How to Renew Your IRS PTIN by the December 31st Deadline?

IRS PTIN by the December 31st Deadline?

The PTINs will expire on December 31st of each year. The renewal process of PTIN will begin in mid-October every year. Tax Payers can renew online by logging into their PTIN account or by submitting the Paper Form of W-12 will the renewal box checked. The process of online renewal takes about 15 minutes. Paper renewal takes about 4 to 6 weeks to process.

What is PTIN?

The PTIN is also known as the Preparer Tax Identification Number. The PTIN is an IRS identifier that was implemented in the year 1999. It requires that all the paid federal tax return preparers register with the federal government and obtain a unique number for reporting their taxes. Tax preparers should also renew their PTIN every calendar year.

The Preparer Tax Identification Numbers were created in the year 1999 to protect the privacy of tax preparers. The PTIN is required by only professional tax preparers, such as Enrolled Agents, Certified Public Accountants, etc., who accept payment to prepare their tax returns. The paid tax preparers should include this number on all their federal tax returns with the IRS.

Who requires an IRS PTIN?

The general public is not required to have a PTIN number to file their tax returns. Tax preparers will require the PTIN number if they paper or help prepare a federal tax return for other taxpayers and receive payment for their tax preparation services.

Only those tax preparers who are being paid for their services would require a PTIN to file their tax returns or to file the tax returns of their friends and relatives. They will also require the PTIN if they look forward to filing or e-file the joint tax return for themselves or their spouse or if they are filing their tax return while volunteering through an organization.

Sometimes, the employees of an organization will be asked to collect the required information to prepare the tax return of the rest of the company employees as a part of their daily duties. They will also be compensated for their time and effort, but they need not have their PTIN. This is because the employees are not specifically paid for their services concerning tax preparation. They are not required to submit their tax returns as paid tax preparers. The treasurer or the authorized officer of the company would indeed sign the return.

How to apply for PTIN for the first time?

Anyone who wishes to prepare a federal tax return for compensation should have a valid PTIN before beginning to file the returns. The PTIN is an eight-digit number that the letter P precedes. It is generally used in place of the SSN of the tax preparer on the federal tax return claim.

It is mandatory for all tax-preparing agents to have a PTIN. It generally takes less than 15 minutes to apply for a PTIN for the first time online. And there is no fee to apply for the PTIN as well. For those wishing to seek the paper option and to get the PTIN through form W-12, the process takes about four to six weeks. Here is the process to apply for PTIN

Step 1. Create the PTIN Account with the IRS website.

The IRS is now processing the PTIN applications and the renewals for 2023. Users should select the ‘create an account option if they have not applied for the PTIN before.

Step 2: Complete the online application for the new PTIN

To complete the online application form for the new PTIN, you will require the following information.

    • Personal information such as the name, mailing address of the applicant, and date of birth
    • Business information such as the name of the business, mailing address, and telephone number
      Social Security Number of the tax filer
    • Details about the individual tax return of the previous year, such as name, filing status, and address.
    • Explanations concerning tax obligations and other felony convictions.
    • Business certification number, including the jurisdiction of issuance and the expiry date. This is with respect to all the certifications that the person holds, such as an attorney, CPA, tax agent, etc.

Step 3: After submitting all these details, the system will generate the PTIN instantly, and this also completes the application process.

How to renew PTIN annually?

The PTIN number for the taxpayers will expire on December 31st of every year. All the PTINs without any exception will expire, and thus, it is mandatory to renew the PTIN. The IRS will start accepting applications for renewals in October every year. It takes only three steps to renew the PTIN.

Step 1: The first step is to access the account. Taxpayers who have an online PTIN account should log in to their account.

Step 2: The next step is renewing the PTIN number by completing the online application process. Before renewing the PTIN, verifying the personal information and answering a few questions are important. The information that will be required to renew the PTIN annually is as follows,

    • Personal information such as name and the mailing address of the taxpayer.
    • Business information, such as the name of the business and mailing address.
    • Explanations regarding felony convictions, if any.
    • Explanations for problems, if any, with respect to the business tax obligations.
    • Details concerning the credit, debit, or ATM cards to pay $30.75 as a user fee. The IRS will not renew the user fee.
    • US-based professional certification information, including the certification number, expiration date, and the jurisdiction of issuance.

Step 3: The next step is to access the account by login into the PTIN account.

Step 4: The next step is to complete the online PTIN renewal application by verifying the personal information and answering a few questions.

The PTIN is required by anyone preparing federal tax returns for the money. It also includes tax advice agents, reporting agents, and enrolled agents. The PTIN has to be used as an identification number on all the returns prepared. Failure to obtain or renew a valid PTIN to file returns results in 6695 penalties and disciplinary action. It is easy to apply or renew PTIN by e-filing; the last date is December 31.