Early Retirees Can Enjoy COLAs
Beginning this year, tax practitioners can use alternative numbers called PTINs on the individual tax returns they prepare for clients instead of their own Social Security numbers. The IRS is providing this option in response to practitioners' concerns about privacy and possible misuse of their Social Security numbers by anyone who has access to prepared returns. The 9-digit PTIN will begin with the letter "P." Form W-7P, Application for Preparer Tax Identification Number, can be obtained from the IRS's Web site (www.irs.ustreas.gov) or by calling its toll-free forms hot line--800829-3676. States get in the act Most states are allowing tax preparers to use the IRS-issued PTIN numbers on state tax returns. However, thirteen states do not recognize the PTINs; of them, 11 do not require preparers to enter their Social Security numbers on state returns. Arizona and Tennessee are the only states that require practitioners to use their Social Security numbers on state tax returns, but will not permit them to use the PTINs. Allows federal State PTINs Reason Alabama Yes Alaska Yes Arizona No Arkansas Yes California Yes Colorado Yes Connecticut Yes Delaware Yes Florida Yes Georgia Yes Hawaii Yes Idaho Yes Illinois Yes Indiana Yes Iowa Yes Kansas N/A Social Security number not required Kentucky Yes Louisiana Yes Maine Yes Maryland N/A Social Security number not required Massachusetts Yes Michigan Yes Minnesota Yes Mississippi Yes Missouri Yes Montana Yes Nebraska N/A Social Security number not required Nevada N/A Social Security number not required New Hampshire Yes New Jersey Yes New Mexico Yes New York Yes North Carolina Yes North Dakota Yes Ohio Yes Oklahoma N/A Social Security number not required Oregon N/A Social Security number not required Pennsylvania Yes Rhode Island Yes South Carolina Yes South Dakota Yes Tennessee No Texas N/A Social Security number not required Utah Yes Vermont Yes Virginia Yes Washington N/A Social Security number not required West Virginia N/A Social Security number not required Wisconsin N/A Social Security number not required Wyoming N/A Social Security number not required Note: PTINs are allowed in the District of Columbia. …