An Authorized IRS e‑File Provider is any business or organization approved by the IRS to participate in electronic filing. Providers may be sole proprietors, partnerships, corporations, or other entities. To participate, the firm must:
- Register for e‑Services
- Submit an IRS e‑File Application
- Pass a suitability check Once approved, the IRS assigns an Electronic Filing Identification Number (EFIN). (“The firm submits an e‑file application… must pass a suitability check… IRS assigns an EFIN.”)
Step 1 — Choose Provider Options
Applicants must select one or more provider roles:
Electronic Return Originator (ERO)
Starts the electronic filing process. May transmit returns directly or use a third‑party transmitter.
Intermediate Service Provider
Receives return data from an ERO or taxpayer and forwards it to a transmitter.
Transmitter
Sends return data directly to the IRS. Must have compatible software and systems.
Online Provider
Allows taxpayers to self‑prepare returns using online or downloadable software. This is a secondary role—the business must also be a Software Developer, Transmitter, or Intermediate Service Provider.
Software Developer
Creates origination or transmission software that meets IRS specifications.
Reporting Agent
Prepares, signs, and electronically files certain employment tax returns for clients. (“Reporting Agents are companies… that perform payroll services…”)
Step 2 — Submit the IRS e‑File Application
The application is completed online through IRS e‑Services. Each principal and responsible official must:
- Register for e‑Services
- Submit fingerprints or provide proof of professional status (attorney, CPA, EA, officer of publicly held corporation, bonded bank official) (“Principals and responsible officials must submit either fingerprint cards or evidence of professional status…”)
Step 3 — Pass the Suitability Check
The IRS reviews the firm, principals, and responsible officials. Suitability checks may include:
- Tax compliance history
- Criminal background
- Credit checks
- Prior e‑file compliance Software developers are exempt from suitability checks. (“The IRS conducts a suitability check… IRS does not complete suitability checks on applicants applying only as software developers.”)
Reasons for Denial
The IRS may deny participation for reasons including:
- Criminal indictment or conviction
- Failure to file or pay federal, state, or local taxes
- Fraud penalties
- Suspension or disbarment from practice
- Misrepresentation on the application
- Unethical return preparation
- Due diligence failures under §6695(g)
- Stockpiling returns
- Employing or assisting individuals denied or expelled from e‑file
- Court injunctions prohibiting filing (“The IRS may deny… for a variety of reasons that include but are not limited to…”)
Denied applicants may request Administrative Review and may reapply after the stated date.
Acceptance and Ongoing Requirements
Once approved, the IRS assigns:
- EFIN to all providers
- ETIN to transmitters
Transmitters and software developers must complete testing before acceptance. Providers must update their application within 30 days of any changes. (“A provider must update his application information within 30 days…”)
Providers do not need to reapply annually if they continue to e‑file and maintain suitability. If a provider does not e‑file for one year, the IRS may remove them from the program. Reactivation is possible within 60 days; otherwise, a new application is required. (“If a Provider does not e‑file returns for one year… may request reactivation… otherwise must reapply.”)