Part 3. Submission Processing

Chapter 21. International Returns and Documents Analysis

Section 264. IRS Individual Taxpayer Identification Number (ITIN) Acceptance Agent Program

3.21.264  IRS Individual Taxpayer Identification Number (ITIN) Acceptance Agent Program

Manual Transmittal

September 28, 2012

Purpose

(1) This transmits revised IRM 3.21.264, International Returns and Document Analysis, IRS Individual Taxpayer Identification Number (ITIN), Acceptance Agent Program.

Material Changes

(1) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.1(2), Added description for Form W-7.

(2) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.2(1), Revised Rev. Proc.

(3) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.2, Add (2) stating Interim changes to ITIN process.

(4) IRM 3.21.264.2.3(3), Revised wording.

(5) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.3(1), Revised definition for an Acceptance Agent.

(6) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.3.1, Revised paragraphs (2), and Removed second sentence from (3).

(7) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.3.2, Changed age to 18.

(8) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.3.3(4), Revised address.

(9) IRM 3.21.264.3.4(1), Revised wording in third sentence.

(10) IRM 3.21.264.3.5, Deleted verbiage from paragraphs (1) and (2).

(11) IRM 3.21.264.3.5 (1), Removed verbiage "or other foreign person" .

(12) IRM 3.21.264.3.5 (2), Removed verbiage "and foreign persons" .

(13) IRM 3.21.264.3.6, Corrected International phone number.

(14) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.3.7(1), Revised first sentence in paragraph (1).

(15) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.3.8(3), Revised paragraph (3).

(16) IRM 3.21.264.3.9, Revised entry in the "IF" field.

(17) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.3.9(1), added B to Form 8288.

(18) IPU 12U0502 issued 02-28-2012 IRM 3.21.264.3.11 - Added new paragraph Telephonic Inquires Received by the e-Help Desk

(19) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.3.11, Revised Note.

(20) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.3.11, Changed Exhibit 34 to Exhibit 5.

(21) IPU 12U0502 issued 02-28-2012 IRM 3.21.264.4, Added new subparagraph (5) and table.

(22) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4(1) Revised sentence to add title to Form 13551.

(23) IRM 3.21.264.4.1, Revised table due to new Form 13551. Added additional table for Continuation Sheet.

(24) IPU 12U0502 issued 02-28-2012 IRM 3.21.264.4.1 - Revised paragraph 3 and added a Note.

(25) IPU 12U1248 issued 06-20-2012 IRM 3.21.264.4.1, Removed X from Optional field.

(26) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.1, Revised paragraph (1), Added title to Form W-7.

(27) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.1(3), Removed Note.

(28) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.1(3), Changed Exhibit 3.21.264-35 to Exhibit 3.21.264-33 in Line 20.

(29) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.1(3), Revised Type of AA, Lines 2, 3, 7, 9, 10, 11 and 20.

(30) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.1(3) Selected Optional for email in row 5, added additional instructions for Rows 7, 9 and 10, Description columns.

(31) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.1(3), Added a "see also" for Line 20.

(32) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.1.1(1), Revised "Exception" .

(33) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.1.1, Deleted (1a), revised sentence in(1b), added additional instructions for (1d) to submit Green card. Added list "f" and "g" .

(34) IPU 12U1448 issued 08-03-2012, IRM 3.21.264.4.1.2, Revised paragraphs (1), (2a) and (2b).

(35) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.1.2, Removed Exception tag.

(36) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.1.2.(2b), Added "Note" for Letter 4959.

(37) IPU 12U0502 issued 02-28-2012 IRM 3.21.264.4.1.2 - Added new paragraphs (10) & (11), pertaining to FPC.

(38) IPU 12U1248 issued 06-20-2012 IRM 3.21.264.4.1.2, Changed Letter 4957 to Letter 4961, Paragraph b, deleted Letter 4957.

(39) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.1.2, Revised paragraphs 2,3,7,11 and added paragraph 12.

(40) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.1.2, Changed Letter title for (11), Added bullet list to (12).

(41) IRM 3.21.264.4.1.3, Added new paragraph 5 information and deleted old information for paragraph 5.

(42) IPU 12U0502 issued 02-28-2012 IRM 3.21.264.4.1.3 - Revised paragraphs (1), (2) and (4), deleted (5).

(43) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.1.3, Revised paragraphs 1 and 4, added Note after paragraph 4, added paragraph 5.

(44) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.1.3, Revised paragraphs (4) and (5).

(45) IRM 3.21.263.4.1.4, Revised, deleted and renumbered paragraphs applicable to last year's VITA/TCE project.

(46) IPU 12U0502 issued 02-28-2012 IRM 3.21.264.4.1.4(4) - Added new paragraph for LITC.

(47) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.1.5 Revised paragraph (2).

(48) IRM 3.21.264.4.1.5, Removed references to VITA/TCE applications, revised wording and added OUO note.

(49) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.1.5, Revised (2) added (3) for tax compliance checks.

(50) IPU 12U0502 issued 02-28-2012 IRM 3.21.264.4.1.6 - Added new paragraph (4).

(51) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.1.6, Revised paragraph (3).

(52) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.1.6, Revised (3), added (5) for tax compliance checks.

(53) IRM 3.21.264.4.1.7, Revised wording to reflect use of Form 13551 Continuation Sheet.

(54) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.1.7, Revised (2).

(55) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.1.7(2), Revised the Note after last bullet.

(56) IPU 12U1234 issued 06-18-2012 IRM 3.21.264.4.1.7, Changes Exhibit 18 to Exhibit 17.

(57) IPU 12U1334 issued 07-06-2012 IRM 3.21.264.4.1.7, Revised Note in paragraph 2.

(58) IRM 3.21.264.4.1.9, Added new subsection for Citizenship Processing.

(59) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.1.8, Changed Disbarment to Revocation, revised section.

(60) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.1.9, Revised paragraph 1 and added paragraph 2.

(61) IPU 12U1334 issued 07-06-2012 IRM 3.21.264.4.1.9, Changed Letter 4957 to 4959.

(62) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.1.9, Revised (1).

(63) IPU 12U0502 issued 02-28-2012 IRM 3.21.264.4.1.10 - Added new subsection (EFIN/EIN Mismatch).

(64) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.1.10, Deleted entire section.

(65) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.2, Revised title and added paragraph 3.

(66) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.2(3), Reformatted table.

(67) IRM 3.21.264.4.2.1.1, Revised IRM based on new Batch Control process.

(68) IPU 12U0502 issued 02-28-2012 IRM 3.21.264.4.2.1.1 - Revised paragraphs 6, 7 and 8.

(69) IPU 12U0502 issued 02-28-2012 IRM 3.21.264.4.2.1.2 - Revised paragraphs, deleted paragraph 2 and renumber paragraphs.

(70) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.2.1.2(7), clarified how package to be wrapped.

(71) IPU 12U0502 issued 02-28-2012 IRM 3.21.264.4.2.1.3 - Revised paragraph 1, deleted paragraph 2, renumbered 3.

(72) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.2.1.3, Delete (2), Assistors Inventory Report.

(73) IRM 3.21.264.4.2.1.4, Added new subsection for Releasing Batch control instructions.

(74) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.2.1.4, Added two new paragraph and renumbered paragraphs one and two.

(75) IRM 3.21.264.4.2.2, Removed reference to VITA/TCE designated basket. Revised instructions for FPC basket.

(76) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.2.2, Revised paragraph 2.

(77) IPU 12U0502 issued 02-28-2012 IRM 3.21.264.4.2.3 - Added paragraphs (4) and (5) PTIN.

(78) IPU 12U1248 issued 06-20-2012 IRM 3.21.264.4.2.3, Changed Exhibit to 3.21.264-34.

(79) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.2.3, Revised paragraphs 1, 3 and 5, added paragraphs 6 through 13.

(80) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.2.3(1), Added additional lists for RTS comments.

(81) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.2(3), Added See also to third row of Table referencing Rejected Application Documentation.

(82) IRM 3.21.264.4.2.4, Removed "Exception" for VITA-TCE applications.

(83) IPU 12U1334 issued 07-06-2012 IRM 3.21.264.4.2.4, Revised 3rd bullet in paragraph 5.

(84) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.2.4, Revised paragraphs 2 and 4, removed the Note.

(85) IRM 3.21.264.4.2.5, Added sentence in (3) if unable to contact business. Made corrections to 2nd bullet in (4) process as amended application

(86) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.2.5, Revised paragraph 3, removed paragraphs 4 and 5, renumbered paragraph 6 to 4.

(87) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.2.5, Revised (3).

(88) IPU 12U0502 issued 02-28-2012 IRM 3.21.264.4.2.6.1 - Added bullets to paragraph 1, Amended applications.

(89) IRM 3.21.264.4.2.6.2, Added a new paragraph (3) to indicate a Comment will be made.

(90) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.2.6.2(1), Added instructions to use Letter 4958 and Letter 4959.

(91) IPU 12U0502 issued 02-28-2012 IRM 3.21.264.4.2.6.2(3) - Added sentence for FPC to (3).

(92) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.2.6.3(2), Removed See also after last sentence.

(93) IPU 12U0502 issued 02-28-2012 IRM 3.21.264.4.2.7 - Added new subsection for EIN Change.

(94) IPU 12U0502 issued 02-28-2012 IRM 3.21.264.4.2.8 - Added new subsection for Profile Sheet.

(95) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.2.8, Revised Profile Sheet.

(96) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.2.8, Revised sentence in paragraphs (2) and (3).

(97) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.2.8, Revised (1), Changed Exhibit 3.21.264-28 to Exhibit 3.21.264-26. Changed Disbarment to Revocation in (4).

(98) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.2.9, Added new section.

(99) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.2.9, Revised (3), Added title to Letter 4954.

(100) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.2.9.(3), Added additional instructions for FPC to second bullet.

(101) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.2.10, Added Subsection 3, Multiple Locations

(102) IRM 3.21.264.4.3, Added (4) instructions for tax compliance for a sole proprietorship.

(103) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.3, Revised paragraph 3, added paragraphs 5 and 6.

(104) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.3(3), Added additional instructions for authorized representative(s) to second Note.

(105) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.3, Revised paragraph (2) and (3).

(106) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.3, Revised (3), Added a "See also" for Exhibit 3.21.264-10. Revised first sentence in second Note.

(107) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.3(5), Revised table, added instructions for Line 8.

(108) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.3.1(1), Added additional instructions for business tax compliance check.

(109) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.3.1, Added paragraph (5).

(110) IPU 12U1248 issued 06-20-2012 IRM 3.21.264.4.3.1, Changed Exhibit to 3.21.264-32.

(111) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.3.1(7) Added additional instructions for -C Freeze Combat Zone.

(112) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.3.1, Revised paragraph 8, added paragraphs 9 and 10.

(113) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.3.1.1(1), Added status codes 23 and 63 to table.

(114) IRM 3.21.264.4.3.2, Corrected Closing Codes in table and added missing codes.

(115) IRM 3.21.264.4.3.3, Corrected Transaction Code (TC) associated with a Bankruptcy status and Miscellaneous Penalty.

