Tuesday, October 22, 2024

IR-2024-274: IRS reminds tax professionals to renew PTINs for 2025 tax season

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IRS Newswire October 22, 2024

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Issue Number:    IR-2024-274

Inside This Issue


IRS reminds tax professionals to renew PTINs for 2025 tax season   

WASHINGTON — The Internal Revenue Service today announced that Preparer Tax Identification Number (PTIN) renewals for 2025 are now being processed. 

The nation's more than 810,000 tax return preparers must renew their PTIN for the coming year. All current PTINs will expire on Dec. 31, 2024. 

Anyone who prepares or assists in preparing federal tax returns for compensation must have a valid PTIN before preparing returns. All Enrolled Agents must also have a valid PTIN. The PTIN should be included as the identifying number on any return or claim for refund filed with the IRS. Failure to have and use a valid PTIN may result in penalties. 

The fee to renew or obtain a PTIN is $19.75 for 2025. The PTIN fee is non-refundable. 

Tax return preparers with a 2024 PTIN should use the online renewal process, which takes about 15 minutes to complete. A paper option, Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application and Renewal, along with instructions, is also available for PTIN applications and renewals. The paper form can take up to six weeks to process. 

To renew a PTIN online: 

  • Access PTIN accountIf users already have an online PTIN account, they can log in there.
  • Renew PTIN – Complete the online renewal application by verifying personal information and answering a few questions. View a checklist of what's needed before getting started.
  • Pay the fee – Pay the $19.75 renewal fee via credit/debit/ATM card or eCheck. Upon completion of the application and payment, applicants will receive confirmation that a PTIN has been renewed. 

The online system not only allows PTIN renewal, but tax return preparers can: 

  • Check their continuing education.
  • View a summary of the number of filed returns on which their PTIN has appeared in the current year.
  • Receive communications through a secure mailbox from the IRS Return Preparer Office.
  • Track their progress for participation in the IRS Annual Filing Season Program. 

First time PTIN applicants can also apply for a PTIN online. 

To apply for a PTIN online: 

  • Create an account – First, create an account by providing a name and email address. Tax professionals should use an email address to which they always have access. The system will then email a temporary password, which can be updated after going back to enter the information in the PTIN application.
  • Apply for a PTIN – Complete the online application by providing personal information, information about the previous year's tax return, professional credentials and more. View a checklist of what's need before getting started.
  • Pay the fee – Pay the $19.75 application fee via credit/debit/ATM card or eCheck.
  • Get a PTIN – After completion of the online application and payment, a PTIN is provided online. 

Opportunity for non-credentialed tax return preparers 

The Annual Filing Season Program is a voluntary IRS program geared toward tax return preparers who are not Enrolled Agents, attorneys or certified professional accountants. It's intended to encourage those non-credentialed tax return preparers to take continuing education courses to increase their knowledge and improve their filing season readiness. 

Those who choose to participate must renew their PTIN, complete up to 18 hours of continuing education from IRS-approved CE providers by Dec. 31, 2024, and consent to adhere to specific obligations in Treasury Department Circular 230, Regulations Governing Practice before the Internal Revenue Service. 

After completing the steps, the tax return preparer receives an Annual Filing Season Program Record of Completion from the IRS. Program participants are then included in a public directory of tax return preparers with credentials and select qualifications on the IRS website. 

The searchable IRS directory helps taxpayers find tax return preparers in their area who have completed the program or hold professional credentials recognized by the IRS. 

Watch Tax Pros: Here's how to participate in the IRS Annual Filing Season Program for more details about the program.  

Enrolled Agent credential 

The Enrolled Agent credential is a certification issued by the IRS to tax professionals who demonstrate special competence in federal tax planning, individual and business tax return preparation and representation matters. Enrolled Agents have unlimited rights to practice before the IRS, allowing them to represent any client before the IRS on any tax matter. 

As non-credentialed tax return preparers think about next steps in their professional career, the IRS encourages them to consider becoming an Enrolled Agent. 

All Enrolled Agents, regardless of whether they prepare tax returns, must renew their PTIN annually to maintain their active status.

 

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