February 16th, 2011

The IRS is allowing certain individuals who have made a good faith effort to timely obtain Preparer Tax Identification Numbers (PTINs) to prepare tax returns during the interim period that their applications for PTINs are pending. All tax return preparers who are compensated for preparing, or assisting in the preparation of, all or substantially all of a U.S. federal tax return or claim for refund must obtain a PTIN. The PTIN is the exclusive identifying number for tax return preparers. All tax return preparers will need to be registered in the new system and obtain a PTIN before filing any return after December 31, 2010, according to the IRS.

Tax return preparers who use the new online application system will generally receive their PTIN number when the application process has been completed. According to the IRS, those who apply for a PTIN using paper Form W-12 (IRS Paid Preparer Tax Identification Number (PTIN) Application) generally will receive their PTINs four to six weeks after the application and payment is received.

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