(116) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.3.3, Removed Miscellaneous Penalties and renumber subsequent subsection.

(117) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.3.4, Added paragraph 6.

(118) IPU 12U1234 issued 06-18-2012 IRM 3.21.264.4.3.4, Changed IRM reference in text to IRM 3.21.264.4.6.5.

(119) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.3.5, Removed Negligence Penalties, and renumbered subsequent subsections.

(120) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.3.5(1), Added a Note for authorized representatives with an ITIN.

(121) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.3.5, Revised Individual Tax Compliance Check, added paragraphs 7 and 8.

(122) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.3.5, Revised (5) and (6), added Letter numbers and title to letters and Exhibits.

(123) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.3.5(5), Revised instructions for application that list one authorized representative and removed the bullet list.

(124)

(125) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.3.5, Revised paragraph 6 and added paragraphs 7 and 8.

(126) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.3.5, Added new number (6), renumbered (6) thru (9). Added clarification for Individual Tax Compliance check.

(127) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.3.6, Renumbered subsection, deleted paragraph (3) and renumbered subsequent paragraphs.

(128) IRM 3.21.264.4.4, Revised paragraph 1, added bullet to (2), deleted bullet from (3).

(129) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.4(4) Corrected phone number for OPR.

(130) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.4(5), Removed See also.

(131) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.4, Revised (6) and (7), removed OUO from (7).

(132) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.4, Revised paragraphs 2, 4 and 8, added paragraph 11 to Background Investigation Checks.

(133) IRM 3.21.264.4.4.2, Specified which "LEAVE BLANK" block to enter information on FPC.

(134) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.4.2, Revised 5th bullet for FPC comment in RTS.

(135) IRM 3.21.264.4.4.2.1, Revised first paragraph and inserted bullets for a portion of paragraph (1) instructions starting after the word "will" .

(136) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.4.2.1(1) Revised instructions for FPC acceptance.

(137) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.4.2.1, Added new paragraph (9) and renumbered subsequent paragraphs.

(138) IRM 3.21.264.4.4.2.2, Revised wording in paragraph (1) to identify who will process the FPC.

(139) IRM 3.21.264.4.4.3.1, Revised first paragraph, created bullet list starting after "designated assistor will:" .

(140) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.3.1.1, Created new subsection Return Status Codes.

(141) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.4.2, Revised paragraph 2, Processing of Fingerprint Cards.

(142) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.4.2.1, Revised Fingerprint Cards Sent to the FBI.

(143) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.4.3.1, Revised paragraph 2, FPC Results-No Data Found.

(144) IRM 3.21.264.4.4.3.2, Revised first paragraph, created bullet list after "designated assistor will:" .

(145) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.4.3.2(1), Added instructions to print AEF rap sheet.

(146) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.4.3.2, Revised paragraph 2, FPC Results-Data Found.

(147) IRM 3.21.264.4.4.3.3, Added a leading sentence before paragraph (1).

(148) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.4.3.3(3), Revised first bullet.

(149) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.4.3.3, Revised paragraph (7).

(150) IPU 12U1387 issued 07-18-2012 IRM 3.21.264.4.4.3.3(7), Restricted Fax number only.

(151) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.4.3.3, Revised paragraphs 1, 4 and 5, FPC Results-Reject.

(152) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.4.3.3, Revised (3) and (7).

(153) IRM 3.21.264.4.4.3.4, Revised paragraph 3, FPC Results-No Results Received.

(154) IRM 3.21.264.4.5, Revised paragraphs and made subsections for clarifications.

(155) IRM 3.21.264.4.5.1, Created new subsection, "Incomplete Application Documentation Packet" .

(156) IPU 12U1334 issued 07-06-2012 IRM 3.21.264.4.5.1, Revised 2nd bullet in paragraph 1.

(157) IRM 3.21.264.4.5.2, Created new subsection, "Passed Application Documentation" .IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.5.2, Revised (3), added two bullets.

(158) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.5.2(3) Revised first sentence in paragraph.

(159) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.5.2, Revised paragraphs 1 and 4, Passed Application Documentation.

(160) IRM 3.21.264.4.5.3, Created new subsection, "Rejected Application Documentation" .

(161) IPU 12U1334 issued 07-06-2012 IRM 3.21.264.4.5.3, Revised 2nd bullet in paragraph 1.

(162) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.5.3, Revised paragraphs 1, 2 and 3, Rejected Application Documentation.

(163) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.5.3, Revised (2).

(164) IRM 3.21.264.4.5.4, Created new subsection, "Amended Application Documentation (New Location or Miscellaneous Change)" .

(165) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.5.4, Revised paragraph (1).

(166) IRM 3.21.264.4.6, Corrected IRM references in the table to match appropriate paragraphs.

(167) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.6, Revised and reformatted table in paragraph 8.

(168) IPU 12U1334 issued 07-06-2012 IRM 3.21.264.4.6, Revised 3rd bullet in paragraph 9.

(169) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.6, Revised (5), (8) and (9).

(170) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.6, Revised table and added new paragraph (9).

(171) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.6, Revised table and paragraph 9.

(172) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.6.1, Added new paragraph (4).

(173) IPU 12U1334 issued 07-06-2012 IRM 3.21.264.4.6.1, Revised paragraph 4.

(174) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.6.1, Revised (1) and (2).

(175) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.6.2, Revised (3).

(176) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.6.2, Changed title and revised paragraphs.

(177) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.6.3, Deleted subsection.

(178) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.6.3, Revised (1) and (2).

(179) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.6.4, Renumbered toIRM 3.21.264.4.6.3 and revised subsection.

(180) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.6.3, Revised paragraphs 1 and 2, Application Received Outside of Open Season.

(181) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.6.4, Revised (1).

(182) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.6.5, Revised (1).

(183) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.6.6, Revised (1). Changed Letter 4959 to Letter 4956 in paragraph 1.

(184) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.6.7, Revised (1).

(185) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.6.8, Revised (1).

(186) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.6.8(1), Added additional instructions for rejection.

(187) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.6.9, Revised (1).

(188) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.4.6.9, Added (3) for entering comment in RTS.

(189) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.4.6.10, Revised (1).

(190) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.6.5, Renumbered to IRM 3.21.264.4.6.4.

(191) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.6.4, Revised paragraphs, Application Received Outside of Renewal Window.

(192) IRM 3.21.264.4.6.6, Deleted paragraph (2). Revised Lead responsibilities by removing 4th bullet.

(193) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.6.6, Renumbered to IRM 3.21.264.4.6.5 and revised subsection.

(194) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.6.5, Revised paragraphs 1 and 2, Business Tax Compliance Failure (Owner).

(195) IRM 3.21.264.4.6.7, Changed title and added new instructions for tax compliance issue.

(196) IPU 12U1334 issued 07-06-2012 IRM 3.21.264.4.6.7, Revised paragraph 2

(197) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.6.7, Renumbered to IRM 3.21.264.4.6.6 and revised subsection.

(198) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.6.6, Revised Paragraph 1 and added paragraph 2.

(199) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.6.8, Renumbered to IRM 3.21.264.4.6.7, changed title and revised subsection.

(200) IPU 12U1334 issued 07-06-2012 IRM 3.21.264.4.6.8, Revised paragraph 2.

(201) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.6.7, Revised paragraph 1 and 2, Individual Suitability Failure (Owner).

(202) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.6.9, Renumbered to IRM 3.21.264.4.6.8, changed title and revised subsection.

(203) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.6.8, Revised paragraph 1, Individual Suitability Failure (Individual).

(204) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.6.10, Renumbered to IRM 3.21.264.4.6.9.

(205) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.6.9, Revised paragraph 1, Previous Rejection or Termination.

(206) IRM 3.21.264.6.11, Revised paragraph to indicate application is returned as incomplete not rejected.

(207) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.6.11, Renumbered to IRM 3.21.264.4.6.10, revised (1) added (2).

(208) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.6.10, Deleted entire section.

(209) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.6.12, Renumbered to IRM 3.21.264.4.6.11.

(210) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.4.6.10, Renumbered IRM 3.21.264. 4.6.11 to IRM 3.21.264.4.6.10, Revised paragraph 1.

(211) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.4.6.13, Renumbered to IRM 3.21.264.4.6.12.

(212) IRM 3.21.264.4.7, Revised and reformatted paragraphs.

(213) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.5.2(3), Revised IRC and Treasury Regulation.

(214) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.5.2(3), Line 10 added Federal before government agency, removed military organization.

(215) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.5.2(6), Removed exhibit 3.21.264–10 and added Exhibit 3.21.264-27.

(216) IPU 12U1370 issued 07-16-2012 IRM 3.21.264.5.3(2), Changed "3" authorized reps to "10"

(217) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.6, Added paragraph 4.

(218) IRM 3.21.264.6.2.2, Added new subsection, "New Application Not Previously Processed" .

(219) IRM 3.21.264.6.2.3, Added new subsection, "Application Previously Rejected" .

(220) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.6.2.3(1), revised first two bullets for editing using AA View Screen.

(221) IRM 3.21.264.6.3, Revised table fields for Name, Title and Date.

(222) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.6.2.4, Created new subsection.

(223) IPU 12U0550 issued 03-02-2012 IRM 3.21.264.6.3, Revised table.

(224) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.6.3, Revised table.

(225) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.6.3, Added Note to table for Business Address and revised Programs/Activities row.

(226) IRM 3.21.264.6.5, Revised paragraphs, deleted references to Incomplete and FPC letter. Added additional information about limitation in a Comment's Description.

(227) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.6.5, Revised AA View Screen "Description " .

(228) IRM 3.21.264.6.6, Removed "Rejected" from "Note" after paragraph 2e.

(229) IPU 12U1209 issued 06-13-2012 IRM 3.21.264.6.7, Added Caution to paragraph 2, AA History Screen.

(230) IPU 12U1519 issued 08-20-2012 IRM 3.21.264.6.7(3), Revised Description column for History entry for employee's SEID to display.

(231) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.7(2), Replaced section 5 with section 5.03.

(232) IPU 12U1448 issued 08-08-2012 IRM 3.21.264.8, Revised first sentence in (2).

(233) Exhibit 3.21.264-4, Changed exhibit and renamed to ITIN Acceptance Agent Application Batch Control Sheet.

(234) IPU 12U1234 issued 06-18-2012 Exhibit 3.21.264-10, Incomplete Application Letter, Added Letter 4963 to title.

(235) Exhibit 3.21.264.11, Revised responses for Incomplete Applications Variable Responses.

(236) IPU 12U1234 issued 06-18-2012 Exhibit 3.21.264-11, Revised Exhibit Citizenship Mismatch and EIN Invalid.

(237) IPU 12U1234 issued 06-18-2012 Exhibit 3.21.264-12, Failure to Respond Within 30 Days or Provide Missing Information, Added Letter 4956 to title.

(238) IPU 12U1448 issued 08-08-2012 Exhibit 3.21.264-12, Removed wording "Letter for" from title.

