Authorized IRS e-file

Providers of Individual

Income Tax Returns
i

Table of Contents

Chapter 1 – Stay Informed � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1

What’s New in Publication 1345? � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1

Where to Get Additional Information? � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1

Chapter 2 – Must Read � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 3

Publications for Individual Income Tax Returns � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 3

Safeguarding IRS e-file � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 3

IRS e-file Security, Privacy and Business Standards � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 4

Returns Filed Using IRS e-file � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 6

Returns Not Eligible for IRS e-file � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 7

Submitting a Timely Filed Electronic Tax Return � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 7

Federal/State e-file � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 8

Chapter 3 – Electronic Return Origination � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 9

Obtaining, Handling and Processing Return Information from Taxpayers � � � � � � � � � 9

Safeguarding IRS e-file From Fraud and Abuse � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 9

Verifying Taxpayer Identity and Taxpayer Identification Numbers (TINs) � � � � � � � � � � 10

Be Aware of Non-Standard Information Returns and Documents � � � � � � � � � � � � � � � � � 11

Be Careful with Addresses � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 11

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Direct Deposit of Refunds � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 12

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Credit or Debit Card Payments � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 15

Electronic Federal Tax Payment System (EFTPS) � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 16

Pay with Cash � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 16

Pay by Check or Money Order � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 16

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ii

Signing an Electronic Tax Return � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 17

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IRS e-file Signature Authorization (Forms 8878 and 8879) � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 18

Electronic Signature Guidance for Forms 8878 and 8879 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 19

Digital Identity Verification Requirements � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 20

Electronic Signature Via In-Person Transaction � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 20

Electronic Signature Via Remote Transaction � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 20

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Electronic Signatures for EROs � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 21

Submitting the Electronic Return to the IRS � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 22

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Submission of Paper Documents to the IRS � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 23

ERO Duties After Submitting the Return to the IRS � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 24

Record Keeping and Documentation Requirements � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 24

Providing Information to the Taxpayer � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 25

Acknowledgments of Transmitted Return Data � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 26

Resubmission of Rejected Tax Returns � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 26

Advising Taxpayers about Refund Inquiries � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 27

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Disposal of Taxpayer Information � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 28

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Employers Offering IRS e-file as an Employee Benefit � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 29
iii

Chapter 4 – Transmission � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 30

Reporting of Potential Identity Theft Refund Fraud Activity � � � � � � � � � � � � � � � � � � � � � � � 30

Requirements � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 30

Additional Requirements for Transmitters Participating in Online Filing � � � � � � � � � � � � � � � � � 31

Electronic Postmark � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 32

Transmitting for Federal/State e-file � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 33

Chapter 5 – Other Authorized IRS e-file Provider Activities � � � � � � � � � � � � 34

Intermediate Service Providers � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 34

Additional Requirements for Intermediate Service Providers Participating

in Online Filing � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 34

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Additional Requirements for Software Developers Participating in Online Filing � � � � � � � � 36

Additional Requirements for Software Developers Enabling Electronic Signatures

for Forms 8878 and 8879 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 36

Chapter 6 – IRS e-file Rules and Requirements � � � � � � � � � � � � � � � � � � � � � � � � � � � 38

Additional Requirements for Participants in Online Filing � � � � � � � � � � � � � � � � � � � � � � � � � 38

Tax Refund-Related Products � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 38

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Disclosure of Tax Return Information � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 40

Penalty Information for Authorized IRS e-file Providers � � � � � � � � � � � � � � � � � � � � � � � � � � � 40

Notice – Paperwork Reduction Act � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 42

IRS e-file Glossary � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 43
1

Chapter 1 – Stay Informed

What’s New in Publication 1345?

This edition of Publication 1345, Handbook for Authorized IRS e-file Providers of Individual 

Income Tax Returns replaces the previous edition revised November 2022.

• Added Publication 5708, Creating a Written Information Security Plan for Your Tax & 

Accounting Practice to Publications for Individual Income Tax Returns

• Added multi-factor authentication to the basic security steps in Safeguarding IRS e-file

• Added a paragraph to Safeguarding IRS e-file stating providers must require taxpayers 

who have established an online account to validate access to a second factor (email, 

phone or other secure authenticator) before being permitted to electronically transmit 

their tax return to the IRS

• Added a statement to Safeguarding IRS e-file from Fraud and Abuse regarding returns 

related to identity theft refund fraud

• Updated form descriptions in Submission of Paper Documents to the IRS

• Added definition for “Multi-factor” to the Glossary

• Grammatical and editorial changes made and links updated throughout the publication

Where to Get Additional Information?

The IRS offers Providers several sources of information for frequently asked questions.

Where can I find the most current information about IRS e-file?

Visit “Tax Pros.”

How does the IRS keep Authorized IRS e-file Providers (Providers) informed of operational developments and issues?

The IRS posts all important operations information at IRS.gov.

The IRS also notifies Providers of important information via “QuickAlerts” e-file Messaging 

System and various other subscription services.

• QuickAlerts – Provides a free Online messaging system that sends emails to all 

subscribers, keeping Tax Professionals updated on all e-file related issues and events.

• IRS Newswire – Provides news releases and other documents via e-mail as the IRS 

National Media Relations Office in Washington, DC issues them.

• IRS Tax Tips – Provides tax information via e-mail from the IRS daily during the tax-filing 

season and periodically the rest of the year.

• Tax Stats Dispatch Mailing List – Provides announcements via e-mail which cover the 

most recent tax statistics.

• e-News for Small Businesses – Provides information about IRS Small Business and 

Self-Employed (SB/SE) outreach products and programs via e-mail.

• IRS GuideWire – Provides advance copies of tax guidance such as Revenue Rulings, 

Revenue Procedures, Announcements and Notices by e-mail.

• e-News for Tax Professionals – Provides the latest IRS updates for the tax professional 

community.
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Where can I find the current filing season information I need?

The IRS updates Modernized e-file (MeF) program information prior to each filing season.

If I get correspondence from the IRS, who can I call for more information?

All letters from the IRS have a contact telephone number to reach the person best able to help 

you with your questions.

Where can I find telephone numbers and addresses for other services provided by the 

IRS?

Providers may find addresses and telephone numbers for their clients at Let Us Help You.

What information should I give taxpayers so they can inquire about the status of their 

individual income tax refunds?

Taxpayers and Tax Professionals should be advised to check the status of their individual 

income tax refunds using Where’s My Refund?

Where can I or my customers get information about electronic payment options?

Taxpayers and Tax Professionals can find information about electronic payment options at Pay 

Online.

How Do I Report Suspected Tax Fraud Activity?

If you suspect or know of an individual or company that isn’t complying with the tax laws, see 

“How Do You Report Suspected Tax Fraud Activity?”

What if my software doesn’t work, what should I do?

The IRS does not develop or sell tax preparation or electronic return data transmission software. If problems exist, Providers should contact the vendor who sold them the software or the 

technical support operation that comes with the software package.

Where can I get information about the IRS Nationwide Tax Forums?

This information can be found at IRS Nationwide Tax Forum Information.

Where can I get more information about filing both federal and state individual income 

tax returns?

Additional information is available at TIGERS MODERNIZED EFILE (MeF) – FED/STATE 

EFILE PROGRAMS. Often, the Provider offering comprehensive one-stop tax service is the 

most successful. If the Provider isn’t participating in Federal/State e-file, it is missing a business opportunity to offer its clients and customers the benefits and convenience of filing both 

federal and state tax returns electronically.
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Chapter 2 – Must Read

Publications for Individual Income Tax Returns

This publication, Publication 1345, Handbook for Authorized IRS e-file Providers of Individual 

Income Tax Returns, provides rules and requirements for participation in IRS e-file of individual 

income tax returns and related forms and schedules. Violating a provision of this publication 

may subject the Authorized IRS e-file Provider (Provider) to sanctions. Providers should familiarize themselves with Revenue Procedure 2007-40, 2007-26 I.R.B. 1488 (or the latest update) 

and Publication 3112, IRS e-file Application and Participation, to ensure compliance with 

requirements for participation in IRS e-file. The IRS revises Publication 1345 annually.

Publication 4164, Modernized e-file (MeF) Guide for Software Developers and Transmitters. 

This publication outlines the communication procedures, transmission formats, business rules 

and validation procedures for returns e-filed through the Modernized e-file (MeF) system.

Publication 4557, Safeguarding Taxpayer Data, A Guide for Your Business. This publication 

provides helpful information on safeguarding taxpayer data including how to create a data 

security plan.

Publication 5708, Creating a Written Information Security Plan for Your Tax & Accounting 

Practice. Publication 5708 will be used by Tax and Accounting practices for information on 

developing an Information Security Plan. The publication was developed during the Security 

Summit, jointly by private sector companies, State and local tax agencies and the IRS.

Safeguarding IRS e-file

Safeguarding of IRS e-file from fraud and abuse is the shared responsibility of the IRS and 

Authorized IRS e-file Providers. Providers must be diligent in recognizing and preventing fraud 

and abuse in IRS e-file. Neither the IRS nor Providers benefit when fraud or allegations of 

abuse tarnish the integrity and reputation of IRS e-file. Providers must report fraud and abuse 

to the IRS as indicated in the “Where to Get Additional Information?” section. Providers must 

also cooperate with IRS investigations by making available to the IRS, upon request, information and documents related to returns with potential fraud or abuse.

Safeguarding taxpayer data is a top priority for the IRS. It is the legal responsibility of government, businesses, organizations, and individuals that receive, maintain, process, share, 

transmit or store taxpayers’ personal information. Taxpayer data is defined as any information 

that is obtained or used in the preparation of a tax return (e.g., income statements, notes taken 

in a meeting, or recorded conversations). Putting safeguards in place to protect taxpayer information helps prevent fraud and identity theft and enhances customer confidence and trust.

Protecting taxpayer data is required by law. Federal law gives the Federal Trade Commission 

(FTC) authority to set data safeguard regulations for various entities, including professional 

tax return preparers. According to the FTC Safeguards Rule in Part 314 (16 C.F.R.), tax return 

preparers must create and enact security plans to protect client data. Failure to do so may 

result in a FTC investigation.

The FTC also works to protect taxpayer data. Providers subject to the Gramm-Leach-Bliley Act 

must follow the FTC’s Financial Privacy and Safeguard Rules. The Safeguards Rule requires the 
4

protection of the security, confidentiality and integrity of customer information by implementing 

and maintaining a comprehensive information security program. The program must include 

administrative, technical, and physical safeguards appropriate to the business’s size, the nature 

and scope of its activities, and the sensitivity of the customer information at issue.

Here are a few basic security steps:

• Recognize phishing emails

• Create a data security plan

• Review internal controls

• Report any data theft or loss

• Implement multi-factor authentication for anyone accessing taxpayer information. This is 

required under FTC Safeguards Rule Part 314, (16 C.F.R).

All persons and entities who receive taxpayers’ personal information can use Publication 

4557, Safeguarding Taxpayer Data, A Guide for Your Business, to help determine their data 

privacy and security needs and implement safeguards to protect the information. Publication 

4557 includes information about security standards and best practice guidelines to safeguard 

consumer information such as personal tax data, with links to several resources including 

National Institute of Standards and Technology (NIST) publications. Not taking necessary steps 

to implement or correct your security program may result in sanctions from the FTC. Failures 

that lead to an unauthorized disclosure may subject you to penalties under sections 7216 and/

or 6713 of the Internal Revenue Code (I.R.C.).

At a minimum, providers must require taxpayer’s who have established an online account to 

validate access to a second factor (email, phone or other secure authenticator) before being 

permitted to electronically transmit their tax return to the IRS. For a taxpayer creating a new 

account, this requires validation of the phone number, email, or other secure authenticator 

prior to electronically submitting a tax return. For a taxpayer logging back into an existing 

account, this requires multi-factor authentication of the taxpayer prior to granting access to tax 

data stored within the account. Multi-factor authentication requires the use of at least two of 

the these authentication factors: a knowledge factor (for example, a password); a possession 

factor (for example, a token); and an inherence factor (for example, biometric).

Providers appoint an individual as a Responsible Official who is responsible for ensuring the 

firm meets IRS e-file rules and requirements. Providers with problems involving fraud and 

abuse may be suspended or expelled from participation in IRS e-file, be assessed preparer and 

other civil penalties or be subject to legal action.

IRS e-file Security, Privacy and Business Standards

The IRS has mandated six security, privacy, and business standards to supplement the 

Gramm-Leach-Bliley Act to better serve taxpayers and protect their information collected, 

processed and stored by Online Providers of individual income tax returns. The first five standards continue to apply to Online Providers, while Standard number six, “Reporting of Security 

Incidents,” is now mandated for all Providers.
5

Individual income tax returns refer to the 1040 family of returns. Refer to the IRS Publication 

3112, IRS e-file Application and Participation, for definition of Online Provider.

The security and privacy objectives of these standards are:

• Setting minimum encryption standards for transmission of taxpayer information over the 

internet and authentication of website owner/operator’s identity beyond that offered by 

standard version SSL certificates.

• Periodic external vulnerability scan of the taxpayer data environment.

• Protection against bulk-filing of fraudulent income tax returns.

• The ability to timely isolate and investigate potentially compromised taxpayer information.

These standards also address certain business and customer service objectives, such as 

instant payment options, access to website owner/operator’s contact information, and Online 

Provider’s written commitment to maintaining physical, electronic, and procedural safeguards 

of taxpayer information that comply with applicable law and federal standards.

• Extended Validation SSL Certificate

Online Providers of individual income tax returns must have a valid and current Extended 

Validation Secure Socket Layer (SSL) certificate using TLS 1.2 or later and minimum 

2048-bit RSA/128-bit AES.

• External Vulnerability Scan

Online Providers of individual income tax returns must contract with an independent 

third-party vendor to run weekly external network vulnerability scans of all their “system 

components” in accordance with the applicable requirements of the Payment Card 

Industry Data Security Standards (PCIDSS). All scans must be performed by a scanning 

vendor certified by the Payment Card Industry Security Standards Council and listed 

on their current list of Approved Scanning Vendors (ASV). In addition, Online Providers 

of individual income tax returns whose systems are hosted must ensure that their host 

complies with all applicable requirements of the PCIDSS.

