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. This is typically evidenced by returns rejecting with code R0000-905-01.
Note that 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.