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Members of firms must count returns in the aggregate. If the number ofapplicable income tax returns is 11 or more, then all members of the firmgenerally must e-file the returns they prepare and file. This is true even if amember expects to prepare and file fewer than 11 returns on an individualbasis.IRS refers to preparers who are subject to the e-file requirement as “specifiedtax return preparers.” See IRS.gov for additional information and frequentlyasked questions.A Provider may beWhat is an Authorized IRS e-file Provideran Electronic ReturnOriginator (ERO),An Authorized IRS e-file Provider (Provider) is a business or organizationIntermediate Serviceauthorized by the IRS to participate in IRS e-file. It may be a soleProvider, Transmitter,proprietorship, partnership, corporation or other entity. The firm submitsan e-file application, meets the eligibility criteria and must pass a suitabilitycheck before the IRS assigns an Electronic Filing Identification Number(EFIN). Applicants accepted for participation in IRS e-file are Authorized IRSe-file Providers.A Provider may be an Electronic Return Originator (ERO), IntermediateService Provider, Transmitter, Software Developer, Reporting Agent or ACAProvider. These roles are not mutually exclusive. For example, a Providerthat is an ERO may also be a Transmitter. Providers may also be tax returnpreparers, but the activities and responsibilities for IRS e-file and returnpreparation are distinct and different from each other.Getting StartedApply to participate in IRS e-file using the IRS e-file Application at IRS.gov. Applying is an easy three-step process (explained later). This appliesto all applicants that want to develop software or e-file Forms 56, 720, 940,941, 943, 944, 945, 990 series, 1040 series, 1041,1065, 1120 series, 2290,8849, 9465, certain state income tax returns, and extensions of time to fileindividual, business and exempt organization returns.Filing state tax returns electronically is an additional business decision.Federal/State e-file is cooperative tax filing between the IRS and most of thestates that have taxes. It allows electronic filing of both federal and state taxreturns at one time. Each participating state has its own requirements, but allof the states require that the IRS accept applicants to participate in IRS e-filebefore they will accept the applicant to participate in their state electronicfiling programs.The IRS may conduct pilot programs looking for ways to improve andsimplify IRS e-file. The IRS may conduct pilot programs within a limitedgeographic area or with a limited taxpayer or practitioner community. The2Software Developer,or Reporting Agent.

rules for pilot programs are contained in implementing documents referredto as “Memoranda of Understanding” (MOU) or “Memoranda of Agreement”(MOA). The implementing document has the same force as RevenueProcedure 2007-40.Applicants must become familiar with the rules and requirements forparticipation in IRS e-file by reading the applicable IRS e-file documents.Publication 1345 Handbook for Authorized IRS e-file Providers of IndividualReturns provides rules and requirements for participation in IRS e-file.Violation of a provision of Publication 1345 or this publication may subjectan e-file Provider to sanctions. As noted in Publication 1345, those sanctionsmay include suspension, expulsion or other legal action. More details onpotential sanctions are provided below. See Appendix for list of publicationsand other sources of information about IRS e-file. Applicants with questions,or who do not know where to begin may call IRS e-help, toll-free at (866) 2550654 for assistance.3

Become an AuthorizedIRS e-file Provider in3 Steps,STEP 1,Create an IRS e-services AccountYou should submitBefore you begin an electronic IRS e-file application, you must have an IRSyour completede-services account, which facilitates electronic interaction with the IRS.application no laterWhen you apply for an e-services account, you must:than 45 days prior to Provide your legal name, Social Security Number (SSN), date ofthe date you intendbirth, phone number, e-mail address and your home mailing addressto begin filing returns(confirmation of your account will be mailed to you);electronically.Provide your Adjusted Gross Income from the current or prior tax year(thisis for verification purposes only); Create a username, a password and a PIN and provide an answer to aquestion to recover your username; Make sure that every Principal and Responsible Official in your firm signsup for e-services account; and Return to your e-services account to confirm your registration within 28days of your registration submission.Contact e-help toll-free at (866) 255-0654, for assistance with e-servicesregistration.1Create anIRS e-servicesAccount.2Submit anIRS e-fileApplication.3Pass aSuitabilityCheck.4

