Applying to Become an Authorized E-File Provider Flashcards
What is an Authorized IRS E-File Provider?
A business or organization approved by the IRS to electronically file tax returns
This includes sole proprietorships, partnerships, corporations, or other entities.
What is required to become an Authorized IRS E-File Provider?
Submit an application, meet eligibility criteria, and pass a suitability check
After approval, the IRS assigns an Electronic Filing Identification Number (EFIN).
What are the different roles you can choose as an IRS E-File Provider?
- Electronic Return Originator (ERO)
- Intermediate Service Provider
- Transmitter
- Online Provider
- Software Developer
- Reporting Agent
What is the role of an Electronic Return Originator (ERO)?
Starts the process of sending tax returns electronically to the IRS
EROs can transmit data themselves or use a third-party transmitter.
What must principals and responsible officials do before applying to become an IRS E-File Provider?
Register for e-services on the IRS website
They must also provide fingerprint cards or proof of professional status.
What does the suitability check involve?
Background checks on the business and all principals and responsible officials
Software developers do not need to complete this step.
What might lead to the denial of an IRS E-File application?
- Criminal charges or investigations
- Failure to file accurate or timely tax returns
- Unpaid taxes
- Fraud penalties
- Misrepresentation
- Non-compliance with due diligence
- Stockpiling tax returns
- Associating with denied individuals or businesses
- Legal actions prohibiting filing
What happens once your application is approved by the IRS?
You are assigned an EFIN and transmitters/software developers must complete testing
You must update your application within 30 days if any information changes.
What are the conditions for maintaining your status as an IRS E-File Provider?
File returns regularly and meet suitability requirements
If you stop filing for a year, the IRS may remove you from the program.
Fill in the blank: An EFIN stands for _______.
[Electronic Filing Identification Number]
True or False: You need to reapply each year if you continue filing returns.
False
You don’t need to reapply each year if you meet suitability requirements.
What is the role of a Software Developer in the IRS E-File program?
Creates software that prepares or transmits tax returns according to IRS standards
What is the function of an Intermediate Service Provider?
Passes return data from an ERO or taxpayer to a transmitter
What is the role of a Reporting Agent?
Prepares and files employment tax returns electronically for clients
What must you do if you want to reactivate your IRS E-File status after stopping for a year?
Request reactivation within 60 days or reapply if needed
