Is it possible for a tax preparer to have a PTIN but be denied an EFIN? What would prevent this?
Title: Is it possible for a tax preparer to have a PTIN but be denied an EFIN? What would prevent this? 1 I've noticed something odd with a tax preparer in my area. She's been operating her own tax preparation business for about 3 years - has her own rented office space and promotes her services all over Facebook and Instagram as her independent business. However, I recently found out she's actually using her niece's EFIN (Electronic Filing Identification Number) to submit returns. The niece works at a completely different tax office across town with a different business address. Out of curiosity, I looked up public records and couldn't find any felony convictions for this preparer in the last 10 years. I know tax preparers need a PTIN (Preparer Tax Identification Number) which seems relatively easy to get, but I'm wondering what would prevent someone from obtaining their own EFIN if they already have a PTIN? Is this a common practice or is there something sketchy going on here? Just seems weird to operate your own tax business but file through someone else's credentials.
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Mason Lopez
17 What you're describing is definitely concerning. A tax preparer can have a PTIN but be denied an EFIN for several reasons: 1. Failed suitability check - The IRS conducts background checks including credit history, tax compliance, and criminal background. Even without felonies, issues like significant tax debt, identity theft markers, or poor credit history can result in denial. 2. Prior e-file violations - If she previously had an EFIN that was revoked for violations. 3. False information on application - Providing incorrect information on Form 8633. 4. Association with previously sanctioned preparers - Business relationships with individuals who've had EFINs revoked. What she's doing by using someone else's EFIN is absolutely prohibited by IRS rules. Each EFIN is location-specific and tied to a specific business entity. The niece is risking her own credentials and potentially committing a violation that could result in penalties and revocation of her EFIN.
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Mason Lopez
•3 Thanks for this info. If I'm understanding correctly, there's a separate "suitability check" for the EFIN beyond just checking for felony convictions? What exactly does the IRS look at for credit history? Would having something like $10k in credit card debt be enough to get denied?
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Mason Lopez
•17 Yes, the suitability check is more comprehensive than just felony convictions. For credit history, the IRS doesn't publish exact thresholds, but they're generally looking for significant issues like bankruptcies, substantial tax debts, or patterns of financial irresponsibility rather than reasonable consumer debt. $10k in credit card debt alone probably wouldn't trigger a denial unless it was seriously delinquent or part of a larger pattern of financial problems. The bigger issue here is that using someone else's EFIN is explicitly prohibited. The niece is putting her own credentials at risk, as each EFIN is tied to a specific business location. The IRS could revoke the niece's EFIN and potentially impose penalties on both parties if they discover this arrangement.
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Mason Lopez
8 After struggling with a similar situation in my tax practice, I found taxr.ai https://taxr.ai to be incredibly helpful for verification and compliance issues. When I was unsure about proper PTIN/EFIN requirements, I uploaded the IRS guidance documents and my specific scenario, and it broke down exactly what was compliant vs non-compliant. Saved me from potentially making a serious error with my credentials. What's particularly useful is that it analyzes the actual IRS regulations and provides specific citations, so you know exactly where the information is coming from. In your case, it could help clarify the exact violations occurring and potential consequences.
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Mason Lopez
•12 Does taxr.ai just analyze documents you upload or can it actually check if someone has a valid EFIN? I'm not sure I understand how it would help in this specific situation.
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Mason Lopez
•22 I'm skeptical about these AI tools. Wouldn't calling the IRS directly be more reliable for this kind of regulatory question? Has it actually provided information that contradicted what the IRS told you or gave you something you couldn't find on irs.gov?
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Mason Lopez
•8 It doesn't verify credentials directly - for that you would need to contact the IRS. What taxr.ai does is analyze documents and tax regulations to explain compliance requirements. You can upload IRS publications, circulars, or any tax-related documents and ask specific questions to get explanations in plain language. Regarding calling the IRS, that's certainly another approach, but if you've tried calling them recently, you know how difficult it can be to get through. The advantage of taxr.ai is that it gives immediate answers and helps you understand complex tax regulations without waiting on hold for hours. It doesn't contradict IRS information - it helps interpret the same information in a more accessible way.
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Mason Lopez
22 Just wanted to follow up about that taxr.ai suggestion. I was skeptical but decided to give it a try with some IRS publications about tax preparer requirements. I uploaded Circular 230 and Publication 3112 (IRS e-file Application and Participation) and asked about EFIN sharing scenarios. It highlighted the exact sections prohibiting EFIN sharing between locations and provided references to the specific penalties. The tool actually explained things more clearly than the IRS agent I spoke with last year about a different matter. Saved me hours of reading through dense IRS documents. Definitely worth checking out if you're dealing with tax preparer compliance issues.
