Why You Should NOT Transmit E-Filed Tax Returns From More Than One Computer

A Technical and Practical Guide for Tax Preparers

Introduction

In many tax offices, especially during peak filing season, it is common to have multiple computers and multiple preparers working at the same time. However, one of the most common — and costly — mistakes is transmitting electronic tax returns from more than one computer using the same EFIN.

Although it may seem harmless, this practice can lead to serious technical issues, IRS rejections, lost acknowledgments (ACKs), and database corruption within your tax software.

In this article, we explain why this happens, how electronic filing actually works, and how to properly configure your office, whether you use Drake, TaxSlayer, or any other professional tax software.

1. How Electronic Filing Really Works

When a tax return is transmitted to the IRS:

• A unique Declaration Control Number (DCN) is generated under your EFIN

• The software sends the return and waits for an IRS acknowledgment (Accepted or Rejected)

• That acknowledgment is stored in the software’s local e-file database

Problems arise when more than one computer transmits returns using the same EFIN, because each computer maintains its own transmission database. This can cause:

• ACKs arriving on a computer that does not have the return

• Inconsistent return statuses between computers

• Errors such as “Client Found With No Data”

• Duplicate or failed transmissions

• Loss of operational control

2. Why the IRS and Software Providers Recommend One Transmitting Computer

While the IRS does not explicitly prohibit transmitting from multiple computers, the responsibility for tracking and controlling transmissions belongs entirely to the ERO.

IRS best practices and software vendors consistently recommend:

• One transmitting computer per EFIN

• Centralized receipt and review of all acknowledgments

• A single, auditable transmission history

This is why Drake, TaxSlayer, and other professional platforms strongly advise using one dedicated transmitting workstation for each EFIN throughout the filing season.

3. Real Risks of Transmitting From Multiple Computers

Transmitting from multiple workstations can result in:

• Duplicate DCNs

• Accepted returns that appear as pending or missing

• Delayed corrections for rejected returns

• Banking product processing issues

• Incomplete reporting and audit trails

• Increased compliance and data security risks

During peak season, these issues translate directly into lost time, frustrated clients, and operational risk.

4. The Correct Way to Work With Multiple Preparers

Option 1: Centralized Network Setup (Recommended – Drake NWClient)

• One computer functions as the server

• All other workstations connect to the same installation

• Only the server transmits returns

• All users see real-time updates

Benefits:

• Maximum stability

• Single transmission point

• Stronger operational control

Option 2: Peer-to-Peer Network Setup (TaxSlayer Desktop)

• Each computer has the software installed locally

• One computer is designated as the File Server

• That same computer must be the Transmitting Computer

• Other workstations only prepare returns

Key rule:

Only one computer should have the option “Transmit from this computer” enabled.

5. Best Practices for Professional Tax Offices

• Clearly designate the transmitting computer

• Never transmit from workstations

• Use wired networks instead of Wi-Fi

• Avoid opening the same return on multiple computers

• Centralize backups and acknowledgments

• Train staff on proper e-file workflow

Conclusion

Transmitting from more than one computer is not a minor technical detail — it is an operational risk that can directly affect the accuracy, compliance, and efficiency of your tax office.

Proper configuration does more than prevent errors; it elevates your professionalism as a tax preparer.

At All Tax Solution, we believe well-applied knowledge is what truly sets professionals apart.