A Preparer Tax Identification Number, or PTIN, is required for anyone who prepares or helps prepare federal tax returns for compensation. It must be renewed each year and appears on the returns the preparer signs. An Electronic Filing Identification Number, or EFIN, is issued to firms accepted into the IRS e-file program as Authorized e-file Providers.
Both identifiers are valuable to criminals, because they can be used to file fraudulent returns that appear to come from a legitimate preparer. Firms should protect access to e-file accounts with strong authentication, monitor the number of returns filed under their EFIN, and report suspected misuse to the IRS promptly.