The Internal Revenue Service anticipates that the number of individuals who will request Preparer Tax Identification Numbers will swell to 1.2 million after its new rules for registration of paid tax preparers go into effect at the end of the year.
The IRS recently announced proposed regulations imposing new user fees on individuals who apply for or renew their PTIN (see IRS Readies Tax Return Preparer Application System). In posting the proposed rules to the Federal Register, the IRS noted that the proposed regulations will require a tax return preparer who prepares all or substantially all of a return or a claim for a tax refund after Dec. 31, 2010, to have a PTIN.
Only attorneys, CPAs, enrolled agents and registered tax return preparers will be eligible to apply for a PTIN. The requirements to become a registered tax return preparer will be provided in future Circular 230 guidance. The IRS also plans to provide other guidance (including forms and instructions) on how to apply for a PTIN or other prescribed preparer identifying number, for the regular renewal of a PTIN or other prescribed preparer identifying number, and for the payment of a user fee.
Additional user fees related to the programs for regulating enrolled agents, enrolled retirement plan agents, and registered tax return preparers will be established in future regulations as those programs are implemented, the IRS noted. Future regulations will also address user fees associated with taking the registered tax return preparer examination and providing continuing education programs.