Industry guides
Taxes for accountants and tax preparers: PTIN, e-file mandate, preparer penalties and 2026 deductions
The tax rules that apply to an accounting or tax prep practice: the $18.75 PTIN fee and December 31 expiry, the 11-return e-file mandate, Form 8948 and 8944, section 6694 and 6695 preparer penalties, and 2026 Section 179, QBI and 1099 thresholds.
Prepared by Aldro Accounting · Updated · Sources checked
The quick answer
Every paid tax return preparer must have an IRS PTIN, which costs $18.75 for 2026 and for 2027 and expires on December 31 each year. A preparer or firm that reasonably expects to file 11 or more covered returns, such as Forms 1040 and 1041, in a calendar year must e-file them.
Taxes for an accounting practice
Aldro is the cheapest way to get your business taxes done: $399 flat, with bookkeeping at $20 a month. The flat price covers every federal and state business return the practice needs for the year, whether it files Schedule C, 1065, 1120-S or 1120.
An accounting or tax prep firm pays tax like any other business, but it also carries rules aimed at preparers: the PTIN, the e-file mandate and a set of preparer penalties. This page covers both sides.
PTIN: fee, renewal and the compliance check
All paid tax return preparers must have a PTIN. The PTIN fee is in addition to any fee for other certifications or licenses a preparer holds.
The fee to obtain or renew a PTIN is $18.75 for 2027, made up of a $10 fee per application or renewal plus $8.75 to the third-party contractor. The fee for 2026 is also $18.75. PTIN fees are non-refundable and non-transferable.
All PTINs expire on December 31 and must be renewed to stay active. Renewal season opens in mid-October each year for the following year.
To get a PTIN, a preparer must be in tax compliance: all individual and business returns that are due have been filed or extended, and all taxes due have been paid.
The e-file mandate for preparers
A specified tax return preparer is one who reasonably expects to file 11 or more covered returns in a calendar year. Covered returns are income tax returns of individuals, trusts or estates, such as Forms 1040, 1040A, 1040EZ and 1041.
Firms count in the aggregate. If the firm reasonably expects to file 11 or more covered returns, all members of the firm must e-file. EFINs are issued on a firm basis, and one EFIN covers all preparers in the firm.
A client can choose to file on paper. The preparer then attaches Form 8948, Preparer Explanation for Not Filing Electronically, with box 1 checked, and includes their PTIN where requested.
A preparer can ask for an undue hardship waiver on Form 8944. Approved waivers are valid for one calendar year.
Preparer penalties
The IRS penalizes preparers separately from their clients. For returns and refund claims filed in 2026, the due diligence penalty is $650 per failure, and it can reach $2,600 on one return or claim.
2026 numbers for the firm's own return
Section 179: for tax years beginning in 2026 the limit is $2,560,000, phasing out once qualifying property placed in service exceeds $4,090,000, with a $32,000 cap for a sport utility vehicle. For 2025 the limit was $2,500,000.
QBI: for 2026 the threshold is $403,500 for married filing jointly, $201,775 for married filing separately and $201,750 for all other returns, with phase-in ranges ending at $553,500, $276,775 and $276,750. For tax years beginning after December 31, 2025, there's a minimum deduction of $400 for taxpayers with at least $1,000 of qualified business income.
Cash method: for 2026 a corporation or partnership qualifies if its average annual gross receipts for the prior 3 tax years don't exceed $32,000,000.
1099s the firm files
For payments made after December 31, 2025, the base reporting threshold for payments for services in a trade or business is $2,000, adjusted for inflation for returns filed in 2027.
All information returns are now filed electronically through the Information Returns Intake System (IRIS). Federal tax deposits must be made by electronic funds transfer, generally through EFTPS, IRS Direct Pay or the business tax account.
For a partnership or S corporation return due in 2027, the late-filing penalty uses a dollar amount of $260 per partner or shareholder.
Bookkeeping for an accounting firm
A firm that is busy with client deadlines often falls behind on its own books. The PTIN compliance check is a good reason not to: a preparer's own returns have to be filed and taxes paid to get a PTIN.
