A preparer tax identification number must be obtained by a person who, for a fee, prepares or assists in the preparation of individuals’ or the tax returns of a ‘business’, refund claims or other forms of federal compensation. Enrolled agents are also required to have a PTIN. If you already have this number, you must have it renewed every year.
You can apply for or renew your PTIN, either online or by mail. There is a list of requirements that you should first make available before working on your application. The list includes the following:
• Your name, mailing address, date of birth and other personal information
• Your Social Security Number
• Your business’ name, mailing address, telephone number and other information
• Your tax return of the previous years
• Credit/Debit card for payment of application/renewal fee. It will be $63 for renewal and $64.50 for initial application (in some sources, it is $64.25)
• Your professional credentials
• Your explanation, if you were convicted of felony. This is necessary so that your identity can be authenticated and
• Your explanation if you have had issues with business tax obligations. This problem and your felony conviction may impact the issuance of your PTIN.
When you apply or renew your PTIN online, you just need to follow 4 steps.
(1) Go to the site www.irs.gov/ptin and understand the information provided therein.
(2) Follow the instructions given on the site. Create an account (for new application) or log into your account (for renewal), then provide all the required information, as listed above. Make sure that the application form is completely filled up.
(3) Pay the application/renewal fee. The system will direct you to an IRS partner bank where you should pay by debit/credit card.
(4) Get your PTIN after confirmation of your payment by the bank. It usually takes about 15 minutes to obtain a PTIN online.
If you prefer to apply or renew your PTIN by mail, then you need to complete the form w-12 application and renewal manually. Fill in the required spaces and send the form either by mail or delivery service. Enclose a money order or check as payment of the fees. The address to which you have send the form and the money are:
IRS Tax Pro (Preparer Tax Identification Number Processing Center)
104 Brooke-ridge Drive No. 5000
Waterloo, IA 50702.
Processing time for your PTIN can take four to six weeks. So if you want to pursue this profession, see that you abide by all these rules and regulations.