If you're ready to launch your career as a tax preparer, there's more to it than just knowing tax laws. Before you can legally prepare and file returns for others, the IRS requires you to obtain the right credentials—specifically a PTIN and possibly an EFIN.Confused by the acronyms? Don’t worry. We’re breaking it down clearly so you understand what you need, why it matters, and how [Your Company Name] can help you every step of the way.<hr><h3 id="6ed72418-0597-4bec-9b55-3cd9119a4eec" data-toc-id="6ed72418-0597-4bec-9b55-3cd9119a4eec">🔍 What Is a PTIN? (Preparer Tax Identification Number)</h3>A PTIN is a number issued by the IRS to anyone who prepares—or assists in preparing—federal tax returns for compensation.Key Facts:<ul><li>Required for all paid tax return preparers</li><li>Must be renewed annually (free for now)</li><li>You cannot legally charge for tax preparation without one</li></ul>How to Get a PTIN:<ol><li>Go to the IRS PTIN system at <a target="_blank" href="https://rpr.irs.gov">https://rpr.irs.gov</a></li><li>Create an account</li><li>Complete the PTIN application (basic personal info + background check questions)</li><li>Submit and receive your PTIN instantly</li></ol>🕒 Takes only 15–30 minutes to complete.<hr><h3 id="ba0c1d4e-bca8-4919-8732-a8cb1a4949ba" data-toc-id="ba0c1d4e-bca8-4919-8732-a8cb1a4949ba">🔑 What Is an EFIN? (Electronic Filing Identification Number)</h3>An EFIN is required if you want to electronically file (e-file) tax returns for clients. This is especially important if you plan to grow a tax business or file more than 10 returns.Who Needs an EFIN?<ul><li>Individuals or firms e-filing more than 10 tax returns per year</li><li>Tax offices with multiple preparers</li><li>Anyone using professional tax software for client returns</li></ul>How to Apply for an EFIN:<ol><li>Create an IRS e-Services account at <a target="_blank" href="https://www.irs.gov/e-services">https://www.irs.gov/e-services</a></li><li>Submit your e-file application</li><li>Pass a Suitability Check (includes background check, credit check, and fingerprinting)</li></ol>📌 Processing time: 4 to 6 weeks. Apply early.<hr><h3 id="90232e2c-f6dd-47ab-bbe5-fa2afb53deeb" data-toc-id="90232e2c-f6dd-47ab-bbe5-fa2afb53deeb">🧾 Other IRS Requirements for New Tax Preparers</h3>While PTIN and EFIN are the primary credentials, here are a few more steps to be fully IRS-compliant:<ul><li>Security Plan (IRS Pub. 4557): Required for all preparers to protect client data</li><li>Due Diligence Knowledge: Especially for preparers handling refundable credits like EITC</li><li>Recordkeeping: Maintain copies of tax returns and documentation for 3 years</li><li>Bank Product Readiness: If offering refund transfers or advances, you'll also need to enroll with a bank product provider</li></ul><hr><h3 id="fd52f498-d0dd-4b4d-8cfb-290337cc9f82" data-toc-id="fd52f498-d0dd-4b4d-8cfb-290337cc9f82">💡 PTIN vs. EFIN: What's the Difference?</h3><table style="min-width: 75px"><colgroup><col><col><col></colgroup><tbody><tr><th colspan="1" rowspan="1">Requirement</th><th colspan="1" rowspan="1">PTIN</th><th colspan="1" rowspan="1">EFIN</th></tr><tr><td colspan="1" rowspan="1">Who needs it</td><td colspan="1" rowspan="1">Anyone preparing tax returns for pay</td><td colspan="1" rowspan="1">Anyone e-filing tax returns</td></tr><tr><td colspan="1" rowspan="1">Issued by</td><td colspan="1" rowspan="1">IRS</td><td colspan="1" rowspan="1">IRS</td></tr><tr><td colspan="1" rowspan="1">Application time</td><td colspan="1" rowspan="1">15–30 minutes</td><td colspan="1" rowspan="1">4–6 weeks</td></tr><tr><td colspan="1" rowspan="1">Renewed annually?</td><td colspan="1" rowspan="1">Yes</td><td colspan="1" rowspan="1">No (unless changes occur)</td></tr></tbody></table><hr><h3 id="9a7712cd-baca-4882-a234-8d79c3c5310b" data-toc-id="9a7712cd-baca-4882-a234-8d79c3c5310b">🚀 How [Your Company Name] Helps You Get Started</h3>Starting a tax business or becoming a paid preparer can be overwhelming. That’s why we offer:✅ Step-by-step PTIN &amp; EFIN guidance ✅ Professional tax software prepped for IRS compliance ✅ Built-in security features (e.g., document encryption, role-based access) ✅ Support team to help you navigate IRS systems ✅ Bank product partnerships to help you earn moreWhether you're starting solo or opening a full tax office, we make sure you're set up legally, securely, and ready to grow.<hr><h3 id="6cf49f3b-1592-4407-b1b5-6aa8b3835a4a" data-toc-id="6cf49f3b-1592-4407-b1b5-6aa8b3835a4a">🔓 Start Smart. Stay Compliant. Succeed.</h3>Becoming a tax preparer is more than just filing forms—it's a regulated profession with serious responsibilities. By understanding the IRS requirements—and using tools that support compliance—you’re building a solid foundation for a lasting, successful business.

Learn the difference between PTIN and EFIN, the IRS requirements to legally prepare taxes, and how our software helps new tax preparers get started the right way.

Understanding PTINs, EFINs, and the IRS Requirements to Start Preparing Taxes

🔍 What Is a PTIN? (Preparer Tax Identification Number)

🔑 What Is an EFIN? (Electronic Filing Identification Number)

🧾 Other IRS Requirements for New Tax Preparers

💡 PTIN vs. EFIN: What's the Difference?

🚀 How [Your Company Name] Helps You Get Started

🔓 Start Smart. Stay Compliant. Succeed.

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Understanding PTINs, EFINs, and the IRS Requirements to Start Preparing Taxes

Understanding PTINs, EFINs, and the IRS Requirements to Start Preparing Taxes

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