Our Basic Guide to Understanding IRS EFIN PTIN

There’s no doubt that tax season can take a toll on anyone – from start-ups to the team of CPAs working at a Fortune 500 company. Either situation calls for the help of experts to get the books and numbers in order. Still, for a first-time tax preparer looking to break into the industry, what are some factors you need to consider getting your business going smoothly?

One of the first steps to get your business started on time for the upcoming tax season is to obtain all the requirements, such as your Electronic Filing Identification Number (EFIN) and Prepare Tax Identification Number (PTIN). Here is what you need to know about registering for one:

First, What is an Electronic Filing Identification Number (EFIN)?

An EFIN is issued by the IRS, which is assigned to individuals who are authorized as IRS e-File providers. Completing the e-File applications will lead to the second confirmation email from the IRS, which contains the acceptance letter with the EFIN attached to the message.

What Should You Include on the e-File Application?

The application should have a Responsible Official tag, which notes that you can handle the e-File operation from the designated EFIN. Consider this as the first point of contact with the IRS, which gives you the responsibility to manage all the returns e-Filed from where the EFIN is assigned. Other requirements include the following:

Keep in mind that the process of becoming an Authorized e-File Provider can take up to 45 days, so be sure to apply early if you want to beat the clock once the tax season hits.

What are the EFIN Requirements?

What is a Professional Preparer Tax Identification Number (PTIN)?

Once you become an official tax preparer, you need to apply to get a PTIN since it is a critical identification number necessary to submit U.S. federal tax returns to the IRS. This requires a yearly renewal, often expiring by the 31st of December, so it’sbetter to get a renewal a month or earlier before since the process can take between four to six weeks.

The Bottom Line: The Road to Becoming a Responsible and Successful Tax Preparer

Tax season is quickly approaching, so before the deadline comes any closer, the guide above should help bolster tax preparers for a smooth-sailing business next year.

How Can We Help?

Dealing with taxes can be challenging for anyone, even as an expert tax preparer. If you’re looking for innovative solutions that can streamline your tax preparation process, our professional tax software for CPAs can help simplify matters for you.

Our affordable technology can empower tax preparers and help you start a tax business with no EFIN, so get in touch with us today at 1.800.504.5170 to see how we can ensure your tax business is booming.

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