Deadline Approaches for New Tax Return Preparer Number Registration

November 16, 2010Articles The Legal Intelligencer

The IRS issued new final regulations under Section 6109 of the Internal Revenue Code requiring all tax return preparers to obtain a Preparer Tax Identification Number (PTIN) with respect to all U.S. tax returns or refund claims filed after Dec. 31, 2010. A new PTIN must be obtained even if the tax return preparer was assigned a PTIN prior to the implementation of these new regulations.

In order to obtain a PTIN, a tax return preparer must be an attorney, certified public accountant, enrolled agent or “registered tax return preparer” authorized to practice before the Internal Revenue Service. Failure to comply with the new PTIN requirements could result in penalties contained in Code Section 6695(c), but penalties cannot exceed $25,000 per calendar year. The new PTIN requirements support the IRS in its continuing attempt to achieve better tax compliance and to regulate the conduct of those professionals involved in tax return preparation.