IRS announces 2021 PTIN fees for tax return preparers

[Elrod]

IR-2020-159, July 15, 2020

WASHINGTON — The Internal Revenue Service announced today the annual fee for 2021 that tax return preparers must pay to apply for or renew their Preparer Tax Identification Number (PTIN).

https://www.irs.gov/newsroom/irs-announces-2021-ptin-fees-for-tax-return-preparers

[Abby Normal]

Does anybody know what the contractor does for $14.95? Background checks? Or is it mostly Gravy Train?

[Gail in Virginia]

$2 is to pay someone to assign a number or verify that the number is still in use for that person, maybe look to see if they have filed their tax return (although probably not, because IRS probably won't share that info with contractor.)  $2 is to process the payment.  The rest is to make a profit? 

[Abby Normal]

Seems so unnecessary since the IRS already accepts payments every day, and you go online to renew your PTIN anyway. My state doesn't use any 3rd parties, except perhaps a credit card processor, when I go online to renew my license.

[Lee B]

22 minutes ago, Abby Normal said:

Seems so unnecessary since the IRS already accepts payments every day, and you go online to renew your PTIN anyway. My state doesn't use any 3rd parties, except perhaps a credit card processor, when I go online to renew my license.

The reality is that the IRS is short staffed, underfunded and running ancient computer systems that don't talk to each other.

Outsourcing stuff like this to third party vendors will only accelerate in the future.