Compliance glossary
Definition

EFIN Security Requirements

The IRS Electronic Filing Identification Number can be suspended or revoked for data security failures, taxpayer data breaches, or pattern-of-noncompliance.

What it means.

An Electronic Filing Identification Number (EFIN) lets a firm e-file tax returns. The IRS treats EFIN issuance as a privilege contingent on suitability, which includes data security. Failure to safeguard taxpayer data, failing to report a data theft, or repeated security incidents can result in EFIN suspension or revocation. The IRS publishes EFIN security requirements in Publication 3112 (IRS E-file Application and Participation) and supplements them through Publication 4557.

Why it matters for CPA firms.

Losing your EFIN means losing the ability to e-file. For most firms that is a business-ending event. The IRS expects firms to report taxpayer data theft within 24 hours via the IRS Stakeholder Liaison and to maintain a WISP. EFIN reviews can be triggered by client complaints, suspicious return patterns, or data breach reports. The EFIN and the WISP requirement are operationally linked.

Relevant regulations.

  • IRS Publication 3112
  • IRS Publication 4557
  • IRC Section 6695A

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