A tax return preparer is any individual who prepares, for compensation, all or a substantial portion of a federal tax return or claim for refund. Professional credentials, education, nationality, or business location do not determine preparer status. (“A tax return preparer is any person who prepares for compensation… all or a substantial portion…”)
A person becomes a preparer even if they complete only a substantial portion of the return, not necessarily the entire document.
Types of Tax Return Preparers
Signing Tax Return Preparer
The individual with primary responsibility for the accuracy of the return or claim for refund.
Nonsigning Tax Return Preparer
An individual who prepares all or a substantial portion of a return but does not sign it.
Who Is Not a Tax Return Preparer
A person is not considered a preparer solely because they:
- Provide typing, reproducing, or mechanical assistance
- Assist through the IRS Volunteer Income Tax Assistance (VITA) program
- Prepare returns for their employer or the employer’s employees
- Prepare returns as a fiduciary
- Prepare a claim for refund in response to a notice of deficiency or waiver after an audit begins (“A person shall not be a tax return preparer merely because such person furnishes typing… provides tax assistance under VITA…”)
Preparer Tax Identification Number (PTIN)
All paid tax return preparers—including attorneys, CPAs, and enrolled agents—must obtain a Preparer Tax Identification Number (PTIN) before preparing any federal tax return. (“All paid tax return preparers… must have a PTIN before preparing any federal tax returns.”)
A PTIN is required for anyone who:
- Prepares all or substantially all of a return for compensation
- Makes determinations that affect tax liability
- Signs a return as a paid preparer
Preparing or signing a return without a valid PTIN violates IRS regulations.
Duties for Handling Returns
A paid preparer must:
- Sign the Return
If required by law or instructions, the preparer must sign the return.
- Include Their PTIN
The preparer must place their identifying number in the paid preparer section.
- Provide a Copy to the Taxpayer
A copy of the completed return must be given to the taxpayer no later than the time the original is presented for signature.
- Maintain Records for Three Years
Preparers must keep, for three years after the close of the return period:
- A completed copy of each return or claim for refund or
- A list containing:
- Taxpayer name
- Taxpayer identification number
- Taxable year
- Type of return or claim
- Name of the individual preparer who signed the return (“Keep the following records for a period of three years… retain a completed copy… or retain a record of the name, taxpayer ID number…”)
A “return period” is the 12‑month period beginning July 1 each year.