A Second EFIN May Be the Answer

Thinking of opening an additional office? You may want to consider how it will affect your electronic filing process first.

If you have only one EFIN, most software companies suggest you file from only one computer, centralizing your database and eliminating a substantial amount of confusion. The IRS hangs acknowledgements by EFIN, not by location; therefore, filing returns from two locations could result in one location picking up acknowledgements intended for another. If this were to happen, constant communication between offices would be necessary to sort out which returns had been accepted, and printing checks could become a nightmare.

A simple remedy for this dilemma is to apply for a new EFIN for your company's second location. In fact, the IRS requires a second EFIN for additional locations that originate electronic returns (see below for full text from IRS Publication 1345). Once you've been accepted as an ERO, applying for a second EFIN is a simple process. The "responsible person" can be the same for both locations, eliminating the need for more fingerprint cards. You may submit your application anytime after August 1. But be sure to submit your application before December 1, so you can be approved in time to begin e-filing at the start of the season.

To apply for a second EFIN, you may download a Form 8633 from www.irs.gov/elec_svs/efile-app.html and mail it to the IRS. You should receive your new EFIN within a matter of weeks.

From IRS Publication 1345:

Providers must submit completely new Forms 8633 when expanding their IRS e-file businesses to new business locations. Applications must be submitted with fingerprint cards for all principals of the firm and Responsible Officials listed on the application unless fingerprint cards have been submitted before for an applicant that was accepted into the IRS e-file Program. EROs must submit new Forms 8633 only for additional fixed locations from which the origination of the electronic submission of the return will occur (see Chapter 3 for explanation of "origination of the electronic submission"). A fixed location is an office owned or leased by the ERO. EROs may prepare or collect returns from other than fixed locations without submitting a Form 8633 for each such location.