What penalties can be imposed against tax return preparers who have not obtained a PTIN?
Any individual who, for compensation, prepares, or assists in the preparation of, all or substantially all of a tax return or claim for refund after December 31, 2010 must have a PTIN. Failure to do so could result in the imposition of Internal Revenue Code section 6695 penalties, injunction, referral for criminal investigation, or disciplinary action by the IRS Office of Professional Responsibility. Exception: Certain individuals who have made a good faith effort to timely obtain a PTIN but experienced processing issues are being notified that they may prepare returns during the interim period while their applications are pending. These notifications are being issued on the online system to people who make four unsuccessful attempts to register and in writing (email or letter) to individuals who have timely submitted paper applications and payments. Refer to Notice 2011-11 for additional information.
