Strengthening EFIN Confirmation for User Reliability and Electronic (SECURE) Tax Filing Act
- Sponsor
- Sen. Cortez Masto, Catherine [D-NV]
- Committees
- Finance Committee (primary)
- Last action
- Jul 23, 2026
Bottom line
The SECURE Tax Filing Act aims to enhance the security and integrity of the electronic tax filing system by implementing real-time verification for EFINs, thereby combating tax fraud and identity theft.
What it actually does
This bill mandates the Internal Revenue Service (IRS) to establish a real-time validation program for Electronic Filing Identification Numbers (EFINs) within 24 months. It requires that an EFIN be validated as active and authorized before it can be used to electronically file any tax return or document. Electronic filing software will be required to integrate with this system and prevent filings if validation fails.
Proponents argue
Proponents argue that this bill is a critical measure to combat widespread tax fraud and identity theft by ensuring that only legitimate and authorized tax preparers can submit electronic tax documents. They contend that real-time EFIN validation will significantly reduce the ability of bad actors to file fraudulent returns, protecting both individual taxpayers and the federal tax system from financial losses.
Opponents contend
Opponents might raise concerns about the substantial administrative burden and cost on the IRS to develop and maintain a robust, high-volume real-time validation system within the mandated timeframe. They may also worry about potential disruptions to the tax filing process, particularly during peak seasons, if the system experiences technical issues, outages, or delays, which could negatively impact tax preparers and taxpayers.
The bill is concise and clearly written, making it accessible for a reader to understand its core provisions and implications within a reasonable timeframe.
Section 2(b) and 2(c)
Mandatory EFIN Validation Program and System Requirements
This provision requires the Secretary of the Treasury to establish and maintain a real-time program for validating Electronic Filing Identification Numbers (EFINs) within 24 months of the bill's enactment. The system must confirm that an EFIN is active and that the person using it is authorized for the specific electronic filing activity before any return or document can be electronically filed. Electronic filing software will be required to integrate with this validation system and prevent filings if an EFIN is not validated.
Supporters argue
Supporters argue that this provision is crucial for modernizing tax security infrastructure, directly addressing the vulnerability of compromised EFINs that are frequently exploited in large-scale tax fraud schemes. They believe real-time validation will create a robust barrier against fraudulent filings, thereby protecting taxpayers and preserving the integrity and revenue of the federal tax system.
Critics contend
Critics might contend that while the objective of preventing fraud is laudable, the requirement to develop and implement a real-time, high-volume validation system within 24 months could be overly ambitious and challenging for the IRS. They suggest this could lead to system instability, potential delays during peak filing seasons, and increased operational costs that might ultimately be passed on to tax preparers or taxpayers.
Tradeoffs
This provision balances the imperative for enhanced security against the potential for increased administrative burdens, operational costs, and the risk of system disruptions. It seeks to prevent fraud but requires substantial investment and careful implementation to avoid negatively impacting legitimate tax filing operations and potentially creating new points of failure.