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What Is a PTIN?

A Preparer Tax Identification Number (PTIN) must be obtained by all tax professionals who prepare all or substantially all of a federal tax return for compensation. It’s a unique nine-digit number that enables the IRS to identify who the professional preparer is who helped a taxpayer prepare and file their income tax return.

The IRS issues PTINs for a fee ranging from $0-$56 depending on the year. Because PTINs expire on December 31 of the year in which they are obtained, tax preparers must renew them annually. Generally, individuals must provide their social security number when requesting a PTIN from the IRS. Applicants who apply online can obtain a PTIN in about 15 minutes.

Currently $19.75

Received in 15 minutes online

Must order before 12/31 @ 11:59est

IRS.gov

order your ptin here

The IRS estimates it will take between four to six weeks to obtain a PTIN if submitting Form W-12 (IRS Paid Preparer Tax Identification Number Application and Renewal) by mail.

PTIN

PTIN Holders (non-credentialed tax preparers)

Individuals with an active Preparer Tax Identification Number from the IRS are authorizes to complete Individual, Non-Profit, Small Business, and Corporate Income Tax returns.
Preparation for compensation does not automatically mean electronically file. You can however, work for or with a company that has electronic filing authorization.
They have no authority to represent clients before the IRS (except regarding returns they prepared and filed December 31, 2015, and prior).
Can pass a suitability check to become an EFIN holder, which includes fingerprinting and a background check to electronically sign tax returns.

AFSP

AFSP (Annual Filing Season Participant)

Beginning with returns filed after December 31, 2015, only Annual Filing Season Program participants have limited practice rights. Learn more about this program.
Preparers who have gone through the IRS’s voluntary recognition program designed to help non-credential tax return preparers to achieve a higher level of professionalism will earn this title.
It was designed to encourage education and filing season readiness by requiring a 3-hour 100 question test and 18 Continued Education hours to qualify.
The IRS issues an Annual Filing Season Program Record of Completion to return preparers who obtain a certain number of continuing education hours in preparation for a specific tax year.
These tax professionals may represent their own tax clients on matters that they were aware of when they completed that return.
They cannot speak to the IRS on any client that they did not materially participate in.
These individuals may only represent clients whose returns they have prepared and signed.

EFIN

EFIN Holders (Electronic Filing Identification Number)

EFIN holders are subject to a suitability check, background check, and FBI fingerprinting in order to receive clearance. Once cleared they will receive a 5 digit number which allows for them to eFile as well as, purchase professional tax software without the assistance of another company.
On September 25, 2022, the IRS implemented a new electronic fingerprinting process for those who do not provide professional status information.
Each new Principal and Responsible Official listed on a new e-file application, or added to an existing application, is required to schedule an appointment with Fieldprint®, the IRS authorized vendor.
There is no cost and no annual renewals for EFIN holders.

Enrolled Agents (credentialed tax preparers)

Licensed by the IRS. Enrolled agents are subject to a suitability check and must pass a three-part Special Enrollment Examination, which is a comprehensive exam that requires them to demonstrate proficiency in federal tax planning, individual and business tax return preparation, and representation.
They must complete 72 hours of continuing education every 3 years. Learn more about the Enrolled Agent Program.

CPA

Licensed by state boards of accountancy, the District of Columbia, and U.S. territories. Certified public accountants have passed the Uniform CPA Examination.
They have completed a study in accounting at a college or university and also met experience and good character requirements established by their respective boards of accountancy.
In addition, CPAs must comply with ethical requirements and complete specified levels of continuing education in order to maintain an active CPA license.
CPAs may offer a range of services; some CPAs specialize in tax preparation and planning.

Attorneys

Licensed by state courts, the District of Columbia or their designees, such as the state bar.
Generally, they have earned a degree in law and passed a bar exam. Attorneys generally have on-going continuing education and professional character standards.
Tax Attorneys specialize in tax preparation and planning.

Work for a Business or Start Your Own

Working for an Established Tax Business

When you think about Tax offices I am sure many of the big box brands come to mind like HR Block and Jackson Hewitt, however there are hundreds of tax firms to choose from. If you would like to get started in the field with the bare minimum, working for a tax business will save you money on Tax Law training, software, and promotions. You can feel confident with knowing your income has been pre-determined to know what you are worth for the year as long as you show up and help.

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Average pay $16 hr - $22 hr

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Low Season $8,960

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High Season $12,320

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Based on working 35 hours per week for 4 months

Working for Yourself

Majority of Tax Professionals enjoy the feeling of control over their income and time and working for yourself offers that flexibility and freedom. Because most of the work is seasonal you will learn new tax laws, understand situational tax strategies through practice. You can get started for as little as $100 and that may include obtaining software, securing marketing, and creating a payment structure depending on how expansive you want your business. You can file returns for families, students, non-profits, or businesses.
You will feel empowered knowing your income has no limits and as long as you provide great work to your clients, they will help you by sending referrals.

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Average tax return $350 - $550

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Low Season $12,600

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High Season $19,800

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Based on filing 3 Individual returns each week for 4 months

GEt STARTED ON TAX LAWS

Tax Business Basics Steps

Learn Tax Laws	Choose a Business Name	Register Your Business Name	Obtain an EIN
Open a Business Bank Account	Apply For Licenses & Permits	Obtain an EFIN	Purchase Tax Software
Create a Data Security Plan	Purchase Business Insurance	Create a Marketing Plan	Create a Compliance Plan

Download the steps in an eBook

ptin?

What Is a PTIN?

WHO CAN BE A PROFESSIONAL TAX PREPARER?

Tax Preparers With Limited Representation Rights Before the IRS

Tax Preparers With Unlimited Representation Rights Before the IRS

how will i get paid?

Work for a Business or Start Your Own

IRS Directory of Federal Tax Return Preparers

Tax Business Basics Steps

PTIN Plans

Owner Plans

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