EFIN vs PTIN: What New Preparers Need to Know

What is the difference between an EFIN and a PTIN?

The two numbers answer different questions. A PTIN (Preparer Tax Identification Number) asks who prepared the return for pay. An EFIN (Electronic Filing Identification Number) asks which IRS-authorized firm submitted it electronically. Here is how they compare:

How do a PTIN and an EFIN work together?

On an e-filed return, both numbers appear. Publication 1345 requires the ERO to identify the paid preparer in the electronic return record, including the preparer's name, address, EIN when applicable, and PTIN. The return is then originated under the firm's EFIN and sent through the software's transmitter to the IRS.

In a one-person office, you are both the preparer and the ERO, so you hold the PTIN personally and the EFIN for your business. In a larger firm, each preparer has their own PTIN, and the firm's single EFIN per location covers the e-file side. If you add an office, the IRS says you need an e-file application for each location where e-file transmissions will occur.

The two numbers also connect to credentials. The PTIN is the foundation for everything else. The IRS Annual Filing Season Program requires you to renew your PTIN for the coming year, and enrolled agents must keep a current PTIN to keep their credential. On the EFIN side, credentials can save time. Attorneys, CPAs and enrolled agents can enter their professional status on the e-file application instead of being fingerprinted, while everyone else is fingerprinted through the IRS-authorized vendor.

Both numbers are targets for criminals. IRS Publication 4557, Safeguarding Taxpayer Data, includes guidance on monitoring your EFIN and PTIN for misuse. If your EFIN is compromised, the IRS says you should contact the e-help Desk to request a replacement.

Are you required to e-file client returns?

In most cases, yes. Under federal rules, a specified tax return preparer, meaning one who reasonably expects to file 11 or more covered returns in a calendar year, must e-file them. Covered returns are individual, estate and trust income tax returns. The count is for the whole firm. The Form 8948 instructions give an example: if two preparers each expect to file 6 returns, the firm's total is 12, and both are specified preparers.

There are limited exceptions. A client can choose to file on paper, and you keep a signed taxpayer choice statement in your records. A preparer can also request a hardship waiver on Form 8944. When a covered return is filed on paper under an exception, you attach Form 8948 to explain why. For a real tax business, this means an EFIN isn't optional.

Watch what counts as filing a return. The Form 8948 instructions say a return is considered filed by the preparer if the preparer, or any member, employee or agent of the firm, submits it to the IRS for the taxpayer, whether electronically or on paper. Even dropping a client's paper return in a mailbox counts. Giving the client an addressed envelope and mailing instructions does not, as long as the client mails it.

Can you use someone else's EFIN?

Not to run your own office. Publication 3112 says providers must protect their EFINs and never share them. That includes accepting payment for their use (renting, leasing or buying) or transferring them when a business is sold. The IRS sanctions a provider found renting, leasing or buying another provider's EFIN, or letting people who haven't passed suitability use it. The IRS EFIN FAQs also list using a previous employer's EFIN as invalid, and an EFIN can't be transferred even when the business is sold.

What is allowed: if you work as an employee or preparer inside an authorized firm, you prepare returns with your own PTIN and the firm originates the e-file under its EFIN. An ERO can also originate returns it collected from a taxpayer or from another authorized ERO. Once you open an independent office, though, your business needs its own EFIN. A legitimate service bureau will help you apply. It won't offer you its number. Learn more in What Is a Tax Service Bureau and How Does It Work?.

What are the most common EFIN and PTIN mistakes?

These are the errors that most often cost new preparers time or put them at risk:

• Applying for the EFIN too late. With up to 45 days for approval, plus fingerprinting, a December application can miss the start of the season.
• Letting the PTIN lapse. PTINs expire December 31. Preparing returns without a current PTIN can bring section 6695 penalties.
• Sharing a PTIN among office staff. The IRS says each paid preparer must have their own.
• Not updating the e-file application within 30 days after a move, a new phone number or a change in Principals or Responsible Officials.
• Not watching EFIN activity. The IRS updates EFIN return counts weekly in e-Services, so check them during the season and compare them with your own records to catch misuse.
• Using an EFIN that isn't yours, such as one from a former employer or an outside party.

How do you get both numbers ready by January?

Work backward from the start of filing season. The IRS announces the opening date each year. Here is a practical plan. For the full business setup, see How to Start a Tax Preparation Business in 2027 and our Start your tax business guide, or Apply to get help with setup.

• Early October: Create or confirm your IRS online account and start the e-file application. Make sure every Principal and Responsible Official has an account too.
• October: Schedule fingerprinting, unless you are an attorney, CPA or EA entering credentials, and submit the EFIN application. Keep the tracking number.
• October to November: Get or renew your PTIN for 2027. If you apply for a new PTIN after October 1, you can choose to make it valid for the next calendar year.
• November: Answer any IRS letters quickly. The IRS lets you upload documents through its Document Upload Tool.
• December: With your EFIN letter in hand, finish software setup, bank-product enrollment if you offer it, and training.