Are you tax return preparers? You must know information about PTIN that is being socialized by IRS. There are socialization held by The Internal Revenue Service (IRS) aimed to about 1 million tax return preparers. The purpose of this event is to warn and remind them that they must renew their Preparer Tax Identification Numbers (PTIN) if they are still paid preparers. Use of the PTIN will be required on all federal returns prepared by paid tax return preparers starting January 1.
Tax return preparers can register using a new PTIN sign-up system that available through www.IRS.gov/taxpros as soon as possible. How to register new PTIN sign-up system? Preparers will need to create an account first, complete the PTIN application and pay a $64.25 fee and then get their PTINs.
About 125,000 notification letters each week will be sent by The IRS for eight weeks. The notifications are based on those tax return preparers who currently have PTINs. Tax return preparers who received their PTINs before the new system launch on September 28, 2010, must register using the new sign-up system. Existing PTIN holders who register before September 28, 2010 through the new system will generally be reassigned their same numbers.
The PTIN is the number issued by the Internal Revenue Service to paid preparers to use so they do not have to disclose their Social Security Number (SSN) on the returns they prepare. The PTIN cannot be used in place of the Employer Identification Number (EIN) of the tax preparation firm. The PTIN was created several years ago as a nine-digit number that tax return preparers could obtain from the IRS to use on tax returns instead of their Social Security numbers.
This kind of PTIN requirement is one of the main provisions in a new oversight program to help regulate the tax preparation industry. Anyone paid to prepare all or substantially all of any federal tax return or claim for refund must have a PTIN. The requirement applies to all tax return preparers, including those who are enrolled agents, certified public accountants and attorneys.
