How Long Does an EFIN Application Take?

An Electronic Filing Identification Number (EFIN) is a unique six-digit code issued by the Internal Revenue Service (IRS) to identify firms that have completed the e-file application process. This number is a prerequisite for tax professionals and businesses that intend to electronically submit tax returns on behalf of clients. Obtaining an EFIN signifies that a firm is an Authorized IRS e-file Provider, allowing them to utilize the IRS e-file system. The EFIN acts as a digital signature, ensuring the integrity and security of electronic tax filings.

Understanding EFIN Application Requirements

The EFIN application process begins with establishing an IRS e-Services account. This account serves as the primary portal for electronic interactions with the IRS, including the EFIN application. Applicants must provide personal details such as their full legal name, Social Security Number, date of birth, and Adjusted Gross Income from a current or prior tax year to set up this account. Identity verification is a component of this initial step, often requiring personal account numbers from financial instruments for secure access. Ensuring all personal and contact information is accurate and matches IRS records is important to prevent delays.

A key phase of the EFIN application involves the IRS suitability check, a comprehensive background review of the applicant and any principals or responsible officials within the firm. This check includes a credit assessment, a review of tax compliance history, and a criminal background check. The IRS also scrutinizes any prior non-compliance with e-file requirements. Individuals who are not certified professionals like Certified Public Accountants (CPAs), Enrolled Agents (EAs), or attorneys typically need to provide fingerprints for this assessment.

Applicants must gather specific firm identification information, including the business name, address, and Employer Identification Number (EIN) if applicable. For those without an EIN, a Social Security Number will be used. Professional credentials, if held by any principal or responsible official, must be entered into the application. The IRS offers guidance on these requirements through IRS Publication 3112. Compiling all this information accurately before starting the online form can streamline the entire application process.

Submitting the EFIN Application

Once all prerequisite information and documentation are prepared, the EFIN application proceeds through the IRS e-Services portal. Applicants log into their established e-Services account and navigate to the EFIN application section. The online form requires inputting the firm’s identification details, along with comprehensive information for each principal and responsible official involved in electronic filing operations. This includes selecting the appropriate e-file provider option.

The application allows users to save their progress and return to it later. Before final submission, applicants should conduct a thorough review of all entered information to confirm accuracy and completeness. Discrepancies or missing details at this stage can cause delays later in the process.

Upon successful submission, the IRS provides a confirmation number or an email notification acknowledging receipt of the application. The system then initiates the internal review process, including the suitability checks.

EFIN Application Timeline and Influencing Factors

The processing time for an EFIN application can vary, with the IRS generally stating an estimated timeframe of up to 45 days. Some applicants may experience approval within a few weeks, particularly those with professional credentials like CPAs whose verification process might be faster. In more complex situations, or during peak application periods, the process could extend to several months.

Several factors can influence how long an EFIN application takes to be approved. Incomplete applications or those with missing information are a frequent cause of delays, as the IRS will require further action from the applicant. Issues arising from the background suitability check, such as outstanding tax liabilities, past non-compliance with e-file regulations, or discrepancies in provided information, also prolong the review period. A backlog in processing fingerprint cards, especially for applicants without professional certifications, can add weeks to the waiting period.

The volume of applications received by the IRS, particularly during peak tax season, can also impact processing times. The IRS does not offer an expedited review service for EFIN applications. Promptly responding to any requests from the IRS for additional information or clarification is important to keep the application moving forward.

Checking Application Status and Post-Approval Steps

Applicants can monitor the progress of their EFIN application through their IRS e-Services account. By logging in and navigating to the e-file application summary page, individuals can view their application’s current status. Common status updates may include “Submitted,” “In Process,” “Under Review,” or “Awaiting Verification,” each indicating a different stage of the IRS’s assessment. If the status indicates that additional information is required, the applicant should promptly provide the requested details to avoid further delays.

Once the IRS completes its review and the application is approved, the agency communicates this decision, typically through an acceptance letter. This letter, which includes the newly assigned EFIN, may be sent via mail or through a secure message within the e-Services account.

After obtaining EFIN approval, tax professionals should update their tax preparation software with the new EFIN to enable electronic filing. It is also advisable to complete any required e-file provider training and conduct test transmissions to ensure proper integration and functionality. Ongoing maintenance of the EFIN is important, including keeping all firm and individual information updated in the e-Services account within 30 days of any changes. Regularly checking the EFIN Status page in the e-Services account allows providers to monitor the volume of returns filed under their EFIN, helping to safeguard against unauthorized use.