If you prepare taxes professionally, you are probably familiar with the preparer tax identification number (PTIN). However, few people know all the details about this IRS-issued identification number. Whether you are just launching a tax preparation service or are a seasoned tax professional, it makes good compliance sense to expand your understanding of the PTIN. Read on for some key insights.
What you’ll learn
What you’ll learn
Updated: April 11, 2025
Key takeaways
- A preparer tax identification number (PTIN) is a nine-digit identifier issued by the Internal Revenue Service to professional tax return preparers
- A PTIN is a legal requirement for all tax preparers who are paid for their services, but it is not required for individuals that file their own taxes, pro bono volunteers or employees that file the taxes of their employers
- Essentially, the PTIN is a tool that ensures professionalism, compliance, visibility, and trust in the tax preparation industry
Whether you are just launching a tax preparation service or are a seasoned tax professional, it makes good compliance sense to expand your understanding of the PTIN. Read on for some key insights.
PTIN purpose: What is a preparer tax identification number?
Simply put, a preparer tax identification number (PTIN) is a unique, nine-digit identification number issued by the Internal Revenue Service (IRS) to professional tax return preparers. It is a legal requirement for anyone who provides tax preparation services in exchange for compensation.
The IRS introduced the PTIN to make sure paid tax preparers are accountable and easily identifiable by the general public. It helps the agency track preparers’ activities and ensure compliance with rules and regulations. The PTIN also offers tax preparers a layer of personal privacy, as it eliminates the historical disclosure of Social Security numbers on tax returns.
Keep in mind
“If you are a tax professional, be sure to disclose your PTIN on every federal income tax return you prepare. Failure to do so can result in fines and disciplinary action.”
— Thomas Brock, CPA, CFA
Who needs to have a PTIN?
In a nutshell, any individual who is paid to prepare or assist in preparing federal income tax returns must have a PTIN. This includes CPAs, enrolled agents, attorneys and anyone else who charges for preparation services, regardless of his or her credentials.
That said, an employee preparing the return of his or her employer does not need a PTIN. This holds true for employees of small businesses, partnerships and large corporations. The PTIN requirement only applies to non-employees who are paid to prepare federal income tax returns for others.
Now that we covered the purpose of a PTIN and who needs to have one, let’s touch on how to obtain one.
How to get a PTIN
Applying for and obtaining a PTIN is straightforward and can be done online via the IRS website. The steps you need to take to get a PTIN are as follows:
- Create an online IRS account or log in if you already have one.
- Gather the following information/documents:
- Social Security number
- Personal information (name, mailing address and date of birth)
- Business information (name, mailing address and telephone number
- Previous year’s individual tax return
- If applicable, explanations for any felony convictions
- If applicable, explanations for any problems with your U.S. individual or business tax obligations
- If applicable, any U.S.-based professional certification information (CPA, attorney, enrolled agent, enrolled retirement plan agent, enrolled actuary, certified acceptance agent or state license)
- Complete the online PTIN application.
- Pay the mandatory, non-refundable fee (currently $19.75) via credit card, debit card or eCheck.
- If approved, immediately receive your PTIN online.
The process outlined above is secure and can be completed in under 15 minutes. It is the recommended way to obtain a PTIN. However, if you are uncomfortable with applying online, you can complete Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application and Renewal and mail it to the IRS for processing. For more information on completing the form, which can take up to 6 weeks to process, view the Instructions for Form W-12.
Good to know
A PTIN is only required for professional tax preparers. Individuals that prepare their own tax filings or provide pro bono volunteer services do not need a PTIN.
PTIN verification
Maintaining a valid PTIN is a necessity for professional tax preparers. A PTIN enables you to legally practice your trade, and it enhances your ability to promote your legitimacy to the public. You see, the IRS makes a directory of PTIN holders available to the public on its website (Directory of Federal Tax Return Preparers with Credentials and Select Qualifications).
Visitors are encouraged to use the directory to find professional, credentialed tax preparers in their area. They can search by location and select credentials of interest to obtain the names, credentials and addresses of all PTIN holders that meet the search criteria. Alternatively, they can enter a last name to search for a specific tax preparer.
The directory is vast, but it does not include all tax return preparers who have PTINs. It only includes PTIN holders that have a professional credential, such as CPA, enrolled agent and attorney, or have obtained an “Annual Filing Season Program Record of Completion” from the IRS.
PTIN renewal
A PTIN is only valid during the calendar year you receive it. It expires on December 31. Then, you must renew it annually – between mid-October and December 31.
To process a PTIN renewal, simply log into your online IRS account, complete the renewal application (which entails verifying your personal information and answering a few questions) and pay the $19.75 fee via credit card, debit card or eCheck.
If you prefer to physically process your renewal, complete Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application and Renewal and mail it to the IRS. If you take this route, be sure to do it well in advance of year-end. Missing the renewal deadline could result in losing your ability to legally prepare federal income tax returns.
Closing thoughts: Put getting your PTIN on your task list
If you generate income by preparing federal income tax returns, maintaining an active PTIN is non-negotiable. If you do not have a PTIN, it makes sense to add to this to the top of your to-do list. If you do have a PTIN, make sure to maintain its validity. Put the renewal process on your annual checklist, and set a reminder for October to handle the task. Keeping your PTIN current protects your reputation, preserves your livelihood and helps prevent unnecessary attention from Uncle Sam.
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Thomas is an accomplished financial professional, with over 20 years of experience in investments, corporate finance, and accounting. His investment experience includes oversight of a $4 billion portfolio for an insurance group. Varied finance and accounting work includes the preparation of financial statements and budgets, the development of multiyear financial forecasts, credit analyses, and the evaluation of capital budgeting proposals.