What Is an Electronic Transmitter Identification Number (ETIN)?

An Electronic Transmitter Identification Number (ETIN) serves a focused purpose within the Internal Revenue Service (IRS) e-file system. This unique identifier plays a role in the electronic transmission of tax data, helping ensure the secure and accurate movement of tax returns and information between authorized entities and the IRS.

What is an Electronic Transmitter Identification Number

An Electronic Transmitter Identification Number, or ETIN, is a five-digit identification code assigned by the IRS to specific participants in its e-file program. It is primarily for entities that engage in the direct transmission of electronic tax data or the development of tax software. Businesses like tax preparation software companies, payroll service providers, or large organizations that transmit their own tax forms directly to the IRS often require an ETIN.

The ETIN identifies the transmitting entity in the electronic filing process. If a taxpayer or a tax preparer uses a third-party software or service to send their returns to the IRS, they typically do not need their own ETIN, as the software provider or service will use theirs.

Information Needed to Apply for an ETIN

Before initiating an ETIN application, gathering prerequisite information is necessary. Applicants generally need an active Electronic Filing Identification Number (EFIN), as the ETIN is often linked to an existing e-file provider status. The process requires detailed identification information for the firm, including its legal name, address, and Employer Identification Number (EIN) if applicable.

Personal details for each Principal and Responsible Official within the organization must also be supplied. This includes Social Security numbers, contact information, and potentially adjusted gross income from a prior tax year for identity verification. If a principal or official holds a professional license, such as a Certified Public Accountant (CPA) or Enrolled Agent, this status is noted. Otherwise, individuals may need to undergo electronic fingerprinting through an IRS-authorized vendor.

The ETIN Application Process

The application for an ETIN is typically completed online through the IRS e-file application system, accessible via the IRS e-services portal. Applicants must either log in with an existing e-services account or create a new one to begin.

Upon submission, the IRS initiates a suitability check on the firm and its key personnel. This review may involve a credit check, an assessment of tax compliance, and a criminal background check to ensure the integrity of the electronic filing system. The approval process can take approximately 45 days from the date of submission. Once the application is approved, the IRS issues an acceptance letter, confirming the assignment of the ETIN.

How an ETIN is Used

Once obtained, an ETIN facilitates the secure and authenticated transmission of tax data files directly to the IRS. Electronic transmitters, such as software developers or large businesses, embed their ETIN within the electronic tax return data. This number acts as a unique digital identifier for the transmission process.

The ETIN ensures the integrity and authenticity of the electronic submission, verifying that the data originates from an authorized source. It helps maintain compliance with IRS e-filing requirements and track the origin of electronic filings, confirming the transmission meets established security protocols.

Distinguishing an ETIN from Other Taxpayer IDs

The Electronic Transmitter Identification Number (ETIN) serves a distinct function compared to other common taxpayer identification numbers issued by the IRS or Social Security Administration (SSA). An ETIN is a five-digit number assigned to entities that transmit electronic tax data directly to the IRS or develop tax software. It identifies the transmitter of the data.

An Employer Identification Number (EIN) is a nine-digit number used to identify business entities for various tax purposes, including payroll. A Social Security Number (SSN) is a nine-digit number issued by the SSA for individuals, used for tax and identification. An Individual Taxpayer Identification Number (ITIN) is a nine-digit tax processing number for individuals who need to file taxes but are not eligible for an SSN.

The Electronic Filing Identification Number (EFIN) is a six-digit number assigned to firms approved by the IRS as authorized e-file providers. An EFIN identifies the firm that originates the electronic return, while an ETIN identifies the entity that transmits the data. A Preparer Tax Identification Number (PTIN) is an eight-digit number required for all paid tax preparers, identifying the individual professional.