Simple English definitions for legal terms
Read a random definition: owners' equity
Preparer Taxpayer Identification Number (PTIN): A special number given by the Internal Revenue Service (IRS) to people who help others prepare and file their taxes for money. It's an eight-digit number that starts with the letter P. To get a PTIN, you need to give the IRS your personal information, business information, and previous year's tax return. You also need to pay a fee. The PTIN expires every year on December 31st, so you need to renew it every year.
A Preparer Taxpayer Identification Number (PTIN) is a unique eight-digit number issued by the Internal Revenue Services (IRS) for enrolled agents and any person who prepares or assists in preparing federal tax returns for compensation. In simpler terms, if you get paid to help someone with their taxes, you need a PTIN.
To get a PTIN, you can apply online or by filling out Form W-12 and sending it to the IRS. You'll need to provide personal information like your name, address, and Social Security number, as well as information about your business and any professional certifications you have. You'll also need to pay a fee.
The PTIN expires on December 31 of each year, so you'll need to renew it annually. You can do this online using your PTIN account.
Let's say you're a tax preparer who helps people file their tax returns. You charge a fee for your services. In order to do this legally, you need to have a PTIN. You apply for one online and provide all the necessary information. Once you have your PTIN, you can continue to help people with their taxes and get paid for it.