Posted 10/20/11

PTIN RENEWAL SYSTEM NOW OPEN FOR 2012

The IRS has opened its PTIN renewal system for tax return preparers who want to renew their PTINS for the 2012 filing season. Preparers are required to renew their PTINs on an annual basis and need to do so before the end of this year, December 31, 2011. The PTIN renewal fee for 2012 is $63. The initial application fee for a PTIN remains at $64.25. Return preparers who obtained their PTINs by creating an online account should renew their PTINs at www.irs.gov/ptin.

Preparers who used paper applications to receive their 2011 PTINs will receive an activation code in the mail from the IRS which they can use to create an online account and convert to an electronic renewal for 2012. Individuals can also renew using a paper Form W-12, IRS Paid Preparer Tax Identification Number Application. If you renew using a paper form, it can take from four to six weeks to process your renewal.

Some changes to the PTIN application and renewal process include:

• Return preparers must self-identify if they are supervised preparers or non-1040 preparers.
• Supervised preparers will need to provide a supervisor's PTIN when applying for or renewing their PTINs.
• Credentialed preparers (Certified Public Accountants, attorneys and Enrolled Agents) must provide the expiration date for their licenses when they apply for or renew their PTINs.

Supervised preparers are individuals who do not sign the returns they prepare or help prepare; work at a firm at least 80 percent owned by a Certified Public Accountant, an attorney or an Enrolled Agent; and prepare returns that are signed by a supervisor who is a CPA, attorney or Enrolled Agent.

Non-1040 preparers are people who do not prepare any individual income tax returns for compensation. For this purpose, preparers of Form 1040-PR and Form 1040-SS are considered non-1040 preparers.

Supervised preparers and non-1040 preparers must identify themselves when they apply for or renew their PTINs to be exempted from testing and continuing education requirements; Certified Public Accountants, attorneys and Enrolled Agents are also exempt from testing and continuing education requirements.