(239) IPU 12U1234 issued 06-18-2012 Exhibit 3.21.264-13, Business Tax Compliance Failure (Owner), Added Letter 4961 to title.

(240) Exhibit 3.21.264-14, Revised letter.

(241) IPU 12U1234 issued 06-18-2012 Exhibit 3.21.264-14, Application Received Outside of Open Season Window, Added Letter 4964 to title.

(242) IPU 12U1448 issued 08-08-2012 Exhibit 3.21.264-14, Removed wordings "Returned for Submission" from title.

(243) IPU 12U1234 issued 06-18-2012 Exhibit 3.21.264-15, Application Received Outside of Renewal Window, Added Letter 4965 to title.

(244) IPU 12U1448 issued 08-08-2012 Exhibit 3.21.264-15, Removed wordings "Returned for Submission" from title.

(245) IPU 12U1234 issued 06-18-2012 Exhibit 3.21.264-16, Individual Suitability Failure (Owner), Added Letter 4959 to title.

(246) IPU 12U1234 issued 06-18-2012 Exhibit 3.21.264-17, Individual Suitability Failure, Individual, Added Letter 4958 to title.

(247) IPU 12U1234 issued 06-18-2012 Exhibit 3.21.264-18, Previous Rejection or Termination, Added Letter 4960 to title.

(248) IPU 12U1248 issued 06-20-2012 Exhibit 3.21.264-19, Rejected Finger Print Cards (FPC), Added Letter 4954 to title. .

(249) IPU 12U1448 issued 08-08-2012 Exhibit 3.21.264-19, Removed word "Letter" from title.

(250) IPU 12U1234 issued 06-18-2012 Exhibit 3.21.264-20, Deleted EFIN/EIN Mismatch

(251) Exhibit 3.21.264-21, Changed title from Reject to Incomplete.

(252) IPU 12U1234 issued 06-18-2012 Exhibit 3.21.264-21, changed to Exhibit 19, added Letter 4954 to title.

(253) IPU 12U1234 issued 06-18-2012 Exhibit 3.21.264-22, changed to Exhibit 3.21.264-20.

(254) Exhibit 3.21.264-29, Revised Probation Warning Letter.

(255) Exhibit 3.21.264-30, Revised Probation Letter.

(256) Exhibit 3.21.264-31, Revised Termination Letter.

(257) IRM 3.21.264.5.2, Changed text to match line entries on the revised Form 13551, Application to Participate in the IRS Acceptance Agent Program.

(258) IPU 12U1234 issued 06-18-2012 Added Exhibit 3.21.264-32: Common Income Tax Returns

(259) IPU 12U1234 issued 06-18-2012 Added Exhibit 3.21.264-33: Acceptable Titles for Principal, Partner or Owner on Form 13551.

(260) IPU 12U1234 issued 06-18-2012 Added Exhibit 34: Acceptable ITIN RTS Abbreviations.

(261) IPU 12U1248 issued 06-20-2012 Exhibit 3.21.264-34, changed filename number.

Effect on Other Documents

This material supersedes IRM 3.21.264 dated September 23, 2011 (effective January 1, 2012). The following IRM Procedural Updates (IPUs) issued from February 28, 2012 through August 20, 2012 have been incorporated into this IRM: 12U0502, 12U0550, 12U1209, 12U1234, 12U1248, 12U1334, 12U1370, 12U1387, 12U1448 and 12U1519.

Audience

Wage and Investment (W & I), ITIN Policy Section, Austin e-help Desk, and Small Business/Self-Employed, Field Examination

Effective Date

(01-01-2013)

Paul Mamo
Director, Submission Processing
Wage and Investment Division
SE:W:CAS:SP

3.21.264.1  (08-08-2012)
Overview

  1. This section of the IRM provides guidance for administering the IRS Acceptance Agent (AA) Program. Included is the following information:

    • Description of the application process to become an IRS Acceptance Agent.

    • Procedures for reviewing and processing Form 13551, Application to Participate in the IRS Acceptance Agent Program.

    • Outline of IRS's expectation of roles and responsibilities as it relates to the Acceptance Agent Agreement, Compliance Reviews and Quality Standards.

  2. This IRM is designed to be used by Submission Processing Campus (SPC), Austin e-help Desk Assistors, Small Business/Self Employed, Field Examination, and the IRS Individual Taxpayer Identification Number (ITIN) Policy Section employees.

    Note:

    All references to "Form W-7, Application for IRS Individual Taxpayer Identification Number" throughout this IRM refer to both the English and Spanish versions unless otherwise specified.

  3. A person may wish to become an Acceptance Agent to assist with the process of acquiring an IRS Individual Taxpayer Identification Number (ITIN) for alien individuals or clients who are required to have a U.S. taxpayer identification number for tax purposes, but are ineligible for a Social Security Number (SSN).

  4. Prior to submitting a formal application, interested persons may request a telephone or in-person conference with the IRS to explore informally the benefits and responsibilities associated with the role of an Acceptance Agent. To request a pre-application conference the applicant can call 404-338-8063.

3.21.264.2  (08-08-2012)
General Information

  1. The Acceptance Agent Program is governed by Rev. Proc. 2006-10, 2006–1.

  2. On June 22, 2012, the IRS issued new interim changes to the ITIN process. During this interim period, the IRS will only issue ITINs when applications include original documentation, such as passports and birth certificates, or certified copies of these documents from the issuing agency. During this interim period, ITINs will not be issued based on applications supported by notarized copies of documents. In addition, ITINs will not be issued based on applications submitted through certifying acceptance agents unless they attach original documentation or copies of original documents certified by the issuing agency.

3.21.264.2.1  (01-01-2011)
Mission Statement

  1. The mission of all employees processing Form 13551 is to ensure applications are processed timely and to ensure applicants admitted into the program are credible and responsible individuals who will advance the Internal Revenue Service’s goal of voluntary tax compliance.

3.21.264.2.2  (01-01-2012)
IRS Employee Contacts

  1. The IRS Restructuring and Reform Act of 1998, Section 3705 (a) provides identification requirements for all IRS employees working tax- related matters. IRS employees are required to give their name and unique identification number (last seven digits of the Personal Identification Number shown on the Smart ID) during taxpayer telephone, face-to-face and written contact. In addition, a telephone number is required on all taxpayer correspondence. This will provide taxpayers with enough information to identify an IRS employee who has previously assisted with their tax-related matters.

    Note:

    An employee's Secure Employee Identification (SEID) is acceptable on written contacts.

3.21.264.2.3  (01-01-2012)
Disclosure Guidelines for Acceptance Agents

  1. It is the responsibility of all IRS employees to protect confidential applicant information and to understand the difference between an authorized and unauthorized disclosure under the provisions of the law.

  2. You must determine if the person you are speaking to is entitled to receive or present requested information. Do not under any circumstance accept oral testimony for missing signatures or documentation verification. Once you have verified that the caller is responsible for the information, then take the appropriate action.

  3. This also includes the protection of computer terminal information. For example, when applicants calling on IRS phone lines inquire about their application and less than thirty days have passed since the Form 13551 application was mailed, the employee should advise the applicant to allow more time for processing. If more than 45 days have passed and research shows no record of the application, employees are authorized to disclose to the applicant that we have no record of the application and they should re-submit within the open season period which is May 1st through August 31st each calendar year.

  4. For questions on disclosure, the Freedom of Information Act (FOIA), and the Privacy Act, refer to IRM 11.3, Disclosure of Official Information, or the Disclosure Help Desk at 1-866-591-0860.

3.21.264.2.3.1  (01-01-2011)
Disclosure Related to Acceptance Agent (AA) /Certified Acceptance Agent (CAA) Applications - Release of Information

  1. The taxpayer’s signature on Form W-7 authorizes the IRS to disclose to the AA only information necessary to resolve matters regarding assignment of an ITIN, including any previously assigned taxpayer identifying numbers.

  2. The Jurat, penalty of perjury statement, found in the Sign Here area of the Form W-7 serves as the authorization to release the information. Do not release other information, that is not necessary for the assignment of the ITIN, but found on the accompanying tax return or on IDRS.

    Exception:

    If there is an executed Form 2848, Power of Attorney, or Form 8821, Tax Information Authorization, present on the Centralized Authorization File (CAF) file for the ITIN/Form W-7 you are authorized to release information.

  3. Refer to IRM 3.21.264.2.3 , Disclosure Guidelines for Acceptance Agents, above for additional information on disclosure.

3.21.264.3  (08-08-2012)
Acceptance Agent Defined

  1. An AA is a person (individual or entity) who has signed an agreement with the IRS, and is authorized to assist alien individuals and other foreign persons in obtaining an ITIN or Employer Identification Number (EIN) from the IRS.

3.21.264.3.1  (08-08-2012)
Acceptance Agent and Certifying Acceptance Agent

  1. There are two kinds of Acceptance Agents:

    • Acceptance Agent

    • Certifying Acceptance Agent

  2. AAs are authorized to assist alien individuals and other foreign persons ineligible or unable to receive a social security number (SSN) in obtaining an ITIN or EIN from the IRS. The following responsibilities are included in their role:

    • Review the required supporting identification documentation that proves foreign status and identity.

    • Verify the completeness of the application.

    • Forward Form W-7 along with any required original or certified copies (certified by the issuing agency) of supporting documentation, and tax return or exception documentation to the IRS for processing and ITIN assignment.

      Note:

      The ITIN assignment letter is sent directly to the taxpayer, not to the AA.

  3. Certifying Acceptance Agents (CAA) are authorized to assist aliens and other foreign persons ineligible to obtain a SSN in obtaining an ITIN from the IRS. The following responsibilities are included in their role:

    • Substantiate the claim of identity and foreign status and authenticate the accuracy and completeness of supporting identification documentation.

    • Prepare an original Form 14194, Certificate of Accuracy (COA) for each application submitted.

      Note:

      The COA identifies the type of supporting identification documentation that was reviewed.


    • Forward Form W-7 along with the COA, original or certified copies (certified by the issuing agency) that identifies the applicants supporting identification documentation that was reviewed by the CAA to prove identity and foreign status and tax return or exception documentation to the IRS for processing and ITIN assignment.

      Note:

      The ITIN assignment letter is sent to both the taxpayer and the CAA.

3.21.264.3.2  (06-13-2012)
Eligibility Requirements

  1. Any eligible individual or entity can apply to become an AA. Examples of eligible entities include:

    • Financial institutions defined in IRC 265(b)(5)

    • Colleges or universities, that meet the definition of an educational organization as described in Treasury Regulation 1.501(c)(3)-1(d)(3)(i).

    • Federal agencies defined in IRC 6402(h)

    • Persons providing assistance to taxpayers in the preparation of their U.S. federal income tax return, and

    • Any other person or categories of persons authorized under Treasury Regulations.

  2. Each individual listed as an authorized representative on the application must be at least 18 years of age when application (Form 13551) is submitted.

  3. An Employer Identification Number (EIN) is required.

3.21.264.3.3  (08-08-2012)
Acceptance Agent Application (How to Apply)

  1. To apply to become an Acceptance Agent, applicants must complete and submit Form 13551, Application to Participate in the IRS Acceptance Agent Program. Applications must be submitted during the open season, May 1st through August 31st, of each year. The open season will allow the IRS adequate time to process all Forms 13551 prior to the beginning of each tax filing season.

  2. To ensure that AAs have the tools they need to perform their jobs, all new and renewing applicants are required to complete mandatory training. The training is available online at www.IRS.gov.

  3. There are three required steps for new and renewing applicants;

    1. Take the Mandatory Acceptance Agent training.

    2. Complete Form 13551, Application to Participate in the IRS Acceptance Agent Program, and attach the fingerprint card (if applicable).

    3. Attach the certification form for each authorized representative (person listed in block 5 of the application).

  4. Form 13551 must be completed with the required certification attached and mailed to:

    Internal Revenue Service
    3651 South IH 35
    Mail Stop 6380 AUSC
    Austin, TX 78741

3.21.264.3.4  (01-01-2012)
Suitability Checks

  1. Applicants are required to submit to suitability checks before being authorized to act as an AA. There is no IRS processing fee to become an AA. The applicant’s authorized representative may be subject to the following requirements:

    • A credit history check

    • A FBI background check

    • A federal tax compliance check

3.21.264.3.5  (01-01-2012)
Acceptance Agent Agreement (AA and CAA)

  1. Once the IRS determines the applicant qualifies to be an AA/CAA, an Acceptance Agent agreement, described under Treasury Regulation 301.6109-1(d)(3)(iv)(A), is entered into between the IRS and the entity authorized by the agreement to act as an AA/CAA on behalf of an alien individual.

  2. The agreement stipulates the terms and procedures to be followed by the IRS and the AA/CAA to insure proper administration of the process by which IRS issues ITINs to alien individuals.

  3. The agreement is in effect on the date the agreement is signed by IRS and expires on December 31st of the fourth full calendar year after the year in which the agreement went into effect.

  4. To ensure that their AA/CAA status continues uninterrupted, AAs/CAAs should be advised to submit a new application during the open season of the last year that the present agreement expires.

3.21.264.3.6  (01-01-2012)
Designated Telephone Lines

  1. AAs and CAAs must initially follow routine procedures (including Form W-7 and related publications) for questions regarding the status of an ITIN. If they need additional guidance, they should call the applicable number provided in the AA/CAA agreement.

    Note:

    For all questions pertaining to tax returns or tax-related issues they must call one of the following telephone numbers, 1-800-829-1040 if within the United States or 1-267-941-1000 if outside the United States.

  2. The following are IRS offices located in the U.S. embassies:

    • London, England (44)(207) 894-0476

    • Paris, France (33)(1) 4312-2555

    • Frankfurt, Germany (49) (69) 7535-3811

3.21.264.3.7  (08-08-2012)
AA/CAA Form W-7 Requirements

  1. The AA/CAAs must follow established procedures for completing Form W-7 and attach the required valid U.S. tax return or evidence that they meet one of five exceptions.

  2. If they wish to use a substitute form other than the original Form W-7, they must first obtain approval from the IRS. Refer them to Pub 1167, General Rules and Specifications for Substitute Forms and Schedules, which guides them through preparing an acceptable privately designed and printed or computer-prepared and computer-generated substitute application.

3.21.264.3.8  (08-08-2012)
Supporting Identification Documentation for Form W-7

  1. All Form W-7s submitted by an AA or CAA must meet supporting identification documentation requirements by proving identity and foreign status.

  2. AAs and CAAs must also attach valid exception documentation to prove the applicant has met an exception to the filing of a valid U.S. tax return.

  3. Form W-7 submitted by a CAA must have a Form 14194, Certificate of Accuracy (COA) attached with the original or certified copies (certified by the issuing agency) that identifies the applicants supporting identification documentation they reviewed that was provided by the applicant as proof of identity and foreign status. The COA stipulates that to the best of the CAA’s knowledge, the applicants supporting identification documentation is authentic and accurate.

3.21.264.3.9  (08-08-2012)
Changes to Form 13551, Acceptance Agent Application

  1. If the AA’s business name, address, or authorized responsible parties (signatories) has changed since the original submission, and approval of Form 13551, advise the AA to take actions as outlined in the table below:

    Change If ... Then ...
    Name

    1. A re-organization results in an entity change.

    2. Only a name and not an entity change, mail to:

      Internal Revenue Service
      ITIN Policy Section
      Mail Stop 97 WI
      401 W Peachtree St. NW
      Atlanta, GA 30308

    1. The AA must apply for a new Employer Identification Number (EIN) and a new AA agreement. The new application should be submitted to the address in the instructions.

    2. AA must submit a name change on office letterhead along with an explanation of the change (for example, a re-organization, a merger, etc.) and supporting documentation. Acceptable documentation includes copy of a marriage license, a divorce certificate, an official court-related document, or articles of incorporation validating the name change.

    Street Address The AA’s street, mailing, E-mail address, telephone or fax number changes, Advise them to file Form 8822-B, Change of Address, showing both the old and the new information. Mail to the ITIN Policy Section at the address listed above. The ITIN Policy Section will update the AA database and forward the Form 8822-B for Master File update.
    Authorized Representatives (Signatories) Changes to Authorized Representatives, position titles, or office locations, Advise the AA to mail an amended Form 13551 listing all of the Authorized Representatives and required information (name, SSN/ITIN, Date of Birth (DOB), home address, citizenship status and criminal/penalty assessment).


    Individuals who act as Authorized Representatives but leave their current employer are no longer authorized to sign or submit Form W-7 applications under the previous employer’s Acceptance Agent Agreement. The amended application should include a statement reflecting the name and SSN/ITIN of the Authorized Representative being deleted. If a new Authorized Representative is being added, Items 1–10 of Form 13551 must be completed. AA’s should mail amended applications to:

    Internal Revenue Service
    Mail Stop 6380 AUSC
    3651 S. IH 35
    Austin, TX 78741

3.21.264.3.10  (01-01-2011)
Public Lists of Acceptance Agents

  1. To be placed on the public list of Acceptance Agents maintained on www.IRS.gov, AAs/CAAs should send a letter on office letterhead to the ITIN Policy Section at the following address:

    Internal Revenue Service
    ITIN Policy Section
    Mail Stop 97-WI
    401 W Peachtree St. NW
    Atlanta, GA 30308

3.21.264.3.11  (08-08-2012)
Telephonic Inquiries Received by the e-Help Desk

  1. Electronic Products and Support Services (EPSS) e-help Desk may receive telephonic inquiries from Acceptance Agent applicants for:

    • General information on becoming an Acceptance Agent

    • Requests for fingerprint cards

    • Status of an Acceptance Agent application

    • Assistance resolving suitability issues

  2. Calls received at the e-help Desk will follow procedures in IRM 3.42.7 by creating an e-case and attempting to assist the customer using Acceptance Agent solutions available in EPSS.

    • If a customer is calling about the status of their Acceptance Agent application and more than 30 days have lapsed since it was mailed and the call was received at a site other than Austin or by an Austin assistor not trained on Acceptance Agent applications, open refer the e-case to the Austin Leads Provider Group. If the application was mailed within the last 30 days, advise the caller that the entire application process can take up to 120 days.

    • Also open-refer to the Austin Leads e-cases about a rejected Acceptance Agent application if the call is received by another e-help Desk site or non-trained assistors or if the assistor is unable to resolve the customer's issue. An Austin Lead will assign the e-case to an Acceptance Agent trained assistor for assistance.

    • Applicants needing fingerprint cards will be sent two cards per Authorized Representative. Ensure the fingerprint cards reflect the Austin TX ORI code. Include the FPC stuffer at Exhibit 3.21.264-5 with the requested cards.

    • If an applicant is calling about an application previously returned as incomplete or for a suitability failure, advise the customer to comply with the letter they received.

      Note:

      Suitability issues involving an EIN can only be discussed with the principal, partner or owner of the entity. Individual suitability issues can only be discussed with the individual to whom they pertain. Follow authentication procedures in IRM 3.42.7.7.4.4.

3.21.264.4  (08-20-2012)
Acceptance Agent Application Processing (For Austin e- help Desk Use Only)

  1. The following sections provide guidance for Austin Submission Processing e-help Desk employees for processing Form 13551, Application to Participate in the IRS Acceptance Agent Program.

  2. Austin e-help Desk tax examiners and clerks will process new AA Applications based on the guidance provided in this IRM section.

  3. Austin e-help Desk employees should also refer to IRM 3.21.264.3, Acceptance Agent Defined, and 3.42.10, Authorized IRS e-file Providers.

  4. Austin e-help Desk managers are responsible for tracking and monitoring the ITIN AA application inventory to ensure adequate resources are available for timely processing. Applications should be received, processed and forwarded to the ITIN Policy Section within 45 days of receipt. If an application is returned to the applicant as incomplete or rejected, the processing time begins on the date the re-submission is received.

    Note:

    Access to the IRS ITIN Real-Time System (RTS) is through the Employee User Portal (EUP). Submission of a 5081 and prior approval for access must be granted by your manager.

  5. The following Function and Program codes will be used by the Austin e-help Desk when processing Acceptance Agent applications.

    Role Function Program Purpose
    Assistor 710 33100 Process Forms 13551 including reviewing for completeness, conducting suitability checks and inputting applications into RTS.
    Lead/reviewer 710 33101 Reviewing Acceptance Agent applications.
    Clerk 720 33100 Batching Form 13551, maintaining control logs, mailing incomplete or rejected applications back to applicants, FPC processing and forwarding Forms 13551 to the ITIN Policy Section.
    Lead/reviewer 880 00000 Conducting an Embedded Quality Review and evaluation of an Acceptance Agent application processed by an assistor.

3.21.264.4.1  (08-20-2012)
Form 13551, Application to Participate in the IRS Acceptance Agent Program

  1. Form 13551, Application to Participate in the IRS Acceptance Agent Program, is used to request entry into the IRS Acceptance Agent Program. The type of information requested includes a history of the applicant authorized to assist an individual in the preparation and submission of Form W-7, Application for IRS Individual Taxpayer Identification Number, the nature of the business and primary and alternate contacts.

  2. The Austin e-help Desk Tax Examiner must review each line of Form 13551 for completion. All line items must be completed and are required unless otherwise indicated.

  3. The following table describes the items on Form 13551, Application to Participate in the IRS Acceptance Agent Program and whether the item is required by the applicant.

    Line# Item Required Optional Description
      Type of Acceptance Agent X   Applicant checks application boxes as New, Renewal or Amended and checks box for Acceptance Agent or Certifying Acceptance Agent.

    • For New, Renewal or Amended boxes, see IRM 3.21.264.4.2, Processing Acceptance Agent Applications, to verify the type of application being submitted. Circle the incorrect entry and indicate correct type in red ink.

    • If neither the Acceptance Agent & Certifying Acceptance Agent are selected, check the Certified Acceptance Agent check box with red ink. If both are selected, circle the Acceptance Agent box in red ink and process as a Certified Acceptance Agent application.

