The IRS set $21 fee per PTIN application or renewal (plus $14.95 fee payable to contractor)
The Internal Revenue Service announced today the annual fee for 2021. Tax return preparers will have to pay to obtain or renew their Preparer Tax Identification Number (PTIN) for the 2021 tax season. Anyone who prepares or substantially helps prepare any federal tax return or claim a refund for compensation must have a valid PTIN from the IRS. Failure to have and use a valid PTIN may result in penalties. The IRS estimates that more than 800,000 tax return preparers will apply for or renew a PTIN this year.
IRS determined that the full cost to administer the PTIN program going forward is $21 per application or renewal. This amount includes costs relating to PTIN misuse and maintaining the integrity of PTINs. The third-party contractor fee, $14.95, pays for several functions including processing applications, renewals, and operating a call center. PTINs expire on December 31 of the year for which they are issued. PTINs generally can be renewed beginning in mid-October and are valid for the following calendar year. Click Here to read the full article.