Tax Filing Key Terms

Acknowledgement: A message from the IRS or the state agency that a return has been accepted via electronic filing.

Adjusted Gross Income (AGI): Total gross income minus adjustments to income.

E-File: The process of submitting tax returns over the Internet, using tax preparation software that has been pre-approved by the relevant tax authority, such as the IRS.

Electronic Filing Identification Number (EFIN): An EFIN is a nine-digit number assigned by the Internal Revenue Service (IRS) to businesses and other entities that allows them to file taxes.

Employer Identification Number (EIN): An EIN is a unique number assigned to a business so that the IRS can distinguish one business from another.

Bank Product: A product offered by a tax office, that allows taxpayers to have fees deducted directly from their tax refund.

Electronic Return Originator (ERO): The authorized IRS e-file provider who originates the electronic submission of a return to the IRS. 

Modernized E-file (MEF): The web based system that allows for tax returns to be filed electronically. 

Paid Preparer: Any person who prepares tax returns for compensation.

Personal Identification Number (PIN): Used by a taxpayer or an ERO as a replacement for a signature. This number is not designated by an agency and is chosen by the person using the PIN. In most cases, the software auto-fills the taxpayer's PIN using something specific to them such as AGI.

Preparer Tax Identification Number (PTIN): Can be used by preparers who are not working as a business entity, and therefore, do not have a separate FEIN, so that they do not have to share their Social Security Number with their clients. This number must be included on all returns a prepared by the individual it is assigned to. The PTIN must be renewed each year.

Rejection: A message from the IRS or state agency that a return is not accepted via electronic filing and that an issue or error needs to be corrected before the return can be e-filed.

Submission ID: A unique number assigned to electronically filed tax returns so the IRS can distinguish between returns. The format is as follows: EFIN, year return was sent, Julian date, and the last 7 digits are assigned based around the time the return is sent.

Taxpayer Identification Number (TIN): A generic name for any type of Identification number that is used to represent a taxpayer. A TIN could be assigned by a Federal Agency or a State Agency. In the case of the IRS, the taxpayer's TIN is either the taxpayer's SSN or ITIN number.

Withholding: An amount withheld by an agency on a taxpayer's behalf and submitted to the IRS, state agency, or locality. Withholding is designed to offset tax owed to the IRS, state agency, or locality. Any excess withholding will be refunded to the taxpayer in most cases.