- An Electronic Return Originator (ERO) is a provider of electronic return filings authorized by the IRS originating the filing electronic tax returns with the IRS.
- The IRS considers it essential to confirm the Taxpayer Identification Numbers (TIN) to avoid taxpayer fraud.
- Tax preparers, whether they operate independently or as part of a company preparation services, play a key role in preventing taxpayer fraud. EROs are responsible for ensuring that all personal identification numbers on the taxpayer are correctly transcribed from the source documents to the electronic return.
- The most common reasons why returns filed properly are rejected electronics are:
- Using an incorrect TIN on a tax return.
- Mismatch between a name and a TIN.
- The same TIN in more than one declaration. Verification of taxpayer identification numbers
- EROs must confirm the identities and taxpayer identification numbers (TINs) of the taxpayers, their spouses and dependents that appear on their returns. Ask the customers their TIN cards to avoid including incorrect numbers for taxpayers, spouses, and dependents on tax returns.
- Tax preparers should ask clients they don’t know to provide two ways to identify that includes your name and current address. Photo IDs are preferred.