Can I Get an EFIN With Bad Credit?

Obtaining an Electronic Filing Identification Number (EFIN) is a central requirement for tax preparation professionals. This article clarifies the EFIN’s role and addresses common concerns regarding creditworthiness in the application process.

Understanding the EFIN

An Electronic Filing Identification Number (EFIN) is a unique six-digit code issued by the Internal Revenue Service (IRS). This number identifies firms and individuals who are authorized to electronically file tax returns. It is a fundamental credential for any tax professional, particularly an Electronic Return Originator (ERO), who prepares and submits tax returns for clients.

The EFIN ensures secure and authorized electronic tax filing. Obtaining an EFIN is mandatory for tax preparers who anticipate filing 11 or more federal tax returns electronically in a calendar year. Without an EFIN, tax professionals cannot transmit client tax returns to the IRS electronically.

Prerequisites for EFIN Application

Before initiating the EFIN application, tax professionals must fulfill several foundational requirements. A Preparer Tax Identification Number (PTIN) is a mandatory prerequisite for anyone who prepares federal tax returns for compensation. This unique identifier must be obtained and renewed annually.

Applicants must also establish an IRS e-Services account, which serves as the primary portal for electronic interactions with the IRS. During e-Services registration, identity verification involves providing personal details such as a Social Security Number, date of birth, and potentially an Adjusted Gross Income from a prior tax return. While e-services registration may require linking a financial account (like a credit card or loan) for identity verification, this is distinct from a credit check for suitability. The IRS does not use a personal credit score as a direct factor to approve or deny an EFIN.

The IRS Suitability Determination

After an EFIN application is submitted, the IRS conducts a suitability determination. This process is a background investigation designed to assess the applicant’s integrity and compliance. The IRS scrutinizes various aspects, including the applicant’s tax compliance history, examining their past filing and payment records.

A criminal background check, covering both federal and state records, is also part of this review. The IRS also reviews any prior non-compliance with its e-file requirements. While some credit-related information may be considered as part of this broader financial assessment, it is not a barrier to obtaining an EFIN. The IRS’s primary focus remains on tax and criminal compliance. Individuals who are not licensed professionals (such as CPAs, enrolled agents, or attorneys) must submit fingerprints for this background check.

Submitting Your EFIN Application

Once all prerequisites are met, the EFIN application can be submitted online through the IRS e-Services portal. Applicants will complete an online form, providing information about their tax preparation business and the principal and responsible officials involved.

The online application allows users to save their progress and return to it later. After submission, applicants can expect a processing time of approximately 45 days for the IRS to review the application and conduct its suitability check. The IRS may contact the applicant for additional information during this period. Upon approval, an acceptance letter containing the Electronic Filing Identification Number will be issued by the IRS.