What Is an Electronic Filing Identification Number (EFIN)?
An EFIN is a unique number issued by the IRS that allows tax preparers to submit tax returns electronically. This number is required if you are filing taxes on behalf of clients using the IRS e-file system. If you plan to file more than 10 returns per year, you must apply for an EFIN. Keeping this number safe is essential because it connects directly to your professional status with the IRS.
Tip: You’ll need an EFIN to provide electronic filing services, which most clients expect. Be aware that the IRS performs thorough background checks, so be prepared for the application process.
How Long Does It Take to Become a Tax Preparer?
The time it takes to become a tax preparer depends on how much education and experience you choose to pursue. Here’s a general timeline:
- Basic Tax Preparer: You can start as an essential tax preparer weeks after completing a short-term tax preparation course. Some online programs take just 6-8 weeks.
- Enrolled Agent (EA): To become an EA, you must prepare for and pass the IRS Special Enrollment Examination (SEE), which can take several months of study.
- CPA: Becoming a CPA typically takes 4-5 years of study, which requires earning a degree and passing the CPA exam.
Tip: If you’re starting as a part-time preparer or working for a tax firm, it’s possible to get up and running quickly. However, achieving higher credentials will take more time and effort if you want to offer more specialized services, like audits or complex tax consulting.
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