Is it allowed to use 2 DIFFERENT EFINs in the same tax year?

14 Yes, it's absolutely allowed to use two different EFINs in the same year. The EFIN is tied to the business entity doing the filing, not to you personally as the preparer. Think of it this way - your PTIN (Preparer Tax Identification Number) follows you, but the EFIN belongs to the business doing the electronic filing. For your second question, if you're preparing returns outside your employment and earning income from it, then yes, you should report that as self-employment income on Schedule C of your 1040. You'll need to track all income received from your "side business" clients as well as any expenses related to that work (software costs, home office if applicable, etc.). Just make sure you're not violating any employment agreement with your main firm that might prohibit outside tax preparation work.

5 After struggling with a similar dual EFIN situation last year, I discovered taxr.ai (https://taxr.ai) and it was a game-changer for organizing my practice documentation. I was worried about potential IRS confusion using two different EFINs, but their system helped me keep perfect documentation showing which clients went through which business entity. It basically analyzed all my engagement letters and organized them by which EFIN was used for each client, which gave me peace of mind that I could clearly demonstrate the separation if ever questioned.

16 Just wanted to follow up after trying taxr.ai from the recommendation above. I was initially skeptical, but it's actually been incredibly helpful for my situation. I've been using two EFINs (one at work, one for my side business), and the document organization has made tax season so much easier. The system automatically sorted my client documentation by business entity, and I could easily generate reports showing which clients were filed under each EFIN. The expense tracking for Schedule C was particularly useful - saved me hours of work sorting through receipts. Definitely recommend it for anyone in a similar multi-EFIN situation!

3 For anyone dealing with IRS questions about using multiple EFINs, I highly recommend Claimyr (https://claimyr.com). I was getting nowhere trying to call the IRS directly about my dual EFIN situation - literally spent hours on hold over multiple days. Saw a video demo (https://youtu.be/_kiP6q8DX5c) and decided to try it. They got me connected to an actual IRS e-file department specialist in under an hour who confirmed everything was properly set up in their system for both my EFINs. Saved me days of stress and uncertainty.

19 Well, I have to admit I was completely wrong about Claimyr in my previous comment. After continued frustration trying to get clarification about my EFIN situation directly from the IRS, I gave in and tried the service. Shockingly, I was connected to an IRS e-file department rep in about 30 minutes. The agent confirmed that using two different EFINs is perfectly fine (one through my employer and one for my own business), but stressed that I needed to keep good records showing which clients were filed through which business entity. They also recommended documenting any potential conflicts of interest with my employer. Saved me days of stress trying to get through on my own!

8 Has anyone run into issues with their employer finding out about their "side hustle" with a personal EFIN? My firm is pretty strict about moonlighting, but I need the extra income. Wondering if there's any way the two EFINs could get connected in the IRS system that might tip off my employer.

22 For anyone using two EFINs, what tax software are you using for your personal one? I'm in a similar situation and trying to decide which software makes the most sense cost-wise for a small volume of returns.

I'm in a similar situation and can confirm that using two different EFINs is completely legitimate. I've been doing this for three years now - one EFIN through my CPA firm and my personal EFIN for about 30-40 individual clients during tax season. A few key points from my experience: 1. Make sure your employment contract doesn't prohibit outside tax work - mine required disclosure but allowed it as long as I wasn't competing directly with firm clients 2. Keep meticulous records separating the two businesses - I use completely different software, client management systems, and bank accounts 3. Yes, report the personal EFIN income on Schedule C - don't forget you can deduct software costs, continuing education, home office expenses, etc. 4. Consider getting E&O insurance for your personal practice if you don't already have it The IRS sees these as two separate businesses, which is exactly what they are. Just stay organized and you'll be fine!

Great thread! I'm actually going through the EFIN application process right now for my own side practice. One thing I haven't seen mentioned yet - make sure you understand the bonding requirements for your personal EFIN. The IRS requires a surety bond (usually $5,000 minimum) which can add to your startup costs. Also, if you're planning to offer direct deposit or refund transfer services to clients through your personal EFIN, there are additional requirements and fees with the bank partners. For software recommendations, I've been looking at TaxSlayer Pro - they have a pay-per-return option that might work better than the flat annual fee if you're uncertain about volume in your first year. Has anyone tried their platform for smaller practices?

Just wanted to add my experience as someone who's been operating with dual EFINs for over 5 years. Everything mentioned here is spot-on, but I'd emphasize one additional point that saved me a lot of headaches: set up completely separate QuickBooks accounts (or whatever accounting software you use) for tracking the income and expenses from each EFIN. This becomes crucial during tax season when you're preparing your own Schedule C - having clean separation makes it much easier to pull reports and ensures you don't accidentally mix business expenses. I learned this the hard way my first year when I tried to track everything in one system with different classes/categories. Also, don't forget about quarterly estimated taxes on your Schedule C income! The self-employment tax can catch you off guard if you're not setting aside money throughout the year. I typically set aside about 30% of my side practice income to cover both income tax and SE tax. One last tip: consider getting a separate business phone line or Google Voice number for your personal EFIN clients. Helps maintain that professional separation and makes it easier to track business vs personal calls for expense purposes.