The Treasury Department and Internal Revenue Service (IRS) issued a decrease in the user fee for tax professionals seeking or renewing their Preparer Tax Identification Number (PTIN). The reform in the regulation will take effect on October 16, 2025, and will provide significant cost savings to more than 900,000 tax preparers who will be required to renew or seek PTINs in future cycles.
Learn about the new PTIN fee; the tax preparer impact; process of applying for or renewing a PTIN; significant deadlines; and compliance news so that you know and don't get hit with penalties during peak tax times.
What Is a PTIN and Why Is It Important?
A Preparer Tax Identification Number (PTIN) is a unique identification number that a person has to request and obtain from the IRS each year, provided that such a person receives remuneration for preparing or helping in the preparation of federal tax returns or refund claims.
The PTIN is the preparer's identification for the respective return or claim to be transmitted to the IRS. Tax preparers, which are paid and even enrolled agents, must necessarily have an active PTIN to comply with IRS requirements.
Likewise, a given PTIN will automatically expire every December 31 from the calendar year it was granted to you, which is why you must renew the PTIN at the year's renewal if you intend to continue practicing legally.
Should this current PTIN be put on hold by any preparer, monetary penalties will be settled-for that preparer-not to mention the inability of such a preparer to be able to file any return.
New PTIN User Fee Regulations in 2025
The IRS Return Preparer Office completed its biennial review of PTIN user fees in 2025 and has determined a fee decrease is warranted to more closely align with processing expenses.
Some highlights of the new fee structure are:
- The IRS user fee will decrease from $11 to $10, starting on October 16, 2025, the start of the next PTIN renewal cycle.
- Along with the $10 IRS fee, the preparers will also remit $8.75 to a private contractor who handles PTIN application and renewal processing.
- This change reduces the total application or renewal cost without compromising the program's sustainability.
In either case of approval or disapproval of the application, the PTIN fee is non-refundable.
Who Will Be Affected by this Fee Change?
Over 900,000 tax professionals such as tax preparers and enrolled agents will obtain or renew PTINs within the subsequent three cycles. Enrolled agents should have a valid PTIN to avoid losing professional standing. Preparers submitting federal tax returns for a fee must comply with the new fee if they get or renew their PTIN on or after October 16, 2025.
How to Apply for or Renew a PTIN
Here is how you can apply for a PTIN or renew it:
Online Application
- The IRS provides a portal online through which tax professionals can apply or renew their PTIN.
- The process usually takes about 15 minutes and provides immediate confirmation when completed.
- Online renewal speeds up the processing and can reduce delays associated with sending paper applications.
Paper Application
- Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application and Renewal, remains available.
- Paper applications could take approximately six weeks and in turn delay filing.
Deadlines and Compliance
PTINs will expire on December 31 of the year they were issued.
- Prepares seeking to renew PTINs that expire on December 31, 2025 would benefit from initiating their renewal process before any deadlines, in order to continue uninterrupted practice.
- PTINs must be valid and used to submit electronically filed tax returns or claim for refunds.
- Failure to have and use a valid PTIN may expose PTIN holders to sanctions pursuant to the Internal Revenue Code provisions.
How This Fee Reduction Benefits Tax Professionals
- The reduced rate lessens accessibility and renewal barriers, particularly faced by seasonal or low-volume preparers that previously found costs prohibitive.
- The reduced fee paired with a streamlined online application promotes compliance while also promoting efficiency in the program.
- Cost savings improve accessibility in a profession which operates in a more competitive and regulated marketplace.
IRS Invitation for Public Feedback
The Treasury and IRS welcome comments and requests to testify concerning the proposed regulations:
- Comments should be received no later than October 30, 2025.
- Comments should be submitted directly to the Federal e-Rulemaking portal, noting "IRS" in the first box and "REG-108673-25" in the second box.
- If you need to send paper comments or request to testify, please send it to IRS, Room 5203, Washington, DC as provided.
This is consistent with Treasury regulation to ask stakeholder input before choosing any final rules and Treasury's commitment to transparency.
Preparing for the 2026 Filing Season
In preparation for the 2026 Tax Filing Season, tax preparers should:
- Review the new fee schedule with them and make a case for when they will apply for the renewal of their PTIN.
- Use the internet-based PTIN management system to renew the PTIN quickly and securely.
- Look for other instructions or procedural changes that the IRS might implement for the tax season of 2026.
- Consult professional organizations or CPA networks for any issues concerning PTIN compliance.
On October 16, 2025, the IRS is reducing the PTIN user fee from $11 to $10, representing a meaningful regulatory relief for tax preparers throughout the country. This development simplifies compliance, decreases costs, and supports the integrity of the profession.
With more than 900,000 individuals renewing or applying, understanding this new rule will allow tax preparers to ensure they are ready to serve their clients and avoid penalties, while still allowing their clients to manage their tax filings timely each season.
Helpful Links
- IRS to Phase Out Paper Tax Refund Checks Starting September 2025
- IRS Drought Relief for Farmers and Ranchers 2025
- How Professional Bookkeeping Helps You Stay IRS Audit-Ready
Tax professionals can be relieved that they will be able to concentrate on the early completion of their PTIN renewals, instead of waiting until approaching the tax deadline. Tax preparers can choose to use the IRS's online application service to renew their PTINS and enjoy the advantage for the next two tax seasons.
Contact The Fino Partners today to receive the latest IRS updates for your business.