    1 Description of Applicant's Professional Status and Organizational Status X   Area is split: one for professional status, one for organization. Check one box in each area.
    2 Legal Name of Business and Name and PTIN of Principal Partner or Owner X   Legal Name of Business must match legal name on IDRS Master File. If neither the legal name or DBA name matches the legal name in IDRS, return the application using the incomplete application letter. Indicate in the letter that it does not match IRS records. Do Not enter application in RTS since the EIN may be incorrect. If the Line 2 reflects the entity's DBA name, draw an arrow down to Line 11 and update Line 2 with the entity's legal name from the IRS master file using red ink.
    Name (required) and PTIN (optional) of Principal, Partner or Owner. If the Principal, Partner or Owner is also listed as an Authorized Representative, research IDRS (RPVUE) using their TIN. If a PTIN is reflected on Line 2 but it is not valid, circle the number in red ink. If a PTIN is found, annotate it on Line 2 in red ink.
    3 Electronic Filing Identification Number (EFIN)   X To be associated with an authorized e-file provider, EFIN should be entered. Research any EFIN listing in TPDS. EFIN must be in an active status and the application completed. Annotate the application's completion date in red above the EFIN. For any EFIN listed on Form 13551, if the EIN in Line 4 does not match the EIN in TPDS, circle the EFIN in Line 3 in red ink. Do not enter the EFIN in RTS.
    4 Applicant's Employer Identification Number (EIN) X   Must match information on IDRS Master File
    5 Name and E-mail of Authorized Representative. X (name) X (e-mail) Name (required) and E-mail (optional) of the person authorized to sign application and agreement for applicant.

    Note:

    If applicant's name was omitted from Line 5, but the application is from a sole proprietor and Line 2 reflects their name and Lines 6-10 pertains to that individual, annotate their name in red ink on Line 5 if that is the only error on the application.

    6 Date of Birth X   Pertains to Authorized Representative from Line 5 in MM/DD/YYYY format. Age must be 18 as of date of application.
    7 SSN/ITIN X   Pertains to Authorized representative from Line 5. Foreign nationals without an SSN/ITIN can enter N/A.

    • If Line 7 reflects an ITIN but the authorized representative resides in the U.S. (Line 8), reject the application using Letter 4958, Individual Suitability Failure (Individual) and/or Letter 4959, Individual Suitability Failure (Owner).

    • If Line 7 reflects an ITIN but the authorized representative resides outside of the U.S. (Line 8), highlight the ITIN in yellow high lighter.

    Note:

    If SSN/ITIN does not match IRS records, research IDRS or other system/documents such as the e-file application in TPDS or an attached FPC for the correct number. If it appears numbers were transposed and the name and DOB for the researched TIN matches the Authorized Representative, correct the TIN in red and continue to process the application. If unable to identify the correct TIN, return the application for correction.

    8 Home Address X   Complete address of person from Line 5
    9 Citizenship X   Legal Status of Authorized Representative from Line 5. U.S. Resident Aliens must attach copy of Authorized Representative's "green card" . Non-Resident Alien Authorized Representatives must attach copy of their visa only if their home address reflects they are residing in the U.S. or if the business location on Line 12 reflects a U.S. address. Use IDRS CC DDBOL to verify status.
    If citizenship status on Line 9 does not match IDRS or if IDRS reflects codes "C" , "D" , "E" or "F" , notify the applicant and appropriate Authorized Representative that their citizenship has not been establish.

    Note:

    Do not return application if the citizenship code on IDRS is blank or missing
    10 Assessed Penalties/Fingerprint Requirements. X   If the "yes" box is checked, the Authorized Representative must attach an explanation. FPC are also required regardless of their professional status.
    If Authorized Representative is an attorney, CPA or Enrolled Agent, they may submit evidence of current professional status in lieu of a fingerprint card (FPC).
    For CPA or Attorney, professional status must be an unexpired license/certificate issued by a U.S. State's Board of Accountancy or Bar Association (or equivalent).
    Financial Institutions, colleges or universities qualifying as an educational organization under Treasury Regulations 1.501(c)(3)-1(d)(3)(i), casinos, Federal government agencies and Electronic Return Originators (ERO) in good standing with the IRS are exempt. All other individuals must provide a completed FPC.
    11 Company "Doing Business As" (DBA) name X   If different from the business legal name on line 2
    12 Applicant Business Address X   Business physical location address (no P.O. Box).
    13 Applicant's Telephone Number X   Business telephone (required), fax number and E-mail address (optional), alternate contact number (optional if different than Line 5).
    14 Applicant Mailing Address X   Required only if different from business location address. If blank, duplicate information from Line 12.
    15 Year Round Tax Related Services X   Required if business is not open 12 months a year. Applicant must provide a statement if tax related services is not provided year round.
    15a Anticipated Volume of Form W-7 X   Volume must be greater than zero ("0" ) for Forms W-7 they anticipate processing during a 12 month calendar period. Entries such as "Unknown" , "As many as possible " , etc. are not acceptable.
    16 Primary Contact X   Required only if different from the Authorized Representative listed in Line 5.
    17 Alternate Contact   X Enter only if different from Line 5; person must be authorized to contact IRS.
    18 Identify Programs X   Types of customers for whom Form W-7 Applications will be submitted
    19 Published List Check Box.   X Allows applicant to be listed on the IRS web site.
    20 Name and title of Authorized Representative (listed in Item 5) and Name and title of Principal Partner or Owner (listed in Item 2). X   For Authorized Representatives: If applicant is both the Authorized Representative and owner of the business only one entry is required.

    Note:

    If title is missing but can be determined, annotate in red ink. Example: If Authorized Representative is an Attorney, enter "Attorney" as their title.


    For principal, partner or owner: If an EFIN is listed in Line 3, the owner's name must be the Principal associated with the EFIN. If the Principal's name in Line 20 is not listed as the Principal for the EFIN in TPDS, circle the EFIN in Line 3 and continue to process the application. Do not enter the EFIN in RTS. Notate on the Profile Sheet that the Principal on the Form 13551 is not reflected as Principal in TPDS. For all others, it must be an individual authorized to legally bind the business indicated by the EIN in Line 4. Exhibit 3.21.264-33 reflects a partial list of acceptable titles for a principal, partner or owner. If the application reflects another title, contact the individual listed on the Form 13551 and verify they have the authority to legally bind the entity. If not, return application for an appropriate signature using Letter 4963, Incomplete Application Letter; see Exhibit 3.21.264-10.
    21 Signature of Authorized Representative, and Signature of Principal, Partner or Owner X   Must agree with the names in Line 20. Do not accept faxed, copied or stamped signatures. If the Authorized Representative is also the owner, only one signature is required.
    22 Date X   Signature date.

  4. Form 13551 Continuation Sheet is for Additional Authorized Representative(s) and contains space for four Additional Representatives.

    • If submitted separately for existing approved agreements (i.e., as an amended application but without Page 1), both Pages 3 and 4 are required. Principal, Partner or Owner must sign Page 4.

    • For new or renewal applications, if Page 1 is signed by the Principal, Partner or Owner, Page 3 may be submitted without Page 4.

    Note:

    For existing approved Acceptance Agreements, Pages 3 and 4 may be submitted without Page 1.

    Line # Item Required Optional Description
      Legal Name of Business X   Same as Page 1, Line 2 (and Line 11, if applicable)
      Business EFIN   X Same as Page 1, Line 3
      Business EIN X   Same as Page 1, Line 4
      Business Location Address X   Same as Page 1, Line 12
      Professional Status of Authorized Representative X   Same as Page 1, Line 1
    5 Name and E-mail of Authorized Representative X   Same as Page 1, Line 5
    6 Date of Birth X   Same as Page 1, Line 6
    7 SSN/TIN X   Same as Page 1, Line 7
    8 Home Address X   Same as Page 1, Line 8
    9 Citizenship X   Same as Page 1, Line 9
    10 Assessed Penalties/Fingerprint Requirements X   Same as Page 1, Line 10
    13 Business Telephone and Fax Number X   Same as Page 1, Line 13
    14 Mailing Address of Business X   Same as Page 1, Line 14
      Name and Title of Authorized Representative X   Must agree with entry in Line 5
      Signature of Authorized Representative X   Must agree with name in Line 5
      Date X   Signature Date
    16 Name and Contact Information for Primary and Alternate Contact   X Complete only if Contacts for the location are not already listed as the Contacts on Page 1, Line 16
      Name and Title of Principal, Partner or Owner X   Same as Page 1, Line 20
      Signature of Principal, Partner or Owner X   Same as Page 1, Line 21

3.21.264.4.1.1  (08-20-2012)
Additional Application Documents

  1. In addition to the Form 13551, applications must include the following documents:

    1. Attorney, CPA or Enrolled Agent (EA) must submit proof of their professional status. Documentation includes a copy of an unexpired license issued by a State Bar Association, State Board of Accountancy or Enrolled Agent card issued by the IRS is required.

    2. All other applicants must submit a properly completed fingerprint card (FPC).

      Exception:

      The following do not have to submit a FPC: a principal or responsible official listed on an existing active e-file application, representatives from a VITA/TCE partner, representatives of an educational institution, casino, federal government agency or financial institution.

      Note:

      A positive (“yes”) response to Item 10 (assessed penalties/criminal convictions) requires submission of a FPC regardless of professional status or organization affiliation.

    3. Green card (also known as a United States Permanent Resident Card): if the applicant indicated in Item 9 (U.S. citizenship) that they were an U.S. Resident Alien, they must attach an unexpired copy of their green card. A Green card is also required if the Authorized Representative indicated they are a U.S. citizen but IDRS (CC DDBOL) does not reflect a code "A" . See IRM 3.21.264.4.1.9.

    4. Visa: if the applicant is a foreign national with a business location or mailing address (Items 12 or 14, respectively) in the United States, they must attach a copy of their Visa.

    5. Training Certification Statement Exhibit 3.21.264-1, ITIN Acceptance Agent Training Certificate Statement. Effective May 1, 2010, all applicants (including renewals) must complete the mandatory ITIN Acceptance Agent training on the IRS web site and attach a signed copy of the certification statement.

      Note:

      A training certification statement is available online at the end of the ITIN Acceptance Agent Training Power Point at the www.IRS.gov home page. To access the training, use the search feature in the upper right corner of the www.IRS.gov home page. Enter "How to become an Acceptance Agent," , click "Search," and find the link to the ITIN Acceptance Agent Training Power Point. Each authorized representative must sign and attach a training statement.

      Exception:

      The IPS approved an exception for applications from an H & R Block corporate-affiliated company allowing them to send in a cover letter stating all the people listed on a spreadsheet accompanying the application had completed the required mandatory training. This exception does not apply to H & R Block franchises.

    6. Explanation statement if "Yes" box was checked on Line 10 (indicating assessment of a preparer penalty, conviction of a crime, etc.).

