Why it matters
A preparer who reasonably expects 11 or more individual, trust or estate returns in a calendar year must e-file them, so most firms need an EFIN. It is not transferable, so buying a practice does not hand you the seller's number. Stolen EFINs are used to file fraudulent returns.
Example
A three-partner firm expects 14 individual returns and 3 trusts, so it is over the 11-return line. Each partner holding 5% or more is listed, and the one non-CPA partner is fingerprinted. The IRS can take up to 45 days, so the firm applies well before filing season, not in January.
Related terms
Questions about EFIN
Can I use my old employer's or a retiring partner's EFIN?
No. The IRS treats an EFIN owned by a former employer, or one no longer associated with your firm, as an invalid use, and EFINs are not transferable even when a business is sold. If you buy or merge a practice, the surviving firm needs its own approved application, so start it early rather than after the first return is ready to file.
What do I do if I suspect someone filed with my EFIN?
Compare the returns shown as e-filed in e-services and your acknowledgement report totals against your own records. A mismatch can mean the EFIN is compromised. Call the IRS e-help desk at 866-255-0654; the IRS inactivates the EFIN and a principal or responsible official who passes authentication can receive a new one.
Does having an EFIN mean every return must go electronically?
No. If a client chooses paper, you can file on paper and attach Form 8948 explaining why the return was not e-filed. A hardship waiver on Form 8944 is separate and lasts one calendar year if approved. Keep the client's paper request in the file.