IRS Change in Preparer Information Entries

[FEDUKE404]

For as long as I can remember, in the section marked "Third Party Designee" above the signature areas, when authorized the "yes" box has been checked with only the word "Preparer" then entered. There was no other information provided, with the logic being that the relevant information was already shown at the bottom of the tax return.

As of a very recent software update, the same information now shows my name, my telephone number, and also generates an error message due to a "missing" PIN number.

Is this a new change? Seems rather strange to show up mid-season, especially as I have already filed numerous returns "the old way."

FE

[taxea]

yes..I use proseries and I noticed it there to. They don't include the pin in case you change it from year to year. Your program updates throughout the tax season.

[FEDUKE404]

Issue is other than PIN

yes..I use proseries and I noticed it there to. They don't include the pin in case you change it from year to year. Your program updates throughout the tax season.

But my point is for many past years the ONLY entry on the Third Party line was the single word "Preparer."

Now my actual name and my telephone number are being automatically entered, along with a PIN (number from whatever source).

What has changed within the last week or so?????

And what will this do for IRS information exchanges with a firm when "Joe," whose name and PIN appears on the tax return, is not there for whatever reason at a later date?

FE

[JohnH]

The Third Party Designee only matters for (I think) a year. So if the person whose name and number appears there isn't available, the taxpayer would just have to work with the new representative via the POA route.

ATX told us that IRS started requiring a name in that spot. For some reason they decided that "preparer" isn't good enough, even though the preparer's name appears on the return as well. Maybe they're just too tired to look.

[FEDUKE404]

Answer Found!!

Hot off the IRS press, as of February 19, 2010.

F1040-089 - For Tax Year 2009, if the Form 1040 Third Party Designee is checked, then the Third Party Name, Phone Number and PIN is required on all returns.

The exception in prior years (If "PREPARER" was entered in the Third Party Designee name, the Phone Number and PIN was not required) does not apply for Tax Year 2009.

(Updated 02/19/2010)


FE

[Burke]

I am using ATX and it is still showing "preparer" on that line. Has yours changed?

[FEDUKE404]

Change

I am using ATX and it is still showing "preparer" on that line. Has yours changed?

As of this morning.....better check your update??

FE

[JohnH]

I am using ATX and it is still showing "preparer" on that line. Has yours changed?

I mis-spoke. It wasn't ATX who told us this, it was a conversation on the Unofficial ATX Forum. And the issue was the fact that a name is now required but ATX still pre-prints "preparer" erroneously, as you just pointed out.

However, it really isn't much of a big deal because most issues which can be handled via the Third Party Designee route can be handled just as easily by conferencing the client in on the call and answering whatever questions IRS might have.

[Lion]

Preparer

My very pricey ProSystem fx that I just updated today still prints Preparer. Think I better call them!

[S T]

Change

My software issued the change about 1 week - 10 days ago

Sandy

[David1980]

The change was in one of those efile documents last year but it got missed by most software, as you can tell. It didn't just change this week or anything. (Well, they may have changed that they reject it, but the change that preparer was no longer a valid 3rd party auth isn't new.)

[DonPriebe]

Not a mid-season change

Discontinuing the use of "Preparer" was not a mid-season change. The instructions for the 1040 say to enter the full name, PIN, etc. (p.75)

The first time I found out about it was when my first NY e-file was rejected. Apparently NY had an error routine in place long before the Federal or software vendor did.

[oceanlovin'ea]

Just checked

I was curious because I had a client that had his return rejected because of the 3rd party designee and I didn't catch it. I couldn't understand what had happened. The return printed my name but no PIN so it rejected.

Where does the PIN come from? It is not the same as our PTIN is it?

We have so many PINs and other numbers to remember. I get confused. I am not sure where the PIN came from that is showing on my returns.

Linda

[JohnH]

The PIN is anything you want it to be. It can be different from one return to another if you wish. A common usage is to enter the last 5 digits of your PTIN, but anything will work - you just need to have a way to know what it is if you speak with the IRS about the return.

Presumably you'd have the return in front of you when doing this, so you'd be able to see whatever PIN you used on that return.

[Jiggers]

3rd Party

Drake has always printed my name, phone number and PIN. It has never used "Preparer".

A very professional method, if you ask me.