What Is an EFIN and How Do I Get One for Tax Filing?
Understand what an EFIN is, its crucial role in electronic tax filing, and the complete process to obtain and use this IRS identifier.
An Electronic Filing Identification Number (EFIN) is a unique identifier issued by the Internal Revenue Service (IRS) to authorized tax professionals and organizations. This five-digit number permits the electronic submission of tax returns directly to the IRS. Obtaining an EFIN is a required step for any entity or individual seeking to become an authorized e-file provider. It signifies that the holder has met specific IRS criteria for securely transmitting tax data.
Understanding EFIN
An EFIN is a unique number assigned by the IRS to identify firms and individuals who have completed the e-file application process and are approved to participate in the IRS e-file program. This number is essential for transmitting tax returns electronically to the IRS, acting as an identification for the entity or individual sending the returns. It enables secure communication between tax preparation software and the IRS systems. An EFIN is distinct from other tax identification numbers, such as a Preparer Tax Identification Number (PTIN) or a Social Security Number (SSN). While a PTIN identifies the individual paid tax preparer, an EFIN identifies the firm or organization authorized to electronically send tax return data to the IRS.
Eligibility and Requirements for an EFIN
Any tax preparer or business intending to electronically file tax returns on behalf of clients must obtain an EFIN. This includes electronic return originators (EROs), software developers, transmitters, and reporting agents. Individuals must possess a valid Preparer Tax Identification Number (PTIN) before applying, as it is a prerequisite for all paid tax preparers.
The IRS conducts a suitability check on the firm and all listed principals and responsible officials. This check involves a tax compliance review, a criminal background check, and a credit check for certain applicants.
If a principal or responsible official is not a certified or licensed professional (e.g., attorney, CPA, or enrolled agent), they will need to provide fingerprints. Applicants must gather information about the firm’s structure, business address changes, and the identities of all individuals involved in the electronic filing process.
Applying for an EFIN
The EFIN application process is conducted online through the IRS e-file application system. The initial step involves creating an IRS e-services account, which facilitates electronic interaction with the IRS and requires two-factor authentication.
Once the e-services account is established, applicants can access the e-file application to submit their firm’s information and details for each principal and responsible official. Applicants must select their e-file provider option, such as Electronic Return Originator (ERO) if they will be preparing and e-filing client returns.
After the application and any related documents are submitted, the IRS performs a suitability check. This review process can take approximately 45 days. Applicants can monitor the status of their application through their e-services account. Upon successful completion of the suitability check and approval, the IRS sends an acceptance letter containing the assigned EFIN.
Using and Maintaining an EFIN
Once an EFIN is approved, it integrates into tax preparation software, enabling the electronic submission of tax returns. The EFIN acts as a digital signature, identifying the authorized e-file provider for each transmitted return.
EFIN holders have ongoing responsibilities to ensure compliance and security. Keep all information associated with the EFIN current, updating any changes to individuals, addresses, or phone numbers within 30 days. Failure to do so may lead to EFIN inactivation.
Safeguarding the EFIN prevents unauthorized use and protects sensitive taxpayer data. This includes using strong passwords, being vigilant against phishing scams, and implementing cybersecurity measures. EFIN holders should monitor their EFIN status page within their e-services account. An EFIN is not transferable; if a business is sold, the new owners must obtain their own EFIN.