When do I need to apply for a new EFIN?

Background:

Effective in Tax Year 2011, federal legislation mandates that anyone filing more than 10 tax returns must file electronically. Before you can electronically file tax returns, you must apply to become an Authorized e-File Provider (“Provider”) with the IRS.

Become an Authorized e-file Provider

FAQs About Electronic Filing Identification Numbers (EFIN)

Maintaining your EFIN

It is your responsibility as a Provider to keep the IRS updated with any changes to your business, and to follow the guidelines provided by the IRS, especially IRS Publication 3112: IRS E-File Application & Participation.

Once you’ve completed the EFIN application process and received your EFIN, it’s important that you keep your account up to date at all times. How to Maintain, Monitor and Protect Your EFIN

This includes:

1. Reviewing your e-File application periodically. Your e-File application must be updated within 30 days of any changes such as individuals involved, addresses or telephone numbers. Failure to do so may result in the inactivation of your EFIN.
2. Ensuring proper individuals are identified on the application, and updating as necessary. The principal listed on the application is the individual authorized to act for the business in any legal or tax matters.
3. Adding any new principals or responsible officials.
4. Updating any business address changes, including adding new locations.
5. Your EFIN is not transferable; if you sell your businesses, the new principals must obtain their own EFIN.
6. There must be an EFIN application for each office location; if you expand your business, an application is required for each location where e-file transmissions will occur.

Can I use my EFIN at more than one location?

Generally, an EFIN should only be used at the specific location to which it was assigned through the application process. For this reason, a Provider may need to submit new applications when expanding their e-file business to new locations.

Each fixed location (e.g., an office owned or leased by the ERO) used to transmit electronic returns must have its own EFIN. For example, if a Provider has 15 offices and plans to transmit returns from all of them, the Provider must have 15 EFINs.

There are occasions where a single EFIN can cover more than one location owned by the Provider. If the only activities occurring at a fixed location include data collection and tax return preparation, an EFIN is not required for that location. However, electronic returns cannot originate from a location without an EFIN, so any returns prepared at that location must be forwarded to another location with an EFIN for submission.

EROs may transmit the electronic return from “other than fixed” locations without acquiring an EFIN for each such location. An “other than fixed” location would represent a mobile preparer, such as one who travels to a taxpayer’s home to prepare the return. The ERO uses the EFIN assigned to a fixed location for electronic submission of such returns.

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