An Electronic Return Originator (ERO) is an IRS-authorized provider that starts the electronic submission of your tax return, whether they prepared it for you or simply transmit it on your behalf.
Understanding What an Electronic Return Originator (ERO) Does
If you’ve ever filed your taxes electronically with the help of a professional, you’ve likely worked with an Electronic Return Originator, even if you didn’t realize it. An ERO is a tax professional or company officially authorized by the IRS to begin the process of submitting your tax return electronically through the IRS e-file system.
They play a crucial role in making sure your tax return is safely and accurately transmitted. They may also help you prepare the return, collect your documents, review your information, or simply send your completed return to the IRS.
How an ERO Fits Into the E-File System
The IRS e-file system involves several different provider types, but the ERO is the one that directly interacts with taxpayers. They are the “front door” of the electronic filing process.
Here’s how EROs work:
1. Collecting your tax information
An ERO may gather your tax documents, including W-2s, 1099s, receipts, and identification.
2. Preparing or reviewing your return
Some EROs prepare the tax return themselves. Others only review and approve a return prepared elsewhere before sending it electronically.
3. Starting the electronic submission
Once your tax return is complete, the ERO begins the electronic filing process by originating (or starting) the submission.
4. Transmitting your return
The ERO sends your return to the IRS through a secure system. Some EROs also act as transmitters, while others work with a separate third-party transmitter.
5. Providing confirmation
After the IRS receives your return, the ERO notifies you when it has been accepted or if there are issues that need to be corrected.
Why Electronic Return Originators Are Important
EROs ensure a smoother, safer tax filing process.
They provide accuracy
EROs use approved software that helps reduce errors before your return is submitted.
They offer security
Because they must meet IRS requirements, EROs follow strict procedures to protect your personal data.
They simplify the filing process
Whether preparing your return or simply transmitting it, EROs help take the confusion out of tax filing.
Do EROs Charge Fees?
Some Electronic Return Originators charge a fee for electronically submitting returns, especially if they provide additional services such as tax preparation, document review, or refund assistance.
However, not all EROs charge a fee. Certain volunteer organizations and community programs — such as VITA (Volunteer Income Tax Assistance) — offer free e-filing for qualifying taxpayers.
If an ERO charges for e-filing, they must clearly disclose the fee upfront so you know exactly what you’re paying for.
Where You Might Find an ERO
Electronic Return Originators operate in many different settings, including:
- Independent tax preparation offices
- National tax service chains
- Accounting firms
- Financial institutions
- Community centers and nonprofit programs
- Volunteer tax assistance sites
If you’ve used a professional tax preparer or walked into a tax office during filing season, chances are you worked with an ERO.
Real-Life Example
Imagine you visit a local tax office for help filing your return. The tax preparer gathers your documents, completes the return, and then sends it electronically to the IRS. That tax office is acting as your Electronic Return Originator. Even if you prepared the return yourself and only asked them to e-file it, they still serve as the ERO because they originated the electronic submission.
Final Thoughts
An Electronic Return Originator (ERO) is an essential part of the IRS e-file program. As the provider responsible for beginning the electronic submission of your tax return, the ERO helps ensure your return is accurate, secure, and successfully delivered to the IRS. Whether you rely on a tax professional or a community program, understanding what an ERO does can make your tax filing experience smoother and more confident.