For the purposes of this standard, “system components” is defined as any network 

component, server, or application that is included in or connected to the taxpayer data 

environment. The taxpayer data environment is that part of the network that has taxpayer 

data or sensitive authentication data.

If scan reports reveal vulnerabilities, action must be taken to address the vulnerabilities in 

line with the scan report’s recommendations. Retain weekly scan reports for at least one 

year. The ASV and the host (if present) must be in the United States.

• Information Privacy and Safeguard Policies 

This standard applies to Authorized IRS e-file Providers participating in Online Filing of 

individual income tax returns that own or operate a website through which taxpayer information is collected, transmitted, processed or stored. These Providers must have a written 

information privacy and safeguard policy consistent with the applicable government and 

industry guidelines and including the following statement: “we maintain physical, electronic 

and procedural safeguards that comply with applicable law and federal standards.”
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In addition, Providers’ compliance with these policies must be certified by a privacy seal 

vendor acceptable to the IRS.

• Protection Against Bulk Filing of Fraudulent Income Tax Returns 

This standard applies to Online Providers of individual income tax returns that own 

or operate a website through which taxpayer information is collected, transmitted, 

processed or stored. These Online Providers must implement effective technologies to 

protect their website against bulk filing of fraudulent income tax returns. Taxpayer information must not be collected, transmitted, processed or stored otherwise.

• Public Domain Name Registration 

This standard applies to Online Providers of individual income tax returns that own or 

operate a website through which taxpayer information is collected, transmitted, processed 

or stored. These Online Providers must have their website’s domain name registered with 

a domain name registrar that is in the United States and accredited by the Internet Corporation for Assigned Names and Numbers (ICANN). The domain name must be locked and 

not be private.

• Reporting of Security Incidents

Authorized IRS e-file Providers of individual income tax returns must report security 

incidents to the IRS as soon as possible but not later than the next business day after 

confirmation of the incident. For the purposes of this standard, an event that can result in 

an unauthorized disclosure, misuse, modification, or destruction of taxpayer information 

(e.g., breach) must be considered a reportable security incident.

Providers with multiple roles must follow instructions for submitting incident reports at 

“Instructions for Reporting Security Incidents.”

Those that are EROs only must contact their local stakeholder liaison by following the 

instructions at “Data Theft Information for Tax Professionals.”

In addition, if the Provider’s website is the cause of the incident, the Provider must cease 

collecting taxpayer information via their website immediately upon detection of the incident and until the underlying causes of the incident are successfully resolved.

Returns Filed Using IRS e-file

A return filed using IRS e-file may be a composite of electronically transmitted data and certain 

paper documents or be completely paperless. The paper portion of a composite return may 

consist of Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return, and 

other paper documents that cannot be electronically transmitted are attached to the form and 

mailed to the IRS (See Submitting the Electronic Return to the IRS).

Filing individual income tax returns using IRS e-file is limited to tax returns with prescribed due 

dates in the current year and two previous years. A taxpayer can electronically file an individual 

income tax return year-round except for a short cutover period at the end of the calendar year.

If Providers submit state individual income tax returns as part of Federal/State e-file, state returns 

become a part of the electronically transmitted data. States often require the submission of paper 

documents to complete the return, but they are separate from paper documents for federal 

returns. Providers should process state paper documents according to applicable state rules.
7

Returns Not Eligible for IRS e-file

The following individual income tax returns and related return conditions cannot be processed 

using IRS e-file:

• Tax returns with fiscal year tax periods;

• Returns with forms or schedules that can’t be processed by IRS e-file;

• Tax returns with Taxpayer Identification Numbers (TIN) within the range of 900-00-0000 

through 999-99-9999. Exception: Adoption Taxpayer Identification Numbers (ATIN) and 

Individual Taxpayer Identification Numbers (ITIN) may fall within the range above. Valid 

ATINs have the digits 93 in the fourth and fifth positions. Valid ITINs have digits within a 

range of 50 through 65, 70 through 88, 90 through 92 and 94 through 99 in the fourth and 

fifth positions. See “Verifying Taxpayer Identity and Taxpayer Identification Numbers 

(TINs)” for more information on ATINs and TINs; and

• Tax returns that the IRS cannot electronically process because the returns have rare or 

unusual processing conditions or that exceed the specifications for returns allowable in 

IRS e-file. These conditions change from year to year. The software should alert Providers 

to these conditions when they occur. If Providers transmit electronic return data with one 

of these conditions to the IRS, the transmission rejects, and the taxpayer may have to file 

the tax return on paper. The software package documentation or the software’s support 

program should provide information that is more specific.

Submitting a Timely Filed Electronic Tax Return

All prescribed due dates for filing of returns apply to e-file returns. All Providers must ensure 

that returns are promptly processed. A Provider that receives a return for electronic filing on 

or before the due date of the return (including extensions) must ensure that it transmits the 

electronic part of the return on or before the due date. An electronically filed return isn’t considered filed until the IRS acknowledges acceptance of the electronic part of the tax return for 

processing. The IRS accepts individual income tax returns electronically only if the taxpayer 

signs the return using a Personal Identification Number (PIN). If Providers transmit the electronic portion of a return on or shortly before the due date and the IRS ultimately rejects it, 

but the Provider and the taxpayer comply with the requirements for timely resubmission of a 

correct return, the IRS considers the return timely filed. For additional information about the 

filing of a return through IRS e-file, see “Submitting the Electronic Return to the IRS.”

Transmitters may provide electronic postmarks to taxpayers for individual returns if the Transmitters follow the requirements stated in “Chapter 4 – Transmission.” The receipt of an electronic postmark provides taxpayers with confidence that they have filed their return timely. 

The date of the electronic postmark is considered the date of filing when the date of electronic 

postmark is on or before the prescribed due date and the return is received by the IRS after the 

prescribed due date for filing. All requirements for signing the return and completing a paper 

declaration, if required, as well as for timely resubmitting of a rejected timely filed return, must 

be adhered to for the electronic postmark to be considered the date of filing.
8

Federal/State e-file

Federal/State e-file is a cooperative tax filing effort between the IRS and most states, which 

allows Providers to file federal and state returns electronically to IRS. The state return can be 

sent linked to the federal return (by including the Submission ID of the federal return in the 

state submission), or it can be sent unlinked (standalone). On linked returns, the federal return 

must be accepted before the linked state return can be filed. In addition to accepting federal 

and state individual income tax returns electronically in a single transmission, state-only returns 

are also accepted if the return:

• was previously rejected by the state;

• is originated separately from the federal return;

• is a part-year residency return;

• is a non-resident state return; or

• is a married filing separately state return, but the federal return was filed jointly.

The IRS provides state acknowledgment services. Participating states can send their acknowledgment to the IRS for Transmitters to pick up when they pick up their federal acknowledgment.

Adding Federal/State e-file to a Provider’s business is like the process it went through to 

become a Provider. Refer to Publication 3112, IRS e-file Application and Participation, for 

further details. Also, the Provider should contact the state coordinators for the state programs 

in which it participates for further explanation of state rules and requirements.
9

Chapter 3 – Electronic Return Origination

Obtaining, Handling and Processing Return Information from 

Taxpayers

An Electronic Return Originator (ERO) begins the process of electronic submission of returns 

it either prepares or collects from taxpayers who want to e-file their returns. An ERO starts the 

electronic submission of a return after the taxpayer authorizes the filing of the return via IRS 

e-file. The ERO must have either prepared the return or collected it from a taxpayer or another 

authorized ERO. An ERO begins the electronic submission by:

• electronically sending the return to a Transmitter that transmits the return to the IRS;

• directly transmitting the return to the IRS (must also have a Transmitter role); or,

• providing a return to an Intermediate Service Provider for processing prior to transmission to the IRS.

The ERO must always identify the paid tax return preparer (if any) in the proper field of the 

electronic record of returns. The ERO must enter the paid preparer’s identifying information 

(name, address, Employer Identification Number (EIN), when applicable, and Preparer Tax Identification Number (PTIN). EROs may either transmit returns directly to the IRS or arrange with 

another Provider to transmit the electronic return to the IRS.

A Provider, including an ERO, may disclose tax return information to other Providers relating 

to e-filing a tax return under Treas. Reg. §301.7216-2(d)(1) without obtaining the taxpayer’s 

consent. For example, an ERO may pass on return information to an Intermediate Service 

Provider or a Transmitter for the purpose of having an electronic return formatted or transmitted 

to the IRS.

An ERO that chooses to originate returns that it has not prepared, but only collected, becomes 

a tax return preparer of the returns when, as a result of entering the data, it discovers errors 

that require substantive changes and then makes the changes. A non-substantive change is a 

correction limited to a transposition error, misplaced entry, spelling error or arithmetic correction. The IRS considers all other changes substantive, and the ERO becomes a tax return 

preparer. As such, the ERO must sign the tax return as a tax return preparer.

Safeguarding IRS e-file From Fraud and Abuse

Safeguarding taxpayers and IRS e-file from identity theft refund fraud requires that Providers be 

diligent in detecting and preventing identity theft fraud patterns and schemes. Early detection 

of these patterns and schemes is critical to stopping them and their adverse impacts, and to 

protecting taxpayers and IRS e-file. While all Providers must be on the lookout for fraud and 

abuse in IRS e-file, EROs must be particularly diligent while acting in their capacity as the first 

contact with taxpayers filing a return. An ERO must be diligent in recognizing fraud and abuse, 

reporting it to the IRS and preventing it when possible. This includes not submitting returns 

to the IRS when there is a high likelihood the return is related to identity theft refund fraud. 

Providers must cooperate with IRS investigations by making available to the IRS, upon request, 

information and documents related to returns with potential fraud or abuse.
10

Indicators of abusive or fraudulent returns may be unsatisfactory responses to filing status 

questions, multiple returns with the same address, and missing or incomplete Schedules A 

and C income and expense documentation. A “fraudulent return” includes a return in which the 

individual is attempting to file using someone else’s name or SSN on the return or the taxpayer 

is presenting documents or information that have no basis in fact. A potentially abusive return 

is a return that the taxpayer is required to file but contains inaccurate information that may lead 

to an understatement of a liability or the overstatement of a credit resulting in a refund to which 

the taxpayer may not be entitled.

An ERO that is also a tax return preparer should exercise due diligence in the preparation of 

returns involving the Earned Income Tax Credit (EITC), as it is a popular target for fraud and 

abuse. Section 6695(g) of the Internal Revenue Code requires paid preparers to exercise due 

diligence in the preparation of returns claiming the head of household filing status or certain 

credits including the EITC. Paid preparers must complete all required worksheets and meet all 

record keeping requirements.

Verifying Taxpayer Identity and Taxpayer Identification Numbers (TINs)

To safeguard IRS e-file from fraud and abuse, an ERO should confirm identities and SSNs, 

Adoption Taxpayer Identification Numbers (ATINs) and Individual Taxpayer Identification 

Numbers (ITINs) of taxpayers, spouses and dependents listed on returns prepared by its firm. 

To prevent filing returns with stolen identities, an ERO should ask taxpayers not known to them 

to provide two forms of identification (photo IDs are preferable) that include the taxpayer’s 

name and current or recent address. Also, seeing Social Security cards, ITIN letters and other 

documents for taxpayers, spouses and dependents avoids including incorrect TINs on returns. 

Providers should take care to ensure that they transcribe all TINs correctly.

The TIN entered in the Form W-2, Wage and Tax Statement, in the electronic return record 

must be identical to the TIN on the version provided by the taxpayer. The TIN on the Form W-2 

should be identical to the TIN on the electronic return unless otherwise allowed by the IRS. The 

IRS requires taxpayers filing tax returns using an ITIN to include the TIN, usually a SSN, shown 

on Form W-2 from the employer in the electronic record of the Form W-2. This may create an 

identification number (ITIN/SSN) mismatch as taxpayers must use their correct ITIN as their 

identifying number in the individual income tax return. The IRS e-file system can accept returns 

with this identification number mismatch. EROs should enter the TIN/SSN in the electronic 

record of the Form W-2 provided to them by taxpayers. Software must require the manual key 

entry of the TIN as it appears on Form W-2 reporting wages for taxpayers with ITINs. EROs 

should ascertain that the software they use does not auto-populate the ITIN in the Form-W-2 

and if necessary, replace the ITIN with the SSN on the Form W-2 the taxpayer provided.

Incorrect TINs, using the same TIN on more than one return or associating the wrong name 

with a TIN are some of the most common causes of rejected returns (see “Acknowledgments 

of Transmitted Return Data”).

Additionally, Name Control and TINs identify taxpayers, spouses and dependents. A Name 

Control is the first four significant letters of an individual taxpayer’s last name or a business 

name as recorded by the Social Security Administration (SSA) or the IRS. Having the wrong 

Name Control in the electronic return record for a taxpayer’s TIN contributes to a large portion 

of TIN related rejects. The most common example for a return rejecting due to a mismatch 
11

between a taxpayer’s TIN and Name Control involves newly married taxpayers. Typically, 

the taxpayer may file using a correct SSN along with the name used in the marriage, but the 

taxpayer has failed to update the records with the SSA to reflect a name change. To minimize 

TIN related rejects, it is important to verify taxpayer TINs and Name Control information prior to 

submitting electronic return data to the IRS.

Be Aware of Non-Standard Information Returns and Documents

The IRS has identified questionable Forms W-2 as a key indicator of potentially abusive and 

fraudulent returns. Be on the lookout for suspicious or altered Forms W-2, W-2G, 1099-R and 

forged or fabricated documents. EROs must always enter the non-standard form code in the 

electronic record of individual income tax returns for Forms W-2, W-2G or 1099-R that are 

altered, handwritten or typed. An alteration includes any pen-and-ink change. Providers must 

never alter the information after the taxpayer has given the forms to them.

Providers should report questionable Forms W-2 if they see or become aware of them.

