Kamini Posted February 24, 2021 Report Share Posted February 24, 2021 Hi everyone! My boss recently fired an accountant. This accountant was with his firm for about 18 years, so a long time. But this accountant may not have his own EFIN because he worked for my boss for so long. Right now, his access to our tax software and any remote access to the computers have been revoked. Which means in order to prepare any taxes for any of his own clients, he would need his own software. My question is, since he may not have his own EFIN, is it possible for him to use my boss' EFIN without his awareness? I have my own side bookkeeping and tax business, and I see that under the EFIN portal for tax preparers, there's a log that shows all taxes submitted in the current year. Would this be the correct place to check (under my boss' EFIN) if returns are being filed secretly? If this is indeed happening, I suspect it's illegal and must be reported. Thank you! I'm very interested in hearing your thoughts. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted February 24, 2021 Report Share Posted February 24, 2021 As part of best practices, each of us should check our EFIN to verify that the number of returns IRS reports as e-filed matches our records. So I'm curious about a couple of things. You already have your own clients on the side, and it sounds like this person that was fired also had clients on the side, and both of you were/are using boss firm's software remotely to prepare returns under boss firm's EFIN? Is that what you are doing? Or do you have your own EFIN and using the firm's software? Also, why you are asking about this and not your boss? 1 Quote Link to comment Share on other sites More sharing options...
Kamini Posted February 25, 2021 Author Report Share Posted February 25, 2021 Hi Judy, At this time, I prepare taxes on behalf of my boss' business ONLY. I applied for my own EFIN, so that when I prepare taxes for my clients, I will use my own EFIN, firm name, tax software, etc. The fired accountant, he prepared taxes for his clients using my boss' EFIN, firm name, but his own PTIN (as far as I know). Currently, since I am taking a course on tax prep and getting myself certified, I have no tax prep clients, only bookkeeping clients. I'll probably start taxes for my own clients in 2022. I'm asking because my boss doesn't have the time or the internet savvy. And as for best practices, you're right! He should have been doing this already. He wouldn't have this concern if he were. So can the fired accountant use the EFIN without my boss' knowledge? It appears that he can. I don't know if he'll have to use any verification in the tax software. If he IS using it secretly, does that mean my boss will have to apply for a new EFIN? Does that mean it will take him 45 days? Thanks Judy! Quote Link to comment Share on other sites More sharing options...
jklcpa Posted February 27, 2021 Report Share Posted February 27, 2021 On 2/25/2021 at 8:03 AM, Kamini said: The fired accountant, he prepared taxes for his clients using my boss' EFIN, firm name, but his own PTIN (as far as I know). So can the fired accountant use the EFIN without my boss' knowledge? It appears that he can. I don't know if he'll have to use any verification in the tax software. If he IS using it secretly, does that mean my boss will have to apply for a new EFIN? Does that mean it will take him 45 days? Thanks Judy! Can he be using your boss's EFIN? Possibly, but your boss should check the number of returns filed under that EFIN to be sure before proceeding. I said possibly because unless the former employee is still accessing the firm's software, if he has purchased his own software as an ERO he would have to provide his own EFIN and PTIN to the software provider and enter that in the setup, and all of that would be transmitted with each e-filed return. Considering all of this, if your boss sees that more returns have been filed under the firm's EFIN than he knows the firm as prepared, then at that point he should contact the IRS. I think that the IRS would replace his EFIN without the 45-day wait. Below is a page from the IRS that may be useful: https://www.irs.gov/tax-professionals/how-to-maintain-monitor-and-protect-your-efin#:~:text=The firm must call the,to request a new EFIN. 1 Quote Link to comment Share on other sites More sharing options...
Kamini Posted February 27, 2021 Author Report Share Posted February 27, 2021 Hi Judy, thanks! I have to do a little more digging around, but I think we're in the clear. I would personally get a replacement EFIN just in case. I don't know how far the tax software would go as far as verifying that the EFIN you're using is actually yours and not 'borrowed'. I'll let you know what happens! Quote Link to comment Share on other sites More sharing options...
Kamini Posted March 6, 2021 Author Report Share Posted March 6, 2021 It looks like the other accountant is NOT using my boss' EFIN. Which is good! Because that would have been a problem. Thanks again! Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.