How to get a PTIN: Step by Step guide

How to Obtain a PTIN: A Step-by-Step Guide for Tax Preparers

If you’re a tax preparer in the United States, the Preparer Tax Identification Number (PTIN) is a must-have. The IRS requires all paid tax preparers to obtain a PTIN before they can legally prepare federal tax returns. This guide will walk you through the PTIN application process, from creating an IRS account to renewing yearly. Whether you’re a seasoned tax professional or just starting, this simple step-by-step approach will make the process smooth.

What is a PTIN?

A Preparer Tax Identification Number (PTIN) is a unique ID number issued by the IRS to all tax preparers paid for their services. It’s required for anyone who files federal tax returns for clients and is necessary for tax professionals such as Enrolled Agents (EAs), Certified Public Accountants (CPAs), and tax preparers.

The PTIN ensures that tax preparers are registered with the IRS and is used to track and identify who prepares tax returns.

Why Do You Need a PTIN?

To prepare federal tax returns for compensation, you must have a PTIN. Here’s why having a PTIN is essential:

• Legal Requirement: Tax preparers who charge clients for filing federal returns must register with the IRS legally.
• IRS Identification: A PTIN allows the IRS to track and verify tax preparers, ensuring accountability.
• IRS Compliance: Failing to obtain a PTIN can result in fines and penalties.

Step-by-Step Guide: How to Obtain a PTIN

Here’s how to easily apply for and obtain your Preparer Tax Identification Number (PTIN) online.

Step 1: Create an IRS Account

To begin, you’ll need to create an account on the IRS PTIN System. Follow these steps:

• Visit the IRS PTIN System website (https://rpr.irs.gov).
• Click on Create an Account.
• Provide basic personal information, including your name, email address, and security questions for future verification.

Once your account is created, you’ll receive an email from the IRS with a link to activate your account.

Step 2: Complete the PTIN Application

After your IRS account is activated, log in to the PTIN System and begin your PTIN application. Here’s what you’ll need:

• Personal Information: Full name, address, phone number, and Social Security number.
• Business Information: If applicable, provide details about your business or tax preparation firm.
• Previous Tax Return Information: The IRS may ask for information from your last personal tax return to verify your identity.
• Non-US Citizen: If you're a foreign preparer without a U.S. Social Security Number, complete a paper application (Form W-12).

Once you’ve entered your information, click Submit to proceed to the next step.

Step 3: Pay the PTIN Fee (as applicable)

After submitting your application, review the fee ($30.75 for 2023) and pay online using a credit or debit card.

Step 4: Get Your PTIN

Once your payment (if applicable) is processed, you’ll receive your PTIN immediately. You’ll also get a confirmation email from the IRS with your unique number. Keep this number safe; you’ll need it every time you file federal tax returns for clients.

How Long Does it Take to Obtain a PTIN?

The online application process is quick and straightforward. In most cases, you can obtain your PTIN immediately after submitting your application. If you apply by mail, expect  4-6 weeks processing times.

How to Renew Your PTIN

PTINs must be renewed annually. Here’s how you can renew your PTIN:

1. Log in to your IRS PTIN account.
2. Select the “Renew My PTIN” option.
3. Confirm and update your information if needed.
4. Submit your renewal request. Pay the applicable renewal fees.

For more detailed information on the renewal process, check out our dedicated blog on How to Renew Your PTIN.

Can Non-US Citizens Apply for a PTIN?

Yes, non-US citizens can apply for a PTIN, but the application process is slightly different compared to US citizens. If you don’t have a Social Security Number (SSN), you’ll need to provide an Individual Taxpayer Identification Number (ITIN) instead.

Non-US citizens applying for a PTIN need to follow these steps:

1. Obtain an ITIN
2. Complete Form W-12
3. Provide Foreign Documentation
4. Submit the Application Online or by Mail

Common Issues When Applying for a PTIN

Here are a few common challenges you may encounter when applying for a PTIN and how to avoid them:

• Incorrect Tax Return Information: Be sure to have the correct details from your most recent tax return when completing your application, as the IRS will use this to verify your identity.
• Missing or Incomplete Information: Double-check that all personal and business information is accurate before submitting your application.
• Delays in Activation: Occasionally, emails from the IRS may go to your spam folder, so be sure to check there if you don’t receive your activation link immediately.

Conclusion

Obtaining a Preparer Tax Identification Number (PTIN) is essential for anyone preparing federal tax returns for compensation. Following the steps in this guide, you can quickly apply for your PTIN online and start your journey as a registered tax preparer. Don’t forget to renew your PTIN annually to stay compliant with IRS regulations.