Be Careful with Addresses

Addresses on Forms W-2, W-2G or 1099-R; Schedule C; or on other tax forms supplied by 

the taxpayer that differ from the taxpayer’s current address must be input into the electronic 

record of the return. Providers must input addresses that differ from the taxpayer’s current 

address even if the addresses are old or if the taxpayer has moved. EROs should inform 

taxpayers that, when the return is processed, the IRS uses the address on the first page of the 

return to update the taxpayer’s address of record. The IRS uses a taxpayer’s address of record 

for various notices that it is required to send to a taxpayer’s “last known address” under the 

Internal Revenue Code and for refunds of overpayments of tax (unless otherwise specifically 

directed by taxpayers, such as by Direct Deposit).

Providers must never put their address in fields reserved for taxpayers’ addresses in the electronic return record or on Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file

Return. The only exceptions are if the Provider is the taxpayer or the power of attorney for the 

taxpayer for the tax return.

Avoiding Refund Delays

EROs should advise taxpayers that they can avoid refund delays by having all their taxes and 

obligations, such as child support and student loan debt, paid, providing current and correct 

information to the ERO, ensuring that all bank account information is up to date, ensuring that 

their Social Security Administration records are current and carefully checking their tax return 

information before signing the return.

EROs can do many things for clients and customers to avoid rejects and refund delays. Here 

are some suggestions:

• Require documentation of social security and other identification numbers and associated names for all taxpayers and dependents;

• Exercise care in the entry of tax return data into tax return preparation software and carefully check the tax return information before signing the tax return;
12

• Confirm that any ITINs reported on the return haven’t expired due to non-use or under 

the announced IRS schedule;

• Review information provided and don’t submit returns claiming false items on tax returns 

or present altered or suspicious documents;

• Ask taxpayers if there were problems with last year’s refund; if so, see if the conditions 

that caused the problems have been corrected or can be avoided this year;

• Track client issues that result in refund delays and analyze for common problems; 

counsel taxpayers on ways to address these problems.

Refund Returns

When taxpayers are entitled to refunds, Providers should inform them that they have several 

options. An individual income tax refund may be applied to next year’s estimated tax, received 

as a Direct Deposit or paper check or be split so that a portion is applied to next year’s estimated tax and the rest received as a Direct Deposit or paper check.

Providers must not direct the payment (or accept payment) of any monies issued to a taxpayer 

client by the government in respect of a Federal tax liability to the Provider or any firm or entity 

with which the Provider is associated. The IRS may sanction Providers and individuals who 

direct or accept such payment.

When filing and/or printing a paper return, Software Developers are being asked to 

default the “Routing Transit and Account Numbers” in the software packages on Forms 

1040/1040SR/1040NR/1040SSPR, with all capital X’s, when taxpayers choose not to have their 

refund directly deposited. These fields should never be blank on paper filed returns.

Direct Deposit of Refunds

Taxpayers often elect the Direct Deposit option because it is the fastest way of receiving 

refunds. Providers must accept any Direct Deposit election to qualified accounts in the taxpayer’s name at any eligible financial institution designated by the taxpayer. Amended Forms 

1040 and 1040-SR Returns (with attached 1040-X) resulting in a refund are not yet eligible 

for direct deposits. Qualified accounts include savings, checking, share draft or consumer 

asset accounts (for example, IRA or money market accounts). Taxpayers should not request 

a deposit of their refund to an account that isn’t in their own name (such as their tax return 

preparer’s own account). The taxpayer may not designate refunds for Direct Deposit to credit 

card accounts.

Qualified accounts are accounts held by financial institutions within the United States and 

established primarily for personal, family or household purposes. Qualifying institutions may be 

national banks, state banks (including the District of Columbia and political sub-divisions of the 

50 states), savings and loan associations, mutual savings banks and credit unions.

By completing Form 8888, Allocation of Refund (Including Savings Bond Purchases), the 

taxpayer may split refunds between up to three qualified accounts. A qualified account can be 

a checking, savings or other account such as an individual retirement arrangement (IRA), health 

savings account (HSA), Archer MSA, Coverdell education savings account (ESA) or TreasuryDirect online account. The taxpayer may also buy up to $5,000 in U. S. Series I Bonds. For 
13

example, a taxpayer expecting a refund of $400 may choose to deposit $150 into a checking 

account, $150 into a savings account and $100 into an IRA account. Taxpayers may choose 

the refund splitting option regardless of which Form 1040 series tax form they file.

Providers should caution taxpayers that some financial institutions do not permit the deposit 

of tax refunds into an account opened in someone else’s name, the deposit of joint individual 

income tax refunds into individual accounts or the deposit of tax refunds into check or share 

draft accounts that are “payable through” another institution. Taxpayers should verify their 

financial institution’s Direct Deposit policy before they elect the Direct Deposit option. The IRS 

isn’t responsible if the financial institution refuses Direct Deposit for this reason.

Taxpayers who choose Direct Deposit must provide Providers with account numbers and 

routing transit numbers for qualified accounts. The IRS tax return instructions show how to find 

and identify these numbers. The taxpayer can best obtain this information from official financial institution records, account cards, checks or share drafts that contain the taxpayer’s name 

and address. The sole exception involves accounts specifically created to receive refunds that 

repay refund products offered by financial institutions. In those cases, Providers may supply 

the identifying account data.

To combat fraud and identity theft, the IRS limits the number of refunds electronically deposited into a single financial account or pre-paid debit card to three. The fourth and subsequent 

refunds automatically will convert to a paper refund check and be mailed to the taxpayer.

Providers with repeat customers or clients should check to see if taxpayers have new 

accounts. Some software stores prior year’s information and reuses it unless it is changed. If 

account information isn’t current, taxpayers do not receive Direct Deposit of their refunds.

Providers must advise taxpayers that they can’t cancel a Direct Deposit election or make 

changes to routing transit numbers of financial institutions or to their account numbers after 

the IRS has accepted the return. Providers must not alter the Direct Deposit information in the 

electronic record after taxpayers have signed the tax return.

Note: Providers must never charge a separate fee for Direct Deposit.

Refunds that are not direct deposited because of institutional refusal, wrong account or routing 

transit numbers, closed accounts, bank mergers or any other reason are issued as paper 

checks, resulting in refund delays of up to ten weeks. While the IRS ordinarily processes a 

request for Direct Deposit, it reserves the right to issue a paper check and does not guarantee 

a specific date for deposit of the refund into the taxpayer’s account.

Treasury’s Bureau of the Fiscal Service issues federal income tax refunds. Neither the IRS nor 

Fiscal Service is responsible for the misapplication of a Direct Deposit that results from error, 

negligence or malfeasance on the part of the taxpayer, the Provider, financial institution or any 

of their agents.
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Payment Options for Taxpayers

Taxpayers who owe additional tax must pay the taxes they owe by the original due date of the 

return or be subject to interest and penalties. An extension of time to file may be filed electronically by the original return due date, but it is an extension of time to file the return, not an 

extension of time to pay. Providers should inform taxpayers of their obligations and options for 

paying balances due. Taxpayers have several options when paying taxes.

Electronic Funds Withdrawal

Taxpayers can e-file and, at the same time, authorize an electronic funds withdrawal (EFW). 

Taxpayers who choose this option must provide account numbers and routing transit numbers 

for qualified savings, checking or share draft accounts to the Provider. The IRS tax return 

instructions describe how to find and identify these numbers. Providers should encourage their 

clients to confirm their account numbers and routing transit numbers with their financial institution. If a financial institution is unable to locate or match the numbers entered in a payment 

record with account information they have on file for a given taxpayer, they reject (return) the 

direct debit request.

Providers should caution taxpayers to ensure, before they e-file, that their financial institution 

allows EFW requests from the designated account. Some credit unions do not allow direct 

debits from share accounts.

Taxpayers can schedule a payment for withdrawal on a future date. Scheduled payments must 

be effective on or before the return due date. For example, the Provider may transmit an individual income tax return in March and the taxpayer can specify that the withdrawal be made 

on any day on or before the return due date. The taxpayer does not have to remember to do 

anything later. For returns transmitted after the due date, the payment date must be the same 

as the date the Provider transmitted the return. The taxpayer must authorize EFW payments by 

completion of a payment record at the time the balance due return or other form is e-filed.

Taxpayers can make payments by EFW for the following:

• Current year – Form 1040 series return.

• Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income 

Tax Return.

• Form 2350, Application for Extension of Time to File U.S. Income Tax Return

• Form 1040-ES, Estimated Tax for Individuals. Taxpayers can make up to four advance 

quarterly estimated tax payments at the same time that they electronically file the Form 

1040 series return. For example, four Form 1040-ES quarterly tax payments for tax year 

2023 may be submitted with the electronic filing of the taxpayer’s tax return for tax year 

2022.
15

Providers should be careful to ensure that all the information needed for the EFW request is 

included with the return. The payment record must include the following:

• Routing Transit Number (RTN);

• Bank account number;

• Type of account (checking or savings);

• Requested payment date (i.e., YYYYMMDD); and

• Amount of tax payment for balance due payments sent after the due date; this amount 

may include interest and penalty payment.

If taxpayers do not provide all the needed information, Providers must contact the taxpayers. 

If the Provider is unsuccessful in obtaining or transmitting the EFW information, but the return 

is otherwise complete, the Provider should proceed with the origination of the electronic return 

data to the IRS. The Provider must inform their clients that they need to make other arrangements to pay the balance due and/or estimated payments. See below for other payment 

options.

IRS Direct Pay

With this secure online service, taxpayers can pay their individual tax bill or estimated tax 

payments directly from their checking or savings account at no cost. They will receive instant 

confirmation after they submit their payment. 

Taxpayers can make payments with IRS Direct Pay for the following:

• Current and prior year Form 1040 series returns

• Installment agreements

• Form 1040–ES (estimated tax for individuals)

• Form 4868 (extension payments)

More options are available at IRS.gov/payments.

Credit or Debit Card Payments

Taxpayers can make credit or debit card payments when e-filing or separately online or by 

phone.

• Integrated e-file and e-pay: Taxpayers can e-file and pay their balance at the same time 

by debit or credit card if the tax software used includes this option. The software prompts 

taxpayers to enter the necessary card information. The service provider charges taxpayer’s convenience fees based on the amount of the tax payment and informs them of 

these fees before taxpayers authorize the payments.
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• Online by Phone: Taxpayers may pay online at IRS.gov/payments or by phone, credit 

or ATM/debit card (American Express® Card, Discover® Card, MasterCard® or Visa® 

card) and NYCE®, PULSE® or STAR® logos. This service is available through credit 

card service providers. The service provider charges a convenience fee based on the 

amount of the tax payment. The software informs taxpayers of this fee during the transaction, and they can choose to end the transaction before the payment is completed and 

confirmed. The software provides a confirmation number at the end of the transaction. 

EROs should inform taxpayers of this option and tell them that fees may vary between 

service providers.

Further detailed information on payment options is available on IRS.gov/payments.

Electronic Federal Tax Payment System (EFTPS)

Individual taxpayers, who make more than one tax payment per year, particularly installment or 

Form 1040 estimated payments, find EFTPS very convenient. Taxpayers can enroll in EFTPS 

via the Internet at EFTPS.gov or by completing Form 9783, Electronic Federal Tax Payment 

System Individual Enrollment and mailing it to the EFTPS Enrollment Center. After EFTPS 

processes the enrollment, taxpayers receive two separate mailings. One is a Confirmation/

Update Form. The other is a letter that includes the taxpayers’ Enrollment Trace Number, 

Personal Identification Number (PIN) and instructions on how to obtain an Internet Password. Once taxpayers receive the PINs, they may begin making payments by phone. After the 

taxpayers obtain their Internet Password, they may begin making payments via the Internet. 

With EFTPS, taxpayers only need to enroll once to make a payment by both telephone and the 

Internet as the payment methods are interchangeable. Payments can be made 24/7; however, 

taxpayers must submit their tax payment instructions to EFTPS before 8:00 p.m. ET at least 

one calendar day prior to the tax due date. Taxpayers can schedule individual tax payments up 

to 365 days in advance.

Pay with Cash

For taxpayers who are unbanked there is a cash option. Individuals wishing to take advantage 

of this payment option should visit the IRS.gov/payments page, select the cash option in the 

other ways you can pay section and follow the instructions.

Pay by Check or Money Order

Taxpayers may pay the balance due by mailing a check accompanied by Form 1040-V, 

Payment Voucher. Providers must supply Form 1040-V to taxpayers, if needed, and help them 

identify the correct mailing address from the chart on the back of the form. Taxpayers do not 

have to mail these vouchers at the same time the Provider transmits the electronic return. For 

example, the return may be transmitted in January and the taxpayer may mail the payment and 

voucher at any time on or before the return due date. Further detailed information on paying by 

check or money order is available on the IRS.gov/payments page by selecting the check or 

money order option in the other ways you can pay section.
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Installment Agreement

Taxpayers who can’t pay the amount they owe for Form 1040 series returns and owe $50,000 

or less in combined taxes, interest and penalties may use the Online Payment Agreement 

(OPA) application to request a payment plan (installment agreement). Authorized representatives with a power of attorney may use OPA on the taxpayer’s behalf. OPA will result in immediate notification of whether the payment plan is approved. Alternatively, they can submit Form 

9465, Installment Agreement Request, to the IRS by mail. The Provider can transmit Form 

9465 electronically (if supported by software) with the taxpayer’s electronic return data, or the 

form may be submitted later by mail. It may take 30 days or more for a response to Form 9465, 

regardless of how it is submitted. If the installment agreement is accepted, the IRS charges a 

user fee, which may be waived or reimbursed for low-income taxpayers. Taxpayers who apply 

through OPA are charged a lower user fee, and an even lower user fee if they use the direct 

debit payment option.

Signing an Electronic Tax Return

As with an income tax return submitted to the IRS on paper, the taxpayer and paid tax return 

preparer (if applicable) must sign an electronic income tax return. Taxpayers must sign individual income tax returns electronically. There are currently two methods for signing individual 

income tax returns electronically (see Electronic Signature Methods).

