The first step to becoming a paid tax professional is to get a preparer tax identification number (PTIN). It doesn't matter if you want to take part in the Annual Filing Season Program (AFSP), become an Enrolled Agent (EA), CPA, or not have a credential. Per the IRS you must have a PTIN if you touch a tax return that a taxpayer is paying to have prepared. I will walk you through getting a PTIN so you can start your journey.
What is a preparer tax identification number (PTIN)?
A preparer tax identification number (PTIN) is the equivalent of a tax professional's social security number. The IRS uses this number to track the returns a preparer has prepared.
If you are the signing preparer on a return your PTIN will be listed on the return next to your name. The IRS also has a PTIN directory available to the public. You can
opt out of this if you'd like. The number is also used to track the amount of continuing education you have throughout the year. For example, Enrolled Agents must have 72 hours of CE over 3 years, 16 minimum, and a minimum of 2 ethics hours each year. The IRS tracks whether or not you hit those requirements with your PTIN.
Even if you have no desire to prepare returns and would like to do tax representation, you still need a PTIN. You cannot become a credentialed tax preparer without one. Yes, the first step to becoming an Enrolled Agent is to get a PTIN.
How to apply for your preparer tax identification number (PTIN)
The process takes about 15 minutes, costs $19.75, and can be done online or by mail. To apply online you can visit the Tax Pro PTIN System at www.irs.gov/ptin. If you need to renew your PTIN check out the video below.
The online account is ideal because after getting one you can see how many returns connect to your PTIN for the current year and some prior year. You can also see where you
stand with your continuing education for the year. Checking both of these will help you ensure that no one is using your PTIN and also that you are getting the correct amount of CE in the right focus areas each year.
How to Apply for a PTIN Online
You will hit create account and it will take you to a screen that says Welcome to the PTIN System! There are 3 options for you to choose from on why you need a PTIN.
I will prepare U.S. Federal Income Tax Returns for compensation.
I am an Enrolled Agent or planning to become one.
Neither of these scenarios applies to me.
Then they will ask you to enter your name and e-mail. Your e-mail address will become your User ID to log in later. If you already have a PTIN, please don't complete this screen. Contact
the IRS.
Now you have an online account and will receive an e-mail with further instructions. These instructions will tell you how to enter your information and pay.
How to Apply for a PTIN by Paper
To apply for a PTIN using paper and mail you will need Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application. This form will take about 4-6 weeks to process.
It is pretty straightforward but I have a video that walks you through the process. You will want to send your completed form and payment of $19.75 to the following address:
IRS Tax Pro PTIN Processing Center
PO Box 380638
San Antonio, TX 78268
When 4-6 weeks have passed you will receive a letter with your PTIN that you should store for safekeeping.
Remember, this is the equivalent of your social security number as a tax professional. You do not want other people to have access to it to be able to impersonate you as a tax professional. Now that you have your PTIN application submitted you're one step closer to becoming a tax professional. What is your goal with obtaining a PTIN? Do you want to become an Enrolled Agent, start your own practice? Let me know in the comments.
Timalyn S. Bowens EA is America's Favorite EA and Tax Expert who will work hard to find a customized legal solution for you! As an Enrolled Agent licensed through the Internal Revenue Service Timalyn is able to fight the IRS for taxpayers in all 50 states. As the host of Tax Relief with Timalyn Bowens and a YouTube content creator she empowers taxpayers to make educated decisions about their tax situation.
When you are facing questions regarding your personal or business taxes, working with a professional makes all the difference. At Bowens Tax Solutions, we serve our Louisville-area neighbors by providing the tax services and knowledge needed to succeed. We are here to assist you with your tax issues and preventative care. Visit our website at www.bowenstaxsolutions.com for more information.
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