Identification Numbers (PTINs) if they plan to prepare income tax returns for other taxpayers in 2014. Currently, PTINs for this year are set to automatically expire on Dec. 31, 2013.
Anyone who prepares or helps prepare all or substantially all of a federal tax return, claim for refund or other federal forms for compensation must have a valid PTIN. All enrolled agents also must have a PTIN. Tax professionals can obtain or renew their PTINs at www.irs.gov/ptin.
Those renewing their PTINs can complete the process in about 15 minutes. The renewal fee is $63. Tools are available to assist any preparers who have forgotten their user name, password or email address.
New tax return preparers who are obtaining a first-time PTIN must create an online PTIN account as a first step and then follow directions to obtain a PTIN. Their fee is $64.25.
The annual PTIN requirement is part of the IRS’s ongoing effort to enhance tax administration and improve services to taxpayers.
There are approximately 700,000 tax preparers with 2013 PTINs. More than 400,000 have already renewed their PTIN, plus more than 25,000 have obtained a first-time PTIN for 2014.