Taxpayers must sign and date the Declaration of Taxpayer to authorize the origination of the 

electronic submission of the return to the IRS prior to the transmission of the return to IRS. 

The Declaration of Taxpayer includes the taxpayers’ declaration under penalties of perjury that 

the return is true, correct and complete, as well as the taxpayers’ Consent to Disclosure. The 

Consent to Disclosure authorizes the IRS to disclose information to the taxpayers’ Providers. 

Taxpayers authorize Intermediate Service Providers, Transmitters and EROs to receive from the 

IRS an acknowledgment of receipt or reason for rejection of the electronic return, the reason 

for any delay in processing the return or refund and the date of the refund.

Taxpayers must sign a new declaration if the electronic return data on individual income tax 

returns is changed after taxpayers signed the Declaration of Taxpayer and the amounts differ 

by more than either (i) $50 to “Total income” or “AGI,” or (ii) $14 to “Total tax,” “Federal income 

tax withheld,” “Refund” or “Amount you owe.”

Electronic Signature Methods

There are two methods of signing individual income tax returns with an electronic signature 

available for use by taxpayers. Both the Self-Select PIN and Practitioner PIN methods allow 

taxpayers to use a Personal Identification Number (PIN) to sign the return and the Declaration 

of Taxpayer.

The Self-Select PIN method requires taxpayers to provide their prior year Adjusted Gross 

Income (AGI) amount or prior year PIN for use by the IRS to authenticate the taxpayers. EROs 

should encourage taxpayers who do not have their original prior year AGI or PIN to call IRS Tax 

Help at 800-829-1040.
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This method may be completely paperless if the taxpayers enter their own PINs directly into 

the electronic return record using keystrokes after reviewing the completed return. Taxpayers 

may also authorize EROs to enter PINs on their behalf, in which case the taxpayers must 

review and sign a completed signature authorization form after reviewing the return. Also see 

IRS e-file Signature Authorization (Forms 8878 and 8879).

The Practitioner PIN method does not require the taxpayer to provide their prior year AGI 

amount or prior year PIN. Instead, taxpayers must always sign a completed signature authorization form (see IRS e-file Signature Authorization (Forms 8878 and 8879)). Taxpayers who 

use the Practitioner PIN method must sign the signature authorization form even if they enter 

their own PINs in the electronic return record using keystrokes after reviewing the completed 

return.

Regardless of the method of electronic signature used, taxpayers may enter their own PINs; 

EROs may select and enter the taxpayers’ PINs; or the software may generate the taxpayers’ 

PINs in the electronic return. After reviewing the return, the taxpayers must agree by signing an 

IRS e-file Signature Authorization containing the PIN.

The following taxpayers are ineligible to sign individual income tax returns with an electronic 

signature using the Self-Select PIN:

• Primary taxpayers under age sixteen who have never filed; and

• Secondary taxpayers under age sixteen who didn’t file the prior tax year.

EROs should recommend that taxpayers keep a copy of their completed tax return to assist 

with authentication in the subsequent year.

IRS e-file Signature Authorization (Forms 8878 and 8879)

Anytime an ERO enters the taxpayer’s PIN on the electronic return, the ERO must, prior to 

submission of the return, complete an IRS e-file Signature Authorization form which must be 

signed by the taxpayer. Form 8879, IRS e-file Signature Authorization, authorizes an ERO to 

enter taxpayers’ PINs on individual income tax returns and Form 8878, IRS e-file Authorization 

for Form 4868 or Form 2350, authorizes an ERO to enter taxpayers’ PINs on Form 1040 extension forms. The ERO must keep Forms 8878 and 8879 for three years from the return due date 

or the IRS received date, whichever is later. EROs must not send Forms 8878 and 8879 to the 

IRS unless the IRS requests they do so.

Note: Form 8878 is only needed for Forms 4868 when taxpayers are authorizing an 

electronic funds withdrawal and want an ERO to enter their PINs.

The ERO may enter the taxpayers’ PINs in the electronic return record before the taxpayers 

sign Form 8878 or 8879, but the taxpayers must sign and date the appropriate form before 

the ERO originates the electronic submission of the return (or extension form). The taxpayer 

must sign and date the Form 8878 or Form 8879 after reviewing the return and ensuring the tax 

return information on the form matches the information on the return. The taxpayer may return 

the completed Form 8878 or Form 8879 to the ERO by hand delivery, U.S. mail, private delivery 

service, fax, email or an Internet website.
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Only taxpayers who provide a completed tax return to an ERO for electronic filing may sign the 

IRS e-file Signature Authorization without reviewing the return originated by the ERO. The ERO 

must enter the line items from the paper return on the applicable Form 8878 or Form 8879 prior 

to the taxpayers signing and dating the form. The ERO may use these pre-signed authorizations as authority to input the taxpayer’s PIN only if the information on the electronic version of 

the tax return agrees with the entries from the paper return.

Electronic Signature Guidance for Forms 8878 and 8879

Taxpayers have the choice of using electronic signatures for Forms 8878 and 8879 if the software provides the electronic signature capability. If taxpayers use an electronic signature, the 

software and the Electronic Return Originator (ERO) must meet certain requirements for verifying the taxpayer’s identity.

Electronic signatures appear in many forms and may be created by many different technologies. No specific technology is required. Examples of currently acceptable electronic signature 

methods include:

• A handwritten signature input onto an electronic signature pad.

• A handwritten signature, mark or command input on a display screen by a stylus device.

• A digitized image of a handwritten signature that is attached to an electronic record.

• A typed name (e.g., typed at the end of an electronic record or typed into a signature 

block on a website form by a signer).

• A shared secret (e.g., a secret code, password or PIN) used by a person to sign the electronic record.

• A digital signature.

• A mark captured as a scalable graphic.

The software must record the following data:

• Digital image of the signed form.

• Date and time of the signature.

• Taxpayer’s computer IP address (Remote transaction only).

• Taxpayer’s login identification – user name (Remote transaction only).

• Identity verification: taxpayer’s passed results of knowledge-based authentication, and 

for in-person transactions, confirmation that government photo identification has been 

verified.

• Method used to sign the record (e.g., typed name); or a system log; or other audit trail 

that reflects the completion of the electronic signature process by the signer.

Note: The ERO must provide this information to the IRS upon request.
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Digital Identity Verification Requirements

The electronic signing process must be associated with a person, and accordingly, ensuring 

the validity of any electronically signed record begins with identification and authentication of 

the taxpayer. The electronic signature process must be able to generate evidence of the person 

the electronic form of signature belongs to, as well as generate evidence that the identified 

person is associated with the electronic record.

If there is more than one taxpayer for the electronic record, the electronic signature process 

must be designed to separately identify and authenticate each taxpayer.

The identity verification requirements must be in accordance with National Institute of Standards and Technology, Special Publication 800-63, Electronic Authentication Guideline, Level 2 

assurance level and knowledge-based authentication or higher assurance level.

Electronic Signature Via In-Person Transaction

An in-person transaction for electronic signature is one in which the taxpayer is electronically 

signing the form and the ERO is physically present with the taxpayer. The ERO must confirm 

the taxpayer’s identity for in-person transactions unless there is a multi-year business relationship. A multi-year business relationship is one in which the ERO has originated tax returns for 

the taxpayer for a prior tax year and has identified the taxpayer using the identity verification 

process described below.

For in-person transactions, the ERO must inspect a valid government photo identification; 

compare photo to the taxpayer and record the name, social security number, address and date 

of birth. Examples of government photo identification (ID) include a driver’s license, employer 

ID, school ID, state ID, military ID, national ID, voter ID, visa or passport.

Verify that the name, social security number or Individual Taxpayer Identification Number (ITIN), 

address, date of birth and other personal information on record are consistent with the information provided through record checks with the applicable agency or institution or through credit 

bureaus or similar databases. For in-person transactions, the identity verification through a 

record check is optional.

Electronic Signature Via Remote Transaction

A remote transaction for electronic signature is one in which the taxpayer is electronically 

signing the form and the ERO isn’t physically present with the taxpayer. For remote transactions, the ERO must record the name, social security number, address and date of birth.

Verify that the name, social security number, address, date of birth and other personal information on record are consistent with the information provided through record checks with the 

applicable agency or institution or through credit bureaus or similar databases.

Note: An electronic signature via remote transaction does not include handwritten 

signatures on Forms 8878 or 8879 sent to the ERO by hand delivery, U.S. mail, private 

delivery service, fax, email or an Internet website.
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Identity Verification

The software used for the electronic signature process may use credit records, also known 

as credit reports, to verify the taxpayer’s identity. Identity verification may consist of a record 

check with a credit reporting company. A credit reporting company uses information from the 

taxpayer’s credit report to generate knowledge-based authentication questions. This action 

may create an entry on the credit report called a “soft inquiry.”

The software used for the electronic signature process should include an advisory to taxpayers 

stating the use of third-party data for identity verification; how third-party data is used for identity verification; if a “soft inquiry” will be generated and the effect, if any, on the credit report, 

credit scores and reporting to lenders; and how the inquiry may appear on the credit report.

The software should also include an advisory to taxpayers stating the IRS won’t be given view 

of or access to a taxpayer’s credit report, nor will the credit reporting company or other identity 

verification third party have access to the taxpayer’s tax information.

The process of identity verification using a record check with a credit reporting company or 

other identity verification third party for purposes of electronically signing does not require 

additional consents from the taxpayer beyond those obtained for preparing and filing their 

taxes; nor does it violate the provisions of Internal Revenue Code section 7216 or its regulations.

Identity Verification Failure

The software will enable the identity verification using knowledge-based authentication questions when an ERO uses tax preparation software to interact with the taxpayer for purposes 

of obtaining an electronic signature on Form 8878 or 8879. If the taxpayer fails the knowledge-based authentication questions after three attempts, then the ERO must obtain a handwritten signature on Form 8878 or 8879.

Electronic Records

Electronic signatures must be linked to their respective electronic records to ensure that the 

signatures can’t be excised, copied or otherwise transferred to falsify an electronic record.

After the electronic record has been signed, it must be tamper-proof. Therefore, techniques 

must be employed that lock a document and prevent it from being changed. Storage systems 

must have secure access control to ensure that the electronic records can’t be changed.

Additionally, storage systems must also have a retrieval system that includes an indexing 

system, and the ability to reproduce legible and readable hardcopies of electronically stored 

records.

Electronic Signatures for EROs

EROs must also sign with a PIN. EROs should use the same PINs for the entire tax year. The 

ERO may manually input, or the software can generate the PIN in the electronic record in the 

location designated for the ERO Electronic Filing Identification Number (EFIN)/PIN. The ERO 

is attesting to the ERO Declaration by entering a PIN in the ERO EFIN/PIN field. For returns 

prepared by the ERO firm, return preparers are declaring under the penalties of perjury that 

they reviewed the returns, and they are true, correct and complete.
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EROs may authorize members of their firms or designated employees to sign for them, but the 

EROs are still responsible for all the electronic returns originated by their firms.

For returns prepared by other than the ERO firm that originates the electronic submission, the 

ERO attests that the return preparer signed the copy of the return and that the electronic return 

contains tax information identical to that contained in the paper return.

The ERO must enter the return preparer’s identifying information (name, address, EIN, and 

PTIN) in the electronic return.

EROs may sign Form 8878 and Form 8879 by rubber stamp, mechanical device (such as 

signature pen) or computer software program as described in Notice 2007-79.

The signature must include either a facsimile of the individual ERO’s signature or of the ERO’s 

printed name. EROs using one of these alternative means are personally responsible for 

affixing their signatures to returns or requests for extension. This does not alter the requirement 

that taxpayers must sign Form 8878 and Form 8879 by a handwritten or electronic signature.

The ERO must keep Forms 8878 and 8879 for three years from the return due date or the IRS 

received date, whichever is later. EROs must not send Forms 8878 and 8879 to the IRS unless 

the IRS requests they do so.

Submitting the Electronic Return to the IRS

Once signed, an ERO must originate the electronic submission of a return as soon as possible. 

EROs must not electronically file individual income tax returns prior to receiving Forms W-2, 

Wage and Tax Statement, W-2G, Certain Gambling Winnings or 1099-R, Distributions from 

Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. If 

the taxpayer is unable to secure and provide a correct Form W-2, W-2G, or 1099-R, the ERO 

may electronically file the return after the taxpayer completes Form 4852, Substitute for Form 

W-2, Wage and Tax Statement or 1099-R, Distributions from Pensions, Annuities, Retirement 

or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., in accordance with the use of that 

form. If Form 4852 is used, the nonstandard W-2 indicator must be included in the record, and 

the ERO must maintain Form 4852 in the same manner required for Forms W-2, W-2G and 

1099-R.

An ERO must ensure that stockpiling of returns does not occur at its offices. Stockpiling is:

• collecting returns from taxpayers or from another Authorized IRS e-file Provider prior to 

official acceptance in IRS e-file; or

• after official acceptance to participate in IRS e-file, stockpiling refers to waiting more 

than three calendar days to submit the return to the IRS once the ERO has all necessary 

information for origination.

The IRS does not consider as stockpiled current filing year returns held prior to the date the 

IRS accepts transmission of electronic returns. EROs must tell taxpayers that it can’t transmit 

returns to the IRS until the date the IRS accepts transmission of electronic returns. Although 

holding late returns during periods when IRS electronic filing isn’t available isn’t stockpiling, 

Providers should mail the returns to the IRS mailing addresses in the form’s instructions.
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Internet Protocol Information

Internet Protocol (IP) information of the computer the ERO uses to prepare the return (or originate the electronic submission of collected returns) must be included in all individual income 

tax returns. The required Internet Protocol information includes:

• Public/routable IP address

• IP date

• IP time

• IP time zone

With many different ERO e-filing business models, the computer used to prepare (or originate 

the electronic submission of collected returns) may not have a public/routable IP address. If 

the computer used for preparation (or origination of the electronic submission of collected 

returns) is on an internal reserved IP network, then the IP address should be the public/routable 

IP address of the computer used to submit the return. If the computer used for preparation 

(or origination of the electronic submission of collected returns) is used to transmit the return 

to the IRS, then the IP address should be the public/routable IP address of that computer. If it 

isn’t possible to capture the public/routable IP address, then the ERO or software may have to 

hard code the IP address into each return.