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Mason Lopez
5 If you're concerned about this tax preparer's practices and want to report potential violations, Claimyr https://claimyr.com can help you actually get through to the IRS. I tried for weeks to report suspected tax preparer fraud last year and kept getting disconnected or waiting for hours. Used Claimyr and got connected to an IRS agent in about 20 minutes instead of spending all day redialing. They also have a video showing how it works: https://youtu.be/_kiP6q8DX5c It's pretty straightforward - they navigate the phone system and wait on hold for you, then call you when an actual human at the IRS is on the line. Made reporting a suspicious preparer in my neighborhood much less frustrating.
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Mason Lopez
•9 Wait, how exactly does this work? You're saying they somehow get you through the IRS phone system faster? That seems impossible given how overwhelmed IRS phone lines are.
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Mason Lopez
•22 This sounds like just another service trying to make money off people's frustration with the IRS. I've never heard of anyone successfully getting through any faster regardless of what service they use. The IRS prioritizes calls by topic, not by who's calling.
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Mason Lopez
•5 The service doesn't magically move you ahead in the IRS queue - it just handles the waiting for you. Instead of you personally sitting on hold for hours, their system waits in the queue and then calls you when an agent is available. You don't have to keep redialing when disconnected or waste your entire day with a phone to your ear. It's particularly useful for complex issues like reporting tax preparer violations, where you really do need to speak with someone rather than just using the IRS website. The IRS still takes calls in the same order, but you're not actively waiting - you can go about your day until they connect you.
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Mason Lopez
22 I take back what I said about Claimyr. After my skeptical comment, I decided to try it when I needed to contact the IRS about a tax preparer issue. I was expecting it to be useless, but I was completely wrong. I submitted my request in the morning, went about my day, and around 2 hours later got a call connecting me directly to an IRS representative - no robot menus, no waiting on hold. The IRS agent confirmed that using someone else's EFIN at a different location is absolutely prohibited and gave me information on how to properly report it through their fraud reporting system. Would have taken me multiple attempts and probably an entire day of trying without the service. Sometimes it's worth admitting when you're wrong about something.
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Mason Lopez
14 Just adding some context here as someone who works in the industry - this situation happens more than you'd think, especially with small tax preparation businesses. Often preparers will work under someone else's credentials while they're building their business or if they've been denied for some reason. The most common reasons I've seen for EFIN denial besides criminal history are tax compliance issues (they owe back taxes themselves) or they previously had violations as a preparer. The IRS has really cracked down on this in recent years.
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Mason Lopez
•2 So what happens to all the returns filed under the niece's EFIN if the IRS discovers this arrangement? Are the actual taxpayers affected or just the preparers?
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Mason Lopez
•14 The taxpayers generally aren't held responsible if they had no knowledge of the improper arrangement. Their returns remain valid, but they might face delays in processing if an investigation occurs. The real consequences fall on both preparers. The niece who owns the legitimate EFIN could face revocation of her credentials, monetary penalties, and potentially be barred from the e-file program for years. The aunt using the borrowed EFIN could be prohibited from obtaining her own EFIN in the future and potentially face penalties for improper tax preparation practices. The IRS takes credential sharing very seriously as it undermines their oversight of tax preparation.
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Mason Lopez
20 Does anyone know if you can look up whether someone has a valid PTIN or EFIN? I'm now wondering about my own tax preparer and whether I should be checking their credentials before letting them file my taxes.
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Mason Lopez
•17 You can verify a tax preparer's PTIN through the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications on the IRS website. However, there isn't a public database to verify EFINs. At minimum, you should ensure your preparer signs your return and includes their PTIN (required by law). Also, legitimate preparers will have you sign Form 8879 (e-file authorization) before submitting your return electronically. If they don't do these things, that's a red flag.
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Mason Lopez
•20 Thanks for the info! I didn't know about the IRS directory. Just checked and my preparer is listed with valid credentials. Will definitely make sure they're having me sign the right forms this year.
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NebulaNova
Based on what you've described, this situation raises several red flags. While it's technically possible to have a PTIN but be denied an EFIN, the reasons usually involve more than just criminal history. Common reasons for EFIN denial include: - Outstanding tax debts to the IRS - Previous violations of e-file regulations - Failing the suitability check (which includes credit history, tax compliance, and background verification) - Providing false information on the EFIN application - Association with previously sanctioned preparers What's particularly concerning is that using someone else's EFIN is a serious violation of IRS regulations. Each EFIN is tied to a specific business location and preparer. The niece is putting her own credentials at significant risk - if discovered, both she and the aunt could face penalties, EFIN revocation, and potential prohibition from the e-file program. If you're considering reporting this, you should know that the IRS takes credential sharing very seriously. This isn't just a technicality - it's a fundamental violation of tax preparer oversight designed to protect taxpayers.
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