    7. Explanation statement if "No" box was checked on Line 15 indicating business was not opened year-round.

3.21.264.4.1.2  (08-20-2012)
Incomplete Applications

  1. Applications received must contain a complete Form 13551 and documentation indicated in Form 13551, Application to Participate in the IRS Acceptance Agent Program. See IRM 3.21.264.4.1. Applications with an incomplete Form 13551 or missing required documentation will be returned to the applicant using Letter 4963, Incomplete Application Letter. See Exhibit 3.21.264-10, Incomplete Application Letter.

  2. It is essential to identify all incomplete/missing items initially. Except as indicated below, applications will not be returned a second time for any additional items not identified on the initial letter. If subsequent processing identifies an incomplete/missing item, process the application but notate the omission on the Profile Sheet. The IPS will contact the applicant for the missing information.

    1. If the application was initially returned for a missing or invalid EIN, it will be rejected if there is a tax compliance failure on the EIN listed on the resubmitted application. Use Letter 4961, Business Tax Compliance Failure (Owner)to notify the owner of the rejection. See Exhibit 3.21.264-13.

    2. If the EIN passes the business tax compliance check but the application only reflects one Authorized Representative and they fail their suitability checks (including their tax compliance check), the application will be rejected. Use Letter 4958, Individual Suitability Failure (Individual) see Exhibit 3.21.264-17 or Letter 4959, Individual Suitability Failure (Owner), see Exhibit 3.21.264-16 (as appropriate) to notify the owner and/or Authorized Representative that failed the suitability check.

      Note:

      If Authorized Representative is also the owner, only Letter 4959, Individual Suitability Failure (Owner) is required.

    3. If the EIN passes the business tax compliance check and the application reflects multiple Authorized Representatives, at least one of who passes their suitability checks, accept the application and process it for the accepted Representative. Use Letter 4959 to notify the business owner. Use Letter 4958 to notify each representative that failed their suitability check.

  3. If the applicant is an attorney, CPA, EA or ERO and:

    1. If Item 18 is the only missing entry, enter "tax preparation" in Item 18 in red ink, or

    2. If proof of professional status was not attached, attempt to obtain a copy/verify status. For an attorney, research the applicant’s State Bar Association’s web site. For a CPA, research the State’s Board of Accountancy’s web site. For an EA, call the Office of Professional Responsibility at 1-202-927-3397.

    Note:

    If additional items are incomplete/missing, do not annotate Item 18 but include it as an incomplete item requiring a response from the applicant. If professional status cannot be verified, application will also be returned as incomplete.

  4. Except for the envelope the application was received in, all original documents (including FPC) received with the application will be returned to the applicant. If FPC are needed, include 2 blank cards with the appropriate instructions for each applicant requiring a background investigation check.

  5. The e-help Desk clerk will return all documents in the application folder with the incomplete letter. Assistors will not include any IDRS screen shots, IAT results, copy of the EFIN’s Summary page or other documentation available only to the IRS.

  6. If the application contains a valid EIN, it will be entered in RTS: Comments must clearly identify the missing or incomplete information. Status of application will be "I2 – Incomplete/Invalid Application" .

    Note:

    Copies of the incomplete application and letter are no longer maintained by the e-help Desk. It is critical assistors enter accurate and complete Comments in RTS in the event the applicant or IPS calls about the status of the application.

  7. Except as indicated in paragraph 12 below, the assistor will put the folder with the incomplete letter and application in the designated basket.

  8. The e-help Desk clerks will daily logout the incomplete applications and mail them to the applicant. See IRM 3.21.264.4.2.1, Control of Applications.

  9. Incomplete applications may be reviewed by a Lead/designated assistor prior to dispatch for quality review purposes.

  10. The FPC for an Authorized Representative subject to a FBI background investigation must include the following: If missing, return the FPC as incomplete

    • Authorized Representative's name

    • Authorized Representative's date of birth

    • Authorized Representative's SSN/ITIN if a U.S. citizen or non-resident alien (Item 9, Form 13551)

    • Authorized Representative's sex

    • Signature of the Authorized Representative

    • Signature of the individual taking the fingerprints. If Authorized Representative signs the FPC as having taken their own fingerprints, reject the FPC.

    • Foreign Authorized Representatives will not be returned solely because they were not taken on a FD-258. If the FPC cannot be processed using the AEF system, it will be returned by the clerical staff.

      If the Authorized Representative's name or DOB is the only item missing on the FPC, compare the SSN/ITIN on the FPC with the information on the Form 13551 and on IDRS (CC INOLES). If the FPC can be positively associated with the Authorized Representative listed on the Form 13551, annotate the FPC with the missing name or DOB. (Only the name or DOB may be blank but not both. If both are missing, return the FPC as incomplete).

    .

  11. Whenever possible, suitability/tax compliance checks will also be conducted on the company and all Authorized Representatives listed on incomplete application. See IRM 3.21.264.4.3, Tax Compliance Checks. Letter returning the incomplete application will reflect any suitability issues. See IRM 3.21.26.4.4.6.1, Incomplete Application Letter.

    Note:

    Individual suitability issues will only be addressed to the Authorized Representative they pertain to. See IRM 3.21.264.4.6.8, Individual Suitability Failure(Individual).

  12. If an incomplete application is being returned:

    • and passes tax compliance/suitability checks, follow the procedures in IRM 3.21.264.4.5.2.

    • also reflects suitability failures, follow the procedures in IRM 3.21.264.4.5.3.

3.21.264.4.1.3  (08-08-2012)
Responses to Incomplete Application or Rejection Letter

  1. Response to an incomplete/missing information letter must be postmarked within 30 days of the date on the letter or by the end of the current open season window (whichever is later). Applications received after that date will be rejected and returned to the applicant. See the letter indicated in IRM 3.21.264.4.6.2, Failure to Respond Within 30 Days or Provide Missing Information.

  2. If the application is returned but still missing the requested information, the application will be rejected and returned to the applicant using letter indicated in IRM 3.21.264.4.6.2, Failure to Respond Within 30 Days or Provide Missing Information.

  3. If a response is received for an application previously rejected for other than a tax compliance issue, check the termination date specified in the rejection letter/reflected in RTS.

    Note:

    If expiration date has passed, process application as a “new” application. See IRM 3.21.264.4.2.4, New Application Processing. If expiration date has not passed, return the application. See IRM 3.21.264.4.6.9, Previous Rejection or Termination.

  4. If a response is received during the same open season year for an application previously returned as incomplete or rejected for a tax compliance issue, the issue(s) must be reflected in IDRS as having been resolved or the individual must provide proof of their resolution as follows:

    • If all situations that caused the initial rejection have been resolved, include appropriate comments in RTS and change the application's status from REJECTED to "P2" (passed). If FPC need to be processed, make a second RTS comment that the FPC was pulled and change the status to "I3" (pending FPC check).

    • If the application was previously rejected for missing returns and the applicant included copies of them, research IDRS to determine if they have been received.
      If reflected on IDRS, the copies can be classified, change the application's status from REJECTED to "P2" (passed) and process the application as required. Include a comment the missing returns have been processed. If the returns have not been processed, access the Austin Routing Guide athttp://au-drg.enterprise.irs.gov/ and transship the returns to the appropriate address. Include a comment in RTS that the missing returns were received and forwarded for processing. Change the application's status from REJECTED to "P2" (passed) and process the application as required.

    • If the application was previously rejected for missing returns and the applicant either includes a letter from the Business Specialty office or signs a letter stating that they were not liable for the returns, change the application's status from REJECTED to "P2" (passed) and process the application as required. Include a comment in RTS (and on the Profile Sheet) a letter was received and the applicant was not liable for the missing return(s) and include the letter/statement in the packet going to the IPS.

    • If the situation that caused the initial rejection has not been resolved, return the application using Letter 4956, Failure to Respond Within 30 Days or Provide Missing Information. See Exhibit 3.21.264-12 or (IRM 3.21.264.4.6.2, Failure to Respond Within 30 days or Provide Missing Information). Letter 4956 will reflect the application will not be reconsidered until the next open season. Include appropriate comments in RTS that a reply was received but the situation remains unresolved (indicate what the situation was) and the earliest open season date they can submit the application. Example: "Missing F1040 2010. Not eligible to resubmit until May 1, 2013" . Application status will remain REJECTED.

    Note:

    Do not reject the application if an entity or Authorized Representative had initially passed their tax compliance check but now has a filing requirement for a subsequent return or has incurred a new liability as a result of processing a subsequent return.

  5. If the application had previously been returned for a missing or invalid EIN (as indicated by a copy of the incomplete letter attached to the resubmitted application):

    • Conduct a business tax compliance check using the EIN on Line 4 as required by IRM 3.21.264.4.3.5.

    • Conduct an individual tax compliance check for all Authorized representative(s).

    • As an exception to IRM 3.21.264.4.1.2, Incomplete Applications, to returning an application a second time, reject the application as indicated in IRM 3.21.264.4.3.5, "Individual Tax Compliance Check" if the tax compliance checks now identify a suitability failure.

    • Record results of the tax compliance checks in RTS.

3.21.264.4.1.4  (02-28-2012)
Applications from VITA/TCE Partners

  1. Austin e-help Desk employees will receive AA applications from Volunteer Income Tax Assistors (VITA) and Tax Counselors for the Elderly (TCE) Partners. These applications should be processed immediately and annotated "VITA/TCE Partner" across the top for easy identification.

    Note:

    If Form 13551 is not properly annotated "VITA/TCE Partner" but the applicant checked the "Other" and entered "VITA Site" , process as a "VITA/TCE Partner" application. Once the application is received in the ITIN Policy Section (IPS), it is verified.

  2. These applications are exempt from the background check except when block 10 is marked "Yes" . All other application requirements are applicable unless otherwise noted in the guidelines outlined in the table below.

    If... Then...
    VITA/TCE Site list volunteers as authorized user of the EFIN, Accept application as valid.
    VITA/TCE Site has a separate EIN from the parent organization for which they are providing tax preparation services and the parent organization is applying with the EFIN of the VITA site, Accept application as valid.
    An EFIN is not present on the application, Complete normal processing, annotate the application and forward to the IPS.
    The EIN on Form 13551 does not match the EIN listed in TPDS for the EFIN, Print the information and attach to the application. It will be reviewed when the application is sent to the IPS.
    Item 18 is blank, Accept application as valid. Annotate in red "tax preparation" if missing.

  3. Attach the cover sheet at Exhibit 3.21.264-2, VITA/TCE Cover Sheet, to the front of the application folder to facilitate identification of these applications. Place the application folder in the left-most cubby on the appropriate passed/failed shelf to expedite processing.

  4. Applications from Low Income Tax Clinics (LITC) will not receive priority consideration/processing unless also designated as a VITA/TCE site.

3.21.264.4.1.5  (01-01-2013)
Applications Received Outside of Open Season Window

  1. New applications must be postmarked or received (whichever is earlier) during the open season window period of May 1st to August 31st.

  2. New applications received outside of the open season will be rejected. See IRM 3.21.264.4.6.3. Return to the applicant using Letter 4964, Application Received Outside of Open Season Window. See Exhibit 3.21.264-14, Application Received Outside of Open Season Window. Include in the letter any missing items or documents.

