PTIN Renewal Compliance

Categories: IRS CE, Tax PT
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About Course

This two-hour continuing education course examines the Preparer Tax Identification Number (PTIN) requirement — who must obtain one, how it is renewed each year, and what happens when a preparer fails to maintain a valid PTIN. It is designed for practitioners and firm administrators who need a working command of the PTIN system’s statutory basis, its annual renewal mechanics, and the penalty and disciplinary exposure that follows from letting a PTIN lapse. Grounded in current IRS.gov guidance, IRC Section 6109(a)(4), 26 CFR 1.6109-2, and IRC Section 6695(c), the course examines who is required to hold a PTIN and the specific exceptions to that requirement; the online and paper renewal processes, the current renewal fee, and the December 31 annual expiration date; the ID.me identity verification now integrated into the PTIN system; the Section 6695(c) penalty for failing to furnish a valid PTIN, at its current inflation-adjusted amount; and practical systems a firm can use to track PTIN status across every preparer it employs.

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What Will You Learn?

  • Identify the statutory basis for the PTIN requirement under IRC Section 6109(a)(4) and 26 CFR 1.6109-2
  • Identify who must obtain and maintain a PTIN, and the exceptions to that requirement
  • Apply the PTIN application and annual renewal process, including the current fee and deadline
  • Identify the ID.me identity verification requirement now built into the PTIN system
  • Apply the Section 6695(c) penalty framework for failing to furnish a valid PTIN
  • Identify the non-monetary consequences of preparing returns without a valid PTIN
  • Distinguish an individual preparer's PTIN obligation from a firm's own PTIN-tracking responsibilities
  • Apply practical systems for managing PTIN status across a multi-preparer practice

Course Content

Module 1 – The PTIN Requirement — Who Must Have One
IRC Section 6109(a)(4) and its implementing regulation, 26 CFR 1.6109-2, require any signing or nonsigning preparer of all or substantially all of a federal tax return or claim for refund for compensation to hold a valid PTIN, though only the signing preparer's PTIN is furnished on the filed return itself, with specific exceptions for uncompensated volunteers, employees preparing only their own employer's returns, purely clerical or mechanical assistance, and certain specifically exempted forms.

  • The PTIN Requirement — Who Must Have One

Module 2 – Obtaining and Renewing a PTIN
A PTIN is obtained or renewed annually through the IRS's online system, generally in a few minutes for a modest fee, with a paper Form W-12 alternative that can take several weeks to process; every PTIN expires on December 31 of the year for which it was issued, regardless of when in that year it was obtained.

Module 3 – Consequences of Non-Compliance
Preparing a compensated return without a current, valid PTIN exposes a preparer to a Section 6695(c) penalty for each affected return, up to an annual maximum, and can also trigger disciplinary action by the IRS Office of Professional Responsibility separate from any monetary penalty.

Module 4 – Practical PTIN Management Across a Practice
A firm employing multiple preparers should track each individual's PTIN status independently, since the obligation and its penalty exposure attach to the individual preparer of record for each return, and a firm-level renewal calendar materially reduces the risk that any one preparer's PTIN quietly lapses during a busy season.

Final Assessment – PTIN Renewal Compliance
This final assessment consists of 10 multiple-choice questions covering all four modules of this course. A passing score of 70% or better is required.

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