Alternative identification numbers for tax return preparers.

• Author: Trompeter, Jean E.

In response to concerns regarding the possible fraudulent use of tax return preparer Social Security numbers, the Internal Revenue Service Restructuring and Reform Act of 1998 contained a provision authorizing the IRS to create an alternative identification number that return preparers can use on client returns. The Service recently issued temporary and proposed regulations and the form to implement that provision.

The regulations permit the use of an alternative identification number on returns or claims for refunds filed after 1999. For returns filed prior to 2000, the preparer identification number to be inserted on client returns must still be the preparer's Social Security number.

A tax return preparer is not required to apply for an alternative identification number and may continue to use his Social Security number as the preparer identification number on...