Tuesday, January 25, 2011

Problem Obtaining a PTIN

A number of preparers have had problems obtaining a PTIN online and those who made paper requests may have to wait 4 to 6 weeks to get their PTIN.  As a result they have been seeking information as to how they can prepare tax returns without having received the PTIN.  To this end the IRS has issued Notice 2011-11.

The Notice provides that a preparer who has made a good faith effort to obtain a PTIN can either use their social security number or the PTIN number that they received prior to September 28, 2010.  The preparer will qualify for this relief if they:

1.  received a notice from the IRS that it was unable to process their online PTIN application, (See Frequently Asked Questions below) or 

2.  received an acknowledgement of receipt of their paper application.

A copy of the notice or acknowledgement should be kept by the preparer as evidence of their good faith effort.  In addition, preparers who rely on this notice must pay the $64.25 PTIN application fee, as instructed by the IRS.

It should be noted that the IRS has updated their Frequently Asked Questions, concerning obtaining the PTIN as a result of this Notice.  As to failure to obtain the PTIN online it refers to failure after 4 online attempts in 24 hours  receiving a message that begins with "Your information still does not match......."

For your information: As of today, the government has now issued in excess of 620,000 PTINs and is receiving an average of 3,500 applications a day.  At $50 each...well you can do the math.