PTIN Requirements for Tax Preparers: Renewal, Penalties, and EFIN

Anyone paid to prepare a federal tax return needs a current Preparer Tax Identification Number (PTIN) from the IRS before signing or filing it. That is the core of the PTIN requirements for tax preparers: an eight-digit number preceded by “P,” issued to you personally, that goes in the paid preparer section of every return you handle for compensation. For 2026, a new or renewed PTIN costs $18.75, and the online application takes about 15 minutes.¹

Who Needs a PTIN

If you receive any compensation for preparing or helping prepare a federal tax return, refund claim, or other form submitted to the IRS, you need a current PTIN. Credential type doesn’t matter. CPAs, enrolled agents, attorneys, and non-credentialed preparers are all in.¹

Two groups are exempt. Volunteers who prepare returns without pay, including those working through VITA or TCE programs, don’t need one. Neither do employees who prepare returns only for their employer rather than outside clients.

The IRS excludes roughly two dozen specialized informational forms from the requirement, but the returns most preparers actually handle, the 1040 series, 1120 series, and 1065, all require a PTIN.²

How to Get Your First PTIN

The fastest path is the IRS Tax Professional PTIN System at irs.gov/ptin. First-time applicants typically finish in about 15 minutes.¹ You create an account and then supply:

Your Social Security Number, or a supplemental application if you’re a foreign preparer without one
Current personal and business address, phone number, and email
Information from a prior-year tax return, which the IRS uses to verify your identity
If applicable, your CPA, EA, or attorney license number and the jurisdiction that issued it

You finish by paying the $18.75 fee, which is non-refundable.³

Paper Application Option

If you prefer paper, submit Form W-12 (IRS Paid Preparer Tax Identification Number Application) with your $18.75 payment to the IRS Tax Pro PTIN Processing Center in San Antonio, Texas. Processing takes about six weeks, versus roughly 15 minutes online.¹

Foreign Preparers Without a Social Security Number

Non-U.S. citizens who don’t have and aren’t eligible for a Social Security Number must file Form 8946 (PTIN Supplemental Application For Foreign Persons Without a Social Security Number) alongside their PTIN application. The form requires two identity documents, at least one with a photograph. Acceptable documents include a passport, foreign driver’s license, national ID card, or documents issued by U.S. Citizenship and Immigration Services. You must submit either originals or notarized copies.⁴

You can upload the documents during the online application or mail them with Form W-12 and Form 8946 together. Form 8946 does not apply if you have an SSN, are eligible for one, or are a U.S. citizen.

Renewing Your PTIN Each Year

PTINs expire on December 31. Every holder who plans to prepare returns for pay the following year has to renew before that date, and the IRS typically opens the renewal window in mid-to-late October.³

Renewal is straightforward. Log into the same PTIN system, confirm your personal and professional details, and pay the $18.75 renewal fee, the same amount as a new application.¹

There is no grace period. If your PTIN lapses and you prepare a paid return anyway, you’re exposed to per-return penalties for every one you touch during the gap.

The Annual Filing Season Program Is Optional

Non-credentialed preparers sometimes assume the Annual Filing Season Program (AFSP) is required. It isn’t. Anyone with a valid PTIN can prepare returns for compensation, credentialed or not.⁵ What the AFSP adds is limited representation rights and a listing in the IRS Directory of Federal Tax Return Preparers.

To earn an AFSP Record of Completion, you complete 18 hours of continuing education each year: a 6-hour Annual Federal Tax Refresher (AFTR) course with a comprehension test, 10 hours of other federal tax topics, and 2 hours of ethics.⁶ The AFTR course is only offered by IRS-approved continuing education providers between June 1 and December 31.⁷ You also must consent to specific practice obligations under Subpart B and Section 10.51 of Treasury Department Circular 230.

