'Auld Lang Syne': Don't Forget Your PTIN
by AccountingWEB on
By Ken Berry
Amidst the hubbub of the upcoming holidays, don't forget to renew or apply for your Preparer Tax Identification Number (PTIN) before January 1, 2012.
Recently enacted regulations require all paid tax return preparers to obtain a PTIN each year by December 31 for the upcoming year. All preparers – including those who have obtained PTINs in the past – must apply on the Internal Revenue Service (IRS) Web site or submit a paper Form W-12. The processing time for a printed Form W-12 is four to six weeks. Conversely, it only takes an estimated fifteen minutes to renew your PTIN online.
Of course, PTIN renewal isn't free. The IRS requires you to fork over $63, via credit card or debit card, for the privilege.
The latest version of Form W-12, which was released by the IRS in November, supersedes the prior version released in October. The new form requires more information, including whether the preparer provides Form 1040 series returns, whether the preparer is supervised by others, and additional details about the preparer's credentials.
Note that the requirement for PTINs applies to CPAs, attorneys, and enrolled agents as well as the rest of the tax return preparation community. However, unlike the others, CPAs, attorneys, and enrolled agents don't have to pass competency tests and satisfy other education requirements to qualify for a PTIN.
This new PTIN program was initially instituted by the IRS in 2010. As part of the program, the IRS mailed letters to approximately 100,000 individuals who prepared returns in 2011 but failed to meet the requirements.
Don't let the clock strike midnight on December 31 without securing your PTIN!
- Paid Tax Return Preparers Must Obtain PTIN by January 1, 2011
- PTIN Required By All Preparers, Deadline December 31
You may like these other stories...
The IRS could do a better job if it had more resources at its disposal. That is the essence of a new report released on April 21 by the Government Accountability Office (GAO).The GAO conducted the report to (1) analyze IRS...
In need of CPE credits? Well, if you are an enrolled agent or CPA, you could earn as much as 18 credits by attending one of five IRS Nationwide Tax Forums this summer.The IRS Nationwide Tax Forums are three-day events that...
Russia races to dodge sanctions by adapting law to FATCARussia is in a race against the clock to adapt its laws to the Foreign Account Tax Compliance Act (FATCA) and save its banks from financial sanctions, Peter Hobson of...
Upcoming CPE Webinars
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.
This material focuses on the principles of accounting for non-profit organizations’ expenses. It will include discussions of functional expense categories, accounting for functional expenses and allocations of joint costs.