The IRS will reject individual income tax returns e-filed without the required IP address. Any 

return received by the IRS containing a private/non-routable IP address will be flagged in the 

acknowledgment File with an “R” in the Reserved IP Address Code field of the ACK key record 

indicating that a reserved IP address is present for the return.

Device ID

The IRS has implemented a Device ID field for electronic return filers and preparers. The IRS 

will use this unique identifier; in addition to key elements we already collect to improve fraud 

and ID theft detection. Vendors implementing Device ID in their software should ensure that 

their privacy notice will cover Device ID.

Submission of Paper Documents to the IRS

IRS e-file returns must contain all the same information as returns filed completely on paper. 

Forms that have an electronic format must be submitted in the electronic format unless IRS 

identifies an exception during the tax year. If a form/document can’t be submitted electronically, IRS can accept forms/documents in PDF format. Check the software package to see if 

this option is offered. EROs are responsible for ensuring that they submit to the IRS all paper 

documents required to complete the filing of returns. If the documents aren’t submitted electronically, they may be mailed to IRS. Attach all appropriate supporting documents that the IRS 

requires to the Form 8453, U.S. Individual income Tax Transmittal for an IRS e-file Return, 

and send them to the IRS. Refer to page 2 of Form 8453 for the current mailing address. Below 

is a list of these supporting documents:
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• Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes (or equivalent 

contemporaneous written acknowledgment);

• Form 2848, Power of Attorney and Declaration of Representative (only for an electronic 

return signed by an agent);

• Form 3115, Application for Change in Accounting Method;

• Form 3468, Investment Credit – attach a copy of the first page of NPS Form 10-168a, 

Historic Preservation Certification Application (Part 2 – Description of Rehabilitation), with 

an indication that it was received by the Department of the Interior or the State Historic 

Preservation Officer, together with proof that the building is a certified historic structure 

(or that such status has been requested);

• Form 4136, Credit for Federal Tax Paid on Fuels – attach the appropriate certificates 

and, if applicable, the appropriate reseller statements for biodiesel, renewable diesel, and 

sustainable aviation fuel claims;

• Form 5713, International Boycott Report;

• Form 8283, Noncash Charitable Contributions, Section A (if any statement or qualified appraisal is required) or Section B, Donated Property, and any related attachments 

(including any qualified appraisal or partnership Form 8283);

• Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent (or certain pages from a divorce decree or separation agreement that went 

into effect after 1984 and before 2009, see form instructions);

• Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded 

Entities (FDEs) and Foreign Branches (FBs);

• Form 8864, Biodiesel, Renewable Diesel, or Sustainable Aviation Fuels Credit – attach 

the appropriate certificates and, if applicable, the appropriate reseller statements for 

biodiesel, renewable diesel, and sustainable aviation fuel claims and

• Form 8949, Sales and Other Dispositions of Capital Assets, (or a statement with the 

same information) if you elect not to report your transactions electronically on Form 8949.

State income tax returns in the Federal/State Program often require that paper documents be 

prepared and forwarded to state tax administration agencies. Be sure to follow each state’s 

rules when state income tax returns are prepared.

ERO Duties After Submitting the Return to the IRS

Record Keeping and Documentation Requirements

EROs must retain the following material until the end of the calendar year at the business 

address from which it originated the return or at a location that allows the ERO to readily 

access the material as it must be available at the time of IRS request. An ERO may retain the 

required records at the business address of the Responsible Official or at a location that allows 

the Responsible Official to readily access the material during any period the office is closed.
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• A copy of Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return, 

and supporting documents that are not included in the electronic records submitted to 

the IRS;

• Copies of Forms W-2, W-2G and 1099-R;

• A copy of signed IRS e-file consent to disclosure forms;

• A complete copy of the electronic portion of the return that can be readily and accurately 

converted into an electronic transmission that the IRS can process; and

• The acknowledgment file for IRS accepted returns.

Forms 8879 and 8878 must be available to the IRS in the same manner described above for 

three years from the due date of the return or the IRS received date, whichever is later. The 

Submission ID must be associated with Form 8879 and 8878:

• The Submission ID can be added to the Form 8879 and 8878 or

• the acknowledgment containing the Submission ID can be associated with Forms 8879 

and 8878.

• If the acknowledgment is used to identify the Submission ID, the acknowledgment must 

be kept following published retention requirements for Forms 8879 and 8878.

EROs may electronically image and store all paper records they must retain for IRS e-file. 

This includes Forms 8453 and paper copies of Forms W-2, W-2G and 1099-R as well as any 

supporting documents not included in the electronic record and Forms 8879 and 8878. The 

storage system must satisfy the requirements of Revenue Procedure 97-22, 1997-1 C.C. 652, 

Retention of Books and Records. In brief, the electronic storage system must ensure an accurate and complete transfer of the hard copy to the electronic storage media. The ERO must 

be able to reproduce all records with a high degree of legibility and readability (including the 

taxpayers’ signatures) when displayed on a video terminal and when reproduced in hard copy.

Providing Information to the Taxpayer

The ERO must provide a complete copy of the return to the taxpayer. EROs may provide this 

copy in any media, including electronic, that is acceptable to both the taxpayer and the ERO. 

A complete copy of a taxpayer’s return includes Form 8453 and other documents that the ERO 

can’t electronically transmit, when applicable, as well as the electronic portion of the return. 

The electronic portion of the return can be contained on a replica of an official form or on an 

unofficial form. However, on an unofficial form, the ERO must reference data entries to the 

line numbers or descriptions on an official form. If the taxpayer provided a completed paper 

return for electronic filing and the information on the electronic portion of the return is identical 

to the information provided by the taxpayer, the ERO doesn’t have to provide a printout of the 

electronic portion of the return to the taxpayer. The ERO should recommend that the taxpayer 

retain a complete copy of the return and any supporting material. The ERO should also advise 

taxpayers that, if needed, they must file an amended return as a paper return and mail it to 

the submission processing center that would handle the taxpayer’s paper return. For tax years 

2019 and forward, the ERO should also advise taxpayers that, if needed, an amended return 

can also be e-filed. Refer to the current year’s tax instructions for addresses and electronic filing.
26

Acknowledgments of Transmitted Return Data

The IRS electronically acknowledges the receipt of all transmissions. Returns in each transmission are either accepted or rejected for specific reasons. Accepted returns meet the processing 

criteria and IRS considers them “filed” as soon as the return is signed electronically or through 

the receipt by the IRS of a paper signature. Rejected returns don’t meet processing criteria and 

the IRS considers them not filed. The acknowledgment identifies the source of the problem 

using a system of business rules and element names (tag names). The business rules tell why 

the return rejected and the element names tell which fields of the electronic return data are 

involved. Information regarding business rules and correcting common errors is available on 

IRS.gov.

The acknowledgment record of an accepted individual income tax return has other information 

that is useful to the originator. The record confirms if the IRS accepted a PIN, if an elected EFW 

paid a balance due, and if a private/non-routable IP address is present in the return. The ERO 

should check acknowledgment records regularly to find returns requiring follow-up action and 

should take reasonable steps to address issues identified on acknowledgment records.

At the request of the taxpayer, the ERO must provide the Submission ID and the date the 

IRS accepted the electronic individual income tax return data. The ERO may use Form 9325, 

Acknowledgment and General Information for Taxpayers Who File Returns Electronically for 

this purpose. If requested, the ERO must also supply the electronic postmark if the Transmitter 

provided one for the return.

Rejected electronic individual income tax return data can be corrected and retransmitted 

without new signatures or authorizations if changes don’t differ from the amount on the original 

electronic return by more than $50 to “Total income” or “AGI,” or more than $14 to “Total tax,” 

“Federal income tax withheld,” “Refund” or “Amount you owe.” The ERO must give taxpayers 

copies of the new electronic return data.

If the State submission is linked to an IRS submission (also referred to as a Fed/State return), 

the IRS will check to see if there is an accepted IRS submission under that Submission ID. 

If there isn’t an accepted federal return for that tax type, the IRS will deny the State submission and an acknowledgment will be sent to the Transmitter. The state has no knowledge that 

the state return was denied (rejected) by the IRS. Subsequent rejection of state electronic 

return data by a state tax administration agency does not affect federal electronic return data 

accepted by the IRS. States determine when they accept as filed state electronic return data 

received from the Federal/State e-file Program. Contact the state tax administration agency 

when problems or questions arise.

Resubmission of Rejected Tax Returns

If the IRS rejects the electronic portion of a taxpayer’s individual income tax return for 

processing, and the ERO cannot fix the reason for the rejection, the ERO must take reasonable 

steps to inform the taxpayer of the rejection within 24 hours. When the ERO tells the taxpayer 

that it hasn’t filed the return, the ERO must provide the taxpayer with the business rule(s) 

accompanied by an explanation. If the taxpayer chooses not to have the electronic portion 

of the return corrected and transmitted to the IRS, or if the IRS can’t accept the return for 

processing, the taxpayer must file a paper return. To timely file the return, the taxpayer must 

file the paper return by the later of the due date of the return or ten calendar days after the date 
27

the IRS gives notification that it rejected the electronic portion of the return or that the return 

can’t be accepted for processing. Taxpayers should include an explanation in the paper return 

as to why they are filing the return after the due date.

Advising Taxpayers about Refund Inquiries

EROs should tell taxpayers how to follow up on returns and refunds by pointing out “Where’s 

My Refund” and providing taxpayers with the IRS tax refund hotline, 800-829-1954.

Taxpayers can start checking on the status of their return within 24 hours after the IRS received 

their e-filed return, or four weeks after they mail a paper return. EROs should advise taxpayers 

that “Where’s My Refund” updates once every 24 hours, usually overnight.

To check on refunds, taxpayers need to enter the first Social Security Number shown on their 

tax return, the filing status and the exact amount of the refund in whole dollars.

Refund Delays

Taxpayers often ask EROs to help them when refunds take longer than expected. The IRS may 

delay refunds for several reasons, including the following:

• Errors in Direct Deposit information (refunds then sent by check);

• Financial institution refusals of Direct Deposits (refunds then sent by check) or delays in 

crediting the Direct Deposit to the taxpayer’s account;

• Claims of the Earned Income Tax Credit or Additional Child Tax Credit require the IRS to 

hold the entire refund until mid-February;

• Estimated tax payments differ from amount reported on tax return (for example, fourth 

quarter payments not yet on file when return data is transmitted);

• Bankruptcy;

• Improper claims for the Earned Income Tax Credit, Additional Child Tax Credit, Credit for 

Other Dependents, or American Opportunity Tax Credit; or

• Recertifications to claim the Earned Income Tax Credit, Child Tax Credit, Additional Child 

Tax Credit, Credit for Other Dependents, or American Opportunity Tax Credit.

The IRS sends a letter or notice explaining the issue(s) and how to resolve the issue(s) to the 

taxpayer when it delays a refund. The letter or notice has the contact telephone number and 

address for the taxpayer to use for further assistance.

If taxpayers’ refunds are lost or misapplied, taxpayers do not receive notices or letters or there 

is no information on Where’s My Refund or the Refund Hotline (see Advising Taxpayers about 

Refund Inquiries above), EROs should advise taxpayers to call the IRS taxpayer assistance 

number.
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Refund Offsets

The IRS offsets as much of a refund as is needed to pay overdue taxes owed by taxpayers 

and lets them know when this occurs. The Bureau of the Fiscal Service offsets taxpayers’ 

refunds through the Treasury Offset Program (TOP) to pay off past-due child support, federal 

agency non-tax debts such as student loans and unemployment compensation debts, and 

state income tax obligations. Offsets to non-tax debts occur after the IRS has certified the 

refunds to Fiscal Service for payment but before Fiscal Service makes the Direct Deposits or 

issues the paper checks. Refund offsets reduce the amount of the expected Direct Deposit or 

paper check, but they do not delay the issuance of the remaining refund (if any) after offset. 

If taxpayers owe non-tax debts, they may contact the agency they owe, prior to filing their 

returns, to determine if the agency submitted their debts for refund offset. Fiscal Service sends 

taxpayers offset notices if it applies any part of their refund to non-tax debts. Taxpayers should 

contact the agencies identified in the Fiscal Service offset notice when offsets occur if they 

dispute the non-tax debts or have questions about the offsets. If taxpayers need further clarification, they may call the Treasury Offset Program Call Center at 800-304-3107. If a refund is in 

a joint name but only one spouse owed the debt, the “injured spouse” should file Form 8379, 

Injured Spouse Allocation.

Disposal of Taxpayer Information

After complying with records retention policies and standards for retaining the required records 

(electronic and paper format) for the required period, taxpayer information and sensitive data 

files must be destroyed by properly shredding, burning, mulching, pulping or pulverizing 

beyond recognition and reconstruction.

Destroy paper using crosscut shredders which produce particles that are 1 mm x 5mm (0.04 in. 

x 0.2 in.) in size (or smaller) or pulverize/disintegrate paper materials using disintegrator devices 

equipped with a 3/32 in. (2.4 mm) security screen.

Other EROs

IRS Sponsored Programs

Often individuals or organizations serve as unpaid tax return preparers in IRS sponsored 

programs including Volunteer Income Tax Assistance (VITA) and Tax Counseling for the 

Elderly (TCE). For IRS sponsored programs, unless otherwise noted, all requirements of a 

Provider apply. All tax returns prepared at a VITA/TCE site must be quality reviewed prior to 

electronically filing the tax return. The IRS may designate an individual for this purpose.

A VITA or TCE sponsor can only accept a return for electronic filing that meets the criteria for 

VITA or TCE assistance. A VITA or TCE sponsor may accept for electronic filing only the returns 

and accompanying forms and schedules included in a VITA or TCE training course.

