Preparer Tax Identification Number (PTIN) Guide 2025: Costs, Registration, and Key Facts

Julia Kagan is a seasoned financial and consumer journalist, formerly serving as senior editor for personal finance at Investopedia.

What Is a Preparer Tax Identification Number (PTIN)?

A Preparer Tax Identification Number (PTIN) is a unique identifier assigned by the Internal Revenue Service (IRS) to paid federal tax return preparers. Established in 1999 and mandated since 2010, it requires all compensated tax professionals preparing federal tax returns to register with the IRS and obtain their own PTIN. This system ensures accountability and privacy for tax preparers who assist individuals and businesses in filing income tax returns.

Key Highlights

• PTIN was introduced in 1999 to protect tax preparers' privacy by replacing the use of Social Security numbers on tax returns.
• Since 2010, all paid federal tax preparers must have a valid PTIN to legally prepare returns.
• Certified Public Accountants (CPAs) form the largest group holding PTIN credentials.

How Does the PTIN System Work?

Beyond obtaining a PTIN, certain tax professionals such as enrolled agents must pass IRS exams and fulfill ongoing education requirements. However, attorneys, CPAs in good standing, and supervised preparers are exempt from these additional mandates. Initially, tax preparers paid a registration fee of $64.25, which was later reduced to $50 in 2016. Following a 2017 court ruling, the IRS eliminated all PTIN fees, making registration free of charge.

From 1999 to 2010, tax preparers could choose to provide either their Social Security number or PTIN on tax returns. The IRS launched an electronic PTIN system in September 2010, streamlining registration and renewal. By August 2021, over 1.77 million PTINs had been issued, with nearly 749,000 active holders. CPAs represent the majority with over 204,000 registered PTINs.

In June 2017, a U.S. District Court ruled that IRS fees for PTIN issuance were unlawful, stating these fees did not correspond to a "service or thing of value". Consequently, the IRS suspended and then reinstated the PTIN system without fees. Taxpayers can verify their tax preparer's registration status using the IRS online directory.

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