Tax Pros: Is Someone Fraudulently Filing Returns With Your PTIN?
An unmonitored preparer tax identification number (PTIN) can lead to serious issues.
As tax season approaches, the IRS is reminding CPAs and other tax professionals to verify that their Preparer Tax Identification Number (PTIN) is current and valid.
This unique identifier, issued by the federal tax agency, is crucial for anyone preparing federal tax returns for compensation.
Notably, the risks associated with an expired PTIN extend beyond the possibility of incurring IRS penalties. Unfortunately, fraud involving PTINs is more common than one might expect. So, here’s more of what you need to know.
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What does PTIN stand for?
A PTIN is an 8-digit number assigned to tax preparers by the IRS. It serves as an official identifier, starting with the letter P, that allows the tax agency to track and regulate tax preparation activities.
Every paid tax preparer should have their own PTIN, which should be included on all federal tax returns they prepare.
- Preparing federal tax returns for compensation without a valid PTIN is against IRS regulations
- Those who prepare their own taxes, file joint returns, or prepare taxes for friends and family without compensation don’t need a PTIN
- A current PTIN can help ensure your client's tax returns are processed smoothly and without delays.
- If you use an expired PTIN, you could face IRS penalties
According to the IRS, the penalty for returns filed in 2024 without a valid PTIN is $60 for each failure, and the maximum penalty is $30,000. For returns filed in 2025, the penalty is $60 for each failure, and the maximum penalty is $31,500.
PTIN Renewal 2025: How much does an IRS PTIN cost?
PTINs expire on December 31st each year. The renewal process typically opens in October for the following year and can be completed online at the IRS website.
If your PTIN has expired, the IRS encourages you to renew it to avoid complications.
The renewal fee is $19.75, and you can pay it to the IRS via eCheck, credit, ATM, or debit card.
Don’t have a PTIN? The IRS says that “most first-time PTIN applicants can obtain a PTIN online in about 15 minutes. The fee is $19.75 and is non-refundable. View this checklist to get started.”
PTIN risks
If you haven't renewed your PTIN and don’t actively use it, someone else might fraudulently misuse it to prepare tax returns. This could result in identity theft or liability for returns filed in your name without your knowledge.
For example, since PTINs must be included on tax returns prepared for compensation, they can be visible on those documents, making them susceptible to unauthorized use.
It’s also important to note that the IRS maintains a public directory of PTIN holders to help individuals find professional, credentialed tax preparers. Partly due to the Freedom of Information Act (FOIA), this information is available online, which could inadvertently contribute to potential fraudulent activity involving expired PTINs.
Some typical forms of PTIN misuse include:
- Using Another Preparer's PTIN: A fraudulent preparer might use a valid PTIN belonging to a legitimate tax professional to file returns without authorization.
- Preparing Returns Without a Valid PTIN: Some preparers may operate with an expired or revoked PTIN or prepare returns without obtaining one.
- Identity Theft: Criminals could steal a tax preparer's identity and use their PTIN to file fraudulent returns.
- Sharing PTINs: Multiple preparers might improperly share a single PTIN instead of each obtaining their own.
To protect against these risks, the IRS reminds tax professionals to regularly check their PTIN accounts for suspicious activity and report any suspected misuse using Form 14157.
IRS PTIN monitoring
The IRS also says it “actively monitors” PTIN usage and may take enforcement actions against non-compliant tax preparers.
For example, if your PTIN has expired, you might receive a letter from the IRS. These letters are supposed to alert tax professionals about their PTIN status and prompt action.
A typical notification letter states that your PTIN has expired, emphasizes the requirement for an active PTIN, provides renewal instructions, reminds you about potential penalties, and may include information about the annual renewal period.
What about emails from the IRS? Typically, the IRS won’t contact taxpayers via email. However, it could happen that you, as a tax preparer, receive a legitimate IRS email regarding PTIN issues.
If you do, the IRS points to the following two valid sender email addresses: irs@service.govdelivery.com and Taxpros@ptin.irs.gov.
Note: Those email addresses can be fraudulently spoofed, so be extremely cautious and don't reply to unsolicited emails. Instead, contact the IRS directly and/or report suspected phishing emails.
Is Your PTIN valid? Bottom Line
Given all this, it's crucial to check your PTIN status. If you discover yours has expired take action and if need be, renew it through the IRS website.
It's worth noting that some CPAs notice that tax returns continue to be filed with expired PTINs, which indicates potential fraudulent activity by unauthorized individuals.
If you haven’t prepared returns for compensation since your PTIN expired but suspect someone else is using your expired PTIN, report it by filing Form 14157 with the IRS.
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