Frequently Raised Questions
What is an ERO?
An Electronic Return Originator is a business or non-profit organization that is authorized by the IRS to submit tax returns via computer.
What is a PTIN?
A Preparer Tax Identification Number is an unique number that identifies the paid preparer of a tax return.
What is IRS E-File and how is it related to EROs?
E-File is the IRS’ system of receiving tax returns electronically, i.e. via computer. In addition to the annually filed returns, the IRS accepts other types of returns electronically, such as quarterly payroll tax returns. One must be an ERO to e-file a return. Tax preparation web sites are EROs.
What is an Acceptance Agent?
Some people who are ineligible for Social Security numbers are nevertheless required to file reports with the IRS. To use in lieu of a Social Security number the IRS issues Individual Tax Identification Numbers (ITINs). Acceptance Agents facilitate the acquisition of ITINs from the IRS.
The presence of acceptance agents may indicate a large immigrant population. Some acceptance agents work for multinational law and accounting firms that assist individuals with transnational tax matters.
EROs may be acceptance agents as well.
What is the relationship between EROs and PTIN holders?
A person may hold either or both designations. Ostensibly anyone who prepares a tax return for profit must register with the IRS and obtain a PTIN. Not all PTIN holders are EROs. EROs are business entities, including sole proprietorships, whereas PTINs are associated with a person. An ERO may employ multiple PTIN holders.
The abbreviation ERO could be considered analogous to a tax preparation office while PTIN refers to an individual tax preparer.
What is the source of the data on this site?
All the data on this site is publicly available on the IRS’ web site. Some information, such as our franchise territory map, was derived from the public data. No internal company data appears on this site.
Are all tax preparation offices EROs? Are all CPAs EROs?
The vast majority of tax preparation businesses submit returns electronically. But it is possible that a technically disinclined preparer would choose not to participate in the E-File program.
Regarding CPAs, bear in mind that there are other accounting practice areas besides tax. A CPA who doesn’t do tax work may see little value in keeping up the ERO and PTIN designations. A CPA could be employed by an ERO, in which case, the CPA wouldn’t register as an ERO.