INFLATION ADJUSTMENTS INCREASED TAX BENEFITS IN 2012

The IRS announced that there are 738,000 tax return preparers who must renew their Preparer Tax Identification Numbers (PTINs) before January 1, 2012. They must do it before the year begins. Preparers who used paper applications to receive their PTINs will receive an activation code in the mail from the IRS which they can use to create an online account to convert to an electronic renewal for 2012. Individuals can also renew by using a paper Form W-12  PTIN application. Yet  renewing electronically avoids a four to six week wait  for processing the renewal request. There have been changes made for the upcoming 2012 tax season that will include:
- Return preparers must self-identify that they are supervised preparers or Non-1040 preparers.
- Supervised preparers will need to provide a supervisor PTIN when applying or renewing their PTINs.
- Credentialed preparers (certified public Accountants, attorneys, unrolled agents) must provide the expiration date for their license when they apply for their new PTINs.
Taxpayers who use a paid preparer are urged to choose a return preparer with a Valid PTIN. Preparers should also sign the returns they prepare for taxpayers and enter their PTINs.

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