How to Apply for an EFIN: IRS Application Process

An Electronic Filing Identification Number (EFIN) is a five-digit number issued by the Internal Revenue Service (IRS) to authorized e-file providers. This unique identifier allows tax professionals and businesses to electronically transmit tax returns to the IRS on behalf of taxpayers. Obtaining an EFIN is a necessary step for anyone who intends to submit tax returns electronically.

Understanding Prerequisites and Gathering Information

Before initiating the EFIN application process, prospective applicants must fulfill several preliminary requirements and gather specific information. A foundational prerequisite for all principals and responsible officials listed on the EFIN application is a valid Preparer Tax Identification Number (PTIN). Individuals without a PTIN must obtain one through the IRS website.

The IRS conducts suitability checks on all applicants, including a review of tax compliance and a background investigation. The tax compliance check assesses an applicant’s history of filing and paying federal taxes. The background check examines criminal history and past compliance issues, verifying the applicant’s trustworthiness for transmitting sensitive taxpayer data. These checks are a standard part of the EFIN application to maintain the integrity and security of the e-file system.

Applicants need to compile personal details for each principal and responsible official involved in the application. This information includes their full legal name, Social Security Number (SSN), date of birth, current home address, and contact information. Additionally, applicants should be prepared to provide prior addresses for a specified period, usually the last five years, to facilitate thorough background verification.

For business entities, specific organizational information is required to complete the application. This includes the legal business name, Employer Identification Number (EIN), complete business address, and contact details. Applicants must also specify the business structure, such as a sole proprietorship, partnership, or corporation, along with the state and date of formation.

Applicants should have identification documents readily available for verification, such as a driver’s license or state ID. The application process primarily takes place through the IRS e-Services portal, necessitating the creation or access of an existing account. This secure online platform serves as the central hub for submitting and managing the EFIN application.

Completing and Submitting Your Application

The EFIN application process is primarily conducted through the IRS e-Services portal. Once logged in, individuals must navigate to the EFIN application section within the portal to access the online form where all previously gathered information will be entered.

Applicants must accurately input all personal information for principals and responsible officials into the designated fields. This involves entering each individual’s full legal name, SSN, date of birth, and current address, along with any required previous addresses. Correctly providing contact details, including phone numbers and email addresses, ensures proper communication throughout the application review.

For business information, the legal business name and EIN must be entered precisely as registered with the IRS. The business address, phone number, and email address are also required in their respective fields. Applicants will select their specific business structure from a dropdown menu and input the state and date of formation.

If the application involves multiple principals or responsible officials, the system allows for the addition of each individual’s details within the same application. This ensures all relevant parties are included in the suitability checks and linked to the EFIN. After all data has been entered, a thorough review of the entire application is essential to verify accuracy and completeness.

The final step involves electronically certifying the application. If the online system prompts for supporting document uploads, such as identity verification or business registration documents, these must be attached in the specified format. Upon confirmation of accuracy and certification, the application can be submitted.

Post-Submission Process and EFIN Activation

After the EFIN application has been submitted, the IRS begins its review process, which typically takes an estimated 45 days. The actual timeframe can vary, extending longer during peak tax seasons or if additional information or verification is required. Applicants should anticipate this waiting period.

During this review, the IRS may require additional identity verification steps to confirm the applicant’s identity. This can involve sending specific documents, such as copies of government-issued identification, or in some instances, requiring applicants to submit fingerprints. If fingerprints are needed, the IRS provides instructions on how to obtain them and where to send them for processing.

Applicants can monitor the status of their EFIN application by logging back into the IRS e-Services portal. The portal provides updates on the application’s progress, indicating whether it is still under review, if additional information is needed, or if a decision has been made. Regularly checking the status can help applicants respond promptly to any IRS requests.

Upon approval, the IRS communicates the EFIN to the applicant, typically through a formal notification letter mailed to the address provided on the application. This letter contains the unique five-digit EFIN that authorizes the holder to electronically file tax returns. The EFIN is active upon receipt of this official notification.

Maintaining an active EFIN status requires ongoing adherence to IRS regulations and timely updates to any changes in contact or business information. Applicants are responsible for ensuring their registered details remain current with the IRS. Failure to maintain accurate information could impact the EFIN’s validity or lead to delays in future e-filing activities.