Are Ledgers tax preparers required to obtain a PTIN from the IRS?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
EFIN/PTIN. You must obtain an electronic filing identification number ("EFIN") and your tax preparers must obtain a paid preparer tax identification number ("PTIN") from the IRS.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–25)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, franchisees are required to ensure their tax preparers obtain a Paid Preparer Tax Identification Number (PTIN) from the IRS. Additionally, the franchisee themselves must obtain an Electronic Filing Identification Number (EFIN) from the IRS.
This requirement means that anyone working as a tax preparer under a Ledgers franchise must register with the IRS and obtain a PTIN. This is a standard practice in the tax preparation industry, ensuring that individuals preparing taxes for compensation are identified and accountable to the IRS.
For a prospective Ledgers franchisee, this implies an added responsibility to ensure all tax preparers they employ meet this requirement. Failure to comply could result in penalties or legal issues for both the preparer and the franchise. The franchisee should factor in the time and potential costs associated with ensuring compliance when evaluating the franchise opportunity.