See Publication 4299, Privacy, Confidentiality and Civil Rights. It is designed to ensure Volunteers and their partnering organizations safeguard taxpayer information and understand their 

responsibilities.
29

Employers Offering IRS e-file as an Employee Benefit

The following procedures apply to employers who choose to offer electronic filing as an 

employee benefit to business owners and spouses, employees and spouses and/or dependents of business owners and employees. These rules do not apply if an employer contracts 

with an ERO to originate the electronic submission of the tax return.

• An employer may offer electronic filing as an employee benefit whether the employer 

chooses to transmit tax returns or contracts with a third-party to transmit the tax returns. 

If an employer contracts with a third-party to transmit the tax returns, the employer may 

collect from participating employees a fee that directly relates to defraying the actual cost 

of transmitting the electronic portion of the tax return.

• The employer must retain copies of tax returns, including Forms 8453 and IRS e-file

Signature Authorizations. It must not give this information to a third-party, including a 

third-party Transmitter.
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Chapter 4 – Transmission

Reporting of Potential Identity Theft Refund Fraud Activity

“Safeguarding taxpayers and IRS e-file from identity theft refund fraud requires that providers 

be diligent in detecting and preventing identity theft fraud patterns and schemes. Early detection of these patterns and schemes is critical to stopping them and their adverse impacts, 

and to protecting taxpayers and IRS e-file. Providers who transmit more than 2,000 individual 

income tax returns per year are required to perform analysis to identify potential identity theft 

fraud patterns and schemes, and to provide the results relative to any indicators of such 

fraud to the IRS on a weekly basis, in accordance with requirements that will be distributed to 

Providers.”

Requirements

In fulfilling the requirements of a Provider participating in IRS e-file, Transmitters must:

1. Transmit all electronic portions of returns to the appropriate IRS center within three 

calendar days of receipt;

Note: This requirement does not apply when the IRS isn’t accepting specific returns, 

forms, or schedules until a date later than the start-up of IRS e-file due to constraints such 

as late legislation, programming issues and controlled validation activities, etc. Controlled 

validation activities are when the IRS provides special instructions to Transmitters relating 

to the submission of certain returns.

2. Retrieve the acknowledgment file within two workdays of transmission;

3. Match the acknowledgment file to the original transmission file and send the acknowledgment file containing all conditions on accepted returns, including non-receipt of Personal 

Identification Number (PIN), etc., to the Electronic Return Originator (ERO) or Intermediate 

Service Provider within two workdays of retrieving the acknowledgment file;

4. Retain an acknowledgment file received from the IRS until the end of the calendar year in 

which the electronic return was filed;

5. Contact the IRS at its e-help number, 866-255-0654, for further instructions if an acknowledgment of acceptance for processing has not been received within two workdays of 

transmission or if an acknowledgment for a return that was not transmitted on the designated transmission is received;

6. Promptly correct any transmission error that causes an electronic transmission to be 

rejected;

7. Contact the IRS at its e-help number, 866-255-0654, for assistance if the electronic portion 

of the return has been rejected after three transmission attempts;

8. Ensure the security of all transmitted data;
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9. Ensure against the unauthorized use of its Electronic Filing Identification Number (EFIN) or 

Electronic Transmitter Identification Number (ETIN). A Transmitter must not transfer its EFIN 

or ETIN by sale, merger, loan, gift or otherwise to another entity;

10. Use only software that does not have an IRS assigned production password built into the 

software;

11. Provide the Device ID from the equipment used to prepare the return; and

12. Perform analysis to identify potential identity theft fraud patterns and schemes for 

providers who collectively transmit more than 2,000 individual income tax returns per 

year. They must provide the results relative to any indicators of such fraud to the IRS on a 

weekly basis, following requirements that will be distributed to Providers.

Additional Requirements for Transmitters Participating in Online Filing

In addition to requirements of all Transmitters in the IRS e-file Program, a Transmitter that 

participates in Online Filing has some additional responsibilities.

When participating in Online Filing, the Transmitter must:

1. Ensure that it includes their assigned Online Filing EFIN, which begins with 10, 21, 32, 44 

or 53, in the proper field in the electronic return data;

2. Ensure that the Intermediate Service Provider’s EFIN is included in the electronic return 

data, when applicable;

3. Include the assigned Submission ID in the transmission of the electronic return data to the 

IRS;

4. Notify the taxpayer of the status of a return by sending an electronic transmission to the 

taxpayer or the Intermediate Service Provider, when applicable, within two workdays of 

retrieving the acknowledgment file from the IRS or by mailing a written notification to the 

taxpayer within one work day of retrieving the acknowledgment file;

5. Ensure that it doesn’t accept transmission for more than five electronic returns originating 

from one software package or from one e-mail address;

6. Provide the Internet Protocol (IP) information (public/routable IP Address, IP Date, IP Time 

and IP Time Zone of the computer the taxpayer uses to submit the return);

7. Enter into agreements with companies to allow access to Online Filing only if companies 

correctly capture the IP Address of the computer submitting the return and the date, time 

and time zone of the computer receiving it;

8. Include “Online Filer” in the “Originator Type” field of the Trans Record “A.”

The Transmitter must notify the taxpayer of the following if the IRS accepts the electronic part 

of a taxpayer’s return:

• The date the transmission was accepted;

• The Submission ID (SID);
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• The requirement to properly complete and timely submit a Form 8453, if required, with 

accompanying paper documents;

• The appropriate submission processing center’s address to which Form 8453 with 

accompanying paper documents, if required, must be sent; and

• The IRS must receive a Form 8453, if required, before an Online filed return is complete.

The Transmitter must tell the taxpayer of the following if the IRS rejects the electronic part of a 

taxpayer’s return:

• The IRS rejected the electronic part of the taxpayer’s return;

• The date of the rejection;

• The definition(s) of the applicable business rule(s);

• The steps the taxpayer needs to take to correct the errors that caused the rejection; and

• The taxpayer must file a paper return if the taxpayer chooses not to have the electronic 

part of the return corrected and transmitted to the IRS, or, if the IRS can’t accept the 

electronic portion of the return for processing by the IRS. To timely file a paper return, the 

taxpayer must file it by the later of the due date of the return or 10 calendar days after the 

date the IRS gives notification that it has rejected the electronic portion of the return or 

that it can’t accept the return for processing. Taxpayers should include an explanation as 

to why they are filing the paper return after the due date.

A Transmitter that receives returns from an Intermediate Service Provider for Online Filing must 

follow the same requirements as a Transmitter that receives returns from Intermediate Service 

Providers for an ERO.

Electronic Postmark

A Transmitter may provide an electronic postmark to taxpayers that file Individual Income 

Tax Returns and Extensions of Time to File Individual Income Tax Returns, through an ERO 

or through Online Filing. The Transmitter creates the electronic postmark bearing the date 

and time (in the Transmitter’s time zone) that the return is received at the Transmitter’s host 

computer. The taxpayer must adjust the electronic postmark to the time zone where the 

taxpayer lives to determine the postmark’s actual time. For example, if the Transmitter provides 

an electronic postmark with a time in the Pacific Time Zone but the taxpayer resides in the 

Eastern Time Zone, the taxpayer must add three hours to the postmark time to determine the 

actual postmark time (Eastern Time Zone).

If the electronic postmark is on or before the prescribed deadline for filing, but the IRS receives 

the return after the prescribed deadline for filing, the IRS treats the return as timely filed. For 

the IRS to treat a return as timely filed, based on the electronic postmark’s date, the taxpayer 

must meet all requirements for signing the return and when applicable, mailing Form 8453 with 

supporting documents not included in the electronic record. If the electronic postmark is after 

the prescribed deadline for filing, the IRS actual receipt date, not the date of the electronic 

postmark, is the filing date. If the IRS rejects a return, the taxpayer must file a corrected return 

following the rules for timely filing corrected returns after rejection of an electronic return.
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The IRS authorizes a Transmitter to provide an electronic postmark if the Transmitter:

• Creates an electronic postmark bearing the date and time (in the Transmitter’s time zone) 

the return was received by the Transmitter’s host system;

• Provides the electronic postmark to the taxpayer or the ERO no later than when the 

acknowledgment is made available to the taxpayer in a format that precludes alteration 

and manipulation of the electronic postmark information;

• Provides the same electronic postmark data to the IRS in the electronic record of the 

return;

• Provides taxpayers with an explanation of the electronic postmark and when the IRS 

treats the electronic postmark as the filing date;

• Refrains from using terms that currently have specific meaning in the postal industry 

such as “certified” or “registered” and similar terms, and from using “Internal Revenue 

Service”, “IRS” or “Federal” as a definer of the electronic postmark when discussing 

the electronic postmark, including in all advertising, product packaging, articles, press 

releases and other presentations;

• Retains a record of each electronic postmark until the end of the calendar year and 

provides the record to the IRS upon request;

• Transmits all tax returns and extensions of time to file that received an electronic postmark to the IRS within two days of receipt from the ERO or from the taxpayer in the case 

of Online Filing; and

• Retains the original electronic postmark of the rejected return for a corrected return that 

the Transmitter received through the last date for retransmitting rejected returns and 

creates a new postmark for all returns, including corrected returns received after the last 

date for retransmitting returns. All corrected returns retaining an electronic postmark of 

a date through the prescribed last day of filing must be transmitted to the IRS within two 

days of the date the return was received by the Transmitter or the twenty second day of 

the respective month of the prescribed due date, whichever is earlier.

Transmitting for Federal/State e-file

If Providers take part in Federal/State e-file, software should meet both IRS and state specifications.

However, before electronic return data can be transmitted (both federal and state electronic 

return data is transmitted to the IRS), all requirements for transmitting electronic data in IRS 

e-file must be met. Contact the proper state coordinator for additional requirements specific to 

that state.
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Chapter 5 – Other Authorized IRS e-file Provider Activities

In addition to electronic return origination and transmission previously discussed, there are 

other activities performed by Providers, including intermediate service and software development.

Intermediate Service Providers

An Intermediate Service Provider receives tax information from an Electronic Return Originator 

(ERO) (or from a taxpayer who files electronically using a personal computer and commercial 

tax preparation software), processes the tax return information and either forwards the information to a Transmitter or sends the information back to the ERO or taxpayer (for Online Filing).

A Provider participating as an Intermediate Service Provider must meet the following responsibilities to take part in IRS e-file. The Intermediate Service Provider must:

1. Deliver all electronic returns to a Transmitter or the ERO who gave the electronic returns to 

the Intermediate Service Provider within three calendar days of receipt;

2. Retrieve the acknowledgment file from the Transmitter within one calendar day of receipt 

by the Transmitter and send the acknowledgment file to the ERO (whether related or not) 

within one workday of retrieving it;

3. Retain each acknowledgment file received from a Transmitter until the end of the calendar 

year in which the electronic return was filed;

4. Input the TINs and addresses on a Form W-2, W-2G, 1099-R or Schedule C as applicable 

in the electronic return record when they differ from the taxpayer’s TIN or address in the 

electronic individual income tax return as described in “Verifying Taxpayer Identify and 

Taxpayer Identification Numbers (TINs)” and “Be Careful with Addresses” if inputting the 

electronic data; and

5. Send any return needing changes as described in “Electronic Return Originator” back to 

the ERO for correction.

Additional Requirements for Intermediate Service Providers Participating in Online Filing

When the taxpayer files a return using Online Filing, the Intermediate Service Provider 

processes information for a taxpayer so that a Transmitter can send the electronic return(s) to 

the IRS. In so doing, the Intermediate Service Provider must:

1. Ensure that it uses an Online Filing EFIN which begins with 10, 21, 32, 44 or 53;

2. Ensure that its Online Filing EFIN is included in the appropriate field in the electronic return 

data;

3. Send the transmission to the Transmitter within 24 hours of the receipt of the return from 

the taxpayer;

4. Ensure that no more than five tax returns are filed electronically by one software package 

or from one e-mail address;
35

5. Ensure that software used by the taxpayer does not have an IRS-assigned production 

password built into the software; and

6. Immediately forward to the taxpayer information received from the Transmitter as required 

for Online Filing. For example, this requirement applies when a Transmitter receives information from the IRS about the status of the electronic portion of a taxpayer’s return. See 

“Additional Requirements for Participants in Online Filing.”

Software Developers

A Software Developer develops software for the purposes of formatting electronic return information according to IRS e-file specifications and/or transmitting electronic return information 

directly to the IRS. Software Developers may find information about Modernized e-file (MeF) 

schemas in Publication 4164, Modernized (MEF) E-file Guide for Software Developers and 

Transmitters and on IRS.gov. Software Developers must pass testing in Assurance Testing 

System (ATS) as prescribed in Publication 1436, Assurance Testing System (ATS) Guidelines 

for Modernized e-File (MeF) Individual Tax Returns for Tax Year 2022.

A Software Developer must:

1. Promptly correct any software error which causes the electronic part of a return to be 

rejected and then promptly distribute that correction.

2. Ensure that its software contains proper language and version indicators for Consent to 

Disclose and Jurat statements.

3. Ensure software contains IRS e-file Signature Authorization.

4. Ensure its software allows for input of different addresses on forms and schedules when 

they differ from the taxpayer’s address in the electronic individual income tax return. Also, 

the software must require the manual key entry of the Taxpayer Identification Number (TIN) 

as it appears on Form W-2 for taxpayers with Individual Taxpayer Identification Numbers 

(ITINs) who are reporting wages.

5. Ensure software packages that support the Form 1040-SR use the Form 1040 schema 

to submit the return electronically. The Form 1040 schema has a Form 1040-SR Indicator 

checkbox that must be marked to show Form 1040-SR is being electronically filed. Form 

1040 schema will be completed as usual; however, MeF will process the return as a Form 

1040-SR. Taxpayers age 65 or older have the choice to submit Form 1040-SR electronically. All Form 1040 Business Rules will apply to the Form 1040-SR.

