2025 PTIN Renewal is Open for Tax Pros

This isn't usually on my content list to write about, but I feel compelled this year with the number of tax people going to jail for fraudulent activities and the tax payers who suffer because of them.

What is a PTIN?

A Preparer Tax Identification Number (PTIN) is a unique number that identifies the preparer on the return. If you are a paid paid professional, you are required to have a PTIN. As a consumer using a tax professional, if you review the signature block of your return, and it says 'Self-Prepared', run.

Annual PTIN Renewal

The PTIN gets renewed every year. The tax professional has to answer a series of questions.

Felony Conviction

Persons currently incarcerated for a felony conviction cannot obtain a PTIN. Being convicted of a felony does not necessarily bar one from obtaining a PTIN, but typically felonies involving fraud or dishonesty does.

Status of Individual and Business Taxes

In order to obtain a PTIN, one must be current with their Federal and Business Taxes. This means you have filed all required taxes on time, and are in good standing. You may have an established payment arrangement with the IRS; however, you can't have delinquent unpaid tax debt. Imagine having a preparer or advisor who does not take care of their own tax obligations. Would you trust them with yours?

Data Security Requirements

Data security is huge in the tax profession. As tax professionals, we have to have access to personally identifiable information. We have to take extra steps to secure that information. Paid return preparers are required by law to create and maintain a written information security plan (WISP).

Hackers are gonna hack. Getting hacked is not a matter of IF, but when. The IRS has done a very good job of providing information to tax professionals. The penalty for non-compliance is steep. If a tax pro gets hacked, there is a procedure for reporting as well. In order to obtain a PTIN, the tax professional must attest to understanding their data security responsibilities.

Pay the fee

We are required to pay a nominal fee for renewing a PTIN. This year it's $19.75. There has been a lot of back and forth about the IRS charging a fee for the annual PTIN. I honestly don't care enough to fight about it. It has been as high as $50, and even free for a few years.

Here's the thing...

A paid professional does not have to be licensed. As an Enrolled Agent, I am required to have a certain amount of education. Unlicensed preparers have no educational requirement. I bring that to light, because the tax paying public is unaware. I attended a conference, where not even half of the attendees actually take continuing education. Quite frankly, it scared me! All you have to be able to do is pass a background check, get an Efile ID number, get a PTIN and some software. That's it.

Ramblings of a frustrated professional.

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LuSundra Everett, EA is the Home Biz Tax Lady, owner of Everett Tax Solutions, and ETS Tax Relief. LuSundra is passionate about educating taxpayers about tax law in an easily digestible manner. LuSundra is a huge proponent of tax education and offers training to other Tax Professionals to help them stay on the cutting edge of tax law and new developments. If you need assistance with an IRS or state tax issue, contact ETS Tax Relief here.