Before you can prepare returns for pay, you need the right credentials. The two that matter most are the PTIN and the EFIN. Here is what each one is and how to get them in the right order.
Start with your PTIN
A Preparer Tax Identification Number (PTIN) is required for anyone who prepares federal returns for compensation. It is issued by the IRS, renews annually, and is quick to obtain online. Get this first, you cannot prepare returns without it.
Then apply for your EFIN
An Electronic Filing Identification Number (EFIN) lets you e-file returns. The application runs through the IRS e-Services portal and includes a suitability check, so it takes longer than the PTIN, plan several weeks ahead of the season.
- PTIN, required to prepare; fast; renews each year.
- EFIN, required to e-file; slower approval; plan ahead.
A note on timing
The most common rookie mistake is applying for an EFIN in January and being stuck when approval does not arrive before your first clients do. Start the EFIN process in the fall so you are ready when filing season opens. With both numbers in hand, you are cleared to prepare and e-file, the foundation of a compliant practice.
This article is general information, not tax or legal advice. Confirm current requirements with the IRS.
Ready to build your own future?
Explore the Libre License and start your business - one ZIP code at a time.
Explore Licenses