STEP 2,Submit Your Application to Become anAuthorized IRS e-file ProviderYour firm can begin the IRS e-file application once all Principals have createdtheir e-services accounts. The application process is necessary to protectthe integrity and security of the electronic filing system. The process iscomprehensive and designed to allow you to save your data during thesession and to return to the application when convenient. Plan accordingly;the IRS may take up to 45 days to approve an application. The e-fileapplication prompts for missing information to ensure that applicants submitonly complete applications to the IRS.Here are the key steps of the application process: Log in to e-services and access the e-file application; Select your e-file Provider Options - return preparers who want to e-file fora client should select Electronic Return Originator (ERO); Enter identification information for your firm, as well as services providedto taxpayers; Enter the name, home address, social security number, date of birth andcitizenship status for each Principal and Responsible Official in yourorganization; Enter the current professional information for Principals and ResponsibleContact e-helpOfficials if an attorney, certified public accountant, enrolled agent, officertoll-free atof a publicly traded corporation, or a bonded bank official.(866) 255 0654,Call the IRS toll free at 866-255-0654 to request a fingerprint card for anyfor assistancePrincipal or Responsible Official who is not an attorney, certified publicwith the IRS e-fileaccountant, or enrolled agent, officer of a publicly traded corporation, or aApplication.bonded bank official, and Get fingerprinted by a trained professional at your local police station or ata company that provides this service. Write the tracking number providedafter successful transmission of the application and mail the signed cardto the IRS at Andover Campus, ATTN. EFU Acceptance, Testing Stop 983,310 Lowell Street, Andover, MA 01812. Each Principal and Responsible Official must answer several personalquestions, and sign the Terms of Agreement (TOA) using a PIN selectedwhen creating an e-services account. In addition, each Principal andResponsible Official must declare under penalty of perjury that thepersonal information is true.5

Submit the IRS e-file Application and retain the tracking number providedafter successful submission of the application.Help is available when completing the application by clicking designatedwords and symbols. Contact e-help toll-free at (866) 255-0654, for assistancewith the IRS e-file Application.Provider OptionsApplicants choose Provider Options, which include Electronic ReturnOriginator, Intermediate Service Provider, Online Provider, Transmitter,Software Developer and Reporting Agent. Applicants may choose more thanone Provider Option, for example; ERO and Transmitter on one application,but should only choose those options they intend to use.Brief descriptions for each Provider type are below (See IRS e-fileParticipation, Provider Roles and Responsibilities for additional information):Electronic Return Originator (ERO) – originates the electronic submission oftax returns to the IRS.Become an AuthorizedIRS e-file Provider toIntermediate Service Provider – assists with processing return informationenhance your businessbetween an ERO and a Transmitter, and the taxpayer and a Transmitter in theand your clients’ returncase of Online Filing.filing experience.Reporting Agent – originates the electronic submission of certain returns forits clients, and/or transmits the returns to the IRS. A Reporting Agent mustbe an accounting service, franchiser, bank, or other entity that complieswith Rev. Proc. 200738, 2007-25 I.R.B. 1442, and is authorized to performone or more of the acts listed in Rev. Proc. 2007-38 on behalf of a taxpayer.Reporting Agents must submit Form 8655, Reporting Agent Authorization, tothe IRS prior to or at the same time that they submit an IRS e-file Application.Software Developer – writes either origination or transmission softwareaccording to the IRS e-file specifications.Transmitter – sends the electronic return data directly to the IRS. EROsand Reporting Agents may apply to be transmitters and transmit return datathemselves, or they may contract with an accepted third-party transmittersthat can transmit the data for them. A Transmitter must have software andcomputers that allow it to interface with the IRS.Online Provider – An Online Provider allows taxpayers to selfprepare returnsby entering return data directly on commercially available software, softwaredownloaded from an Internet site and prepared off-line, or through an onlineInternet site. Online Provider is a secondary role; therefore, they must alsochoose another Provider Option such as Software Developer, Transmitteror Intermediate Service Provider. Although an ERO may also use an InternetWeb site to obtain information from taxpayers to originate the electronicsubmission of returns, the ERO is not an Online Provider.6

