What’s Changing on the Prep Side?
Late October 2025 brought two major changes from the IRS affecting tax return preparers: the PTIN renewal period for 2026 is open, and the filing threshold for Form 1099-K reverts to $20,000 under the One, Big, Beautiful Bill. (irs.gov)
PTIN Renewal Reminder
- More than 800,000 paid tax preparers must renew their Preparer Tax Identification Number (PTIN) annually; the renewal window for 2026 is now open. (irs.gov)
- Fees for PTIN application or renewal have been adjusted—as per Revenue Procedure 2025-42, the new user fee is $10 plus any cost payable to a third-party contractor, a slight decrease from the previous setup. (irs.gov)
1099-K Threshold Falls Back
- Fact Sheet 2025-08 clarifies that the threshold for reporting Form 1099-K under OBBB returns to $20,000, impacting platforms, payment processors, and individuals receiving payments through them. (irs.gov)
- Taxpayers who previously dismissed small platform payments may now find them reportable while preparing their returns—this could affect freelancers, gig workers, and online sellers.
Actionable Steps for Preparers & Businesses
- Ensure your PTIN renewal is done early—missed renewal can delay or block your ability to file returns electronically.
- Update bookkeeping practices for clients who receive payments via platforms—track gross sales and determine if 1099-K will apply under the lower threshold.
- Communicate with clients: freelancers, online sellers, and gig workers should be aware that platform payments may now generate 1099-K forms with lower thresholds.
Example Situation
A freelance graphic designer using platforms like marketplace websites previously earning $18,000 via them now crosses the $20,000 mark. They’ll receive a 1099-K from the platform, even if platform fees or expenses shrink their net income. Preparers must ensure reported gross receipts match the 1099-K, and clients understand their obligations.
Risks of Non-Compliance
- Failing to renew PTIN can result in non-participation in e-file programs, reputational damage, or inability to prepare returns legally.
- Ignoring 1099-K thresholds means potential under-reporting; IRS may compare platform data to taxpayer returns and adjust owed amounts, including interest and penalties.
Summary
Staying current on PTIN renewals and 1099-K threshold changes under OBBB isn't optional—it’s a core element of tax preparer due diligence. Clean systems, clear communication, and timely updates to your practice will prevent false returns, unnecessary penalties, and trust erosion with clients.