Certain tax preparation software programs do not necessitate an Electronic Filing Identification Number (EFIN) for usage. The EFIN is typically required by the IRS for entities transmitting tax returns electronically on behalf of others. This type of software is generally designed for individual taxpayers preparing their own returns or for preparers filing paper returns.
The advantage of using a software solution that does not demand an EFIN is simplified access for users who do not plan to file returns electronically for clients. Historically, obtaining an EFIN involved a registration process with the IRS, which could be cumbersome for individuals or small businesses focused primarily on paper filing or personal tax preparation. This offers a streamlined solution, bypassing the formal application procedure typically needed for those engaging in professional electronic tax preparation services.