The IRS on Wednesday, March 24, 2010, proposed regulations requiring all paid tax preparers to obtain and use a tax identification number (PTIN) for all tax returns after December 31, 2010.
This regulation is the first one issued by the IRS under its proposed plan to require PTIN registration by all paid return preparers. Current regulations allow preparers to use either their Social Security number or a PTIN. The new proposal would no longer accept the use of Social Security numbers; only a PTIN on all tax returns and refund claims.
The proposed regulations provide a transition rule for returns due for tax periods that end before Jan. 1, 2011. On those returns, preparers should use the identifying number prescribed on the form being filed.
Under the proposed regulations, failure to include a PTIN on a return could subject a return preparer to penalties under IRC § 6695(c). That penalty is $50 for each failure to furnish a required identification number, up to $25,000 in each calendar year.
For more details regarding this regulation, go to http://www.journalofaccountancy.com/Web/20102735.htm