The end of 2020 is in sight, which means it’s time to double check that you’ve met your designation’s CPE requirements and renewed your PTIN.
The Return Preparer Office (RPO) officially opened the Preparer Tax Identification Number (PTIN) renewal season on Oct. 15. The 2021 annual fee to apply for or renew a PTIN is $35.95 (includes a $14.95 fee payable to a contractor).
PTIN renewal deadline 2020
Anyone who prepares or substantially helps prepare any federal tax return or claim for refund for compensation must have a valid PTIN from the IRS. The PTIN must be used as the identifying number on returns prepared. Failure to have and use a valid PTIN may result in penalties. All current PTINs expire Dec. 31. PTINs can be renewed in 2021; however, it should be renewed before you prepare your first tax return of the year.
During the renewal process, you’ll be asked to attest to your data security responsibility and whether you are aware of your obligation to have a data security plan in place to provide data and system security protections for all taxpayer information.
If you don’t have a plan, we can help with our Create a Data Security Plan on-demand workshop. This four-hour workshop details how to draft a policy manual and includes hands-on guidance, so you’ll leave the session with a fully drafted plan. You’ll also learn more about the Gramm-Leach-Bliley Act, and the various hardware and software threats your firm faces today and in the future. This online workshop is included in the Premium level membership.
EA renewal open
The enrollment renewal application period is open from Nov. 1, 2020, through Jan. 31, 2021. Per Circular 230, EAs who have Social Security numbers ending in 7, 8 or 9 are required to renew their EA status during this time frame. Without renewal, the EA status will expire on March 31, 2021. Continuing education requirements must be met by Dec. 31, 2020.
To complete the online renewal form, go to pay.gov and enter “8554” in the “Search Public Forms” box. Renewals may take up to 90 days to process. As a reminder, the EA application and renewal user fee is $67.
For CE requirements and other details, please review Publication 5186.
Earn the AFSP – Record of Completion
NATP membership includes access to the AFTR course & exam. Participation in this course is your first step to securing your representation rights with an AFSP – Record of Completion. The course includes an e-book, interactive modules and a timed 100-question exam.
You have until Dec. 31 to pass the exam and obtain your CPE to earn the AFSP – Record of Completion.
About National Association of Tax ProfessionalsThe National Association of Tax Professionals (NATP) is the largest association dedicated to equipping tax professionals with the resources, connections and education they need to provide the highest level of service to their clients. NATP is comprised of over 23,000 leading tax professionals who believe in a superior standard of ethics and exemplify professional excellence. Members rely on NATP to deliver professional connections, content expertise and advocacy that provides them with the support they need to best serve their clients. The organization welcomes all tax professionals in their quest to continually meet the needs of the public, no matter where they are in their careers.
The NATP headquarters is located in Appleton, WI. To learn more, visit www.natptax.com.
Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing.