1. Industry Foundations
TAX-101 · Lesson 1

Your first shift

⭐ 0 XP
Briefing · 1 min

Today you work at a tax office.

What Dana said

PTIN = the personAnyone paid to prepare returns needs one from the IRS.
EFIN = the officeThe office (the ERO) uses it to e-file returns to the IRS.
The path of every returnIntake → Documents → Prepare → Review → Client signs 8879 → E-file → IRS accepts
One ruleFile from the real W-2, never from a paystub.
D
Your job today: get one client from the front door to her refund. I’ll be right here.
9:02 AM · Front desk

Maria walks in.

M
"Hi! I need my taxes done. Can you do them right now?"
9:10 AM · Intake

Maria hands you her papers.

Tap the 3 you can use. Leave out the one that won’t work.

10:00 AM · The team

Hand each job to the right person.

…
Preparerhas a PTIN
    Reviewersecond set of eyes
      The office (ERO)has an EFIN
        Afternoon · Simulation Lab

        Move Maria’s return through the office.

        Tap the steps in order.

        4:45 PM · Curveball

        Your cousin stops by.

        J
        "I'm good with numbers. Can I prepare a few returns here for pay this weekend?"
        Jazzy

        Shift complete!

        🏅 First Shift · 0 XP
        • Start every client with intake
        • Spot a document you can't file with
        • Know who prepares, reviews and e-files
        • Walk a return from door to refund

        See it in the software

        Short how-to videos from the Nationwide software. Tap a video to play it here.

        Next →

        Lesson notes

        Want the details? Tap a card to open it.

        What you will learn
        • How the tax preparation industry works and who is allowed to prepare returns for pay
        • The roles in a tax office: ERO, paid preparer, reviewer and support staff
        • How a return moves from client intake to IRS acceptance
        The industry at a glance

        Every year millions of taxpayers pay a professional to prepare their federal income tax return. Paid preparers range from credentialed professionals (attorneys, CPAs and enrolled agents) to non-credentialed preparers who work in tax offices like the ones in the Nationwide network. Anyone who prepares or helps prepare a federal return for pay must have a valid PTIN.

        Roles in a tax office
        • ERO (Electronic Return Originator): the authorized e-file provider that submits returns to the IRS. The office must have an EFIN to e-file.
        • Paid preparer: interviews the client, enters the return and signs it with a PTIN.
        • Reviewer: checks completed returns for accuracy and due diligence before they are filed.
        • Front desk and sales: greet clients, gather documents and explain services and fees honestly.
        The life of a return
        1. Intake: identity check, documents and a client interview.
        2. Preparation: entering income, adjustments, deductions and credits in the software.
        3. Due diligence: asking the questions the law requires, especially for refundable credits and head of household status.
        4. Review and signatures: the client reviews the return and signs Form 8879.
        5. E-file: the ERO transmits the return; the IRS accepts or rejects it.
        6. After filing: tracking acceptance, fixing rejects and answering client questions.
        Tax season calendar

        The IRS usually starts accepting individual returns in late January. The regular filing deadline is April 15 (or the next business day). Extensions (Form 4868) give more time to file, not more time to pay.

        Key terms
        • PTIN: Preparer Tax Identification Number, required for every paid preparer
        • EFIN: Electronic Filing Identification Number, issued to authorized e-file providers
        • ERO: Electronic Return Originator, the firm that originates the e-file
        • Form 8879: IRS e-file signature authorization signed by the taxpayer
        Practice example (fictional)

        Maria opens a small tax office. She has a PTIN, but she has not applied to be an authorized e-file provider. Can her office e-file returns this season? Answer: not until the office is approved as an e-file provider and has an EFIN; until then returns would have to be filed on paper or through a service bureau that is an authorized provider.

        Official sources
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