How does a firm obtain an Electronic Filing Identification Number (EFIN)?

By submitting an IRS e-file application through e-Services/Tax Pro, passing a suitability check, with fingerprints for principals and responsible officials unless they are attorneys, CPAs or EAs who verify credentials

By requesting it from the software vendor

Which specified tax return preparers must e-file individual income tax returns?

Those who reasonably expect to file 11 or more individual, estate or trust income tax returns during the calendar year

Those who reasonably expect to file 100 or more individual, estate or trust income tax returns during the calendar year

Every preparer, regardless of volume

A client of a preparer subject to the e-file mandate insists on paper filing. What must the preparer do?

Obtain a signed statement of the client's choice and attach Form 8948 to the paper return, marking the taxpayer-choice box

Mail the return without any form, since a client's written choice to paper file removes the return from the e-file mandate entirely

What is Form 8453 used for with an e-filed individual return?

Transmitting certain required paper documents that cannot be attached electronically

Authorizing the ERO to enter or generate the taxpayer's PIN to sign the electronic return

An e-filed return is rejected. What must the ERO do?

Take reasonable steps to notify the taxpayer within 24 hours, including the reject code, and correct and retransmit or advise the taxpayer to file on paper

Nothing; the IRS notifies the taxpayer

Mail a paper copy without telling the taxpayer

Wait until the next filing season

A timely e-filed return is rejected on the due date. Within what period can a corrected return be retransmitted and still be considered timely?

Within 5 calendar days, or filed on paper within 10 calendar days with an explanation and the reject documentation

It is late in all cases, because the IRS treats the date of the corrected transmission as the filing date, with no grace period at all

Which is a Level 3 infraction in the IRS e-file program, which may bring suspension or expulsion?

An infraction that has a significant adverse impact on the quality of returns or on the program, such as fraud or identity theft

E-file (EFIN, ERO, Form 8879) and preparer penalties

Preparers who expect to file 11 or more individual returns a year must e-file through an EFIN-holding ERO, get the client's signature on Form 8879 (kept 3 years), notify clients of rejects within 24 hours, and face per-failure penalties under IRC 6694 and 6695 for unreasonable positions, missing signatures, PTINs, copies and due diligence.

Updated 2026-09-23 · 7 sources · By the EnrolledAgentKit team

Exam part

Part 3

Representation, Practices and Procedures

IRS domain

Filing Process

14 of 85 scored Qs

Tax year tested

2025

2026-27 SEE

Practice questions

10 free below

The rules the exam tests

Figures for tax year 2025, the year the 2026-27 SEE tests. Verify against the cited primary source.
Rule	What it says (2025)	Source
E-file mandate	11+ covered returns per year; Form 8948 when paper-filed; Form 8944 hardship waiver	IRC 6011(e)(3)
EFIN	IRS e-file application, suitability check, fingerprints unless EA/CPA/attorney	Pub 3112
Form 8879	Taxpayer signature authorization; keep 3 years	Pub 1345
Rejects	Notify within 24 hours; perfection: 5 days e-file / 10 days paper	Pub 1345
Sanctions	Level 1 reprimand; Level 2 suspension/restriction; Level 3 suspension or expulsion	Pub 3112
6694(a)	Greater of $1,000 or 50% of income derived	IRC 6694
6694(b)	Greater of $5,000 or 75% of income derived	IRC 6694
6695(a)-(e) (2026 filings)	$65 per failure, max $32,500	Rev. Proc. 2024-40
6695(f) check / (g) due diligence	$650 per check / per failure	Rev. Proc. 2024-40
Records	Copy or list of returns 3 years; employee list 3 years	IRC 6107, 6060
Data security	Written information security plan (FTC Safeguards Rule)	IRS Pub 4557

Worked example

Facts: A preparer files 300 returns. One client insists on paper; another return claims EITC and HOH but the preparer skipped Form 8867.

Consequences: Paper return: attach Form 8948 (taxpayer choice) and keep the client’s signed statement. Missing due diligence: $650 for EITC + $650 for HOH = $1,300 under IRC 6695(g) (plus CTC/AOTC if claimed). Form 8879s for all e-filed returns are kept 3 years.

Exam traps

The threshold is 11 or more returns, not 10.
Form 8879 is not sent to the IRS unless requested.
Due diligence penalties are per credit/status per return, with no annual cap.
Acceptance of an e-filed return is not approval of its contents.