E-Filters Beware

Revocation of EFIN: Cause and Effect

Introduction: Despite the fact that revocation of a tax preparer’s EFIN can effectively eliminate his ability to earn a living there is very limited guidance from the IRS as to when an EFIN will be revoked. That guidance is set forth in Rev. Proc. 2007-40 and IRS Publication 3112 (3-09), and is extremely general. The review process for the revocation of an EFIN is shrouded in mystery, and appears to be subject to the whim of mysterious individuals within the IRS.

I. The IRS may sanction a Provider for the same reasons that it denies an application to participate in IRS e‑file. Before sanctioning, the IRS may issue a warning letter that describes specific corrective action the Provider must take. The IRS may also sanction a Provider without issuance of a warning letter.

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