IRS EFIN Application: A Must For Electronic Tax Filing

Obtaining an Electronic Filing Identification Number (EFIN) is a crucial step for tax professionals who wish to submit tax returns electronically to the Internal Revenue Service (IRS). An EFIN is a unique identifier assigned by the IRS to authorized e-file providers, allowing them to participate in the electronic filing program. This process not only streamlines tax filing but also enhances accuracy and efficiency in the overall tax submission process. As the digital landscape of tax filing continues to evolve, securing an EFIN has become increasingly important for tax preparers, certified public accountants, and other tax professionals looking to offer comprehensive services to their clients.

What is an EFIN?

An EFIN is a six-digit number assigned by the IRS to tax professionals or businesses authorized to file tax returns electronically. This unique identifier is essential for:

• Submitting tax returns electronically to the IRS
• Participating in the IRS e-file program
• Verifying the identity of the e-file provider

EFIN Eligibility Requirements

To apply for an EFIN, applicants must meet specific criteria set by the IRS:

• Be a U.S. citizen or legal resident alien
• Be 18 years or older
• Have a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
• Pass a suitability check, which includes a background check and tax compliance verification

EFIN Application Process

The EFIN application process involves several steps:

1. Create an IRS e-Services Account: Applicants must first create an account on the IRS e-Services portal.
2. Submit an e-file Application: Once logged in, navigate to the e-file Application section and complete the required information.
3. Provide Personal Information: This includes your name, address, SSN or ITIN, and contact details.
4. Business Information: If applying as a business, provide relevant business details and structure information.
5. Suitability Check: Consent to a background check and tax compliance verification.
6. Fingerprinting: Some applicants may be required to submit fingerprints for further verification.
7. Wait for Approval: The IRS will review the application and conduct necessary checks before approval.

Processing Time and Approval

The processing time for EFIN applications can vary:

• Standard Processing: Typically takes 45 days
• Expedited Processing: Available in some cases, but not guaranteed

Once approved, the IRS will provide the six-digit EFIN via mail or through the e-Services account.

Maintaining Your EFIN

After obtaining an EFIN, it’s crucial to maintain compliance with IRS regulations:

• Annual Review: Conduct a yearly review of your e-file application to ensure all information is up-to-date.
• Report Changes: Notify the IRS of any significant changes in your business or personal information.
• Adhere to IRS Guidelines: Follow all IRS rules and regulations for electronic filing to maintain your EFIN status.

Benefits of Having an EFIN

Obtaining an EFIN offers several advantages for tax professionals:

• Expanded Services: Ability to offer electronic filing services to clients
• Faster Processing: Electronic submissions are typically processed more quickly than paper returns
• Reduced Errors: E-filing systems often have built-in checks to catch common errors
• Professional Credibility: Demonstrates compliance with IRS standards and regulations