Due to some tax return preparers having trouble with the new online preparer tax identification number (PTIN) application, the IRS last week announced it is providing relief for preparers who make a good-faith effort to comply with the new PTIN requirement.
Notice 2011-11 says that tax return preparers who are unsuccessful in obtaining a PTIN using the online system will be notified that their application was not processed and will receive “appropriate instructions.” They must comply with those instructions to establish that they are making a good-faith effort to comply.
For individuals who do not attempt to use the online PTIN application system, the notice says the submission of Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application, and payment will generally constitute a good-faith attempt to comply with the requirement.
The number of PTINs issued now exceeds 620,000 with average daily additions still around 3,500.
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