The IRS considers an Electronic Filer Identification Number (EFIN) to be owned by a tax preparation firm, rather than any one individual. The Electronic Return Originator (ERO) must apply for a new EFIN when the tax preparation business structure has changed in the following ways:
- The business obtains a new Employer Identification Number (EIN).
- The business is a sole proprietorship and the owner dies.
- The business has a new location from which it will be transmitting returns. (Each location must have its own EFIN.)
There is one other reason why you may need to apply for a new EFIN:
- Your EFIN has been compromised. Typically, compromise is suspected when you receive acknowledgements for returns you did not file.
An EFIN cannot be bought or sold, rented, leased, gifted, or transferred. You also cannot obtain an EFIN by purchasing a package deal that includes it.
Additional Information:
IRS: Publication 3112 - IRS e-file Application & Participation
IRS: Rev. Proc. 2007-40, Authorized IRS e-file Provider Responsibilities