Learn How to Become an IRS E-file Provider
If you decide to offer tax services, you will need to apply to become an IRS e-file Provider. These days, most tax returns are filed electronically. To be able to transmit tax returns to the IRS electronically, you will need to apply to become an IRS E-File Provider.
Although it may seem complicated a first, it’s really not as hard as it seems, and you only have to go though the hassle once. First, you should read Publication 3112, IRS e-file Application and Participation. You will have to register online at IRS e-services. Go to www.irs.gov and click on the “tax professionals” link in order to get more information on IRS e-services.
You must complete your IRS e-file application online, after registering or logging on to e-services. Authorized e-file Providers who are active participants in IRS e-file and who e-file five or more accepted individual or business tax returns in a calendar year can use IRS e-services. Once you complete the online application, you’ll receive instructions on how to complete your registration.
You will have to pass a background check, which includes fingerprinting, and you will have to pass an IRS “suitability check,” meaning that the IRS will check to see if you are in compliance with your own personal tax returns.
The IRS “suitability check” may include the following:
1. A criminal background check
2. A credit history check
3. An IRS records check to ensure that all individual and business returns are filed, and balance paid or appropriately addressed; and identify instances of fraud and preparer penalties
4. A history check for prior noncompliance
All owners of a firm must pass the suitability check before an application will be accepted into IRS e-file.
After the IRS suitability check is completed satisfactorily, you will be issued a letter with information on how you can start to transmit e-filed return data during the filing season. The IRS will send you an e-file marketing/ promotional kit that entitles you to identify yourself as an “Authorized IRS e-file Provider.”
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