Lawmakers Introduce Bill to Prevent Fraudulent Tax Returns by Verifying EFINs
A bipartisan bill, the EFIN Verification Act of 2026, has been introduced by Rep. Ron Estes, R-Kansas, and Jimmy Panetta, D-California, to combat fraudulent tax returns. The proposed legislation mandates that tax software must verify Electronic Filing Identification Numbers (EFINs) before allowing the electronic filing of any tax return or document. This verification system aims to ensure that EFINs are active and authorized, preventing the use of stolen or compromised EFINs by fraudsters. The bill seeks to codify an existing IRS program into law, establishing a real-time system for EFIN validation that can confirm the validity status of an EFIN, including whether it has been suspended, revoked, or compromised. The Treasury Department would be responsible for developing and implementing this secure, automated, and high-volume validation system within two years of the bill's enactment.
