Guide
Preparer Tax Identification Number Guide
A PTIN is required for anyone who prepares or assists in preparing federal tax returns for compensation. Apply at irs.gov/ptin. Annual fee: $19.75.
A PTIN (Preparer Tax Identification Number) is required for anyone who prepares or helps prepare federal tax returns for compensation. Apply online at irs.gov/ptin. The annual fee is $19.75, and the PTIN renews every calendar year. The format is the letter P followed by 8 digits, such as P12345678. The IRS issues roughly 750,000 active PTINs.
A PTIN is one of several tax identification numbers the IRS issues, and people confuse it with the EIN, SSN, and ITIN. Each number has a single purpose. A PTIN identifies a paid tax preparer on the returns they file for clients. It does not identify a business, a worker, or a non-resident individual. This guide explains what a PTIN is, who needs one, how to apply, and why most business owners actually need an EIN instead. If you run a US LLC as a non-resident, the number you need is an EIN, which ein.so files for $49.
| Detail | Information |
|---|---|
| Full name | Preparer Tax Identification Number |
| Format | P + 8 digits (P12345678) |
| Issued by | IRS |
| Cost | $19.75 per year |
| Required for | Paid federal tax return preparers |
| Renewal | Annual, expires December 31 |
| Active count | About 750,000 |
What Is PTIN
What Is a PTIN?
A PTIN is a Preparer Tax Identification Number that the IRS requires for anyone who prepares federal tax returns for compensation. The format is the letter P followed by 8 digits. It identifies the individual preparer on every client return, not the preparer's business.
The IRS created the PTIN to track and regulate paid tax return preparers. Before the PTIN program, preparers wrote their own SSN on client returns. That exposed millions of SSNs and created fraud risk. The PTIN replaced the SSN on filed returns. A paid preparer now enters only the PTIN, which protects their SSN while still identifying them to the IRS.
A PTIN belongs to a person, not a firm. A CPA who works at a large accounting firm still holds a personal PTIN. The firm holds an EIN. The two numbers coexist on the same return: the firm's EIN identifies the business, and the preparer's PTIN identifies the individual who signed it.
| Number | Identifies | Issued To | Cost |
|---|---|---|---|
| PTIN | Paid tax preparer | Individual preparers | $19.75/year |
| EIN | Business entity | LLCs, corporations | $0 |
| SSN | US worker | US citizens and residents | $0 |
| ITIN | Non-SSN individual | Foreign individuals | $0 |
The PTIN is the only number in this table that carries an annual fee and an annual renewal requirement. An EIN costs $0 and never expires. See the full tax identification number overview for how these numbers fit together.
How to Apply
How Do You Get a PTIN?
You get a PTIN by applying online at irs.gov/ptin and paying the $19.75 fee. The IRS issues the PTIN immediately in most online cases. You need an SSN, your date of birth, and prior-year tax return information to verify your identity.
Create an IRS PTIN Account
Complete the Application
Pay the $19.75 Fee
Receive Your PTIN
A US preparer applies online with an SSN. A preparer without an SSN must file paper Form W-12 with supporting identity documents, which extends processing to 4-6 weeks. Most non-residents never reach this step, because most non-residents are not paid US tax preparers. They are business owners who need an EIN without an SSN instead.
Who Needs
Who Needs a PTIN?
A PTIN is required for anyone who prepares or assists in preparing federal tax returns for compensation. CPAs, enrolled agents, tax attorneys, and seasonal preparers all need one. Unpaid volunteers and people preparing only their own returns do not.
Paid Tax Preparers
CPAs and Enrolled Agents
Tax Attorneys
Firm Staff Who Prepare Returns
Who Does NOT Need a PTIN
- People preparing only their own tax return
- Family members helping without charging a fee
- Unpaid VITA and TCE program volunteers
- Business owners who need an EIN for their LLC, not a PTIN
- Bookkeepers who do not prepare or sign federal returns
PTIN vs EIN
How Does a PTIN Differ From an EIN?
A PTIN identifies a paid tax preparer and costs $19.75 per year with annual renewal. An EIN identifies a business entity, costs $0, and never expires. The two numbers serve different parties on the same tax return and are never interchangeable.
Many business owners search for "PTIN" when they actually need an EIN. The confusion is understandable, because both are IRS-issued tax IDs. The distinction is simple: if you prepare tax returns for clients for money, you need a PTIN. If you own a US business and need a federal tax ID for it, you need an EIN.
| Factor | PTIN | EIN |
|---|---|---|
| Purpose | Identifies a paid preparer | Identifies a business |
| Format | P + 8 digits | XX-XXXXXXX |
| Cost | $19.75 per year | $0 |
| Renewal | Annual, expires Dec 31 | Never expires |
| Apply method | Online at irs.gov/ptin | Form SS-4 |
| SSN required | Yes for online | No, passport works |
| Who applies | Individual preparers | Business owners |
A non-resident who forms a US LLC needs an EIN to open a US bank account, accept payments, and file US returns. That EIN application uses Form SS-4, not the PTIN system. See what an EIN is and how to get an EIN for the full process.
For Non-Residents
Which Tax ID Does a Non-Resident Business Owner Need?
A non-resident business owner needs an EIN, not a PTIN. The EIN is the federal tax ID for a US LLC or corporation. You apply by faxing Form SS-4 to the IRS at 855-215-1627 using your passport number on Line 7b. No SSN or ITIN is needed.
The IRS online EIN tool requires an SSN, which blocks most non-residents. The fax method using Form SS-4 is the path for applicants without an SSN. ein.so prepares the SS-4, faxes it to the IRS, and delivers the EIN by email.
