5 Things That Break a Tax Office in January (and How to Fix Them Now)
An inactive EFIN, an expired PTIN, a bank that hasn't approved you, data that didn't carry over, no security plan. Fix all five before the season.
TaxWallet Newsroom
October 27, 2026
Ask any office owner about their worst opening week and you'll hear one of five stories. None of them are about tax law. They're about something that should have been done in the fall.
Here are the five, how to spot each one now, and how to fix it before a client is sitting across from you.
1. Your EFIN isn't active
What happens: you prepare the first return, hit transmit, and it's rejected because the EFIN isn't valid for the firm, or the firm's information doesn't match what the IRS has.
How to check now: log in to e-Services and look at your e-file application. Confirm the firm name, address, responsible officials and the provider options (ERO, transmitter, and so on). If anything changed this year (you moved, added a partner, changed entity), update the application.
Why it can't wait: IRS Publication 3112 says new applications can take up to 45 days. Changes can take time too.
2. A preparer's PTIN expired
What happens: a seasonal preparer shows up ready to work and their PTIN expired on December 31. They can't sign returns for pay until they renew.
How to check now: ask everyone who'll prepare returns for you to confirm they've renewed for the coming year. Renewal opens in the fall. Our PTIN renewal guide has the steps.
3. The bank hasn't approved your office
What happens: a client wants to pay the fee out of their refund, and you can't offer a refund transfer because your office isn't enrolled for the season.
How to check now: banks approve offices for bank products each season. Your EFIN and office details have to be on file. Start the enrollment as soon as it opens and keep the approval in writing. More in the bank product enrollment checklist.
4. Last year's data didn't carry over
What happens: your first returning client sits down. You open their file and it's empty: no dependents, no address, no prior-year AGI. You start from zero while they watch.
How to check now: if you're changing software, find out how prior-year returns get in. If you're staying, confirm the rollover has run. Open three returning clients' files and check names, dependents and prior-year amounts.
The secret: test the rollover with your hardest client, not your easiest. A single W-2 filer will always carry over. The one with a Schedule C, a depreciation schedule, a carryforward loss and two dependents is where missing data shows up, and that's the client who'll notice. If those carryforwards don't move, you'll be rebuilding them by hand in February. Our guide to switching software mid-career covers what has to move.
5. Nobody wrote the security plan
What happens: nothing, until something does. A preparer's email is compromised, or a laptop is stolen, and there's no plan for who does what.
How to check now: the FTC Safeguards Rule requires a written information security plan, and IRS Publication 5708 has a template made for small tax practices. Write it, turn on multi-factor authentication everywhere, and review who has access. Our WISP guide explains each part.
A 15-minute check you can do today
| # | Check | Where |
|---|---|---|
| 1 | EFIN details match | IRS e-Services |
| 2 | Every preparer's PTIN renewed | Ask each one |
| 3 | Bank enrollment started | Your bank product portal |
| 4 | Three returning clients carry over | Your software |
| 5 | WISP written, MFA on | Your office |
The sixth thing: your phone
It isn't on the list because it doesn't break the office, but it breaks the first week. In January, returning clients call to book, new clients call to ask prices, and everyone asks "when will my refund come?"
Three fixes that help:
- A booking link you can send by text, so callers book themselves
- A short voicemail message with your hours, what to bring, and how to book
- A standard answer for refund timing that every staff member uses: the IRS issues most e-filed refunds in less than 21 days, and refunds with the EITC or Additional Child Tax Credit can't be issued before mid-February
How long each fix takes
| # | Fix | Your time | Waiting time |
|---|---|---|---|
| 1 | EFIN details | 30 minutes | Up to weeks if a change is needed |
| 2 | PTIN renewals | 10 minutes per preparer | Usually immediate |
| 3 | Bank enrollment | 1 hour | Days to weeks for approval |
| 4 | Data carryover check | 1 hour | None |
| 5 | WISP and MFA | Half a day | None |
The pattern is clear: the items with waiting time are the ones to do first. Everything else can wait until December if it has to.
If you're opening a new office
All five apply, plus a few more: your EFIN application from scratch, a business bank account for fees, your office's privacy notice and engagement letter, and a plan for how clients will find you. Our EFIN, PTIN and ERO guide explains the IRS side.
How TaxWallet helps
TaxWallet keeps your office, your preparers, your EFIN, your bank enrollment and your clients in one place, so these five checks are on one screen instead of five. And we'll do the setup with you.
We set up your office, and your first 15 returns are free. Comment or DM TRY on Instagram, or start here.
FAQ
When should a tax office start preparing for the season?
October or November. The steps that depend on the IRS or a bank take weeks.
What's the difference between an EFIN and a PTIN?
The EFIN identifies the firm for e-file. The PTIN identifies the individual preparer. You need both.
Do I need a new EFIN if I move my office?
Not usually, but you must update your e-file application. Check Publication 3112 for what changes require.
What does a WISP include?
Who's responsible, what data you hold, how you protect it, how you train staff, and what you do if something goes wrong.
General information. Check the IRS publications named here for the rules that apply to your office.