The IRS requires 2 things to electronically file federal returns.
EFIN & PTIN
What is required to become a tax preparer? Becoming a tax preparer is not as difficult as one would think. To prepare federal tax returns you must get what is called a PTIN - Tax Preparer Identification Number. To qualify for a PTIN you must be current on your taxes- that's it!
IRS REGISTRATION
PTIN
As a professional tax preparer, you will need to get a PTIN- Tax Preparer Identification Number. This is a simple application process with the IRS. The only qualification is the ability to confirm your identity and that you are current on your personal tax filing. We will provide you with a tutorial to help you navigate the application. There are a few states that have additional requirements. Please see the link below to learn if your state is one of them.
No EFIN? No Problem!
We have a dedicated team that will review your files to ensure proper compliance. Once a file has passed review it is transmitted from our authorized Efile provider.
IRS REGISTRATION
EFIN
An EFIN or Electronic Identification Number is the number issued to you, the ERO (Electronic Return Originator) to track the returns E-filed by you or anyone in your office. This is a multi-step process of an application, submitting fingerprints and undergoing an extensive background check. The entire process can take anywhere from 8-16 weeks depending on the time of year.
We have options for you if you do not have enough time to get your own EFIN. Our packages come with E-filing and file review through our authorized central filing office.
Unsure if you can qualify for your own EFIN? Gives us a call and we will help you determine if you qualify.
Steps to Apply for an EFIN
Step 1: Create an IRS e-services Account
Personal Information Required: This includes your legal name, social security number, date of birth, phone number, email, and home mailing address.
Income Verification: Provide your Adjusted Gross Income from the current or previous tax year.
Account Setup: Create a username, password, PIN, and select a security question.
Additional Participants: Ensure every principal and responsible official in your firm also registers for e-services.
Confirmation: Confirm your registration within 28 days of receiving a confirmation code via mail.
Step 2: Submit Your Application
Firm Identification: Provide your firm’s identification details.
Select E-File Provider Option: Choose 'electronic return originator (ERO)' if preparing and e-filing client returns.
Principal and Official Information: Enter details for each principal and responsible official.
Professional Status: Certified or licensed professionals (like CPAs) must provide their current status.
Fingerprinting: Individuals without professional certification need to submit fingerprints, obtainable through TaxSlayer Pro or directly from the IRS, and can be taken at a local police station.
Send Fingerprint Cards: Mail them to the IRS at the specified address.
Step 3: Pass a Suitability Check
Checks Performed: The IRS conducts various checks including credit, tax compliance, criminal background, and previous e-file compliance.
Approval: Once approved, you’ll receive your EFIN in an acceptance letter from the IRS.
Additional Resources
IRS Publication 3112: This publication provides detailed information about the IRS e-file application and participation process.
Conclusion
Becoming an Authorized IRS E-File Provider is a meticulous process that ensures tax professionals and firms adhere to high standards of accuracy, security, and compliance. With the EFIN, you are authorized to file tax returns electronically, which is a crucial aspect of modern tax preparation. Always remember to start the application process well in advance and follow the IRS guidelines carefully to ensure a smooth experience.
Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore magna aliquam erat volutpat.
Frequently Asked Questions
Who needs a Preparer Tax Identification Number (PTIN)?
A PTIN must be obtained by all enrolled agents, as well as all tax return preparers who are compensated for preparing, or assisting in the preparation of, all or substantially all of any U.S. federal tax return, claim for refund, or other tax form submitted to the IRS except the following:
Can multiple individuals or one office share one PTIN?
No, every individual who, for compensation, prepares or assists in the preparation of a tax return or claim for refund must have his or her own PTIN and each tax return preparer may only obtain one PTIN.
If I don't have a PTIN, can I still prepare tax returns for compensation?
Is there an age requirement for obtaining a PTIN?
Yes, applicants must be at least 18 years of age.
What penalties can be imposed against tax return preparers who don't have a current PTIN?
Failure to have a current PTIN could result in the imposition of Internal Revenue Code section 6695 penalties, injunction, and/or disciplinary action by the IRS Office of Professional Responsibility.
What is the difference between a PTIN and an EFIN? Does a preparer need both?
A Preparer Tax Identification Number (PTIN) is a number issued by the IRS to paid tax return preparers. It is used as the tax return preparer’s identification number and, when applicable, must be placed in the Paid Preparer section of a tax return that the tax return preparer prepared for compensation. There is a fee of $35.95 to obtain a PTIN for 2022.
An Electronic Filing Identification Number (EFIN) is a number issued by the IRS to individuals or firms that have been approved as authorized IRS e-file providers. It is included with all electronic return data transmitted to the IRS. There is no fee for an EFIN.
Preparer Tax Identification Numbers are issued to individuals. Electronic Filing Identification Numbers are issued to individuals or firms. Most preparers need both.
Questions? We LOVE Them!