top of page

Safeguarding Your EFIN: Essential Practices for Tax Professionals





Introduction


In an era where digital security is more crucial than ever, tax professionals bear the responsibility of safeguarding their Electronic Filing Identification Number (EFIN). The IRS emphasizes the importance of maintaining, monitoring, and protecting your EFIN to ensure the integrity and security of electronic tax filing. Drawing insights from the IRS "How to Maintain, Monitor and Protect Your EFIN," this blog post aims to guide tax professionals through the best practices for EFIN management and protection against potential threats.



Key Highlights


Understanding Your Responsibilities


  • EFIN Management: Tax professionals must keep their IRS e-services account and EFIN details current, including immediate updates to any changes in address or phone number.

  • Non-Transferability: An EFIN is not transferable. Any change in business ownership necessitates the acquisition of a new EFIN by the new principals.

  • Business Expansion: Expanding your tax preparation services to new locations may require obtaining separate EFINs for each office.


Monitoring Your EFIN


  • Weekly Updates: The IRS updates the number of returns filed under each EFIN weekly, allowing tax professionals to monitor any unusual activity.

  • E-Services Account: Through the e-file application in e-services, professionals can access the “EFIN Status” option to keep track of filings.

Protecting Your EFIN


  • Password Security: Protecting your e-services password and EFIN involves never sharing login credentials, using strong passwords, and being cautious of phishing attempts.

  • Identity Theft Vigilance: Tax professionals are increasingly targeted by identity thieves. It's critical to avoid suspicious emails and directly access IRS.gov for information.



Benefits


  • Enhanced Security: Following these guidelines significantly reduces the risk of unauthorized use of your EFIN, protecting both tax professionals and their clients.

  • Compliance and Integrity: Maintaining an updated and secure EFIN ensures compliance with IRS regulations, upholding the integrity of the electronic filing system.



Brief Addons


Additional Resources


  • IRS Publications: Reviewing IRS Publications 3112 and 1345 periodically is essential for staying informed on updates and guidelines related to electronic filing.

  • Cybersecurity Best Practices: Adopting robust cybersecurity measures, such as avoiding suspicious links and using antivirus software, is crucial for protecting sensitive information.


Staying Informed


  • IRS Communications: Subscribing to IRS Quick Alerts, e-News for Tax Professionals, and e-News for Payroll Professionals keeps you updated on the latest information and changes.



Conclusion


The role of a tax professional comes with the critical responsibility of safeguarding the Electronic Filing Identification Number (EFIN). By diligently maintaining, monitoring, and protecting your EFIN, you ensure the security and efficiency of the tax filing process for your clients. In today's digital landscape, where threats can emerge from any corner, adhering to the IRS's guidance is paramount. Tax professionals must remain vigilant, informed, and proactive in their cybersecurity efforts to prevent identity theft and unauthorized use of their EFIN.


........................................................................................



"Treats to Try:" 

 

Business Management:

 

Finance and Investing:

1 view0 comments

Comments

bottom of page