Compliance
Compliance Essentials for Tax Preparers: PTIN Renewal and 1099-K Threshold Changes
Tax preparers must navigate two key compliance changes as of late 2025: renewing their PTINs and adapting to new 1099-K thresholds under OBBB. Here's what you need to know—and do.
By NomadicTax Research Team • 5-8 min read • November 14, 2025
## 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](https://www.irs.gov/newsroom/news-releases-for-october-2025?utm_source=openai))
### 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](https://www.irs.gov/newsroom/news-releases-for-october-2025?utm_source=openai))
- 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](https://www.irs.gov/irb/2025-42_IRB?utm_source=openai))
### 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](https://www.irs.gov/newsroom/news-releases-for-october-2025?utm_source=openai))
- 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
1. Ensure your PTIN renewal is done early—missed renewal can delay or block your ability to file returns electronically.
2. Update bookkeeping practices for clients who receive payments via platforms—track gross sales and determine if 1099-K will apply under the lower threshold.
3. 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.