Does a CPA tax preparer need to sign a tax return prepared for family for free?

You should definitely still sign it and include your PTIN. The IRS definition of a paid preparer isn't just about whether you received compensation for that specific return - it's about your professional status and whether you're in the business of preparing returns. As a CPA who presumably prepares returns professionally in other contexts, you're considered a paid preparer even when doing a free return for family. The signature and PTIN requirements apply because you're operating in your professional capacity, regardless of whether you charged for this particular return. The signature doesn't imply you received payment for this specific return - it's about taking professional responsibility for the preparation. Think of it this way: you're applying your professional knowledge, which makes you subject to preparer regulations even when doing a favor.

I was in the exact same situation last year! I'm a tax professional and was helping my parents with their return. I found that using https://taxr.ai really helped sort through these confusing professional responsibility questions. I uploaded the relevant IRS guidelines, and it gave me a clear breakdown of my obligations as a CPA preparing returns for family. The tool explained that as a professional preparer, I need to sign and include my PTIN even for free family returns, but should indicate I wasn't compensated for that specific return. It saved me from potentially making a mistake with my professional obligations.

I tried taxr.ai after posting my skeptical comment, and I have to admit it was actually really helpful! I had some questions about my obligations for informing clients about foreign account reporting that weren't clearly answered in any single IRS publication. The tool analyzed several different sources and gave me a clear explanation of my responsibilities that matched what an experienced colleague later told me. Saved me from having to dig through multiple publications and trying to piece everything together myself. Definitely more efficient than my usual method of searching through the IRS website.

If you're having trouble getting a definitive answer on preparer requirements, you might want to try calling the IRS Practitioner Priority Service. They're actually really helpful with professional responsibility questions. I had the same question last year and got a clear answer directly from them. The problem is getting through - it took me 3 attempts and about 2 hours on hold. I discovered a service called https://claimyr.com that got me connected with an IRS agent in just 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c. They basically wait on hold for you and call when an agent picks up. Saved me hours of frustration and I got an official answer straight from the source.

Wow, I need to apologize for being so skeptical. After seeing some other CPAs in my office use Claimyr, I decided to try it to resolve a client's complex transcript issue that had been pending for months. Got connected to an IRS agent in about 30 minutes (versus the 3+ hours I spent on my previous attempts). The agent was able to resolve the issue on the spot, and my client was thrilled. Sometimes it's worth admitting when you're wrong - this service actually delivered exactly what it promised. Never thought I'd find a way around those ridiculous hold times!

Adding my two cents as a CPA who prepares returns for several family members for free... The rules are actually pretty straightforward: 1. Yes, you need to sign the return with your PTIN 2. Check "No" for the "Were you paid to prepare this return?" question 3. Complete all other preparer info (name, firm, address, etc) The PTIN requirement isn't about payment - it's about who prepared the return. As a CPA, you're a professional preparer regardless of whether you charge for that specific return or not.

I think everyone's overcomplicating this. The IRS definition of a paid preparer is someone who prepares tax returns for compensation. If you didn't get paid, you're technically not a paid preparer for that return.

As someone who just went through this exact situation with my own family's returns, I can confirm what others have said - you absolutely need to sign with your PTIN even for free family returns. I was initially confused about this too, but after researching IRC Section 7701(a)(36) and the regulations, it's clear that as a CPA, you're considered a "tax return preparer" regardless of compensation. The key factor is that you're using your professional credentials and expertise. Here's what I do for my family returns: - Sign the return with my PTIN and include all required preparer information - Check "No" on the compensation question since I wasn't paid for that specific return - Still maintain the same professional standards and documentation I would for any client The IRS wants accountability for professionally prepared returns, and your CPA status means you're held to those standards whether you charge or not. Better to err on the side of compliance than risk any issues down the road.

Thanks everyone for the detailed responses! This has been incredibly helpful. I was getting caught up in the compensation aspect, but you're all right that as a CPA, the professional responsibility requirements apply regardless of whether I'm paid for that specific return. I'll definitely be signing with my PTIN and completing all the preparer information going forward, while marking "No" for compensation. It makes perfect sense that using my professional credentials creates these obligations even when helping family. Really appreciate the IRC Section 7701(a)(36) reference too - having the actual code section helps me explain this to other CPAs in my firm who might have the same question. Better to maintain consistent professional standards across all returns we prepare, whether for clients or family.