A Tax Return Prepare Must...

• TAX RETURN PREPARES MUST USE IRS E-FILE. The law requiring paid tax return preparers to electronically file Federal income tax returns, prepared and filed for individuals, trusts and estates started January 1, 2011.

• TAX PREPARES MUST HAVE A PREPARER TAX IDENTIFICATION NUMBER. IRS regulations require all paid tax return preparers and enrolled agents (including attorneys, and CPAs if they prepare for compensation all or substantially all of a Federal tax return or claim for refund) to obtain a Preparer Tax Identification Number (PTIN) before preparing any Federal tax return. A PTIN meets the requirements under section 6109 (a)(4) of furnishing a paid tax return preparer's identifying number on returns that you prepare. In February of 2013 the United States District Court for the District of Columbia modified its order from January of 2013 to clarify that the order does not affect the requirement for all paid tax return preparers to obtain a preparer tax identification number (PTIN). You must renew your PTIN every year during the renewal season which generally starts in October and must be completed by December 31. Your PTIN is your Federal license to prepare taxes and it must be included on all returns you prepare.