Which of the following can be classified as an Electronic Return Originator (ERO)?

An Electronic Return Originator (ERO) is a person or business that is authorized to submit electronic tax returns to the IRS on behalf of taxpayers or tax professionals. The definition encompasses entities that prepare and file tax returns electronically for clients, which aligns with the characteristics of a company preparing and filing returns for clients.

In this context, the role of an ERO typically involves not just preparation but also the submission of the electronic return to the IRS, ensuring compliance with IRS regulations and facilitating the filing process for their clients. Therefore, a company that actively engages in preparing and filing returns on behalf of taxpayers can indeed be classified as an ERO.

The other options reflect different aspects of electronic filing but do not embody the complete responsibilities and authority of an ERO. For instance, VITA (Volunteer Income Tax Assistance) programs, while helpful in providing tax assistance, primarily focus on helping eligible taxpayers prepare their returns rather than functioning as an ERO in a commercial capacity. A company that collects completed returns for e-filing could be facilitating the process, but without the actual filing aspect, they do not meet the ERO criteria. Similarly, software developers transmitting electronic returns play a supportive role in the electronic filing ecosystem but do not prepare or submit returns on behalf of