Tax filers would need verified electronic filing numbers

Tax filing software would have to verify an electronic filing identification number before allowing a return or other document to be filed. The rule covers electronic filing of federal tax returns and other documents required under the Internal Revenue Code, unless the Treasury Secretary excludes a document. An EFIN could be used only after the Secretary or an approved validator confirms that it is active and authorized. The software could not allow filing when the EFIN had not been validated. This rule would apply to returns and other documents filed for taxable years beginning after the date that is two years after enactment.

The Treasury Secretary would develop a real-time system to validate electronic filing identification numbers. The system would serve authorized people and organizations that submit validation requests, including large tax-preparation software systems and possible approved validators such as state tax agencies or financial institutions. The system would confirm immediately whether a number is active and authorized, suspended, revoked, compromised, or ineligible. The Secretary would validate each number before its first electronic filing use and again at intervals or events the Secretary considers appropriate. Access would have to use a secure, standardized process. The program's filing-related requirements would apply to returns and other documents filed for taxable years beginning after the date that is two years after enactment.

The Treasury Secretary could share information from the EFIN validation program with approved validators so they can confirm an EFIN's status. Approved validators could include software providers, state tax agencies, financial institutions, and other entities the Secretary determines fit the program's purpose. Disclosures would be limited to information needed to validate whether an EFIN is active and authorized. Existing tax-information safeguards referenced in the bill would also cover these disclosures. These disclosure and safeguard amendments would apply to disclosures made after the date that is two years after enactment.