Preparer Tax Identification Number - PTIN

A “preparer tax identification number,” or PTIN, is a unique number assigned to everyone who prepares federal tax refunds or submits tax refund requests to the IRS. It’s like an ID number for tax preparers.

This handy little number serves two purposes. First, it protects the tax preparer’s privacy, since they can just put their PTIN on every return they prepare instead of using their full name, Social Security number, or other personal information. Second, once a tax preparer receives a PTIN from the IRS, they have one central portal where they can access tax info and regulations, and check back through their tax preparation history.

This sounds like a fairly benign process, but in 2013 and again in 2017, the IRS found itself on the wrong side of a couple PTIN-related court rulings. The IRS had been charging a fee to obtain and subsequently renew a PTIN, but the courts said, “Not today, IRS,” and forbade them from charging any more fees in the future. Why? Because the IRS doesn’t have the authority to regulate tax preparers, and that includes charging them PTIN fees. What will happen to the nearly $200 million in PTIN fees the IRS has collected since the program became a thing in 2011? We’re not sure, but some think they might end up having to pay it all back. Gives new meaning to the term “IRS refund,” doesn’t it?