The IRS has posted new Form W-12,IRS Paid Preparer Tax Identification Number (PTIN) Application, on its website. The form replaces Form W-7P,Application for Preparer Tax Identification Number.
Who must apply for a PTIN. Anyone who is a paid tax return preparer must apply for and receive a paid preparer tax identification number (PTIN). For purposes of these rules, a tax return preparer is any individual who is compensated for preparing, or assisting in the preparation of, all, or substantially all, of a tax return or claim for refund of tax. David Williams, IRS Director of Electronic Tax Administration, indicated on a September 8 payroll industry telephone conference call that employees who only prepare employment tax returns for their employer will not be subject to the new rules.
After Dec. 31, 2010, paid tax return preparers must use the assigned PTIN on returns that they are paid to prepare. They will no longer be permitted to enter their Social Security Number (SSN) in lieu of their PTIN on returns that they are paid to prepare.
The IRS is currently charging a $64.25 user fee to request a PTIN. All paid tax return preparers must file Form W-12 to apply for a PTIN, and pay the $64.25 fee associated with the application for a PTIN, even if they previously received a PTIN. They will be required to renew their PTINs annually and pay an associated user fee. The amount of the fee might change in future years, as the actual program costs will be periodically reevaluated.
Paid tax return preparers may complete the application on the IRS website, or they mail the form and fee to: IRS Tax Pro PTIN Processing Center, 104 Brookeridge Drive #5000, Waterloo, IA 50702. It will take four to six weeks to receive a PTIN if the application is mailed to the IRS.
There is a web page on the IRS website calledReturn Preparer Regulations - Getting Started that has further information on the new rules. Here are links to view the website and the new Form/instructions:
IRS Return Preparer Regulations - Getting Started website http://www.irs.gov/taxpros/article/0,,id=221009,00.html.
Form W-12 (and instructions) http://www.irs.gov/pub/irs-pdf/fw12.pdf.