David Williams, head of the IRS Preparer Office, announced at the IRS Tax Forum in Orlando that more than 100,000 preparers will be receiving letters from the IRS informing them that, although they prepared 2011 tax returns for clients, they did not follow the new PTIN rules in doing so. Specifically, the IRS began sending letters on July 7 to tax return preparers who either used outdated PTINs or used social security numbers as identifying numbers on returns they prepared this filing season. The letters explain the new oversight program, inform preparers of how to register for a new PTIN, or renew an old PTIN, and where to get assistance.
NSA believes these letters should send a strong signal to preparers that the IRS is taking the registration initiative seriously – and so should preparers.
The letters may have been prompted by experiences similar to one Karen Hawkins had yesterday at the Tax Forum. Ms. Hawkins, head of the IRS Office of Professional Responsibility, was approached by a woman who asked why she had received the letter about the PTIN, since she was an Enrolled Agent and “obviously did not need a PTIN.”
She was most surprised when Ms. Hawkins informed her that she obviously did need a PTIN, that this was now a requirement in Circular 230, and that she needed to get one before she was referred to the Office of Professional Responsibility for being in violation.
More information: http://www.irs.gov/newsroom/article/0,,id=241931,00.html