Can anyone tell me what a PTIN? No it won’t get you girls or help you build big arms or a flat stomach. It is a Paid Tax Identification Number and anyone who prepares taxes for a fee has to get one before they prepare taxes for the 2010 tax season. The IRS is hoping to keep better tabs on preparers and force them to increase their tax knowledge with required classes and testing (all still in the future). Starting in January 2011 anyone who doesn’t have a number can’t prepare a return for a fee. See this article for a little more detail:http://www.suite101.com/content/irs-ptin-registration–who-needs-a-paid-preparer-tax-id-number-a301779So check you tax return. In the paid preparer area under Tax Preparer ID Number there isn’t a number that starts with a P, your preparer either forgot to put his number down or he didn’t get a number. If it is not there you need to ask him why. If the IRS sees that they might decide they need to look at your return a bit closer, and nobody wants that. (Of course I have a PTIN so if I prepare your return you know as a CPA I have already filled all the requirements.)
Brian’s Tax Musings
DId you know that until 2010 anyone could be a tax preparer? A CPA, an enrolled agent, the butcher, the baker, the candlestick maker – anyone coule be a tax preparer! Before this tax season, there have been some real bizarre tax preparers out there. Now with the PTIN there is a little more regulation, but remember that when you sign your tax return, you are responsible for what gets filed. You should know what is on your return before you sign it or the efile documents attesting you have checked your return before filing. At my office, before I efile a return, I make sure my clients at least have an idea of why they are getting money back or owing, and the return is always reviewed before filing. Like I said, I have seen returns and heard stories where that is simply not the case. I heard a story the other day about a big tax preparation firm (a CPA firm no less, to my shame) that messed up the address of someone I know. When the client asked him to change the address, the CPA said just white it out and change it. He billed my friend [...]
Brian’s Tax Musings
Well, another bill to fix the horrible 1099 reporting requirement is winding its way through Congress even as we speak (again!) From what I read the bill will be voted on as part of a larger bill this week in the Senate and should be voted on in the House soon. This time it appears that they have a good chance of passing. Imagine that – good news out of Washington! See this article:http://thehill.com/blogs/floor-action/house/143681-possible-new-hurdle-for-1099-repeal-reconciliationand this regarding House Ways and Means commitee votes:http://www.businessinsurance.com/article/20110215/BENEFITS11/110219964I will let you know when things happen if they happen.