EFIN Suspension: Expulsion & Suspension From IRS Efile

The IRS strictly regulates tax professionals and firms (referred to as “Providers”) and maintains wide discretion in suspending or expelling Providers from the IRS e-file program. When a Provider is suspended or expelled, any tax returns that are electronically filed under their Electronic Filing Identification Number (“EFIN”) are automatically rejected by the IRS. Over the years, I have represented Providers who suddenly and unexpectedly found themselves fighting to keep their tax preparation businesses operating after the IRS proposed suspending or expelling them from participating in the e-file program. Many of these Providers had been operating for several years and maintained an excellent history of compliance with IRS e-file rules. Providers must be aware of e-file rules and the severe sanctions that can result if these rules are violated.

Results

We are committed to delivering results for our clients. We invite you to review a sample of IRS Due Diligence cases that we have successfully resolved for our clients. All cases are different and the summaries below should not be interpreted as a prediction or guarantee of success or specific results.

Proposed Suspension of CPA Firm's EFIN Reversed

The IRS proposed a 2-year suspension from the IRS e-file program against a CPA firm. DeWitt Law appealed the decision and the IRS Office of Appeals reversed the suspension.

Taxpayer Re-Instated to IRS E-File Program

The IRS expelled the Taxpayer from participating in the IRS e-file program. DeWitt Law filed an administrative appeal. A hearing was held and the Taxpayer was re-instated to the IRS e-file program.

Proposed Due Diligence Penalties Reversed

The IRS initiated an audit/examination under I.R.C. § 6695(g) for alleged failure to be diligent in determining eligibility for certain refundable credits, including the Earned Income Tax Credit. The IRS proposed assessing a six-figure penalty against the Taxpayer. DeWitt Law filed an appeal and a hearing was held. All penalties were reversed.

Expulsion from IRS E-File Reduced to Suspension

The IRS expelled the Taxpayer from participating in the IRS e-file program. DeWitt Law filed an administrative appeal. A hearing was held and a suspension was imposed instead.