What is the difference between a PTIN and an EFIN? Does a preparer need both?
A Preparer Tax Identification Number (PTIN) is a number issued by the IRS to paid tax return preparers. It is used as the tax return preparer’s identification number and, when applicable, must be placed in the Paid Preparer section of a tax return the tax return preparer prepared for compensation. Any individual who, for compensation, prepares all or substantially all of a tax return or claim for refund needs a PTIN. (See PTIN Requirements and Scenarios for additional guidance.) There is an annual fee of $64.25 for a PTIN and applicants must meet various suitability requirements. An Electronic Filing Identification Number (EFIN) is a number issued by the IRS to individuals or firms that have been approved as authorized IRS e-file providers. It is included with all electronic return data transmitted to the IRS. Paid preparers who reasonably expect to file 100 or more Forms 1040, 1040A, 1040EZ, or 1041 during 2011 are required to electronically file their clients’ returns. They (or their