6. Software Developers are being asked to default the “Routing and Account Numbers” in the 

software packages on Forms 1040/1040-SR/1040-NR/1040-SS/1040-PR, to “XXXXXXXX” 

(capital X’s), when taxpayers choose not to have their refund directly deposited into an 

account. These fields should never be blank.
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Additional Requirements for Software Developers Participating in Online Filing

A Software Developer that participates in Online Filing must also:

1. Ensure that its software package can’t be used to transmit more than five electronic 

returns.

2. Ensure that its software, if available for use on the Internet, can’t be used to file more than 

five electronic returns from one e-mail address or phone number.

3. Ensure that its software contains a Form 8453, U.S. Individual Income Tax Transmittal 

for an IRS e-file Return, that can be printed and used by a taxpayer to mail supporting 

documents to the IRS.

4. Ensure that its software contains a payment voucher that can be printed and used by a 

taxpayer to file with the IRS.

5. Ensure the Internet Protocol (IP) statement is present.

6. Ensure online software packages that support 1040-SR provide this choice to taxpayers 

age 65 or older.

Additional Requirements for Software Developers Enabling Electronic Signatures 

for Forms 8878 and 8879

A Software Developer that enables electronic signatures for Forms 8878 and 8879 must:

1. Provide the following in an accessible format (including print capability) for the Electronic 

Return Originator:

• Digital image of the signed form.

• Date and time of the signature.

• Taxpayer’s computer IP address (Remote transaction only).

• Taxpayer’s login identification – username (Remote transaction only).

• Identity verification: taxpayer’s passed results of knowledge-based authentication and 

for in-person transactions, confirmation that government photo identification has been 

verified.

• Method used to sign the record, (e.g., typed name); or a system log; or other audit trail 

that reflects the completion of the electronic signature process by the signer.

2. Follow the identity verification requirements.

3. Ensure software disables identity verification after three attempts.

4. Ensure identity verification transactions occur in a secure portal.

5. Ensure the electronic record that has been signed is tamper-proof.

6. Ensure storage system has secure access controls.

7. Ensure storage system has a retrieval system that includes an indexing system.
37

8. Ensure software can reproduce legible and readable hardcopies of Form 8878 or 8879.

9. Ensure software does not allow tax return transmission until Form 8879 is signed.

Also, a Software Developer that enables electronic signatures for Forms 8878 and 8879 should:

• Follow best practices and clearly provide information for taxpayers on use of third-party 

data and “soft inquiries” prior to beginning the identity verification process.

• Follow best practices and clearly provide information for taxpayers that the IRS won’t be 

given view of or access to a taxpayer’s credit report, nor will the credit reporting company 

or other identity verification third-party have access to the taxpayer’s tax information.

See “Electronic Signature Guidance for Forms 8878 and 8879” section for detailed information.
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Chapter 6 – IRS e-file Rules and Requirements

All Providers must follow IRS e-file rules and requirements to continue participation in IRS 

e-file. Requirements are included in Revenue Procedure 2007-40, throughout this publication 

and in other publications and notices that govern IRS e-file (See Publication 3112, IRS e-file

Application and Participation). All Providers must follow all rules and requirements, regardless of where published. Some rules and requirements are specific to the activities performed 

by the Provider and are included in appropriate chapters of this publication. The following list, 

while not all inclusive, applies to all Providers of individual income tax returns, except Software 

Developers that do not engage in any other IRS e-file activity other than software development. 

A Provider must:

1. Maintain an acceptable cumulative error or reject rate.

2. Follow the requirements for ensuring that tax returns are properly signed.

3. Use the standard/non-standard Form W-2 indicator.

4. Use the Tax Refund-Related Product or Financial Product indicator.

5. Include the Electronic Return Originator’s (ERO’s) Electronic Filing Identification Number 

(EFIN) as the return EFIN for returns the ERO submits to an Intermediate Service Provider 

or Transmitter.

6. Include the Intermediate Service Provider’s EFIN in the designated Intermediate Service 

Provider field in the electronic return record.

7. Submit an electronic return to the IRS with information that is identical to the information 

provided to the taxpayer on the copy of the return.

Additional Requirements for Participants in Online Filing

In addition to the above, participants in Online Filing must adhere to the following:

1. Ensure that no more than five electronic returns are filed from one software package or one 

e-mail address.

2. Supply a taxpayer with a correct Submission ID.

Tax Refund-Related Products

Tax refund-related products are financial products based on taxpayers receiving a tax refund. 

Financial institutions offer a variety of financial products to taxpayers based on their refunds. 

Such products include a Refund Anticipation Loan (RAL), which is money borrowed by a 

taxpayer from a lender based on the taxpayer’s anticipated income tax refund, and a Refund 

Anticipation Check (RAC), which directs the refund to a financial institution which disburses 

fees and the balance to the taxpayer. The tax refund-related products continually evolve, and 

new products appear, such as pre-refund advance products. These pre-refund advance products generally are free to the taxpayer (i.e., without interest or fees) and should not be 
39

considered as RALs. The IRS isn’t involved in or responsible for RALs, RACs or other financial products. This is considered a business contract between the Provider and the taxpayer. 

Providers that assist taxpayers in applying for a tax refund-related financial product should:

• Ensure taxpayers understand that by agreeing to a refund-related financial product they 

won’t receive their refund from the IRS as the IRS will send their refund to the financial 

institution.

• Inform taxpayers that RALs are interest bearing loans and not a quicker way of receiving 

their refunds from the IRS.

• Inform taxpayers that if the financial institution does not receive a direct deposit within 

the expected time frame for whatever reason, the taxpayers may be liable to the lender 

for additional interest and other fees, as applicable for the RAL or other tax refund-related 

product (see explanation below).

• Inform taxpayers of all fees and other known deductions to be paid from their refund and 

the remaining amount the taxpayers will receive.

• Secure the taxpayer’s written consent as specified in Treas. Reg. § 301.7216-3(a) to 

disclose tax information to the lending financial institution in connection with an application for a refund-related financial product.

• Ensure that the tax return preparer isn’t a related taxpayer (within the meaning of Internal 

Revenue Code §267 or §707A) to the financial institution or other lender that makes a 

RAL agreement.

There are no guarantees that the Department of the Treasury deposits refunds within a specified time or in their entirety. For example, it may delay a refund due to processing problems or, 

it may offset some or all of the refund. The Department of the Treasury isn’t liable for any loss 

suffered by taxpayers, Providers or financial institutions resulting from reduced refunds or not 

honored direct deposits, causing Treasury to issue refunds by check.

Software Developers/Transmitters should note that the IRS has changed the designations and 

definitions of financial products to include:

1. “No Financial Product”

2. “Pre-Refund Advance Product – Taxpayer Charged an Advance Fee (RAL)”

3. “Post-Refund Financial Product (Refund Transfer – RAC)”

4. “Pre-Refund Advance Product – Taxpayer Not Charged an Advance Fee”

5. “Other/New Product”

6. “Text Field to Explain Other/New Product”
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Advertising Standards

The advertising standards in Publication 3112, IRS e-file Application and Participation, and 

Federal, state, and local consumer protection laws apply to Providers of individual income tax 

returns in several ways.

Providers must not use improper or misleading advertising in relation to IRS e-file, including the 

periods for refunds and tax refund-related products including RALs. Any claims by Providers 

concerning faster refunds by electronic filing must be consistent with the language in official 

IRS publications. If Providers advertise the availability of a RAL or other tax refund-related 

product, the Provider and financial institution must clearly refer to or describe the funds as 

a loan or other financial product, not as a refund. The advertisement of a RAL or other tax 

refund-related product must be easy to identify and in readable print. That is, it must make 

clear in the advertising that the taxpayer is borrowing against the expected refund or receiving 

another tax refund-related product and isn’t obtaining the refund itself.

A Provider must not advertise that individual income tax returns may be electronically filed 

prior to the Provider’s receipt of Forms W-2, W-2G and 1099-R, as the Provider is generally 

prohibited from electronically filing returns prior to receipt of Forms W-2, W-2G, and 1099-R. 

Advertisements must not imply that the Provider does not need Forms W-2, W-2G and 1099-R, 

or that it can use pay stubs or other documentation of earnings to e-file individual income tax 

returns.

In using the direct deposit name and logo in advertisement, the Provider must use the name 

“Direct Deposit” with initial capital letters or all capital letters, use the logo/graphic for direct 

deposit whenever feasible and may change the color or size of the direct deposit logo/graphic 

when it uses it in advertisements.

Disclosure of Tax Return Information

Under Treas. Reg. §301.7216-2d(1), disclosure of tax return information among Providers 

for the purpose of preparing a tax return is permissible without the taxpayer’s consent. For 

example, an ERO may pass on tax return information to an Intermediate Service Provider and/

or a Transmitter for the purpose of having an electronic return formatted and transmitted to the 

IRS. However, if the tax return information is disclosed or used in any other way without the 

taxpayer’s consent, an Intermediate Service Provider and/or a Transmitter may be subject to 

the penalties described in I.R.C. §7216 and/or the civil penalties in I.R.C. §6713 for unauthorized disclosure or use of tax return information.

Penalty Information for Authorized IRS e-file Providers

Preparer penalties may be asserted against an individual or firm meeting the definition of a 

tax return preparer under I.R.C. §7701(a)(36) and Treas. Reg. §301.7701-15. A person that 

prepares for compensation, or who employs one or more persons to prepare for compensation, all or a substantial portion of any tax return may be subject to preparer penalties. Preparer 

penalties that may be asserted under appropriate circumstances include, but are not limited to, 

those set forth in I.R.C. 6694, 6695, 6701 and 6713.

Under §301.7701-15(c), Providers are not tax return preparers for the purpose of assessing 

most preparer penalties as long as their services are limited to “typing, reproduction or other 

mechanical assistance in the preparation of a return or claim for refund.” If an ERO, Interme-
41

diate Service Provider, Transmitter or the product of a Software Developer alters the return 

information in a non-substantive way, this alteration is considered to come under the “mechanical assistance” exception described in §301.7701-15(c). A non-substantive change is a 

correction or change limited to a transposition error, misplaced entry, spelling error or arithmetic correction.

If an ERO, Intermediate Service Provider, Transmitter or the product of a Software Developer 

alters the return in a way that does not come under the “mechanical assistance” exception, the 

IRS may hold the Provider liable for preparer penalties. See Treas. Reg.§301.7701-15(c); Rev. 

Rul. 85-189, 1985-2 C.B. 341 (which describes a situation where the Software Developer was 

determined to be a tax return preparer and subject to certain preparer penalties).

A penalty may be imposed, per I.R.C. §6695(f), on a tax return preparer who endorses or negotiates a refund check issued to any taxpayer other than the tax return preparer. The prohibition 

on tax return preparers negotiating a refund check (including an electronic version of a check) 

is limited to a refund check for returns they prepared.

A tax return preparer that is also a financial institution, but has not made a loan to the taxpayer 

based on the taxpayer’s expected refund, may

• cash a refund check and remit all the cash to the taxpayer,

• accept a refund check for deposit in full to a taxpayer’s account provided the bank does 

not initially endorse or negotiate the check or

• endorse a refund check for deposit in full to a taxpayer’s account pursuant to a written 

authorization of the taxpayer.

A preparer bank may also subsequently endorse or negotiate a refund check as part of the 

check-clearing process through the financial system after initial endorsement. Under Treas. 

Reg. 1.6695-1(f), a tax return preparer, however, may affix the taxpayer’s name to a refund 

check for the purpose of depositing the check into the account in the name of the taxpayer or 

in joint names of the taxpayer and one or more persons (excluding the tax return preparer) if 

authorized by the taxpayer or the taxpayer’s recognized representative. The IRS may penalize 

any tax return preparer that violates this provision.

In addition to the above-specified provisions, the IRS reserves the right to assert all appropriate 

preparer and non-preparer penalties against a Provider as warranted
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Notice – Paperwork Reduction Act

The collections of information contained in this publication have been reviewed and approved 

by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 

U.S.C. 3507) under control number 1545-1708.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid control number. It must 

maintain books or records relating to a collection of information if their contents may become 

material in the administration of any internal revenue law. Tax returns and tax return information 

are confidential, as required by 26 U.S.C. § 6103.

The collections of information in this publication are in chapters 3, 4 and 5. This information 

is required to implement IRS e-file and to enable taxpayers to file their individual income tax 

returns electronically. The IRS uses this information to ensure that taxpayers receive accurate and essential information regarding the filing of their electronic returns and to identify the 

persons involved in the filing of electronic returns.

The collections of information are required to retain the benefit of participating in IRS e-file. The 

likely respondents are business or other for-profit institutions.

The estimated total annual reporting and recordkeeping burden is 6,023,762 hours.
43

IRS e-file Glossary

Acceptance Letter – Correspondence that includes identification numbers that are issued 

by the IRS to applicants confirming they may participate in IRS e-file as Authorized IRS e-file

Providers (Providers).

Acknowledgment (ACK) – A report generated by the IRS to a Transmitter that shows receipt 

of all transmissions. An ACK Report shows the returns in each transmission that are accepted 

or rejected for specific reasons.

Acceptance or Assurance Testing System (ATS) – Required testing for Software Developers 

that participate in IRS e-file to assess their software and transmission capability with the IRS, 

prior to live processing.

Administrative Review Process – The process by which a denied applicant or sanctioned 

Authorized IRS e-file Provider may appeal the IRS’s denial or sanction.

Adoption Taxpayer Identification Number (ATIN) – A tax processing number issued by the 

IRS as a temporary taxpayer identification number for a child in the domestic adoption process 

who isn’t yet eligible for a Social Security Number (SSN). An ATIN isn’t a permanent identification number and is only intended for temporary use. To obtain an ATIN, complete IRS Form 

W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions.

Authorized IRS e-file Provider (Provider) – A firm accepted to participate in IRS e-file.

Automated Clearing House (ACH) – A system that administers electronic funds transfers 

(EFTs) among participating financial institutions. An example of such a transfer is Direct Deposit 

of a tax refund from IRS into a taxpayer’s account at a financial institution.

Bureau of the Fiscal Service – The agency of the Department of the Treasury through which 

payments to and from the government, such as Direct Deposits of refunds, are processed.

