EFIN Required to the software

[elenardiconsulting]

I’m just starting out and I have 3 clients. I have a full time job so preparing taxes would be more like a side hustle for me.

I have a PTIN but not an EFIN, and I see it takes 45 days to obtain after you apply.

All of the professional software I see says you are required to have an EFIN, but I see the IRS rules are that you are only required to use an EFIN if you file more than a certain number of returns.

Is there a software or 3rd party E-File provider that you can use if you are a professional tax preparer that does not yet have an EFIN?

Thank you for your help!!

[IRonMaN]

For a professional tax preparer, the motto is - no EFIN, no e-file.  All professional tax software will require you to have an EFIN if you are going to e-file returns.

[Just-Lisa-Now-]

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IRS requires you to have an EFIN to EFile ANY returns, youre required to EFile if youre been paid to prepare 10 or more returns, so you can paper file as many as you want with no EFIN.

If you sign up with a service bureau you can use one of their EFINs, but be sure you know what you're signing up for before agreeing to anything.

[elenardiconsulting]

Yes, but my question is: is it possible to fill out all the forms and send them by mail, or do I need EFIN to download and start using the software? Or can I use it normally, print the forms, and send them by mail?

[Terry53029]

You need an EFIN to use ProSeries

[IRonMaN]

Our good friend Bob doesn't e-file so I don't think you need an EFIN to use ProSeries as long as you are just paper filing.

[Just-Lisa-Now-]

You can file by paper, you dont need an EFIN.  You can use ProSeries without an EFIN.  

For only a few client though, ProSeries seems like it would be cost prohibitive.

[TaxGuyBill]

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@elenardiconsulting wrote:

I have a full time job so preparing taxes would be more like a side hustle for me.

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I don't know your background or your goals, but ...

You aren't going to like my thought and this is only my opinion, but tax preparation should not be a small "side hustle".  It should either be a full business (not necessarily a full-time, year-around business, but definitely should be a very significant portion of your time) or not be done at all.

I realize that companies like Intuit have commercials saying that 'anybody can do it' and 'it is easy', but there is A LOT to tax preparation, and in my opinion the very-small "side hustles" are doing a severe disservice to the clients and setting themselves up for potentially disastrous problems.

There are SO MANY situations and tax laws to be aware of, so it takes an enormous amount of education to get started.  Plus it takes many hours each year to keep up on changing tax laws.   The liability can be huge; most preparers have Errors&Omission insurance, liability insurance, and/or Cyber insurance.  Speaking of Cyber insurance, you need REALLY GOOD computer habits and security; ideally set up and regularly maintained by a highly-trained IT-security expert.

In short, it takes a very LARGE amount of TIME and MONEY for a tax preparer to do things properly, so an extremely small business doesn't really work for that.

Again, that is only my opinion.  If you want a small 'side hustle' of doing taxes, in my opinion you are MUCH better off getting a part-time job at a tax preparation firm (including places like H&R Block, etc.), rather than trying to do it on your own.

[IRonMaN]

"You aren't going to like my thought and this is only my opinion, but tax preparation should not be a small "side hustle"."

Absolutely correct since we all know it should be a big side hustle 😜

As a side note, I can easily tell who my new clients were for the past year since I can look them up in my Sage accounting system ------------------- not that I am really ever looking for such a list.

[Rusty3]

I have filed many returns with my approved EFIN.  Now ProSeries will not let me e file my own return!  Have done this for two decades.  Says the EFIN cannot be same as my SSN.  It has been for the two decades.  Any advice?

[sjrcpa]

Are you sure that's what it says? 

An EFIN and SSN don't even have the same number of digits.

I'm guessing it has something to do with self-prepared and you didn't choose your professional self as the preparer.

[Just-Lisa-Now-]

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Thats because youve marked it as Self Prepared, they dont want the Taxpayer SSN to be the same as the SSN of the preparer. 

Just sign it as a professional, thats what you are anyhow.

[Rusty3]

Hi guys, I got it fixed.  I had my personal SSN for my Employer ID.  I had this in place for over a decade.  Now the IRS won't allow a personal SSN AND the Employer ID to be the same.  I guess i got away with it for all those years.  The ProSeries help lady was on the phone with me for an hour.  I could not delete the Employer ID in the program.  Had to go to the Options Wizard.   We figured that out finally.  THX for all the replies!

Rusty