IRS e-file enables tax professionals to electronically file their client's tax returns with more easily and quickly than filing paper returns. Over 73 million tax returns were e-filed last year:
- 53 million were filed by tax professionals
- 20 million were filed online through individual tax preparation programs such as 1040.com Online Tax Preparation
Offering e-file enables you to
- prepare tax returns faster
- prepare more accurate tax returns
- catch errors before the IRS does
- offer faster refunds to your clients
- schedule electronic payments for your clients
State E-File
The IRS works with many state departments of revenue to offer e-filing of federal and state tax returns at one time.
All states that have state income tax accept e-filed returns. Each participating state has a different set of requirements, but all states require you to be an authorized IRS E-file Provider before accepting you to e-file in the state program.
Apply to Become an E-File Provider
Applying to become an E-File provider can be done through the IRS e-services website or by filing Form 8633. When you apply to become an E-File provider you will need to disclose information about your company officers, including the officer's background information. A background suitability check will be conducted on all principals and responsible officials of your firm. The background suitability check includes
- FBI criminal background check
- credit history check
- IRS records check, to ensure all individual and business returns have been filed for the officers
- IRS records check, to look for for instances of fraud or preparer penalties
- check of your history for prior non-compliance in E-File
Processing your application and completing the background suitability check can take up to 45 days, so you need to apply to become an E-File provider at least 45 days before the date you want to begin filing returns.
Once you have been accepted as an E-File provider you will receive an Electronic Filing Identification Number (EFIN) from the IRS.
Existing Providers
Each year you should review and update your e-file application. You should update your application within 30 days of any changes, such as company officer or address changes. You can revise your application by