Why IRS e-file?

IRS e-file enables taxpayers to file their individual, business and information returns electronically. More and more taxpayers are choosing IRS e-file because their returns are processed faster with fewer errors. This means quicker refunds and less contact with the IRS. Plus, the IRS acknowledges receipt of IRS e-filed returns that gives taxpayers proof of filing. The electronic payment options let you and your clients file early and either electronically schedule a payment for a future date (paying by direct debit) or delay out of pocket expenses (paying by credit card). As taxpayer demand for IRS e-file grows, there are many ways you can meet the expectations of your clients and participate in this important trend as an Authorized IRS e-file Provider.

Now it is easier to apply to participate in IRS e-file with the new IRS e-file Application

Getting Started

The IRS issues a Handbook for Authorized IRS e-file Providers, Publication 1345 that contains the rules for participating in IRS e-file. Please read it before doing anything else. The current Revenue Procedure can be found here.

Frequently Asked Questions and Answers for IRS e-file Application and Form 8633, Application to Participate in the IRS e-file Program

IRS e-file Application & Publication News

Still have questions?  Need answers?  Don't know where to begin?  Call the e-Help Desk 1-866-255-0654 (toll free) for assistance.

Become an Authorized IRS e-file Provider in 3 Steps

1. Choose the Authorized IRS e-file Provider options that are best for you.

2a. Complete the IRS e-file Application online. Register or log on to e-services on this website. 

OR

2b. Fill out and submit the paper application, Form 8633, Application to Participate in the IRS e-file Program, and use the Accuracy Checklist to ensure that the application is complete. .

3.  Pass a Suitability Background Check

Step 1 - Choose the Authorized IRS e-file Provider Options That Are Best for You

An Authorized IRS e-file Provider can be an Electronic Return Originator, Intermediate Service Provider, Transmitter, Software Developer or Reporting Agent.  Be sure to include all your choices on the IRS e-file Application or Form 8633.

Electronic Return Originators (EROs) - originate the electronic submission of income tax returns to the IRS. An ERO may originate the electronic submission of income tax returns that are either prepared by the ERO firm, or collected from a taxpayer.  Select the ERO provider option on your IRS e-file Application or check "yes" for Electronic Return Originator on Form 8633.

Intermediate Service Providers - receive tax return information from EROs or from taxpayers who file electronically from home using their personal computers, either online or by using commercial tax preparation software.  Intermediate Service providers process the tax return information and either forward the information to a transmitter or send the information back to the EROs or taxpayers.

Transmitter - Once the return is prepared, the income tax return data is sent to the IRS by a Transmitter. Transmitters must have software and modems that allow them to connect with IRS computers. Select the Transmitter provider option on your IRS e-file Application or check "yes" for Transmitter on Form 8633. EROs may apply to be transmitters and transmit return data themselves or they may contract with accepted third-party transmitters who will transmit the data for them. Transmitters, who transmit returns filed from home by taxpayers using tax preparation software, are called "Online Filers."  Online Filers consists of 990, 1040, 1120, 1120POL filing. The Revenue Procedure also contains the rules for Online Filing. If you decide to be an Online Filer, you must select the Online provider option on your IRS e-file Application or check yes on Form 8633 to boxes 2c for Transmitter and 2d for Online Provider.

An entity that provides a "bump-up" service is a Transmitter. A bump-up service provider increases the transmission rate or line speed of formatted or reformatted information that is being sent to the IRS via a public switched telephone network.

Software Developers - Software Developers write the programs to IRS specifications that make IRS e-file and Federal/State e-file possible. The IRS and participating states require that all software pass a series of tests each year. Once approved, this software may be sold and used by EROs, Reporting Agents, Intermediate Service Providers and Transmitters.  Select the Software Developer provider option on your IRS e-file Application or check "yes" for Software Developer on Form 8633.  Federal/State Software Developers must register and test with participating states' electronic filing programs.

