If you’re thinking of transitioning your career to tax prep, you want to know the terms “EFIN sharing program” or “EFIN assistance program.”
As a tax preparer looking to break away from being paid hourly so you can build your own business, you may find yourself waiting for your Electronic Filing Identification Number (EFIN) or facing eligibility challenges. (We’re all young once, right?)
Enter Taxx Savage, your ally in the tax game, offering a no EFIN tax software to empower tax professionals. Let’s discover why this is a game-changer for tax preparers.
What Does EFIN Stand For?
EFIN stands for Electronic Filing Identification Number. So the IRS knows who you are based on your EFIN instead of you putting your personal social security number on the tax returns of your clients.
EFIN Meaning: What Is an EFIN Number?
This unique identifier is issued by the IRS to professional level tax preparers, enabling them to e-file tax returns on behalf of their clients directly to the IRS instead of through a third party.
It’s essentially the key to the electronic filing kingdom, streamlining the tax preparation process. But you have to qualify and that’s complicated.
EFIN Sharing Unveiled
Taxx Savage introduces an innovative solution for tax preparers facing EFIN-related challenges – EFIN sharing. But what exactly does this mean?
Essentially, our EFIN number assistance program is a cooperative effort where tax preparers with a Preparer Tax Identification Number (PTIN) can access and utilize the EFIN of another tax professional. This collaboration opens doors for smoother tax preparation processes and allows you, the PTIN holder, to function as an independent business instead of forcing you to work for another company for what is usually a low hourly rate of pay. Wondering what is PTIN? It’s your Preparer Tax Identification Number, a crucial identifier for tax professionals.
Unlike other companies, there is no profit sharing involved in our EFIN assistance program. Taxx Savage charges a simple flat rate per return and the bank may charge fees depending on if you use their products or not. If you use bank products, as most do, then it’s deducted from your client’s return. If you don’t use bank products, then add the fee into your calculations when you take your client’s up front payment. It’s just that simple.
How Long Does an EFIN Application Take?
Once you review the EFIN eligibility requirements below, you’ll understand why it may take the IRS some time to approve your application. You may apply and then get a request for more documentation, and then submit that, and wait…and wait.
For tax preparers awaiting their EFIN, time is of the essence. Getting no EFIN tax software is essential for kickstarting their services promptly, ensuring they stay ahead during the busy tax season. Taxx Savage allows you to start the season as a PTIN and move to being an independent EFIN holder once the EFIN is received. Or you can choose to stay as a PTIN for the rest of the season, or even purchase the valuable review service to give you peace of mind for protecting your new EFIN.
EFIN Requirements: Navigating Eligibility Challenges
Some tax preparers may face eligibility hurdles in obtaining their own EFIN. This could be due to various reasons, such as not meeting certain IRS criteria, getting divorced, identity theft, or having a criminal record. EFIN sharing provides a workaround, enabling them to continue to start a tax prep business seamlessly.
Let’s explore the specific causes that you may not be able to obtain your own EFIN. Even if they don’t apply to you, they’re a cautionary tale to prevent you from losing your EFIN once you get it!
1. Lack of Compliance with IRS EFIN Requirements
The IRS sets specific criteria that tax preparers must meet to be eligible for an EFIN. Failure to comply with these requirements, such as incomplete documentation or not meeting educational standards, can result in the denial of an EFIN application.
2. Prior Compliance Issues
Tax preparers with a history of non-compliance or disciplinary actions may find themselves facing challenges in obtaining an EFIN. The IRS places a strong emphasis on ethical conduct and adherence to tax laws, and any past violations can impact the approval process.
3. Incomplete Application or Documentation
Submitting an incomplete EFIN application or providing insufficient supporting documentation can lead to delays or denials. It’s essential for tax preparers to meticulously fill out their applications and ensure that all required documents are included.
4. Identity Verification Concerns
The IRS places a high priority on identity verification to maintain the integrity of the tax system. Tax preparers who face difficulties in verifying their identity, perhaps due to name changes or discrepancies, may encounter challenges in obtaining an EFIN.
5. Convictions or Felony Charges
Individuals with certain criminal convictions or felony charges may find it challenging to obtain approval for an EFIN. The IRS assesses the background of applicants, and serious legal issues can impact their eligibility to obtain this crucial identifier. Even if you only have a misdemeanor conviction, it can prevent your EFIN application from being approved without the assistance of a lawyer, which, as you probably know, can be a huge expense.
6. Non-Compliance with e-File Rules
Tax preparers are required to adhere to e-file rules and regulations set by the IRS. Non-compliance with these rules, whether intentional or unintentional, can result in the denial of an EFIN. Staying abreast of e-file requirements is essential to ensure a smooth application process.
7. Suspension or Revocation of a Prior EFIN
Tax preparers who have previously had their EFIN suspended or revoked may encounter challenges in obtaining a new one. It’s crucial to address and rectify any issues that led to the suspension or revocation before reapplying for an EFIN.
Don’t let the absence of an EFIN hinder your journey to get started as a tax preparer and establish your independent business!! The tax industry thrives on collaboration. EFIN sharing fosters a sense of community among tax professionals, where they can support each other in times of need. It’s a win-win scenario for everyone involved.
Taxx Savage’s EFIN sharing program emerges as a lifeline for tax preparers facing delays or eligibility challenges in obtaining their EFIN. By fostering collaboration, accelerating services, and providing a cost-effective solution, EFIN sharing ensures that tax professionals can navigate the complexities of their industry with ease.
As the tax landscape continues to evolve, embracing innovative solutions like EFIN sharing becomes not just a choice but a strategic advantage. With Taxx Savage leading the way, tax preparers can redefine their approach, ensuring that they are always one step ahead in delivering exceptional service to their clients.
