The IRS announced on 1st November 2025 that every tax pro in the US should renew or apply for a PTIN for the upcoming year, 2026. They made it clear that all tax professionals who charge a fee have to have a valid and active PTIN to prepare related federal tax returns for a fee.
The IRS makes the system of renewing PTINs online available every year just before the beginning of the next filing season, in order for all professionals assisting people with their tax returns to be made accountable and comply with the rules.
What is PTIN, and Why is it Important?
PTIN or Preparer tax identification number is a unique identification number provided by the IRS, called PTIN, only to those individuals who can prepare federal tax returns and charge for such a service. It is a great tool to use by the IRS for grading these preparers by maintaining privacy for the client, and at the same time, encourages openness in the sector of tax preparation.
That has been the case since 2011, when all the preparers of individual tax returns were compelled legally to register with the Internal Revenue Service and to put their PTINs on any return or refund claim they prepared. It covers the likes of attorneys, enrolled agents, certified public accountants, and other paid preparers.
Why PTIN Renewal Matters
One major requirement that keeps tax preparers in compliance with the regulations of the IRS is having an active PTIN. This would mean a tax professional won't lose a client just because of his or her inactivity. If a PTIN, however, is expired or not renewed, then the following consequences might apply to the tax preparer:
- Client returns submission will not be allowed.
- Sanctions will be imposed in the case of non-compliance.
- The licenses of the practitioner may be revoked or suspended in serious cases.
Renewal Deadlines and Process
Ensure you are aware of the important dates and of the renewal procedure:
Steps to Renew for Tax Professionals
The process for renewing a PTIN is relatively simple and can be completed online or by mail. Here is how professionals renew a PTIN:
Online Renewal
- Log in to your PTIN account online using the IRS Return Preparer Office system.
- Provide the information such as name, address, and professional credentials.
- Pay the renewal fee for your PTIN every year.
- Receive immediate confirmation regarding the status of the renewal when the process is completed.
Paper Renewal (Optional)
- For paid tax return preparers seeking to apply using the paper method, fill out Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application and Renewal, and mail it to the IRS.
- Paper renewals take 4-6 weeks to process.
New PTIN Applications
- First-time filers for PTIN also submit the same Form W-12 along with documentary proof of identity, contact information, and professional qualifications.
- The renewal fee is the same as it was in previous years, covering both the administrative and compliance-related costs for the 2026 season.
Who Must Have a PTIN?
A PTIN is required for anyone who prepares or assists in preparing federal tax returns for compensation. This includes:
- CPAs, short for certified public accountants.
- Agents Enrolled (EAs)
- Lawyers
- Tax preparers without a degree
- Part-time or seasonal tax professionals
An individual must have a valid PTIN for each calendar year in which they provide paid tax preparation services, including those providing service in connection with a limited number of returns during the year.
Consequences of Failure to Renew PTIN
Such delays in renewal or failure to maintain an active PTIN may have serious repercussions in one's career. Generally, the IRS considers the preparation of federal returns for compensation without an active PTIN as a violation of tax law.
Results can include the following:
- Civil Penalties: For each return filed with an invalid PTIN, the IRS can impose fines.
- Loss of professional designation: Certified public accountants, certified public accountant, or other credentialed preparers face possible disciplinary action from professional boards.
- Removal from IRS e-file programs: In some instances, preparers may be removed from participating in IRS e-file programs until the renewal is completed.
How the IRS Uses PTIN Data
The PTIN system is a central component of IRS oversight. It does the following:
- Identify Preparers: Associating each preparer with the returns they submit.
- Compliance Monitoring: Study patterns for any mistakes, fraud, or misuse of tax schemes on the part of the taxpayers.
- Support Enforcement: Helping agents from the IRS Criminal Investigation Division identify and deter fraud.
- Increase Public Trust: Assure clients that their tax preparer is registered and will practice ethically with their tax information, hence alleviating their concerns.
Moreover, the IRS uses such collections in support of its broader efforts in the area of electronic processing of returns and integrity of the tax system in general.
Best Practices for Tax Professionals
To ensure compliance and successful business operations, tax practitioners should:
- Renew promptly: The minute the IRS system opens, try to get ahead by renewing. You will not regret it and avoid running into issues as the renewal precipitates.
- Record Keeping: Keep all the related documents regarding the PTIN confirmation, payment confirmation, and other correspondence about your PTIN renewal on hand in case you have to prove your credentials if audited or otherwise.
- Notify the IRS of Changes Timely: In the case of an address change, change in contact information, or change in professional status, inform the IRS promptly.
- Verify PTIN Use: Check to make sure your PTIN is on every federal tax return that you file that is compensable.
- IRS Communications: Throughout the year, monitor communications from the IRS for any updates on established or regulatory changes.
Economic and Professional Implications
The PTIN system remains an important part of the integral regulatory mechanism within the U.S. tax preparation marketplace. In compelling paid preparers to register on an annual basis, the IRS ensures a level of professionalism in practitioners and accountability within the marketplace.
For preparers, renewal is a legal requirement that also translates into increased professionalism in clients' eyes. During times when cybersecurity and other compliance risks are evolving, the PTIN system continues to bolster trust in the tax system and the professionals of the tax system.
What's Next for Tax Professionals
- Check your PTIN status: Log in to your IRS PTIN account to review expiration dates.
- Renewals: Plan renewals well in advance in order not to experience delays during high filing seasons.
- Educate your staff: Make sure all of the preparers in your firm, including seasonal employees, have valid PTINs.
- Be proactive: sign up with the IRS for notifications, or professional societies, when there is a change in policy.
This means that the IRS requires preparers of tax returns to have an active PTIN.
They would be hard-pressed to find good reasons for not adopting a practice of 'early renewal' since this will guarantee uninterrupted service to the clients while keeping their company in compliance with federal tax law.
Helpful Links
- IRS Reinstates $20,000 and 200-Transaction Reporting Threshold for Form 1099-K
- IRS Launches the 2025 Nationwide Tax Forum Online
- IRS Appoints Jarod Koopman as Acting Chief Tax Compliance Officer
The IRS's message is clear, but important. Do not let the expiration of your PTIN be the reason for non-activity that will occur in the 2026 refund season. Moreover, if you implement coordination, early planning, and enhanced identity verification at your firm, the renewal process will be relatively low-burden and nothing if you neglect it.
Even though the charge is small and the scheme is uncomplicated, the consequences can be a disaster: delayed filings, loss of clients, and risk of audit.
For the latest IRS updates, stay connected with The Fino Partners.