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. Tax compliance checks will not be performed on any application being returned for being outside of the open season window.

3.21.264.4.1.6  (08-20-2012)
Applications Received Outside of Renewal Window

  1. Renewal applications are application requests from applicants with a current Acceptance Agent agreement and will only be accepted during the open window of the year the current agreement expires.

  2. Agreements previously terminated or expired will be processed as a "new" application.

  3. Except as indicated in IRM 3.21.264.4.2.5, Renewal Application Processing, renewal applications received outside of the open season will be rejected and returned to the applicant using Letter 4965, Application Received Outside of Renewal Window. See Exhibit 3.21.264-15, Application Received Outside of Renewal Window. Include in the letter any missing items or documents.

  4. Renewal applications received outside of the renewal period will not be input into RTS. However, a comment will be entered in RTS for the existing approved record reflecting that the renewal application was received prior to the renewal period and returned.

  5. Tax compliance checks will not be performed on any application being returned for being outside of the renewal period window.

3.21.264.4.1.7  (08-08-2012)
Applications with Multiple Representatives

  1. Organizations must submit Form 13551 Continuation Sheet for each individual authorized representative when more than one employee is authorized.

  2. If one authorized representative passes their individual tax compliance check (see IRM 3.21.264.4.3.2 , Individual Tax Compliance Check), but another representative fails:

    • Include a comment in RTS indicating the individual who failed their tax compliance check and the reason why. Do not include them in the "Authorized Representative of the Business" block in RTS. Process the application with only the information for the individual(s) that passed.

    • Notify the representative who failed their tax compliance. See Exhibit 3.21.264-17, Individual Suitability Failure (Individual). If appropriate, send a letter to the business owner to notify them a representative on their application did not pass their suitability check. See Exhibit 3.21.264-16, Individual Suitability Failure (Owner).

    Note:

    Do not include the specific reason(s) or the name of the authorized representative that failed their suitability check in the letter sent to the business owner.

3.21.264.4.1.8  (08-08-2012)
Revocation

  1. The Andover e-help Desk monthly provides a listing of Electronic Return Originators (EROs) that have had their electronic filing privileges terminated.

  2. ) Using the RTS, a Lead or designated assistor will review the spreadsheet to determine if any of the terminated EROs were also ITIN Acceptance Agents and take the following action:

    • If a match is found, create a Profile Sheet. Indicate "Revocation" on the Profile Sheet and attach supporting documentation. Forward the revocation package to the IPS for action.

    • If no match is found, treat the information as classified waste.

3.21.264.4.1.9  (08-08-2012)
Citizenship Processing

  1. Assistors will use IDRS Command Code DDBOL to verify the citizenship status.

    • If IDRS reflects any of the following codes, application should be rejected using Letter 4959, Individual Suitability Failure (Owner)to the owner indicating their representative did not pass the suitability check but do not indicate the specific reason. Additionally, send Letter 4958, Individual Suitability Failure (individual)to the authorized representative indicating their citizenship status does not match IRS records and request they provide proof of their legal status.

      Note:

      If the citizenship mismatch is for an authorized representative who is also the principal/partner/owner that signed the application and they are the only authorized representative listed on the Form 13551, return the application as incomplete using Letter 4963.

      Code Reason
      C Alien not allowed to work
      D Not an American citizen, legal alien or alien not allowed to work
      E Alien Student
      F Condition - legal alien

    • If applicant indicates on the Form 13551 they are a U.S. citizen, then IDRS must reflect code "A" (American Citizen). If IDRS reflects code "B" (Legal Alien), return the application using Letter 4958 and Letter 4959.

    • Do not return an application if the citizenship code on IDRS is blank.

  2. Include a copy of the DDBOL screen for each authorized representative as part of a Passed or Rejected application packet (see IRM 3.21.264.4.5.2 or IRM 3.21.264.4.5.3).

3.21.264.4.2  (01-01-2013)
Processing Acceptance Agent Applications

  1. Attached as Exhibit 3.21.264-3 is a chart showing ITIN AA application processing.

  2. The goal for assistors is to process all within two weeks of assignment.

  3. Use the following table to determine how to process an Acceptance Agent application. Correct the Type of Acceptance Agent on the Form 13551 in red ink if necessary.

    If... And... Then... IRM Reference
    the EIN does not exist in RTS   process the application as "new" see IRM 3.21.264.4.2.4
    the EIN is in RTS the status is "I2 - Incomplete/Invalid Application" for either a new or renewal record finish processing the incomplete application as appropriate  
    RTS reflects the current agreement as SUSPENDED, REJECTED or TERMINATED the date eligible to reapply has expired process the application as "new" see IRM 3.21.264.4.2.4
    the date eligible to reapply has not expired reject the application see IRM 3.21.264.4.6.9 and IRM 3.21.264.4.5.3
           
    RTS reflects the current agreement as APPROVED the agreement expires at the end of the current year process the application as a "renewal" see IRM 3.21.264.4.2.5
    RTS reflects the current agreement as APPROVED but the agreement does not expire at the end of current year the Form 13551 reflects different information than RTS process the application as "amended" see IRM 3.21.264.4.2.6
    there is no change in information reject application if Form 13551 is marked as a "renewal" otherwise call Primary Contact list in RTS for clarification see IRM 3.21.264.4.1.6
           

3.21.264.4.2.1  (01-01-2011)
Control of Applications

  1. Forms 13551 will be controlled from receipt in the e-help Desk until forwarded to the ITIN Policy Section.

3.21.264.4.2.1.1  (02-28-2012)
Receipt of Applications

  1. On a daily basis upon receipt of ITIN AA applications, the e-help Desk clerk will:

    • Date stamp when the Form 13551 was received by the Austin e-help Desk.

    • Group five applications together for processing by an ITIN AA-trained assistor.

      Exception:

      Whenever possible, multiple applications from the same EIN will be grouped together regardless of the number. To ensure timely processing, group any remaining applications on the last day of a work week together regardless of quantity.


    • Using the Batch Control process, assign a unique batch number to each group of applications.

  2. The clerk will annotate the batch number in red ink in the lower right corner of each Form 13551 in the group.

  3. A Batch Control Sheet for ITIN Acceptance Agent Applications will be completed with the date and number of applications in the bundle. The cover sheet will be annotated with the assistor assigned to process the applications.

  4. The clerk will put the Form 13551 and all incoming documentation (including the incoming envelope) in a folder. The EIN listed in Item 4 of the Form 13551 will be annotated on a label and attached to the right-most position of the file folder.

    • If Item 4 is blank, annotate the label with the applicant’s TIN from Item 7 of the Form 13551. If Item 7 is blank or reflects a PTIN, annotate the label with the business name from Item 7.

    • Annotate the label with the batch number vertically on the right side.

  5. A batch will be assigned to each ITIN AA-trained assistor as directed by a Lead or Manager. A batch will not be assigned to an assistor projected to be absent for more than one day.

  6. All Form 13551 will be controlled using an ITIN AA Tracking Excel spreadsheet. The spreadsheet (located in the O-drive > Shortcut to Batch > ITIN AA Apps > Tracking folder) will contain:

    • Date Form 13551 received in the e-help Desk Unit

    • Batch Control Number

    • EIN (if listed in Item 4)

    • Business name (from Item 2)

    • TIN of applicant (Item 7)

    • Name of applicant (Item 5). If application contains multiple applicants, annotate the last name of each applicant

    • SEID of assistor assigned to work the bundle

    • Disposition status (returned as incomplete, rejected, forwarded to IPS)

    • Date of disposition status.

    • A remarks column (used to record pertinent comments if necessary).

  7. If the spreadsheet shows an ITIN AA application was previously received but is still being processed, the clerk will locate it, rubber band the application folders together, and attach a note on them indicating an additional application was received.

  8. After the applications have been controlled on the spreadsheet, the clerk will place the batch in the appropriate assistor’s cubby on the ITIN AA Work in Progress cart. If the cubby has other folders, the next batch will be put on the right side of the cubby to ensure applications are worked in the order received.

3.21.264.4.2.1.2  (08-20-2012)
Dispatching Applications

  1. When an application is either returned to the applicant or forwarded to the IPS, the e-help Desk clerk will update the ITIN AA Tracking spreadsheet with the date and reason. Reason for closing the case will be:

    • "P" for applications being forwarded to the IPS for further processing.

    • "F" for applications returned to an applicant because of a tax compliance failure or failure to provide missing information.

    • "I" for applications returned to the applicant for additional information or documentation

    • "A" for amended applications modifying existing approved applications which require RTS update restricted to the ITIN Policy Section (IPS).

  2. Incomplete applications and rejected applications will be mailed daily.

  3. Applications being passed or amended and copies of rejected applications will be forwarded to the IPS anytime there are at least 24 packets in the IPS basket. Regardless of the number, applications will be forwarded to the IPS on the last work day each week.

  4. On the day the applications are sent to the IPS, the e-help Desk clerk or designated assistor will update new and the renewal applications in RTS:

    • Toggle the check box to indicate application was sent to the IPS.

    • Date transmitted to IPS. Use the same date shown on the Form 3210 (Document Transmittal) in the paragraph (7) below.

  5. Applications will be mailed to the IPS at the following address:

    Internal Revenue Service
    Attention: Sharon Bradley
    Mail Stop 97-WI
    401 West Peachtree St. NW
    Atlanta, GA 30308

  6. Prepare Form 3210 listing the applications in EIN sequence. Copy 4 will be temporarily filed in a binder on the ITIN AA cart. Copy 1 and 3 will accompany the application. Copy 2 will be classified. See Exhibit 3.21.264-6, Form 3210, Document Transmittal.

  7. Package applications to prevent damage and send by ground delivery. Applications will be double wrapped as required for shipping packages containing SBU and sensitive PII documents. Complete Form 9814 (Express Services Routing), have a manager sign, and tape to the outside of the package. Annotate in the top margin of the form "Request Tracking #" . Date the Form 9814 the same as the date on Form 3210. See Exhibit 3.21.264-7. Form 9814, Express Services Routing.

  8. File the copy of Form 9814 returned from the mail room with the tracking information with the associated Form 3210 in the binder.

  9. When the signed Form 3210 copy 3 reflecting receipt by the IPS is received, replace the matching copy 4 in the binder. Copy 4 will be classified.

3.21.264.4.2.1.3  (08-20-2012)
Transfer of Assignment

  1. If an assistor is not available to process an application previously assigned to them or to maintain workflow, a Lead/Manager will notify the e-help Desk clerk to re-assign the application to another assistor. The e-help Desk clerk will update the SEID on the EPSS Batch Control System and on the ITIN AA Tracking spreadsheet.

3.21.264.4.2.1.4  (06-13-2012)
Releasing Batch Control

  1. The batch Control Sheet reflects five boxes - one for each application in the bundle. If the bundle contains more than five applications, add additional boxes to the cover sheet as necessary.