Business Rules (BR) – Error codes included on an Acknowledgment (Ack) for returns that the 

IRS rejected. Explanations are distributed through the SOR and e-Services mailboxes prior to 

the filing season.

Communications Testing – Required test for all Transmitters using accepted IRS e-file software to assess their transmission capability with the IRS prior to live processing.

Denied Applicant – An applicant that the IRS does not accept to participate in IRS e-file. An 

applicant that the IRS denies from participation in IRS e-file has the right to an administrative 

review.

Depositor Account Number (DAN) – The financial institution account to which a Direct 

Deposit refund is to be routed.

Device ID – The Device ID is a 40-digit alphanumeric value that is case sensitive with no separators and run through hash algorithm SHA-1 that should include unique information such as 

the hardware serial number and UUID together.

Digital Signature – An electronic signature based upon cryptographic methods of originator 

authentication, computed by using a set of rules and a set of parameters such that the identity of the signer and the integrity of the data can be verified. The digital signature must be 
44

consistent with Federal Information Processing Standards for digital signatures adopted by the 

National Institute for Standards and Technology and includes use of the digital signature algorithm, the RSA digital signature, and the elliptic curve digital signature algorithm to verify and 

validate digital signatures.

Direct Deposit – An electronic transfer of a refund into a taxpayer’s financial institution 

account.

Direct Filer – see “Transmitter.”

Drop or Dropped – An EFIN that is no longer valid due to inactivity or other administrative 

action.

Due Diligence – Due Diligence, when used in context with claiming the head of household 

filing status or certain credits including the Earned Income Tax Credit (EITC), refers to requirements that income tax return preparers must follow when determining eligibility to file a return 

or claim for refund as head of household and when determining eligibility for, and the amount 

of, certain credits including the EITC.

Earned Income Tax Credit (EITC) – The Earned Income Tax Credit is a refundable individual 

income tax credit for certain persons who work.

Electronic Federal Tax Payment System (EFTPS) – A free service from the U.S. Treasury through which federal taxes may be paid. The taxpayer can pay taxes via the Internet, 

by phone or through a service provider. After authorization, EFTPS electronically transfers 

payments from the authorized bank account to the Treasury’s general account.

Electronic Filing Identification Number (EFIN) – An identification number assigned by the 

IRS to accepted applicants for participation in IRS e-file.

Electronic Funds Transfer (EFT) – The process through which Department of the Treasury 

transmits direct deposit refunds from the government to the taxpayer’s account at a financial 

institution.

Electronic Funds Withdrawal (EFW) – A payment method that allows the taxpayer to authorize the U.S. Treasury to electronically withdraw funds from their checking or savings account.

Electronic Postmark – The Electronic Postmark is the date and time the Transmitter first 

receives the electronic return on its host computer in the Transmitter’s time zone. The taxpayer 

adjusts the time to their time zone to determine timeliness.

Electronic Record – Any combination of text, graphics, data, audio, pictorial or other information representation in digital form that is created, modified, maintained, archived, retrieved or 

distributed by a computer system.

Electronic Return Originator (ERO) – An Authorized IRS e-file Provider that originates the 

electronic submission of returns to the IRS.

Electronic Signature – A method of signing an electronic message or document that identifies 

and authenticates a particular person as the source of the electronic message and indicates 

such person’s approval of the information contained in the electronic message.

Electronic Signature Pad – An electronic device with a touch sensitive LCD screen which 

allows users to acquire and register a signature or any other physical signature capture device 

that captures and converts a signature into an electronic format.
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Electronic Tax Administration Advisory Committee (ETAAC) – An advisory group established by the IRS Restructuring and Reform Act of 1998 to provide an organized public forum 

for discussion of ETAAC issues in support of the overriding goal that paperless filing should be 

the preferred and most convenient method of filing tax and information returns.

Electronic Transmitter Identification Number (ETIN) – An identification number assigned by 

the IRS to a participant in IRS e-file that performs the activity of transmission and/or software 

development.

Element Name (Tag Name) – a defined field name which the Software must use to identify the 

data it is providing.

Federal/State e-file – The Federal/State e-file choice allows taxpayers to file federal and state 

income tax returns electronically in a single transmission to the IRS.

Financial Institution – For direct deposit of tax refunds, the IRS defines a financial institution 

as a state or national bank, savings and loan association, mutual savings bank or credit union. 

Only certain financial institutions and certain kinds of accounts are eligible to receive direct 

deposits of tax refunds.

Fraudulent Return – A “fraudulent return” includes a return in which the individual is 

attempting to file using someone’s name or SSN on the return or where the taxpayer is 

presenting documents or information that have no basis in fact.

Indirect Filer – An Authorized IRS e-file Provider who submits returns to IRS via the services of 

a Transmitter.

Individual Taxpayer Identification Number (ITIN) – A tax processing number that became 

available on July 1, 1996, for certain nonresident and resident aliens, their spouses and dependents. The ITIN is only available from IRS for those individuals who cannot obtain a Social 

Security Number (SSN). To obtain an ITIN, complete IRS Form W-7, Application for IRS Individual Taxpayer Identification Number.

Intermediate Service Provider – An Authorized IRS e-file Provider that receives electronic 

tax return information from an ERO or a taxpayer who files electronically using a personal 

computer and commercial tax preparation software, that processes the electronic tax return 

information and either forwards the information to a Transmitter or sends the information back 

to the ERO or taxpayer.

Internet Protocol (IP) Information – The IP address, date, time and time zone of the origination of a tax return filed through Online Filing via the Internet. IRS requires Transmitters that 

provide Online Services via the Internet to capture the Internet Protocol Information of Online 

returns. By capturing this information, it transmits the location of the return’s originator with the 

individual’s electronic return. See Publication 4164 for additional Information.

IRS e-file – The brand name of the electronic filing method established by the IRS.

IRS Master File – A centralized IRS database containing taxpayers’ return information.

Levels of Infractions – Categories of infractions of IRS e-file rules based on the seriousness 

of the infraction with specified sanctions associated with each level. Level One is the least 

serious, Level Two is moderately serious and Level Three is the most serious.
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Memorandum of Agreement (MOA) & Memorandum of Understanding (MOU) – The implementing document containing the set of rules established by the IRS for participating in IRS 

pilots/programs.

Modernized e-file (MeF) – The Modernized e-file (MeF) system is an Internet-based electronic 

filing platform. It is a transaction-based system that allows tax return originators to transmit 

returns electronically to the IRS in real-time. MeF improves the response time required to issue 

an acknowledgment file to the transmitter that shows whether the return was accepted or 

rejected for downstream processing.

Monitoring – Activities the IRS performs to ensure that Authorized IRS e-file Providers are 

following the IRS e-file requirements. Monitoring may include, but isn’t limited to, reviewing 

IRS e-file submissions, investigating complaints, scrutinizing advertising material, checking 

signature form submissions and/or recordkeeping, examining records, observing office procedures and conducting periodic suitability checks. IRS personnel perform these activities at IRS 

offices and at the offices of Providers.

Multi-factor – The means used to confirm the identity of a user, process, or device. Multifactor authentication requires the use of at least two of the these authentication factors: a 

knowledge factor (for example, a password); a possession factor (for example, a token); and an 

inherence factor (for example, biometric).

Name Control – The first four significant letters of a taxpayer’s last name that the IRS uses in 

connection with the taxpayer SSN to identify the taxpayer, spouse and dependents.

Non-substantive Change – A correction or change limited to a transposition error, misplaced 

entry, spelling error or arithmetic correction which does not require new signatures or authorizations to be transmitted or retransmitted.

Online Provider – An Online Provider allows taxpayers to self-prepare returns by entering 

return data directly on commercially available software, software downloaded from an Internet 

site and prepared off-line, or through an online Internet site. Online Provider is a secondary 

role; therefore, they must also choose another Provider Option such as Software Developer, 

Transmitter or Intermediate Service Provider.

Although an ERO may also use a website to obtain information from taxpayers to originate the 

electronic submission of returns, the ERO isn’t an Online Provider.

Originate or Origination – Origination of an electronic tax return submission occurs when an 

ERO either:

1. directly transmits electronic returns to the IRS,

2. sends electronic returns to a Transmitter or

3. provides tax return data to an Intermediate Service Provider.

Pilot Programs – An approach that the IRS uses to improve and simplify IRS e-file. The IRS 

usually conducts pilot programs within a limited geographic area or within a limited taxpayer 

or practitioner community. The IRS embodies rules for participating in pilot programs in an 

implementing document typically referred to as a “Memorandum of Understanding” (MOU) 

or “Memorandum of Agreement” (MOA). Pilot participants must agree to the provisions of the 

implementing document to participate in the pilot program.
47

Potentially Abusive Return – A “potentially abusive return” is a return

1. that isn’t a fraudulent return;

2. that the taxpayer must file; and

3. that may have inaccurate information that may lead to an understatement of a liability or an 

overstatement of a credit resulting in production of a refund to which the taxpayer may not 

be entitled.

Note: The decision not to provide a RAL or other bank product does not necessarily make 

it an abusive return.

Practitioner PIN Method – An electronic signature choice for taxpayers who use an ERO to 

e-file. This method requires the taxpayer to create a five-digit Personal Identification Number 

(PIN) to use as the signature on the e-filed return.

Note: Requires Form 8879 to be completed.

Preparer Tax Identification Number (PTIN) – An identification number issued by the IRS that 

paid tax return preparers must use on returns they prepared. A PTIN meets the requirements 

under section 6109(a)(4) of furnishing a paid tax return preparer’s identifying number on returns 

that he or she prepares. Obtain a PTIN at PTIN Requirements for Tax Return Preparers.

Principals – Generally the Principal for a business or organization includes sole proprietor; 

each partner who has a 5 percent or more interest in the partnership; the President, Vice-President, Secretary, and Treasurer of the corporation, or; an individual authorized to act for the 

entity in legal and/or tax matters for an entity that isn’t a sole proprietorship, partnership, or 

corporation.

Refund Anticipation Check (RAC) – Financial product where the tax refund is issued to a 

limited/special-purpose deposit account at a financial institution that disburses fees associated 

with tax return preparation and/or other services, and the balance to the taxpayer.

Refund Anticipation Loan (RAL) – A Refund Anticipation Loan is money borrowed by a 

taxpayer that the lender bases on a taxpayer’s expected income tax refund. The IRS isn’t 

involved in RALs. A RAL is a contract between the taxpayer and the lender. A lender may 

market a RAL under various commercial or financial product names.

Refund Cycle – The expected date that the IRS would issue a refund either by direct deposit 

or by mail to a taxpayer. However, neither the IRS nor the Bureau of Fiscal Service guarantees the specific date that the Department of the Treasury mails a refund or deposits it into a 

taxpayer’s financial institution account.

Responsible Official – An individual with authority over the IRS e-file operation of the office(s) 

of an Authorized IRS e-file Provider, who is the first point of contact with the IRS and has 

authority to sign revised IRS e-file applications. A Responsible Official ensures that the Authorized IRS e-file Provider adheres to the provisions of the Revenue Procedure and the publications and notices governing IRS e-file.

Revenue Protection – A series of compliance programs designed to ensure that the revenue 

the government collects and/or disburses in the form of refunds is accurate and timely, and 

that it issues disbursement of revenue only to entitled taxpayers.
48

Routing Transit Number (RTN) – A number assigned by the Federal Reserve to each financial 

institution.

RSA – An algorithm developed by Rivest, Shamir and Adleman.

Sanction – An action taken by the IRS to reprimand, suspend or expel from participation in 

IRS e-file, an Authorized IRS e-file Provider based on the level of infraction. See also Level of 

Infraction.

Self-Select PIN Method – An electronic signature choice for taxpayers who e-file using either 

a personal computer or an ERO. This method requires the taxpayer to create a five-digit 

Personal Identification Number (PIN) to use as the signature on the e-file return and to submit 

authentication information to the IRS with the e-file return.

Software Developer – An Authorized IRS e-file Provider that develops software for the 

purposes of (a) formatting the electronic portions of returns according to Publication 4164 and/

or (b) transmitting the electronic portion of returns directly to the IRS. A Software Developer 

may also sell its software.

Stockpiling – Stockpiling is waiting more than three calendar days to submit returns to the 

IRS after the Provider has all necessary information for origination of the electronic return or 

collecting e-file returns prior to official acceptance for participation in IRS e-file. The IRS does 

not consider collecting tax returns for IRS e-file prior to the startup of IRS e-file (the date on 

which the IRS begins acceptance of e-filed returns) as stockpiling. However, Providers must tell 

taxpayers that it can’t transmit the returns to the IRS prior to the startup date.

Stylus Device – A device used on a display screen to input commands or handwritten text.

Submission ID – A globally unique 20-digit number assigned to a Provider to electronically 

file tax returns with the following format: (EFIN + ccyyddd + 7-digit alphanumeric sequence 

number).

Suitability – A check conducted on all firms and the Principals and Responsible Officials of 

firms when an e-file application is initially processed, and on a regular basis thereafter. The suitability check consists of a tax compliance check and includes a background check conducted 

by the IRS to ensure the firm and individuals are eligible for participation in IRS e-file.

Suspension – A sanction revoking an Authorized IRS e-file Provider’s privilege to participate in 

IRS e-file.

Transmitter – An Authorized IRS e-file Provider that transmits the electronic part of a return 

directly to the IRS.

Treasury Offset Program (TOP) – A centralized offset program administered by the Bureau of 

the Fiscal Service to collect delinquent debts owed to federal agencies and states (including 

past-due child support).

Warning – Written notice given by the IRS to an Authorized IRS e-file Provider requesting 

specific corrective action be taken to avoid future sanctioning.

Written Reprimand – A sanction for a level one infraction of the IRS e-file rules. It reprimands 

a Provider for an infraction but does not restrict or revoke participation in IRS e-file.
Publication 1345 (Rev. 11-2023) Catalog Number 64382J Department of the Treasury Internal Revenue Service www.irs.gov