What Is an ERO PIN? Its Role in E-Filing Your Tax Return

An Electronic Return Originator (ERO) Personal Identification Number (PIN) is a unique identifier used for electronically filing tax returns. It helps ensure the authenticity and security of tax submissions made through authorized tax professionals. Understanding its purpose, how it functions, and how it differs from other taxpayer PINs is important for anyone engaging with professional tax preparation services.

Understanding the ERO PIN

An ERO PIN is a unique identification number assigned by the Internal Revenue Service (IRS) to Electronic Return Originators (EROs). An ERO is a tax professional, firm, or organization that has been authorized by the IRS to originate and transmit electronic tax returns on behalf of taxpayers. This authorization ensures that only qualified entities can submit tax documents electronically to the IRS.

The primary purpose of the ERO PIN is to digitally sign and authenticate tax returns transmitted electronically by EROs. It serves as an electronic signature for the preparer on Form 8879, which is the IRS e-file Signature Authorization document. The ERO PIN helps verify the ERO’s identity and confirms their authorization to submit the return, playing a significant role in maintaining the security and integrity of the IRS e-filing system. EROs are encouraged to use the same 11-digit ERO PIN, which begins with their six-digit Electronic Filing Identification Number (EFIN), followed by five self-selected digits, excluding all zeros.

Role of the ERO PIN in E-filing

The ERO PIN is an integral part of the electronic signature process for tax returns. When a tax professional prepares a return for a client and it is ready for electronic submission, the ERO uses their unique PIN to transmit the completed tax return data to the IRS. This action occurs after the taxpayer has provided their authorization for the ERO to e-file on their behalf.

Taxpayer authorization for e-filing is obtained through a signed Form 8879, IRS e-file Signature Authorization. This form confirms that the taxpayer has reviewed the return, verified its accuracy, and consented to its electronic submission by the ERO. The ERO must receive the signed Form 8879 before transmitting the return. The correct use of the ERO PIN is a necessary step for the IRS to accept the e-filed return as validly originated by an authorized tax professional. The IRS generally requires EROs to originate the electronic submission of a return within three calendar days after the taxpayer signs Form 8879.

Distinguishing Taxpayer PINs

While tax preparers use an ERO PIN for their authentication, taxpayers also have distinct PIN options related to e-filing their own returns. One such option is the Self-Select PIN, a five-digit number chosen by the taxpayer to electronically sign their return. Taxpayers can use this PIN when e-filing through tax software or when a preparer uses the practitioner PIN method with Form 8879, which allows the ERO to enter or generate the taxpayer’s PIN with their consent. To authenticate themselves, taxpayers provide their date of birth and their Adjusted Gross Income (AGI) from the prior year’s tax return or their prior year’s Self-Select PIN.

Another important PIN for taxpayers is the Identity Protection PIN (IP PIN), a six-digit number issued by the IRS to prevent identity theft. This PIN is known only to the taxpayer and the IRS and provides an additional layer of security by verifying the taxpayer’s identity when they file their electronic or paper tax return. If a taxpayer has been issued an IP PIN, it must be included on their tax return, otherwise, the e-filed return may be rejected or a paper return delayed. The ERO PIN is solely for the tax preparer’s authentication and transmission authority, whereas the Self-Select PIN and IP PIN are for the taxpayer’s own authentication or identity protection.