How a small CPA or tax firm applies for an EFIN and tracks the acceptance letter

This page is general information, not legal advice. Become an authorized e-file provider, the EFIN FAQs, Publication 3112, and the e-file mandate FAQ are the texts to read. This page does not invent fees, denial rates, or wait times beyond the up to 45 days the IRS states for application approval.

An EFIN identifies firms that completed the IRS e-file application to become an authorized IRS e-file provider. After the provider completes the application and passes a suitability check, the IRS sends an acceptance letter that includes the EFIN. Providers need an EFIN to electronically file tax returns. The firm owns the EFIN. EFINs are not transferable, even if you transfer the business by sale, gift, or other disposition. (FAQs about EFINs)

Anyone who prepares or assists in preparing federal tax returns for compensation must have a valid PTIN before preparing returns. That is a person requirement. EFINs are issued on a firm basis. All tax return preparers in the firm are covered by the one EFIN. Do not treat a PTIN as proof you may e-file, and do not type an EFIN onto a CAF form. (PTIN requirements for tax return preparers, E-file mandate FAQ)

The EFIN FAQ currently states there is no fee to obtain an EFIN. You must apply and pass a suitability check. PTIN application and renewal have their own fee on the PTIN page. This page does not quote other fees. (FAQs about EFINs)

The e-file application lives under e-Services, e-file provider services. Sign in with an existing account or create a new account. Once essential individuals are approved for an e-Services account, the firm can begin the application. If you are a return preparer and want to e-file for clients, select Electronic Return Originator (ERO). (Become an authorized e-file provider)

Publication 3112 says an individual representing the firm can begin after creating a Secure Access account, and that before submitting, all Principals and Responsible Officials must create an e-Services account and enter information on the application. You can save progress and return. Plan for the IRS stated window: it can take up to 45 days from the date of submission for the IRS to approve the e-file application. (Publication 3112, Become an authorized e-file provider)

Reporting Agents are a different provider option. Publication 3112 says reporting agents must submit Form 8655 prior to or when they submit an IRS e-file application. If payroll filing for clients is the work, read the Form 8655 checklist as well. (Publication 3112)

The application must include a principal, a responsible official, and a primary contact, who may all be the same person. A partnership should list each partner who has 5% or more interest. A corporation should list the president, vice president, secretary, and treasurer. (FAQs about EFINs)

If the Principal or Responsible Official is certified or licensed, such as an attorney, CPA, or enrolled agent, they must enter their current professional status information. Individuals who do not provide this information need to be fingerprinted using the IRS authorized vendor. After you submit, each Principal and Responsible Official schedules their own Livescan appointment from the scheduling link on the application summary. (Become an authorized e-file provider)

Publication 3112 also says Principals and Responsible Officials must be United States citizens or aliens lawfully admitted for permanent residence, and at least 18 as of the date of application. Licensed Public Accountants must provide fingerprints even though CPAs enter credentials. Read the current publication for the credential list before you tell a partner they can skip Livescan. (Publication 3112)

After you submit the application and the required information, the IRS conducts a suitability check. That check may involve a credit check, a tax compliance check, a criminal background check, and a check for prior noncompliance with IRS e-file requirements. If the application is approved, the IRS sends an acceptance letter with your EFIN. (Become an authorized e-file provider)

• Keep the tracking number the application gives you after a successful submission.
• Track fingerprint done or credentials entered for every Principal and Responsible Official.
• Do not tell a client a date earlier than the IRS up to 45 day window.
• If you need status, Publication 3112 points to the e-help Desk at 866-255-0654 and the e-file provider services page.

Specified tax return preparers who reasonably expect to file 11 or more covered returns must e-file those returns they file, with the exceptions on the mandate FAQ. Becoming an authorized provider is how you get the EFIN that makes that possible. There is no fee for that application on the Become an authorized e-file provider FAQ path, and the process takes up to 45 days. (E-file mandate FAQ)

Put the acceptance letter and the EFIN in the password manager and on the same staff roster you already use for PTIN and CAF. Publication 3112 says providers must protect EFINs from unauthorized use and never share them, including renting, leasing, purchasing, or transferring them when the business changes hands. The new entity must get its own EFIN from the IRS. (Publication 3112)

Then update the e-file software with the firm EFIN. A WISP that already lists where identifiers live is the WISP for tax preparers. Do not leave the only copy of the letter in one owner's email.

One row for the firm application. If you later add a location that needs its own EFIN, duplicate the row. Publication 3112 says a separate EFIN is required for each fixed location that originates electronic submission of returns.

Download the PTIN versus EFIN versus CAF table and application tracker. The tax season operator can draft a named chase when a Principal still has a blank fingerprint or credentials row. Your staff approve what goes out. Your CPA reviews and signs every return.