Does a paid income tax return preparer need a separate Illinois-issued PTIN, and which Illinois tax returns require a PTIN?

Plain-English summary

A taxpayer wrote to the Illinois Department of Revenue asking about Public Act 99-641, the State Tax Preparer Oversight Act, which was set to take effect January 1, 2017. The taxpayer had received conflicting information and wanted to know two things: whether paid preparers would need a brand-new PTIN issued by Illinois, and which Illinois tax returns would require a PTIN to be listed.

The Department's answer: no new Illinois PTIN exists. The "PTIN" referenced in the Act is the same Preparer Tax Identification Number already issued to preparers by the Internal Revenue Service under IRS Notice 2011-6, used as the preparer's identifying number for purposes of Internal Revenue Code Section 6109(a)(4). The Illinois Department of Revenue does not issue its own PTINs to income tax return preparers.

On the second question, the Department explained that once its rules take effect for tax years beginning on or after January 1, 2017, the PTIN must be included on returns and refund claims filed under the Illinois Income Tax Act — covering individual returns, business returns, and withholding returns. The Act does not extend to sales and use tax returns. The PTIN requirement itself becomes effective only once the Department formally adopts implementing rules, as directed by Section 10(a) of the Act.

What this means for you

If you are a paid income tax return preparer in Illinois

You do not need to apply for or obtain a separate Illinois-issued PTIN. Simply continue using the PTIN the IRS already assigned to you, and once the Department's implementing rules take effect for taxable years beginning on or after January 1, 2017, include that same PTIN on Illinois individual, business, and withholding returns (and refund claims) that you prepare under the Illinois Income Tax Act.

If you file sales and use tax or payroll-related returns

The PTIN requirement described in this letter applies only to returns and refund claims filed under the Illinois Income Tax Act. Based on this letter, it does not apply to sales and use tax returns.

Common questions

Does Illinois issue its own PTIN for paid preparers?
No. The Department does not issue PTINs to income tax return preparers; the PTIN required is the one already issued by the IRS under Notice 2011-6, used under Internal Revenue Code Section 6109(a)(4).

Which Illinois returns require a preparer's PTIN?
Returns and refund claims filed under the Illinois Income Tax Act for taxable years beginning on or after January 1, 2017 — including individual, business, and withholding returns. Sales and use tax returns are not covered by this requirement.

When does the PTIN requirement actually take effect?
It becomes effective only once the Department adopts rules required under Section 10(a) of the State Tax Preparer Oversight Act (Public Act 99-641), for taxable years beginning on or after January 1, 2017.

Citations and references

• Public Act 99-641 — the State Tax Preparer Oversight Act
• State Tax Preparer Oversight Act, Section 5 (definition of "PTIN")
• State Tax Preparer Oversight Act, Section 10(a) (rulemaking requirement and PTIN inclusion mandate)
• Illinois Income Tax Act, Section 1501 (definition of "income tax return preparer")
• Illinois Income Tax Act (returns and refund claims subject to the PTIN requirement)
• 2 Ill. Adm. Code § 1200.120(b) and (c) (General Information Letter status and effect)
• IRS Notice 2011-6 (definition of PTIN)
• Internal Revenue Code Section 6109(a)(4) (preparer identifying number)

Source

• Landing page: https://taxarchive.illinois.gov/research/legal/letter-rulings/income-tax/2016.html
• Original PDF: https://tax.illinois.gov/content/dam/soi/en/web/taxarchive/research/legal/letter-rulings/income-tax/2016/it-16-0005-gil.pdf

Original ruling text

IT 16-0005-GIL 09/27/2016

SIGNATURE

Income Tax Return Preparer must include PTIN on returns filed under the IITA as
required by Department rules.

September 27, 2016

Re:

Illinois Paid Preparer Requirements

Dear Xxxxx:
This is in response to your letter dated August 17, 2016 in which you request information
regarding Public Act 99-641. The nature of your request and the information provided requires
that we respond with a General Information Letter (GIL). A GIL is designed to provide general
information, is not a statement of Department policy and is not binding on the Department. See
2 Ill. Adm. Code § 1200.120(b) and (c), which may be accessed from the Department’s web site
at www.tax.illinois.gov.
Your letter states as follows:
I recently heard about Public Act 99-641 which is slated to go into effect on January 1,
2017. Further, I was provided written information regarding this Act. What I heard and
what I read do not agree, so I am writing this for clarification regarding this Act.
My questions are:
1) Will the PTIN required on Illinois returns filed by paid preparers be the same PTIN that
paid preparers use issued by the Internal Revenue Service or will it be a new PTIN issued
by the Illinois Department of Revenue?
2) On what Illinois returns are the paid preparer PTINs required? Will the PTIN be only
for income tax returns and claims for refunds? Will this be only for personal or for business
tax returns as well? Will PTINs be required for payroll tax returns filed with the Illinois
Department of Revenue and the Illinois Department of Employment Security? Will PTINs
be required on sales and use tax returns?
RULING
Public Act 99-641 enacts the State Tax Preparer Oversight Act (the Act). Section 10(a) of the
Act states:
For taxable years beginning on or after January 1, 2017, the Department shall, by rule,
require any income tax return preparer, as defined in Section 1501 of the Illinois Income Tax
Act, to include his or her PTIN on any tax return prepared by the income tax return preparer and

filed under the Illinois Income Tax Act or any claim for refund of tax imposed by the Illinois
Income Tax Act.
Section 5 of the Act states that the term “PTIN” means a Preparer Tax Identification Number, as
defined in Internal Revenue Service Notice 2011-6. Therefore, with respect to your first question,
the PTIN required under the Act is the PTIN issued to a preparer by the Internal Revenue Service
as the preparer’s identifying number for purposes of Internal Revenue Code Section 6109(a)(4).
The Department of Revenue does not issue PTINs to income tax return preparers.
Regarding your second question, pursuant to rules promulgated by the Department, the PTIN is
required to be included on returns and claims for refund filed under the Illinois Income Tax Act
with respect to taxable years beginning on or after January 1, 2017. Therefore, the PTIN
requirements apply to individual returns, business returns, and withholding returns. The Act does
not apply to sales and use tax returns. The PTIN requirements become effective upon the
adoption of Department rules as required under the Act.
As stated above, this is a GIL. A GIL does not constitute a statement of policy that applies,
interprets or prescribes the tax laws, and it is not binding on the Department. If you have
questions regarding this GIL you may contact Legal Services at (217) 782-2844. If you have
further questions related to Illinois income tax laws, visit our website at www.tax.illinois.gov or
contact the Department’s Taxpayer Information Division at (217) 782-3336.

Sincerely,

Brian L. Stocker
Staff Attorney (Income Tax)

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