How To Renew Your IRS PTIN by the December 31st Deadline

2019 is just a few weeks from coming to an end, and more than 775,000 federal tax return preparers must renew their Preparer Tax Identification Number. The deadline for PTIN renewal for any tax return preparer hoping to conduct business for 2020 is December 31, 2019. 

With current PTINs expiring on December 31 and the threat of incurring expensive penalties from the IRS for failing to renew, it is important for tax professionals––or anyone else who prepares federal tax returns helps prepare returns, or claim a refund for compensation–– to have a valid IRS PTIN. 

The new year will be here before you know it, so let’s cover how to renew your Preparer Tax Identification Number by the December 31st deadline. 

How To Renew Your PTIN by the December 31st Deadline

Renewing a Preparer Tax Identification Number is quite simple, especially when you are knowledgeable about PTINs. Here’s what you need to know to stay compliant with the IRS. 

What is a PTIN?

As stated by the IRS, a Preparer Tax Identification Number is a number issued by the IRS to paid tax return preparers. It is used as a tax return preparer’s identification number and, when applicable, must be placed in the Paid Preparer section of a tax return that the tax return preparer prepared for compensation. 

Note: There is no fee to apply or renew a PTIN.

Renewing IRS PTIN

Who is Required to Have an IRS PTIN?

  1. Tax professionals
  2. Paid tax return preparers
  3. Anyone who assists in preparing a federal tax return
  4. Enrolled agents
  5. Anyone that claims a refund for compensation.

How To Apply for a PTIN For the First Time

Applying for a PTIN can easily be completed in just a few steps with the proper information on hand. Let’s briefly cover what you need in order to apply.

Information Required To Apply For an IRS PTIN:

  • Social Security Number
  • Personal details (name, mailing address, date of birth)
  • Business details information (name, mailing address, telephone number)
  • Previous year’s individual tax return (name, address, filing status)
  • Explanations for felony convictions (if any)
  • Explanations for problems with your U.S. individual or business tax obligations (if any)
  • If applicable, any U.S.-based professional certification information (i.e. CPA, attorney, enrolled agent, etc.) including certification number, the jurisdiction of issuance, and expiration date. 
Renewing IRS PTIN

Applying for a PTIN

Once you have the information required to file available, there are only three steps that you must complete to obtain your Preparer Tax Identification Number:

  1. Create your account using the IRS Tax Professional PTIN System
    • Once your account has been created you will be provided with a temporary password which will be changed when you complete your PTIN application. 
  2. Apply for a PTIN
    • Complete the PTIN application with the required information listed above and submit. 
  3. Receive your PTIN
    • Once the application has been completed and submitted online, the IRS will provide you with your PTIN. Save this 9-digit number and have it readily available when filing returns. 

You can apply for a PTIN by paper using Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application, however, this process will take 4-6 weeks to complete. The online application can be completed in approximately 15 minutes.

How To Renew Your IRS PTIN Annually

Similar to applying for a PTIN, renewing annually is easy as 1-2-3. Follow these steps to quickly renew your PTIN annually:

  1. Log in to your account
  2. Verify personal information
  3. Receive PTIN Renewal Confirmation

Use Your PTIN When Filing With TaxBandits

Now that you know how to renew (and apply for) your PTIN by the December 31st deadline, be sure to save your 9-digit number in a secure location and have it readily available when filing 1099s, W2s, and 94x Series tax returns for your small business. 

TaxBandits provides employers with the most secure, simple, and streamlined e-filing tool for preparing employment taxes online, and even offers postal mailing for your convenience. Sign up for your free account today to keep your business in compliance with the IRS.

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