Reporting Agents - A Reporting Agent (Agent) is an accounting service, franchiser, bank or other person that complies with Rev. Proc. 96-17, as modified by section 21.02 of the revenue procedure and is authorized to e-file Form 940/941 for a taxpayer.

To become an ERO, Intermediate Service Provider, Transmitter, Software Developer or Reporting Agent, you must apply by submitting an IRS e-file Application or Form 8633 (see Step 2) and be accepted by the IRS.  Before you apply, you need to decide which provider option(s) make the best business sense for you. In addition, you should contact a number of vendors and software developers to find the products that meet your business needs.

For additional information about Business e-file programs, see the following publications:

Publication 1524 - Procedures for the Form 1065 e-file Programs


Publication 1525 - File Specifications for Form 1065 e-file


Publication 1855 - Technical Specifications Guide for the Electronic Filing of Form 941


Publication 3715 - Technical Specifications Guide for the Electronic Filing of Form 940


Publication 1437 - Procedures for Electronic Filing of Form 1041


Publication 1438 - File Specifications for Form 1041

Federal/State e-file - Federal/State e-file is a cooperative tax filing program between the IRS and some of the states that have taxes.  This process makes it possible for taxpayers to file both federal and state income tax returns electronically at one time. Each participating state has its own requirements, but all require that you be accepted in IRS e-file before they will accept you in their state programs.

Step 2a - Fill Out and Submit an IRS e-file Application @ irs.gov  or  2b -  Fill Out and Submit Form 8633, Application to Participate in the IRS e-file Program.

It is now easier to apply to participate in IRS e-file!  A new electronic IRS e-file Application is available through the Internet-based business tools called “ e-services” Individuals who want to apply to participate in IRS e-file or submit updates to a prior approved IRS e-file Application are encouraged to register for e-services online by creating an electronic account and then accessing the IRS e-file Application.

You can register for e-services or login by visiting our website at irs.gov.  Choose the e-file link, and then the e-services link under tax professionals.

Existing participants of  IRS e-file should view and update their e-file application online.  It is the participant’s responsibility to ensure the information on the IRS e-file Application is current and accurate.  You should also make sure you choose the provider options and form types on the IRS e-file application for returns you intend to electronically file.

Form 8633 asks for basic information about your business, key people in your business and the provider options you have chosen in Step 1. You may choose more than one provider option, for example, ERO, Transmitter and Reporting Agents on one application.  Do not check yes for the Online Filing questions 2d unless you will receive returns from taxpayers that are preparing their taxes on commercially available software, software downloaded from an Internet site and prepared off-line or through an on-line Internet site.  Note for Online Provider Applicants:  detailed instructions are outlined on page 3 of the Form 8633.

The Form 8633 is also used to notify the IRS when changes occur in your business.  It is important that you update you application information whenever changes occur.  You may do this by revising your IRS e-file Application or the Form 8633, or by mailing the changes on your company letterhead to the Andover Campus, signed by a firm official.  You may also call toll-free 1-866-255-0654 to make changes.   Applications must be updated within 30 days of the date changes occurred.  Any changes affecting suitability such as changes to Taxpayer Identification Numbers (TINs) and corporate structure cannot be made via telephone.  Original/revised Form 8633 or any changes submitted on letterhead should not be faxed to the Andover Campus.  Any faxes submitted may result in delay of processing of the information.

After completing the form, please check it against the Form 8633 Accuracy checklist. This will help ensure that you haven't forgotten something such as signatures or attachments needed, such as fingerprint cards, or evidence of professional status.  Forms 8633 are returned if they are incomplete.

Include fingerprint cards or evidence of professional status for all principals of your firm (line 7) and responsible officials (line 8). Only one set of fingerprint cards is required for each principal and responsible official.  To obtain fingerprint cards call, toll-free, 1-866-255-0654.  New fingerprint cards are not required for individuals who submitted them in the past with another application that is currently active.  The fingerprint cards for IRS e-file are unique and can only be obtained from the Andover Campus.

