The SECURE Tax Filing Act mandates a real-time IRS validation program for Electronic Filing Identification Numbers (EFINs) to ensure only authorized users can electronically file tax documents.
Catherine Cortez Masto
Senator
NV
The Strengthening EFIN Confirmation for User Reliability and Electronic (SECURE) Tax Filing Act mandates that the IRS implement a real-time validation program for Electronic Filing Identification Numbers (EFINs). This legislation requires tax preparation software to verify an EFIN’s status before any electronic filing can occur, ensuring that only authorized and active users can submit tax documents. By establishing these security checks, the bill aims to prevent fraud and enhance the overall integrity of the electronic tax filing system.
SECURE Tax Filing Act Mandates Real-Time Identity Checks for Tax Preparers by 2026
The SECURE Tax Filing Act is essentially a digital background check for the people who handle your sensitive financial data. It requires the IRS to build a real-time validation system for Electronic Filing Identification Numbers (EFINs)—the unique codes that professional tax preparers and software companies must have to hit 'send' on your tax return. Under this bill, every tax return filed electronically must pass through a verification gate; if the preparer’s ID isn't active or authorized, the filing software is legally required to block the submission. This is a direct move to stop identity thieves and 'ghost' preparers from using revoked or stolen credentials to file fraudulent returns in your name.
The Digital Bouncer
Think of this new system as a digital bouncer standing at the door of the IRS. Within 24 months of the bill becoming law, the Treasury Department must launch a program that checks EFINs in real-time. For a local CPA or a high-volume tax storefront, this means their software will automatically ping the IRS to confirm they are still in good standing before your 1040 is accepted. According to Section 2, the system must be able to handle high-volume requests and immediately flag IDs that have been suspended, revoked, or compromised. For you, this means an extra layer of protection against scammers who buy old preparer IDs on the dark web to funnel tax refunds into their own accounts.
Tech Specs and Tax Season Stress
While the goal is security, the bill acknowledges that a system crash during the April rush would be a nightmare for everyone from freelance graphic designers to construction firms. To prevent this, the IRS is required to submit a detailed implementation plan within 180 days, outlining how they will handle peak volumes and what the 'contingency procedures' look like if the system goes down. If you’re a tax pro, you’ll be interested in the post-implementation report due two years after launch, which must specifically track 'material service disruptions.' This ensures that if the system lags and delays your clients' refunds, the IRS has to answer for it with hard data on system availability and response times.
Closing the Loophole on 'Ghost' Filing
Currently, there can be a gap between when an EFIN is flagged for fraud and when software companies actually stop it from being used. This bill closes that gap by shifting the burden onto the software itself. If the validation program says 'no,' the software must block the filing. This creates a standardized safety net across the entire industry, whether you use a big-name online tax site or a local neighborhood preparer. By restricting access to this validation system only to authenticated users, the bill also prevents bad actors from 'fishing' for valid IDs to steal, keeping the keys to the tax system under much tighter lock and key.