Aldro's bookkeeping at $20 a month covers unlimited bank and card accounts, monthly reconciliation and statements. Our team prepares and files the firm's own returns and its Forms 1099-NEC. Payroll processing and sales-tax filing aren't included.
Worked example
A two-person tax prep firm expects to prepare 9 individual returns each, 18 in all. Each preparer is under 11, but the firm counts in the aggregate, so 18 is over the threshold and both must e-file. If one client insists on paper, the preparer attaches Form 8948 with box 1 checked. Renewing both PTINs for 2027 costs 2 times $18.75, or $37.50.
Common questions
How much does a PTIN cost in 2026 and 2027?
$18.75 for each year: a $10 IRS fee plus $8.75 for the contractor. It's non-refundable, and every PTIN expires December 31.
When does an accountant have to e-file client returns?
When the preparer, or the firm in the aggregate, reasonably expects to file 11 or more covered returns such as Forms 1040 and 1041 in a calendar year.
What if a client wants a paper return?
The client may choose paper. The preparer attaches Form 8948 with box 1 checked and includes their PTIN.
What are the penalties for paid preparers?
Due diligence failures are $650 each for returns filed in 2026 and $665 in 2027. Failing to sign or include a PTIN is $65 per failure in 2027, up to $33,000. Understatement penalties start at the greater of $1,000 or 50% of the fee.
What is the 2026 Section 179 limit for firm equipment?
$2,560,000, phasing out once property placed in service exceeds $4,090,000.
The cheapest way to get your business taxes done: $399 flat.
Business tax filing is $399 USD a year, and it covers everything tax for that year.
How it works
- Tell us about your business. A two-minute form. No payment is collected through it.
- Get your next steps by email. We’ll email you the next steps within one business day. After you sign up we’ll send you a secure upload link for your documents.
- We file it. Our team prepares and files your return. Add bookkeeping for $20 a month if you want it.
What's included
$399 a year covers everything tax for that tax year.
- Every business return for the year. All the federal and state or provincial business returns you need for the tax year: Schedule C, 1065, 1120-S, 1120 and their state returns in the US; T2, or T1 with T2125, in Canada.
- More than one state. Multi-state returns are included at the same price.
- Your personal return. The owner’s personal return (1040 or T1) is included when it’s needed for the business income.
- Quebec. Quebec returns (CO-17, TP-1 and TP-80) are included. Our Quebec pages are in French, and our team works with you in English.
- Extensions and reminders. Extensions (Form 7004 or 4868) and quarterly estimate reminders are included.
- Information returns. 1099-NEC, T4/T4A and T5018 slips are included in the tax price.
- City and excise returns. City and local business tax returns, and state excise returns such as Washington B&O, are included in the yearly price.
- Franchise tax reports. State franchise tax reports, such as the Texas franchise tax report, are included.
- Estimated tax and instalment amounts. We work out your quarterly estimated tax payments in the US, or your CRA instalments in Canada, and tell you what to pay and when.
- Unfiled past years. Each unfiled prior-year return is $399 per tax year, the same flat price.
- Bookkeeping at $20 a month. Unlimited bank and card accounts, monthly reconciliation and monthly statements.
Basic inventory tracking for online stores, such as Shopify, is included. Full cost-of-goods reconciliation is quoted separately. Payroll processing and sales-tax filing aren’t included in bookkeeping. Prices are in USD. Our team prepares and files your return.
Sources
- IRS: PTIN application and renewal FAQs · checked October 31, 2026
- IRS: E-file requirements for specified tax return preparers · checked October 31, 2026
- IRS: News and updates for paid preparers · checked October 31, 2026
- IRS: Revenue Procedure 2025-32 · checked October 31, 2026
- IRS: Tax preparer penalties · checked October 31, 2026
- IRS: Publication 509 (draft) · checked October 31, 2026
- IRS: Publication 509 · checked October 31, 2026
This guide explains general rules from the sources listed. It isn’t tax advice for your situation.