Tax preparers need PTINs

The Internal Revenue Service is contacting thousands of Kansas tax return preparers to remind them they have to renew their Preparer Tax Identification Number, or PTIN, before preparing tax returns next year.

A new IRS oversight program to help regulate the tax preparation industry requires the PTIN be used on all federal returns prepared by paid tax return preparers starting Jan. 1, 2011, according to a news release from the IRS.

"As a reminder, last week, the IRS sent notices to 10,126 Kansas tax professionals who have a PTIN urging them to avoid any last-minute rush by renewing it online now," IRS spokesman Michael Devine said in the release.

All paid preparers must sign and enter an identification number on any return they prepare.

The nine-digit PTIN was created several years ago so tax preparers could avoid using their Social Security Number as identification on the tax returns that they prepare.

Devine said tax professionals who received their PTIN prior to the new system launch on Sept. 28, 2010, as well as those who do not currently have a PTIN, must register using the IRS Tax Professional Sign-Up System at www.irs.gov/taxpros.

Registration, which will generally take 15-20 minutes, involves four steps: creating an account, completing the PTIN application, paying a $64.25 fee, and getting a PTIN.

"Tax professions who have a PTIN will generally be reassigned their same number," Devine said.

Everyone paid to prepare all or substantially all of any federal tax return or claim for refund must have a PTIN. The requirement applies to all tax return preparers, including those who are enrolled agents, certified public accountants and attorneys.

For more information, visit www.irs.gov/taxpros.