Preparing taxes in 2021? Be prepared to pay. The Preparer Tax Identification Number (PTIN) fee is back.
While the PTIN fee has been reinstated, it’s lower than it previously was. The IRS announced that the 2021 PTIN fee will be $21 plus $14.95 payable to a third-party contractor. The fee has decreased from $33 plus $17 payable to a third-party contractor.
Who needs a PTIN? The IRS mandates that “Anyone who prepares or substantially helps prepare any federal tax return or claim for refund for compensation must have a valid PTIN from the IRS.” If you file taxes, this means you.
PTINs are good for one calendar year and expire on December 31 for the year that they are issued. You can begin renewing PTINs in mid-October for the following year. Renew online at www.irs.gov/ptin.