Your guide to becoming an authorized e-file provider and boosting your tax business
As a tax professional, having the ability to electronically file your clients’ tax returns is essential to streamlining your services, increasing efficiency, and keeping your business competitive. To e-file returns, you need an EFIN (Electronic Filing Identification Number) issued by the IRS. At Swift Financial Partners, we’re here to help you through the process so you can use our powerful tax software, SFPWorks, and make electronic filing a breeze.
In this blog, we’ll break down the steps to obtain an EFIN and explain how it empowers your business to succeed.
What Is an EFIN?
An EFIN is a unique identification number assigned by the IRS to individuals or businesses authorized to electronically file tax returns. This number allows you to transmit client tax returns to the IRS through authorized software like SFPWorks, making tax season smoother for both you and your clients.
Why Is an EFIN Important?
Obtaining an EFIN is critical if you want to offer e-filing services. The IRS requires tax professionals who file 11 or more returns in a year to file them electronically.. With an EFIN, you’ll be able to file returns faster, track the status of filings, and reduce the likelihood of errors compared to paper filing. Plus, clients expect the convenience of e-filing—it enhances trust and professionalism.
Steps to Obtain an EFIN
Here’s a step-by-step guide on how to apply for your EFIN:
Create an IRS e-Services Account
The first step in obtaining your EFIN is to create an account with IRS e-Services, which is the portal tax professionals use to interact with the IRS electronically. You’ll need to provide personal and business information, so have your Social Security Number and EIN (Employer Identification Number) handy if you operate a business.
Create or Sign-In to your e-services account here:
https://www.irs.gov/e-services
Submit the Application to Become an Authorized e-File Provider
Once your account is set up, you’ll need to fill out the IRS e-File Provider Application. This multi-part application includes information about your business, its owners, and other principal officers. You’ll also select the type of e-file provider you intend to be. If you plan to file returns for your clients, select “Electronic Return Originator (ERO).”
This process may take up to 45 minutes, so be prepared with all required documents.
Undergo a Suitability Check
After submitting your application, the IRS will conduct a suitability check on you and your business. This check involves verifying your compliance with tax laws, a criminal background check, and reviewing your credit history. Every principal listed in your application will be subject to this check, and it typically takes 45 days for the IRS to complete it.
Receive Your EFIN
Once your suitability check is complete and approved, the IRS will issue your EFIN. You’ll be notified through your IRS e-Services account, and from that point forward, you’re authorized to e-file tax returns using software like SFPworks!
Benefits of E-Filing with SFP Works
Once you have your EFIN, using SFPWorks to file tax returns offers several advantages:
Faster Filing: Submit tax returns electronically and receive acknowledgments from the IRS in a fraction of the time it takes to file by mail.
Secure & Compliant: With built-in IRS compliance and encryption features, SFP Works ensures the security of your clients’ data.
Error Reduction: E-filing through SFP Works helps reduce human errors and increases the accuracy of your filings.
Improved Client Satisfaction: Clients appreciate the speed and convenience of e-filing, which allows them to receive refunds faster.
FAQs About the EFIN Process
Q: How long does it take to get an EFIN?
A: The entire process, including the application and suitability check, usually takes about 45 days.
Q: Do I need an EFIN if I’m only filing a few returns?
A: If you plan to file more than 10 returns per year, the IRS requires you to file electronically, meaning you’ll need an EFIN.
Q: Is there a fee to apply for an EFIN?
A: No, applying for an EFIN is free. However, you must comply with IRS requirements and undergo a suitability check.
Obtaining an EFIN is a vital step for tax professionals looking to expand their services, improve efficiency, and meet the needs of modern clients. By following the steps outlined above, you’ll be well on your way to becoming an authorized e-file provider with the IRS. Once you’ve obtained your EFIN, you can take full advantage of SFPWorks, our powerful tax software designed to make filing tax returns as seamless and stress-free as possible.
