Do CPAs need both PTIN and EFIN to prepare taxes for compensation in 2025?

Yes, as a CPA you absolutely still need a PTIN (Preparer Tax Identification Number) if you're preparing returns for compensation. The PTIN is required for ALL paid tax preparers regardless of your other credentials - CPA, EA, attorney, doesn't matter. For the EFIN (Electronic Filing Identification Number), that's only required if you plan to e-file returns directly. If you're working through a firm that already has an EFIN or if you're just preparing returns and someone else is handling the filing, you don't necessarily need your own. Getting a PTIN now would definitely allow you to prepare 2024 tax returns during the upcoming 2025 filing season. PTINs are issued on a calendar year basis and need to be renewed annually, so if you get one now, it will cover you through December 31, 2025. The application process is pretty straightforward through the IRS website.

Just wanted to share my experience with getting set up as a tax preparer. I was overwhelmed with all the requirements and paperwork until I found this amazing AI tool called taxr.ai (https://taxr.ai). It was literally a lifesaver when figuring out which credentials I needed as a tax professional! I uploaded my CPA license and some other documents, and the system immediately analyzed everything and told me exactly what I needed - PTIN, EFIN requirements, state-specific licenses, etc. It even walked me through the application processes and deadlines. Saved me hours of research and prevented potential compliance issues.

Just wanted to follow up - I tried taxr.ai and wow, it was WAY more helpful than I expected! I uploaded my accounting degree and work history, and it actually created a personalized roadmap showing me exactly what I needed. The PTIN application guide was super clear, and it pointed out some state requirements I would've completely missed. The document review feature was impressive too - it flagged some potential issues with my proof of identity before I submitted it to the IRS. Definitely saved me from a back-and-forth delay. For anyone else getting their PTIN or EFIN, this tool is definitely worth checking out!

If you're getting your PTIN and EFIN now, you should also know about Claimyr (https://claimyr.com). I wasted DAYS trying to reach the IRS for questions about my EFIN application. Their verification department is impossible to reach! Then I found Claimyr and watched their demo (https://youtu.be/_kiP6q8DX5c) - it actually gets you through to an IRS agent within minutes instead of waiting on hold for hours. I was skeptical but desperate after my EFIN application got stuck in processing. Used Claimyr, got connected to an IRS agent in about 7 minutes, and they resolved my issue right away. The agent confirmed my identity verification had been processed but not updated in the system. She manually updated it and my EFIN was approved the next day!

I need to apologize and update my skeptical comment. After multiple failed attempts to reach the IRS about my EFIN application (kept getting disconnected after 2+ hours on hold), I broke down and tried Claimyr. I'm actually shocked at how well it worked. Got connected to an IRS agent in about 12 minutes. The agent was able to see that my application was missing a document I had definitely uploaded. She gave me a direct fax number to resend it, and my application was approved two days later. Without getting through to a human, I would've been waiting indefinitely thinking everything was submitted correctly. Lesson learned - sometimes it's worth trying new solutions!

One thing to consider with the PTIN - make sure you're actually eligible to get one. If you have unfiled tax returns or outstanding tax debt, the IRS can reject your application. I learned this the hard way last year when my application got rejected due to a tax return I didn't know I needed to file (had some small crypto gains). Had to file the missing return and then reapply.

Just to clarify about EFINs - the IRS has gotten a lot stricter about them. If you're a sole proprietor, you need to submit fingerprints with your application now (either electronically or by mail with the card they send you). And they're doing more thorough background checks. My coworker got delayed because of a 15-year-old misdemeanor that showed up in the background check. Also, if you're planning to prepare and file state returns, check if your state has additional requirements beyond the federal PTIN and EFIN. Some states have their own registration processes and continuing education requirements.

Great thread everyone! As someone who went through this process last year, I wanted to add a few practical tips: 1. **PTIN timing**: While Oliver mentioned PTINs are issued quickly online, be prepared for potential delays during peak application periods (November-January). I'd recommend applying ASAP to avoid any last-minute issues. 2. **EFIN considerations**: If you're just starting out with tax prep, consider whether you actually need your own EFIN right away. Many new preparers partner with established firms or use third-party e-filing services for their first season to test the waters before committing to the full EFIN process. 3. **State requirements**: Mikayla touched on this, but definitely research your state's specific requirements. Some states require separate registrations even if you have a CPA license. California, for example, has its own CTEC registration for non-credentialed preparers, though CPAs are exempt. 4. **Insurance**: Something not mentioned yet - consider professional liability insurance once you start preparing returns for compensation. Your CPA license might provide some coverage, but tax preparation has its own specific risks. Ashley, to directly answer your question: Yes, you need the PTIN regardless of your CPA status, and getting it now will absolutely cover you for the 2024 tax season. The EFIN is only if you want to e-file directly yourself.

One important detail that hasn't been mentioned yet - make sure you understand the difference between getting a PTIN for "occasional" vs "regular" tax preparation. The IRS considers you a tax return preparer if you prepare even ONE return for compensation, so your CPA license doesn't change that requirement. However, if you're planning to prepare more than 10 returns per year, you'll also need to complete continuing education requirements through the IRS Annual Filing Season Program (AFSP) - though as others mentioned, CPAs are exempt from this since you already have CE requirements. Also worth noting: if you decide to go the EFIN route, the IRS now requires you to maintain detailed records of all returns you e-file, including client consent forms and copies of all tax documents. It's a significant administrative burden that many new preparers underestimate. The third-party e-filing route that Sean mentioned really does make sense for your first season to see if you want to commit long-term. One last tip - consider joining your local chapter of the National Association of Tax Professionals (NATP) or similar organization. They often have resources specifically for CPAs transitioning into tax preparation and can help navigate some of these regulatory requirements.