ACA Provider – An ACA Provider is a business or entity engaged inmanufacturing or importing branded prescription drugs sold to specifiedgovernment programs (“covered entity”) or a health insurance providerreporting net premiums written (“covered entity”) that originates theelectronic submission of its own information report(s) or a third party thatwill transmit report(s) on behalf of a covered entity. An ACA Provider that isA Responsiblea third party does not have signature authority for the covered entity that itOfficial ensures theservices.Provider adheresNote: A Large Taxpayer is a Provider Option on the IRS e-file Application butto the provisionsit is not an Authorized IRS e-file Provider. A Large Taxpayer is a business orof the revenueother entity with assets of 10 million or more, or a partnership with more thanprocedure as well as100 partners, that originates the electronic submission of its own return(s). Toall publications andsubmit an IRS e-file Application, Large Taxpayers should follow instructionsnotices governingin Part V of Publication 4163, Modernized e-file (MeF) Information forAuthorized IRS e-file Providers and Large Taxpayers (Corporations,Partnerships and Tax Exempt Organizations).When completing the e-file application the applicant provides basicinformation about the business and its Principals and at least oneResponsible Official. The roles of Principal and Responsible Official are notmutually exclusive; a Principal may also serve as the Responsible Official.Principals and Responsible OfficialsPrincipalsGenerally, the Principal for a business or organization includes the following:Sole Proprietorship: The sole proprietor is the Principal for a soleproprietorship. Sole Proprietorship: The sole proprietor is the Principal for a soleproprietorship. Partnership: Each partner who has a 5 percent or more interest in thepartnership is a Principal. At least one such individual must be on theapplication. If no partner has at least a 5 percent or more interest inthe partnership, the Principal is an individual authorized to act for thepartnership in legal and/or tax matters. Corporation: The President, Vice-President, Secretary, and Treasurer areeach a Principal of the corporation. Other: The Principal for an entity that is not a sole proprietorship,partnership, or corporation is an individual authorized to act for the entityin legal and/or tax matters. At least one such individual must be on theapplication.7IRS e-file.

If Principals described above are not involved in the e-file operations of thecompany, a large firm with multi-layered management (other than a soleproprietor) may substitute “Key Persons” who “participate substantially”in the firm’s electronic filing operations as Principals on the firm’s IRSe-file Application. These individuals can be in addition to, or in lieu of, theprincipals described above for partnerships, corporations or other andtheir position in the company on the e-file application must be identified as“Key Person”. A large firm (not necessarily a Large Taxpayer by definition)usually has subsidiaries or multiple operating divisions/branches.“Participate substantially” means participation that is extensive andsubstantive, with control over the firm’s electronic filing operations, and not peripheral, clerical, or ministerial.Principals andNote: Any Principals described above that participate in the e-fileResponsible Officialsoperations of the company must be on the e-file application.must submit fingerprintsor provide validResponsible OfficialsA Responsible Official is an individual with authority over the Provider’s IRSe-file operation at a location, is the first point of contact with the IRS, andhas authority to sign revised IRS e-file applications. A Responsible Officialensures the Provider adheres to the provisions of the revenue procedure aswell as all publications and notices governing IRS e-file. The ResponsibleOfficial may oversee IRS e-file operations at one or more offices, but must beable to fulfill identified responsibilities for each of the offices. If one individualcannot fulfill these responsibilities, add Responsible Officials to the e-fileapplication. To add or change Responsible Officials, a Provider must reviseits IRS e-file Application.Each individual who is a Principal or Responsible Officialmust: Be a United States citizen or an alien lawfully admitted for permanentresidence as described in 8 U.S.C. §1101(a)(20) (1994); Be at least 18 years of age as of the date of application; and Meet applicable state and local licensing and/or bonding requirements forthe preparation and collection of tax returns.Principals and Responsible Officials must submit fingerprints unless theindividuals meet one of the exceptions shown below. Each Principal andResponsible Official must submit one set of fingerprints.The unique fingerprint cards for IRS e-file are available only from the IRS bycalling e-help, toll-free at (866) 255-0654. A trained specialist must fingerprintthe individuals. Most local law enforcement offices and fingerprinting servicecompanies charge a fee.8professional statusinformation.

