Recently, I received a letter from the never-ending IRS mailings. The topic: "Unethical Tax Preparers." My eye caught the abbreviation PTIN. What is that all about?

Officially: PTIN (Preparer Tax Identification Number) is an identification number assigned to tax preparers. Anyone who prepares federal tax returns for compensation is required to obtain a PTIN. The IRS introduced PTINs to improve the quality of tax return preparation and to protect taxpayers from unqualified or fraudulent tax preparers.

In practice: Your tax preparer is REQUIRED to include their valid PTIN on your tax return.

Where can you find this PTIN to ensure everything is in order?
Look on Form 1040, at the bottom right of the second page.

Do your tax returns include your preparer’s PTIN?

Does the IRS pay taxpayers?!
Does the IRS actually return money?!
Is it possible?

In short, yes, it’s possible. But, as always, there are nuances.
Under certain circumstances, such as:

• your income level;


• having dependents;


• overpaying taxes through your W-2 during the year;


• student loans, and other specific conditions;

the tax services may actually pay money to the taxpayer, for instance, by issuing a check or depositing it directly into your account (Refundable Credit).

Additionally, under specific conditions, there’s an opportunity to reduce your tax liability (to get Nonrefundable Credit), which is also a nice perk.

How can you make it happen? Consult a good tax professional!

How do you know if you are a US tax resident?

If any of two conditions are met:

• you have Form I-551 or just a Green Card;


• you are physically present in the United States on at least 31 days in the current year and 183 days during the last three years;

Then, congratulations, you are a US tax resident!

Tax resident status not only obliges you to pay taxes, but also allows you to receive various deductions and tax credits.

If you have any questions please contact us, we are always happy to help.