Record of Completion holders can represent clients whose returns they prepared and signed before revenue agents, customer service representatives, and Taxpayer Advocate Service staff. They cannot represent clients on appeals, collection matters, or returns they didn’t prepare.⁵ CPAs, enrolled agents, and attorneys keep unlimited representation rights across all matters. Non-credentialed preparers who skip the AFSP are excluded from the IRS public directory entirely.⁸

PTIN vs. EFIN

These two numbers get confused often. A PTIN identifies you personally as a paid preparer. An EFIN (Electronic Filing Identification Number) authorizes a firm or individual to transmit returns electronically to the IRS. The PTIN is your personal credential; the EFIN is your firm’s e-filing license.

Work at an established firm and its EFIN covers your electronic submissions, so you only need your own PTIN. Independent preparers and new firms need both. The EFIN application goes through the IRS e-Services portal, requires a suitability check that includes a credit check, tax compliance check, and criminal background check, and can take up to 45 days. Non-credentialed applicants also have to be fingerprinted through an IRS-authorized vendor.⁹

Penalties for Non-Compliance

The IRS has several penalty tools aimed at preparers, and they go well past a token fine.

Per-Return Penalties Under IRC 6695

Section 6695 covers a range of preparer failures, each carrying a per-return penalty that the IRS adjusts annually for inflation. The base statutory amount for most violations is $50 per return with a $25,000 annual cap, though inflation-adjusted figures run higher.¹⁰ For returns filed in 2025:

Failing to include your PTIN: $60 per return, $31,500 annual maximum
Failing to sign the return: same amount and cap
Failing to give the taxpayer a copy: same amount and cap
Negotiating a client’s refund check: $635 per check, no annual cap
Failing to exercise due diligence on the earned income credit, child tax credit, American Opportunity credit, or head of household status: $635 per failure, no annual cap

Amounts move each year. For returns filed in 2027, the per-return penalty rises to $65 with a $33,000 cap, and the check-negotiation and due-diligence penalties increase to $665.¹¹ The 2026 figures fall between the published thresholds.¹²

Penalties for Understating Tax Liability

A separate and heavier penalty applies under IRC 6694 when a preparer’s work leads to an understatement of tax. There are two tiers. For an unreasonable position under 6694(a), meaning a position that lacks substantial authority and that you knew or should have known about, the penalty is the greater of $1,000 or 50% of the income you earned from the return. A reasonable cause defense is available if you acted in good faith. For willful or reckless conduct under 6694(b), meaning a deliberate attempt to reduce the client’s tax or a reckless disregard of IRS rules, the penalty rises to the greater of $5,000 or 75% of what you earned from the return. Any amount paid under the unreasonable-position penalty reduces the willful penalty for the same return.¹³

If Someone Else Uses Your PTIN

If you find your PTIN on returns you didn’t prepare, report it using Form 14157 (Complaint: Tax Return Preparer). You can submit it online, by fax at 855-889-7957, or by mail to the IRS Return Preparer Office in Atlanta.¹⁴ A stolen PTIN that goes unreported can tie your identity to fraudulent returns and trigger compliance scrutiny against you personally, so move fast.

1
Internal Revenue Service. PTIN Requirements for Tax Return Preparers
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Internal Revenue Service. Frequently Asked Questions – Do I Need a PTIN
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Internal Revenue Service. IRS Reminds Tax Pros to Renew PTINs for the 2026 Tax Season
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Internal Revenue Service. Form 8946 – PTIN Supplemental Application For Foreign Persons Without a Social Security Number
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Internal Revenue Service. Annual Filing Season Program
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Internal Revenue Service. General Requirements for the Annual Filing Season Program Record of Completion
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IRS Continuing Education Provider System. IRS-Approved Continuing Education Provider Listing
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Internal Revenue Service. FAQs Directory of Federal Tax Return Preparers with Credentials and Select Qualifications
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Internal Revenue Service. Become an Authorized e-File Provider
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Office of the Law Revision Counsel. 26 USC 6695 – Other Assessable Penalties with Respect to the Preparation of Tax Returns for Other Persons
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Internal Revenue Service. Revenue Procedure 2025-32
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Internal Revenue Service. Tax Preparer Penalties
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Office of the Law Revision Counsel. 26 USC 6694 – Understatement of Taxpayers Liability by Tax Return Preparer
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Internal Revenue Service. Make a Complaint About a Tax Return Preparer