Congress Is Considering Real-Time EFIN Verification: What Tax Professionals Should Know About H.R. 10334

2 days ago

5 min read

By Dr. Gwennetta Wright | Xpert Business Solution

Cybersecurity continues to become a bigger part of operating a professional tax business.

Tax professionals already have a responsibility to protect taxpayer information, tax software credentials, and other sensitive information within their firms. Now, Congress is considering legislation specifically focused on strengthening the security surrounding Electronic Filing Identification Numbers, better known as EFINs.

On September 10, 2026, H.R. 10334, the EFIN Verification Act of 2026, was introduced in the U.S. House of Representatives.

The proposal would establish a system for validating EFINs before they can be used to electronically file federal tax returns and certain other documents.

For tax professionals, the important thing right now is understanding what the bill proposes, what it could mean for electronic filing in the future, and what it reminds us about protecting our businesses today.

What Is an EFIN?

An Electronic Filing Identification Number (EFIN) is the unique identifier issued by the IRS that authorizes a person or entity to electronically file returns or other documents on behalf of taxpayers.

For an authorized IRS e-file provider, the EFIN is an important part of the firm's electronic filing operation.

That also means it is something tax business owners should protect carefully.

H.R. 10334 focuses specifically on strengthening the process used to determine whether an EFIN being used for electronic filing is actually active and authorized.

What Would the EFIN Verification Act Do?

The legislation would require the Treasury Department to develop an EFIN validation program.

Under the proposal, an EFIN could not be used to electronically file a covered return or document unless it had been validated as active and authorized.

The requirement would also extend directly to electronic filing software.

Software that enables electronic filing would be required to validate the EFIN before allowing a return or other covered document to be electronically filed. If the EFIN wasn't successfully validated, the software could not permit the electronic filing.

That is an important distinction.

This isn't simply a proposal for tax professionals to periodically confirm their EFIN status themselves.

The verification would become part of the electronic filing process.

The Bill Calls for Real-Time Verification

One of the most significant provisions in H.R. 10334 is the creation of a real-time EFIN validation system.

According to the bill, the system would provide immediate confirmation of an EFIN's validity when a validation request is made.

The system would be designed to determine whether an EFIN is:

Active and authorized
Suspended
Revoked
Identified as compromised
Otherwise ineligible

The proposed system would also need to support secure, automated and high-volume validation requests, including requests made through large tax preparation software systems.

Verification Wouldn't Necessarily Be a One-Time Event

Another provision tax professionals should notice is that validation could continue beyond the first use of the EFIN.

The bill directs Treasury to validate an EFIN before its initial use for electronic filing.

After that, validation could occur again at intervals or when certain events occur, as determined appropriate by Treasury to protect the continued validity and integrity of the EFIN.

That means the proposed system is designed to do more than simply determine whether an EFIN was valid at one point in time.

It is intended to help identify changes in an EFIN's status as well.

Who Could Perform EFIN Verification?

The bill also introduces the term “specified validator.”

This could include entities such as software providers, state tax agencies and financial institutions if Treasury determines that giving the entity access to the validation program is consistent with the purposes of the legislation.

The proposal would also amend the Internal Revenue Code to allow Treasury to disclose information necessary for these authorized validators to determine whether an EFIN is active and authorized.

Why Does This Matter to Tax Business Owners?

H.R. 10334 is proposed legislation, but the issue behind the legislation matters today.

Your EFIN is connected to your firm's ability to electronically file federal tax returns.

Think about your own office.

Who has access to your tax software?

Who knows or has access to your EFIN information?

When an employee or preparer leaves your company, how quickly is their access removed?

Are you monitoring who has access to systems containing taxpayer information?

Are passwords and authentication credentials being shared within the office?

As tax businesses grow and add employees, preparers, virtual assistants and other team members, access management becomes increasingly important.

Cybersecurity can't simply be something the owner thinks about after a problem occurs.

It needs to be part of the firm's operating procedures.

H.R. 10334 Is Not Law

This distinction is extremely important.

As of the bill text provided, the EFIN Verification Act of 2026 has been introduced, but it has not become law.

H.R. 10334 was introduced on September 10, 2026, by Representatives Ron Estes and Jimmy Panetta and referred to the House Committee on Ways and Means.

Therefore, tax professionals should not present these proposed requirements to their teams or clients as current IRS requirements created by this legislation.

The Changes Wouldn't Begin Immediately Even If Enacted

The bill also includes delayed effective dates.

Most of the proposed requirements would apply to returns and other covered documents filed for taxable years beginning after the date that is two years after enactment.

The bill similarly provides that its amendment allowing specified EFIN validators to receive necessary information would apply to disclosures made after the date that is two years after enactment.

So even if H.R. 10334 eventually becomes law, the legislation as currently written does not contemplate an immediate change to the electronic filing process.

What Should Tax Professionals Do Now?

You don't need to change your electronic filing procedures today because H.R. 10334 was introduced.

But you can use this development as an opportunity to review something every tax business should already take seriously:

EFIN and system security.

Review who has access to your tax software and sensitive credentials. Remove unnecessary access. Make sure former employees don't retain access to firm systems. Review your authentication procedures and incorporate EFIN protection into your overall cybersecurity and information-security practices.

And continue monitoring H.R. 10334 as it moves—or does not move—through the legislative process.

Tax professionals don't need to wait until a new rule takes effect to begin understanding it.

The more we understand what's happening within the tax industry before filing season, the better prepared we can be to adjust our systems, educate our teams and protect our businesses.

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