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P & T Hot Tip Emailees:

The IRS has opened the electronic doors for PTIN registration and the payment of your $63 fee if you prepare tax returns and charge for them. This must be done before the end of the year. Supervised preparers and credentialed preparers sign in differently. The details are set forth below for those of you who need to know this All others may move on to your next email of interest!

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IRS Begins PTIN Renewals for 2012 Filing Season
IR-2011-105, Oct. 20, 2011

WASHINGTON —The Internal Revenue Service today announced that the nation’s 738,000 tax return preparers who have Preparer Tax Identification Numbers
(PTINs) can now 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
next year begins. For example, a preparer’s PTIN for 2012 must be renewed by Dec. 31, 2011. Anyone who for compensation prepares, or helps prepare, all or
substantially all of tax returns or claims for refunds must have a PTIN. Paid return preparers must have valid, current PTINs to prepare tax returns in
2012.

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, but renewing electronically avoids a four to six week wait for processing the renewal request.
Return preparers who are applying for a PTIN for the first time must go through a strict authentication procedure and should follow directions carefully.
Return preparers who prepared, or helped prepare, returns for compensation in 2011 without PTINs must obtain 2011 PTINs and then renew their PTINs for
2012, paying fees for each year if they intend to practice next year. Penalties may apply for paid tax return preparers who prepared, or helped prepare
returns in 2011 without valid PTINs.

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 don’t 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.
Taxpayers who use a paid return preparer are urged to choose a return preparer with a valid PTIN. Return preparers should also sign the returns they prepare for taxpayers and enter their PTINs on the returns. For more information on choosing a return preparer, go to Tips for Choosing a Tax Preparer.
For more information on the PTIN requirements or on becoming a Registered Tax Return Preparer, go to www.irs.gov/taxpros

Please read the important information relating to tax advice at the bottom of this web page.

Best regards,
Bob Wolf, Moderator

“Any tax advice in the foregoing message was not intended or written to be used, and cannot be used by any person for the purpose of avoiding tax penalties that may be imposed with respect to the matters addressed. Some of that advice may have been written to support the promotion or marketing of the transactions or matters addressed within the meaning of IRS Circular 230, in which case, be advised that the advice was written to support the promotion or marketing of the transaction(s) or matter(s) addressed, and you should seek advice based on your particular circumstances from an independent tax advisor.”