Advice please...

I need a little help. After 6 years with the green square, I have decided to start my own service. I have found a location, set up an LLC, applied for an EIN, etc. The part that I am struggling with is the order in which I need to do things with the IRS. Obviously, as an employee, I have not had to deal with this side of things. I am not the owner of the LLC, so I could use some advice regarding what needs to be in the name of the owner (wife), and what needs to be in the name of the preparer (me). Any help here appreciated.

A little more explanation would be helpful. But my understanding is that you and your wife have set up a tax prep firm, correct?

Spouse is the owner of the LLC, but how are you going to treat the entity for tax purposes? (are you doing a 1065, Schedule C, or a Corp? You could potentially choose any of these in this scenario). That will affect things somewhat.

However, if you are the tax preparer (and she is not a preparer), then the PTIN is in your name, and will go on all the tax returns. The EFIN is tied to the business location, not an actual preparer. And since your wife is the actual business owner, then she would apply for the EFIN, get fingerprinted, etc. You don't have to be a tax preparer to have an EFIN--it's available to anyone basically who transmits electronic returns (including people who never prepare anything but payroll returns, etc).

My previous office partener is a C Corp, and her husband is an employee and he prepares returns. The EFIN is under the corporation's name, and the hubby has his own PTIN that is listed on all the returns that he prepares and signs.

Is that all you wanted to know?

hmm, is professional (cpa, attorney, etc) even allowed to form an LLC and practice under it?

Tax_Writer, you are correct. Wife is the owner and will also have a ptin, although I will be the primary preparer. We will file the LLC as a sole prop.
Your answer on the efin is what I was looking for. I am just unsure what needs to go in her name, and what needs to go in the name of the business

Eric,

It depends on the state. California doesn't allow professionals to practice under LLCs or PLLCs, which isn't true everywhere else.

I am just unsure what needs to go in her name, and what needs to go in the name of the business

For the EFIN, she will need to be fingerprinted and go through a background check. You should probably get her a PTIN, too. That's what I would do.

I got my EFIN a long time ago, and had to go down to the police department and get ink fingerprints done on paper, but I'm sure everything is livescan now. She can start the process online. It's best to get the process started now, because it takes a while:

http://www.irs.gov/Tax-Professionals/e-File-Providers-&-Partners/Become-an-Authorized-e-file-Provider

Tax Writer, it's still on paper. When I got my EFIN two years ago, I had to go to the county fingerprint department and smear my grubby paws over a card, then scrub up with heavy-duty soap that you don't wet first. I cannot imagine that anyone with nail extensions would find it particularly easy.

Tax Writer, it's still on paper. When I got my EFIN two years ago, I had to go to the county fingerprint department and smear my grubby paws over a card, then scrub up with heavy-duty soap that you don't wet first.

I guess I shouldn't be surprised by this, but I'm actually surprised by this. What possible reason would the IRS have for continuing to use physical ink fingerprint cards, when practically every other US government agency is using Livescan?

Into the information age, but as always, kicking and screaming, kicking and screaming....

What possible reason would the IRS have for continuing to use physical ink fingerprint cards, when practically every other US government agency is using Livescan?

Maybe maybe because every other agency is not being intentionally disabled through congressional budget cuts?

Maybe maybe because every other agency is not being intentionally disabled through congressional budget cuts?

Except using Livescan would be cheaper... and safer.

I went to the IRS today to get fingerprinted for a seasonal tax job and they used the digital fingerprint machines. Maybe it means they will get with the times sooner rather than later for the preparers of the world.

Maybe maybe because every other agency is not being intentionally disabled through congressional budget cuts?

The Post Office is being intentionally disabled by Congress through other means, since it already doesn't get its budget from Congress.

FWIW, if you obtain your EFIN by virtue of being an EA, no fingerprints required.