Who else is tired of everything getting more expensive? Well if you are a paid tax preparer in the U.S. I have some amazing news, the cost for your PTIN application or renewal is going… down! This comes after a ruling from a federal court in the case of Steele v. United States which determined that the IRS has been charging excessive fees for PTIN renewal and application.
How much will I save?
The cost to renew your PTIN for the upcoming tax season will be $19.75, this is broken down further into a $11 fee for the renewal or application and $8.75 contractor fee that goes to a third party. This is a reduction from the previous year’s $30.75 fee and far less than the $63 fees tax professionals have been paying since 2010.
Do I need a PTIN?
Yes, if you’re planning to get paid to prepare taxes in the U.S. you will be required to get a Preparer Tax Identification Number. PTINs are specific to the tax preparer and cannot be shared as they are user-specific. Failure to obtain a PTIN can result in penalties, injunctions, and disciplinary actions from the IRS.
How do I get a PTIN?
Obtaining a PTIN is relatively easy. You will need to create an account with the IRS and apply online, often the PTIN application can be finished in as little as 15 minutes. If you prefer to apply/renew your PTIN by paper you can fill out form W-12 and send it in by mail to the following address:
IRS Tax Pro PTIN Processing Center
PO Box 380638
San Antonio, TX 78268
The upcoming tax season is right around the corner, make sure you are ready by renewing your PTIN on October 19th. This week’s blog is a bit shorter but we wanted to let our tax pros know about this exciting news as quickly as possible. If you found this information helpful and don’t want to miss updates like this then sign up below to receive email alerts from us whenever a new blog is published.