Form Your US LLC
Complete Form SS-4
Submit by Fax
Receive Your EIN
The PTIN system has no role in this process. A business owner does not prepare returns for clients, so a PTIN does not apply. See EIN for non-residents, the SS-4 form guide, and EIN without an SSN for full detail.
Pricing
How Much Do These Tax IDs Cost?
A PTIN costs $19.75 per year. An EIN costs $0 from the IRS. ein.so charges a service fee to file Form SS-4 for non-residents: $49 Standard (4-7 business days) or $97 Express (2-3 business days). The ITIN service costs $197 Standard or $297 Express.
The IRS never charges for an EIN. ein.so's fee covers preparing the SS-4 correctly, faxing it to the IRS at 855-215-1627, handling international address formatting, and delivering the assignment letter by email. This removes the rejection risk that ends most DIY non-resident attempts.
| Service | Provider | Cost | Timeline |
|---|---|---|---|
| PTIN | IRS | $19.75/year | Immediate online |
| EIN (DIY fax) | IRS | $0 | 4-7 business days |
| EIN Standard | ein.so | $49 | 4-7 business days |
| EIN Express | ein.so | $97 | 2-3 business days |
| ITIN Standard | ein.so | $197 | — |
| ITIN Express | ein.so | $297 | — |
A PTIN renews annually, so the $19.75 fee recurs each year. An EIN is a one-time assignment that never expires. See EIN cost and EIN processing time for more on timing and fees.
Compliance
What Tax Compliance Follows a US EIN?
A foreign-owned single-member US LLC must file Form 5472 with a pro-forma Form 1120 each year after receiving its EIN. The penalty for not filing is $25,000. The EIN is the starting point for US tax compliance, not the end of it.
A PTIN carries its own compliance duty: a preparer must hold a valid, current PTIN on every paid return. A business owner's compliance is different and centers on the entity's annual filings.
Form 5472 and Form 1120
BOI Report to FinCEN
State Annual Reports
Work With a CPA
Do Not Confuse the Penalties
- Missing the Form 5472 filing risks a $25,000 penalty for the LLC owner.
- Filing returns without a valid PTIN risks per-return penalties for the preparer.
- These are separate obligations for separate parties. Confirm tax specifics with a CPA.
Next Steps
Get the Right Tax ID
- Apply for an EIN — for your US LLC, faxed on Form SS-4 with your passport number
- Read the SS-4 form guide — line-by-line for non-resident applicants
- Get an EIN without an SSN — the fax method explained
- File your BOI report — required for most LLCs, free at fincen.gov/boi
- File Form 5472 — annually for foreign-owned LLCs ($25,000 penalty for non-filing)
- Open a US bank account — Mercury and Relay accept non-resident LLC owners
Related guides: Tax identification number | What is an EIN | EIN cost | EIN processing time | EIN for non-residents | How to get an EIN
Frequently Asked Questions
What is a PTIN?
A PTIN is a Preparer Tax Identification Number required for anyone who prepares or assists in preparing federal tax returns for compensation. The IRS issues it. The format is the letter P followed by 8 digits, such as P12345678. Paid preparers must enter their PTIN on every return they file for clients.
How much does a PTIN cost?
A PTIN costs $19.75 per year as of 2026. You pay the fee online at irs.gov/ptin when you apply or renew. The PTIN must be renewed each calendar year, and it expires on December 31. By contrast, the IRS charges $0 for an EIN, which never expires.
How do I get a PTIN?
Apply online at irs.gov/ptin. Create an account, complete the application, and pay the $19.75 fee. The IRS issues the PTIN immediately after payment in most cases. You need an SSN, your date of birth, and prior-year tax information for identity verification. Paper Form W-12 takes 4-6 weeks.
Is a PTIN the same as an EIN?
No. A PTIN identifies an individual tax preparer. An EIN identifies a business entity such as an LLC or corporation. The IRS issues both, but they serve different purposes. A PTIN costs $19.75 per year and renews annually. An EIN costs $0 and never expires.
Do I need a PTIN to prepare my own taxes?
No. A PTIN is required only for people who prepare federal tax returns for others in exchange for payment. You do not need a PTIN to file your own return or to help a family member without charging a fee. Unpaid VITA program volunteers are also exempt from the PTIN requirement.
Can a non-US resident get a PTIN?
A non-US resident without an SSN can apply for a PTIN using Form W-12 and supporting identity documents, but this is rare and only relevant if you prepare US tax returns for pay. Most non-resident business owners do not need a PTIN. They need an EIN for their US LLC, which ein.so files for $49.
Which tax ID does a non-resident business owner need?
A non-resident business owner needs an EIN, not a PTIN. The EIN is the federal tax ID for your US LLC or corporation. You apply by faxing Form SS-4 to the IRS at 855-215-1627 using your passport number on Line 7b. A PTIN applies only to paid tax preparers, not to business owners.
Does a PTIN replace an SSN or ITIN?
No. A PTIN does not replace an SSN or ITIN. It is a separate identifier used only on tax returns a preparer files for clients. An SSN is for US workers, an ITIN is for individuals who cannot get an SSN, and an EIN is for businesses. Each number has one purpose and does not substitute for another.
How often must a PTIN be renewed?
A PTIN must be renewed every calendar year. It expires on December 31 and renewal opens in mid-October. The renewal fee is $19.75. The IRS issues roughly 750,000 to 800,000 active PTINs each year. An EIN, by comparison, requires no renewal and stays valid for the life of the business.
What happens if a preparer files returns without a PTIN?
The IRS can assess penalties against a paid preparer who files federal returns without a valid PTIN. Each return prepared for compensation must carry the preparer's current PTIN. Penalties accumulate per return, so unregistered preparation is a direct compliance risk. Renew before December 31 to keep your PTIN active.
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