NEW ERO TAX SEASON READINESS CHECKLIST
- Rhonda Davis
- Aug 23
- 3 min read
Getting your EFIN is an important step — but having an EFIN alone does not mean your tax office is ready for filing season.
Before accepting and transmitting returns, make sure your compliance, security, software, client intake, and review procedures are in place.
IRS & E-FILE SETUP
Confirm your EFIN is active and your IRS e-file application information is current.
Review your IRS e-file application periodically and update changes when required.
The IRS states that changes involving individuals, addresses, telephone numbers and certain other application information generally must be updated within 30 days.
Read IRS Publication 3112 — IRS E-file Application and Participation.
Read IRS Publication 1345 — Handbook for Authorized IRS E-file Providers of Individual Income Tax Returns.
PTIN REQUIREMENTS
Maintain a current PTIN if you prepare or substantially assist in preparing federal tax returns for compensation.
Paid federal return preparers generally must have their own valid PTIN. A PTIN cannot simply be shared among preparers.
Verify that each paid preparer working with your office has the appropriate current PTIN.
TAX SOFTWARE & OFFICE OPERATIONS
Select professional tax preparation/e-file software.
Confirm your EFIN and preparer information are entered correctly.
Establish your tax preparation pricing before accepting clients.
Establish written payment, refund, cancellation and document policies.
Establish a business bank account and bookkeeping system.
Research any applicable state or local tax-preparer registration requirements.
TAXPAYER DATA SECURITY
This is an area new EROs should not overlook.
Create and maintain a Written Information Security Plan (WISP).
Federal requirements apply to protecting taxpayer information, and the IRS specifically directs tax professionals to security-planning resources. (Internal Revenue Service)
Use multi-factor authentication where available.
Use strong, unique passwords.
Secure computers and office networks.
Secure taxpayer files.
Use secure methods for taxpayers to upload documents.
Establish procedures for retaining and securely disposing of taxpayer information.
Establish a written response plan for a taxpayer-data breach.
CLIENT INTAKE & DUE DILIGENCE
Create a standardized client intake questionnaire.
Verify taxpayer and dependent identifying information.
Collect applicable income documents.
Ask follow-up questions when information is incomplete, inconsistent or questionable.
Document due-diligence questions and taxpayer responses.
Understand when Form 8867 — Paid Preparer’s Due Diligence Checklist is required.
Maintain supporting documentation and preparer notes.
Establish a process for handling questionable or unsupported information.
E-FILE AUTHORIZATION
Understand the requirements surrounding Form 8879 — IRS E-file Signature Authorization.
Obtain required taxpayer authorization before transmitting a return.
Never transmit a return without the required taxpayer authorization.
Establish procedures for securely retaining required authorization records.
RETURN REVIEW
Review every return before transmission.
At minimum, verify:
Taxpayer and spouse information
Dependent information
Filing status
Income documents
Withholding
Credits
Deductions
Bank information
Preparer information
PTIN
Required due-diligence documentation
Required taxpayer signatures/authorization
AFTER TRANSMISSION
Monitor IRS acknowledgments.
Confirm whether the return was accepted or rejected.
Establish procedures for resolving rejected returns.
Communicate rejected-return issues to clients promptly when necessary.
Maintain required records.
Establish procedures for amended returns and post-filing corrections.
IF OTHER PREPARERS USE YOUR EFIN
This is where an ERO needs strong controls.
Verify every paid preparer’s PTIN.
Have written preparer agreements.
Establish your compensation structure in writing.
Define who is authorized to access your tax software.
Define who may transmit returns.
Establish return-review and quality-control procedures.
Train preparers on due diligence.
Establish taxpayer-data security requirements.
Monitor returns filed under your EFIN.
Monitor your EFIN for unexpected filing activity.
Establish procedures for errors, complaints, rejected returns, chargebacks and unfunded returns.
BEFORE YOU FILE RETURN #1
Test your entire intake-to-e-file process.
Confirm your engagement documents are ready.
Confirm your pricing structure.
Confirm your payment process.
Confirm your secure document-upload system.
Confirm your return-review checklist.
Confirm your WISP and cybersecurity procedures.
Confirm your backup procedures.
Confirm your preparer agreements if other preparers work under your EFIN.
Know where to find current IRS e-file guidance.
IMPORTANT REMINDER
Your EFIN is not just a number. It connects your tax office to the returns transmitted through your IRS e-file operation.
The IRS specifically states that EFIN holders are responsible for maintaining, monitoring and protecting their EFIN and e-Services account. (IRS guidance)
A strong ERO does more than purchase software and start accepting clients.
They build the compliance, security, review and operating systems necessary to protect the taxpayer — and their tax business.
OFFICIAL IRS ERO RESOURCE CENTER
CoreLogix Consulting, LLC
Empowering Your Finances
Educational resource only. IRS requirements, software requirements, banking-product requirements and state requirements should be reviewed for your specific tax practice.
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