IRS gets real-time tax preparer credential check to block fraud
H.R. 10334 — EFIN Verification Act of 2026 · Filed by Ron Estes (R-KS) · 1 cosponsor · Introduced Sep 10, 2026 · Referred to committee
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What it does
This bill requires the IRS to create a real-time validation system for EFINs (electronic filing identification numbers)—the credentials tax preparers and software use to file returns electronically on behalf of taxpayers. Before any return can be filed, the EFIN must be confirmed as active and authorized through the IRS system or through approved third-party validators (software companies, state agencies, financial institutions). The bill also allows the IRS to share EFIN validation information with these third-party validators under strict confidentiality rules.
Why we flagged it
The bill is a straightforward procedural and security enhancement to the IRS's electronic filing infrastructure, designed to prevent fraud and identity theft by validating the credentials of tax preparers before they can file returns.
What the text implies
- Third-party validators (software providers, state agencies, financial institutions) gain access to IRS EFIN validation data and systems, creating new data-sharing relationships and potential competitive advantages for large tax software platforms.
- The 2-year implementation window for information disclosure (subsection d) and filing requirements (subsection e) may create a transition period where some preparers face compliance challenges, potentially favoring larger firms with compliance infrastructure.
The full analysis lists 3 implications of this text.
Who stands to gain
Large tax preparation software companies (Intuit, H&R Block, etc.) with existing validation infrastr; State tax agencies and financial institutions approved as validators