In lieu of fingerprints, Principals and Responsible Officials may need toenter professional status information (credential number, state of jurisdiction,and date of expiration) in the e-file application as evidence that they are oneof the following: Attorney – Must be in good standing of the bar of the highest court in anystate, commonwealth, possession, territory or the District of Columbia atthe time of the application. An attorney should not be under suspensionor disbarment from practice before the IRS or from the bar of any state,commonwealth, possession, territory or the District of Columbia. Certified Public Accountant – Must have a current license to practice asa Certified Public Accountant in any state, commonwealth, possession,territory or the District of Columbia at the time of the application. A CPA should not be under suspension or disbarment from practice before theThe IRS conductsIRS or from practice by a state, commonwealth, possession, territory ora suitability checkthe District of Columbia. Licensed Public Accountants (LPAs) must provideon the applicantfingerprints.and on all PrincipalsEnrolled Agent (pursuant to part 10 of 31 C.F.R. Subtitle A) – Must haveand Responsiblea valid Enrolled Agent Number.Officials listed onOfficer of a publicly held corporation – May be asked to providethe application.information about the exchange where listed and the name under whichthe stock is traded on corporate letterhead which carries the name of theofficer. Banking official, bonded and fingerprinted within the last two years– May be asked to provide a copy of the bonding certificate and proof offingerprinting within the last two years.STEP 3,Pass a Suitability CheckThe IRS conducts a suitability check on the applicant and on all Principalsand Responsible Officials listed on the application. The IRS does notcomplete suitability checks on applicants only applying to be SoftwareDevelopers.Suitability checks may include the following: A criminal background check A credit history check A tax compliance check to ensure that all required returns are filed andpaid, and to identify assessed fraud penalties A check for prior non-compliance with IRS e-file requirements9

Other Individuals on IRS e-fileApplicationsOther individuals such as contacts and Delegated Users may also beincluded on IRS e-file Applications.ContactsContact persons should be available on a daily basis for the IRS to contactthem for general questions during testing and the processing year. Contactsmay be a Principal or Responsible Official. They may also be persons distinctfrom the Principals and Responsible Officials but if they are, they will nothave access to private information that is only available to Principals andResponsible Officials.A Primary Contact is required for each application. An Alternate Contact isnot required, but Providers can specify one or more Alternate Contacts. It isimportant for a Principal or Responsible Official to change or delete Contactswhen the Contacts are no longer with the firm or their position within the firmno longer warrants being a Contact.Delegated UsersLarge firms withDelegated Users are individuals authorized by the Provider to use onemultiple Delegatedor more of the e-services products even though they are not a PrincipalUsers on a singleor Responsible Official. A Principal or Responsible Official appoints anIRS e-file Applicationindividual as a Delegated User on the IRS e-file Application via e-services.should limit theA Delegated User should be an employee, partner or other member of theFirm/Organization or have a business relationship with the Firm/Organization.Principals and Responsible Officials are responsible for the actions of allDelegated Users on the firm’s application.Each Delegated User needs to be on only one IRS e-file Application. Itis not necessary for a Delegated User to be on more than one IRS e-fileApplication to access e-services Transcript Delivery Service. EachDelegated User affiliated with different firms (identified by different TINs) andauthorized to view and make changes to an e-file application, must be on thespecific IRS e-file Applicatio

Return to your e-services account to confirm your registration within 28 days of your registration submission. Contact e-help toll-free at (866) 255-0654, for assistance with e-services registration. STEP 1, Create an IRS e-services Account. Submit an IRS e-file Application. Pass a Suitability Check.