IRS e-file Application or Form 8633 to become new Authorized IRS e-file Providers may be submitted year-round.  Once the provider is accepted into IRS e-file, there is no need to reapply.  

When the IRS receives the IRS e-file application or Form 8633 we will acknowledge its receipt with a letter, assign identification numbers, after suitability is passed, and where applicable, issue password for testing based on the provider options you have chosen as follows:

• EROs, Transmitters, Software Developers, Reporting Agents and Intermediate Service Providers will receive an Electronic Filing Identification Number (EFIN) for the home location, which is each location based on the firm's business address;
  
  
• Transmitters and Software Developers will also receive an Electronic Transmitter Identification Number (ETIN) and a password for testing.

Processing the applications and completing the suitability background checks (see Step 3) can take up to 45 days. The IRS encourages all prospective Authorized e-file providers to apply no later than 45 days prior to the date you intend to begin filing returns electronically (business and/or individual); apply later and you may not be accepted in time to begin e-filing based on your filing season.

QuickAlerts - It is strongly recommended that you subscribe to QuickAlerts once approved to participate in the IRS e-file.  QuickAlerts is the answer for up to the minute e-file information.  Would you like to know when a problem occurs at the campuses (service centers) that would interrupt your processing of electronically filed return?  Would you like to hear about any tax law or publication changes affecting e-file or when the next conference is scheduled?  How about delays in Form 8453 acknowledgements in the processing of returns?  Get a jump on e-file messages early in the filing season. 

Find out today by subscribing to QuickAlerts, IRS'  latest "push" technology messaging system.   Get the facts quick, fast and anyway you'd like to receive them (i.e., phone, fax, email).

E-News for Tax Professionals - Subscribe to this reorganized and improved version of the Local News Net.  The new electronic newsletter for tax practitioners and others provides consolidated and localized information that is available for the first time on a state-by-state basis.  Services through E-News include IRS Digital Dispatch, IRS Newswire, and IRS Tax Tips.

Step 3 - Pass a Suitability Background Check

When you apply to become an ERO, Transmitter, Reporting Agent or Intermediate Service Provider, the IRS conducts a background check on all principals of your firm and responsible officials listed on the application to determine their suitability to be an Authorized  IRS e-file Provider. If you apply to be a Software Developer only, a suitability check is not required.

Suitability check may include the following:

1. An FBI criminal background check;
   
2. A credit history check;
   
3. An IRS records check to a) ensure that all individual and business returns are filed, and balance paid or appropriately addressed, and b) identity instances of fraud and preparer penalties; and 
   
4. A history check for prior non-compliance in the Electronic Filing or IRS e-file programs.

All principals of your firm and responsible officials must pass the suitability check before your application will be accepted into IRS e-file.  If any one fails, your application will be rejected.  If your application is rejected, you will be notified in writing.  You may appeal. If your application rejection is upheld on appeal, you may not reapply to become an Authorized IRS e-file Provider for two years.

Acceptance

After your application is processed and all involved parties pass the suitability test, you will be sent an acceptance letter. Transmitters and Software Developers must also complete testing before an acceptance letter is sent. Once accepted, you do not have to reapply each year as long as you continue to e-file returns.

After testing is completed satisfactorily, Transmitters will be issued a password that authorize them to transmit e-filed return data during the filing season which begins in mid-January and continues through mid-October for Individual Income Tax Returns and the filing season for Business Income Tax Returns and Information Returns which is year round.  Testing is required each year for transmitters and software developers.

The IRS will send you a promotional kit that entitles you to identify yourself as an "Authorized IRS e-file Provider". We support IRS e-file with advertising on radio, television and in print and provide material that you can customize for your own advertising and promotion. And that's not all! As an Authorized IRS e-file Provider you become eligible for special recognition and an incentive and rewards program.  Access the Tax Professionals Page and click on the link for e-services for information on IRS e-file Application.

For additional assistance, click on the e-services tutorials or call Toll-Free Number for e-Help at 1-866-255-0654.

Don't delay! Apply Today!