PTIN/EFIN Assistance

Getting your business off the ground takes work and we are here to help you obtain the essentials to starting your tax preparation business.

What is a Preparer’s Tax Identification Number (PTIN)?

In order to legally prepare tax returns for compensation, you must have a Preparer’s Tax Identification Number also known as PTIN. This identification number must be used on all US Federal Tax Returns submitted to the IRS from your business.
Be sure to to check that your PTIN is valid and renewed each year by October 15th too!

What is a Electronic Identification Number (EFIN)?

Additionally, you’ll need to obtain your Electronic Filing Identification Number or EFIN to electronically file returns. This number is assigned by the IRS identifying that your entity is approved for the IRS e-file program. There is no cost associated with the EFIN, but it does require an application process that involves checks on your background, criminal history, tax debt history, etc. Without a EFIN, you are not permitted to e-file tax returns or engage in any e-file activities. However, you are permitted to operate a tax preparation center where taxes are collected and forwarded to another location for electronic return origination that is a compliant EFIN holder or other Responsible Party, signature by the taxpayer, and/or electronic submission (transmission) to the IRS.

Here at Tax Dragon Pro Network, we offer solutions for businesses with and without EFIN. Contact us today to find out what your options are!

Frequently Asked Questions

What Makes PTIN and EFIN Important for Tax Preparers?

The IRS requires both PTIN and EFIN to make sure that tax return preparation and electronic filing are safe, accountable, and compliant. If you have a valid PTIN, you can legally prepare federal tax returns for pay. If you have an active EFIN, you or your business can electronically file those returns. If you don't have the right credentials, you could face fines, have your filings rejected, or lose your ability to e-file with the IRS.

How long does it take to get an EFIN or PTIN?

If there are no problems with the information you gave, you should get your PTIN right away after you fill out the application and pay the fee. However, the process for getting an EFIN is more in-depth. The IRS usually takes up to 45 days to process and approve an EFIN application. This is because they have to do background checks and make sure the business and responsible party information is correct.

Can you run your business without an EFIN?

All paid preparers need a PTIN, but only those who file their taxes electronically need an EFIN. Some preparers work for another authorized EFIN holder or with a tax preparation center that follows the rules and files returns for them. You can stay compliant while growing your practice with this choice.