IRS to Send PTIN Warning Letters

The Internal Revenue Service’s Return Preparer Office said it is sending letters to 3,000 tax preparers who failed to use a valid Preparer Tax Identification Number.

Letter 4731 is being sent to more than 1,100 people who are using old PTINs that were obtained prior to September 2010 and have never been renewed in the new online PTIN system. Letter 4732 is being sent to more than 1,800 people who are using Social Security numbers as their preparer ID numbers instead of PTINs.

“Anyone who disagrees with the information in the letter should call the number provided in the heading,” said the IRS. “Anyone who needs assistance in obtaining or renewing a PTIN, should call the PTIN helpline number shown at the end of the letter.”

As of Jan. 1, 2011, anyone who, for compensation, prepares or helps prepare all or substantially all of any federal return or claim for refund must have a valid PTIN and use that PTIN as the identifying number on returns, the IRS noted. All PTINs must be renewed annually. The IRS also said it is continuing efforts to identify paid preparers entering no identifying number on returns that they prepared.