  2. Prior to release, the assistor will update the boxes on the Batch Control Sheet if an application contains either:

    • More than one Authorized Representative

    • More than one business location

      Note:

      Do not annotate the cover sheet for an application that has only one Authorized Representative at one location or if it is an amended application that only reflects miscellaneous changes (see IRM 3.21.264.4.2.6.3, Miscellaneous Changes).

  3. When an assistor has completed processing all applications in a batch, they will initial and date the Batch Control Sheet and put it in a designated basket.

  4. Daily, the e-help Desk clerk will update the Batch Control system to reflect the ITIN Acceptance Agent applications have been processed, removing them from the workload inventory.

3.21.264.4.2.2  (06-13-2012)
ITIN Acceptance Agent Carts

  1. The Work in Progress cart has individual bins (referred to as "cubbies" ) for each ITIN AA-trained assistor. The cubby will hold all applications assigned to an assistor for action. Putting the applications in the following sequence ensures the assistor works the oldest applications assigned to them first.

    • New application bundles will be added to a cubby to the right.

    • Applications the assistor is working on will be put to the left.

    • Any applications returned by a Lead for correction during the review process will be put to the far left side of the cubby.

    • Assistors will pull applications from their respective cubby from the left to the right.

    • At the end of their tour of duty, any applications in a bundle still needing processing will be returned to the assistor’s cubby. No applications are to remain on an assistor’s desk overnight.

  2. Place applications processed by assistor in the review cart as shown below:

    • Returned applications (only if missing information or incomplete) go in the appropriately marked basket

    • Amended applications that do not require action by the e-help Desk go in the basket labeled for the IPS.

    • "Passed" status applications (passed tax compliance checks) go on the “Passed” shelf in ascending bundle number sequence indicated on the folder’s label.

      Exception:

      Applications whose representative’s FPC must be processed will be put towards the far left of the shelf regardless of their bundle number.


    • If a "Passed" application contains a Finger Print Card (FPC) that requires processing, a Lead will place it in the FPC basket once they have reviewed it.

    • Incomplete applications that passed the compliance checks will also be put on the "Passed" shelf in ascending bundle number sequence regardless whether the applicant requires a background investigation.

    • Failed applications (failed either the business or individual tax compliance check) and incomplete applications reflecting a tax compliance failure go on the "Rejected" shelf in ascending bundle number sequence as indicated on the folder’s label.

    • Applications with representatives whose FPC were pulled and are still pending results will be filed by the FPC processing clerk on the bottom shelf in the designated area in EIN sequence. Once all results are received, the application will be pulled, the FPC tracking spreadsheet and RTS updated with the results and put in the basket for the IPS.

3.21.264.4.2.3  (08-20-2012)
RTS Comments

  1. Except for applications with missing a or an invalid EIN or submitted outside of the open season window, enter comments in the ITIN Real Time System (RTS) to show receipt of an application and actions taken. This includes:

    • Amended applications (even if the application did not change or add a new location or add a new representative).

    • Rejected applications submitted outside the renewal period.

    • New applications received from an applicant previously suspended or terminated by the IPS and the eligibility date to reapply has not expired. Comment will be made to the rejected record that another application was received but returned because the eligibility date had not expired.

    • Applications previously returned for missing information or suitability failure and the information was not provided or the issue was not resolved. Comment will be made to the existing incomplete/rejected record that the application was resubmitted and what item(s) indicated on the previous letter were not addressed/resolved.

    • Applications previously returned as incomplete or rejected and the response was not postmarked/received within 30 days of the notification letter or August 31st, of the current open season window (whichever is later). Indicate in the comment the postmark date on the envelope or date subsequently received (whichever is earlier).

  2. Limit comments for new applications to 100 characters. Limit comments for renewal applications to 89 characters.

  3. Comments must be complete and easily understood by anyone reviewing them as copies of applications are not maintained by the e-help Desk (including incomplete or rejected applications). Do not use abbreviations or acronyms unfamiliar to other IRS employees. Exhibit 3.21.264-34 indicates a list of abbreviations to be used when making comments in RTS.

  4. If Line 2 of the Form 13551 reflects a Preparer Tax Identification Number (PTIN), enter the individual's name and PTIN in RTS as a comment. Example: "John Doe, PTIN P00000000" .

  5. Include the name of the Authorized Representative for any suitability issue entered in RTS. Example: "John Doe MR F1040 2010" or "John Doe citizenship mismatch" .

  6. When entering tax modules as comments in RTS, indicate the problem, the tax module form and tax period in that sequence.

  7. For the issue that caused the failure, enter:

    • "MF" if a return has not been filed and should have been

    • "BALDUE" for an unaddressed liability

    • "BALDUE-defaulted IA" for a defaulted installment agreement

  8. for the tax module for, enter an "F" followed by the form number.

  9. For the tax period for quarterly returns, enter:

    • "03" for the 1st quarter

    • "06" for the 2nd quarter

    • "09" for the 3rd quarter

    • "12" for the 4th quarter

    Note:

    Do not enter a month for annual tax modules such as Forms 940, 1040, 944, 1065 or 1120.

  10. If a missing module spans more than one period:

    • if the missing modules are consecutive, use "to" between the first and last missing module.

      Example:

      Missing F941 200803 to 200912

    • If the missing modules are not consecutive, separate the missing periods with a comma ("," ) and use an ampersand ("&" ) before the last period.

      Example:

      Missing F941 200803 to 200809, 200903 & 200912

  11. If different types of returns are missing, separate the types with a semicolon (";" ) in ascending form number.

    Example:

    Missing F940 2008 to 2009; F941 200808 to 200812; BALDUE F1065 2010

  12. If comment exceeds the 89/100 character limit, enter comments separately in a logical manner (i.e., all Form 941 issues in one comment, all Form 1040 issues in another, etc.).

    Note:

    Do not enter single "'" or double quotation marks when entering comments in RTS

  13. Include a copy of the Comments screen as part of a Passed or Rejected application packet (see IRM 3.21.264.4.5.2 or IRM 3.21.264.4.5.3 respectively).

3.21.264.4.2.4  (07-06-2012)
New Application Processing

  1. New applications are accepted only during the open window of May 1st – August 31st. Applications received outside of the window will be returned to the applicant. See IRM 3.21.264.4.1.5, Applications Received Outside of Open Season Window.

  2. Applications previously returned as incomplete or rejected for a tax compliance issue must be resubmitted and postmarked within 30 days of the date of the letter or by the end of the year's open season window (August 31st), whichever is later.

  3. Check RTS to ensure the application status is new and not amended or renewal prior to processing.

  4. Use IDRS CC INOLES to verify the EIN against the legal name listed on Item 2 of the Form 13551. If the EIN is not found, research IDRS CC ENMOD to determine if the EIN was recently established. If a dummy module appears, make a copy of the screen and include in the application packet in lieu of the INOLES printout.

  5. For complete applications, make the following entries in red ink:.

    • Legal name in Item 2 to match entity’s legal name on IDRS.

    • If Item 2 reflects the business as "DBA" , draw an arrow to Item 11 and enter the legal name in Item 2.

    • If Item 3 reflects a valid/active EFIN, annotate the e-file application’s completion date as shown on the Summary Page in TPDS

    • Except for the EIN and authorized representative’s personal information, circle incorrect items and/or make corrections as required (e.g., "new”" application that is really a "renewal" ).

      Note:

      Do not make any annotations if Form 13551 is being returned.

3.21.264.4.2.5  (08-08-2012)
Renewal Application Processing

  1. Renewal applications are application requests from applicants with a current acceptance agent agreement. Agreements previously terminated or expired are processed as a new application.

  2. Renewal applications are only accepted during the open window (May 1st – August 31st) of the year the current agreement expires.

  3. For renewal applications received during their authorized renewal window:

    • Process the application as received

    • Review application for completeness. See IRM 3.21.264.4.1, Form 13551, Application to Participate in the IRS Acceptance Agent Program and IRM 3.21.264.4.1.1, Additional Application Documents. Letter 4963 (Exhibit 3.21.264-10) is used to return an application that is incomplete or missing information.

    • Conduct a business tax compliance check and an individual tax compliance check for all Authorized Representatives listed on the renewal application. See IRM 3.21.264.4.3, Tax Compliance Checks.

    • Conduct a background investigation check. See IRM 3.21.264.4.4, Background Investigation Checks.

  4. If submitted out of season:

    1. Check RTS to see if renewal application reflects new data. If it does, contact the applicant or Primary Contact to determine if it should be processed as an amended application for changes. See IRM 3.21.264.4.2.6 Amended Application Processing. If they agree, check the "Amended" box and circle the "Renewal" box in red.

    2. If there are no RTS differences:

    • Return applications received outside of the window to the applicant. See IRM 3.21.264.4.1.6, Applications Received Outside of Renewal Period.

    • Enter a comment on the existing RTS entry that a renewal application was received but returned to the applicant because their current agreement has not expired.

      Note:

      The Reason for Change is "OTHER"

3.21.264.4.2.6  (01-01-2011)
Amended Application Processing

  1. Accept and process amended applications year-round.

  2. Call the Primary Contact on the current approved RTS entry for clarification as needed. Examples include asking if applicant is being added or replacing an existing applicant, or if the location is being added or replacing the existing location.

3.21.264.4.2.6.1  (02-28-2012)
Changing or Adding New Location

  1. If the Primary Contact states the amended application is only to change the existing agreement’s location, do NOT make any changes to RTS. Enter a comment that an amended application changing the existing location was received and prepare a Profile Sheet. Notate the Profile Sheet with the same comment and put the Form 13551 in the basket to IPS (no review required).

    • If the AMENDED application is to add a new location and the Authorized Representative is reflected on the existing (Approved) application, include a comment that NNNNNNNNNNN (name of Authorized Representative(s) already passed the tax compliance check for XXXXXXXXXX (EFIN or office location code of the approved application).

    • If the AMENDED application is to add a new location and the Authorized Representative is NOT reflected on any existing (Approved) application for that EIN, include their name and appropriate incomplete/pass/fail/comment. If passed and their FPC needs to be processed, include another comment to that effect.

    .

  2. If amended application is only to add a new location, input new location into RTS and create a Profile Sheet. No tax compliance checks are required if new location does not reflect any new applicants. Annotate Profile Sheet that the amended application adds a new location and put the Form 13551 in basket to IPS (no review required).

3.21.264.4.2.6.2  (08-20-2012)
Adding New Authorized Representative

  1. If the amended application only adds a new authorized representative, conduct an IMF tax compliance check only.

    • If "FAILED" , return application using Letter 4958, Individual Suitability Failure (Individual) and Letter 4959, Individual Suitability Failure (Owner).

    • If "PASSED" , do NOT make any RTS entries. Annotate Profile Sheet that new applicant needs to added to RTS.

  2. A Profile Sheet annotated with results of tax compliance check, recommendation and signature of assistor will be prepared and put on the appropriate shelf on the ITIN AA cart.

  3. Although no change is made to the application in RTS, add a Comment reflecting an amended application was received adding an additional Authorized Representative, the name of the new representative and whether they passed or failed their individual tax compliance check. If their FPC need to be processed, include another comment to that effect.

3.21.264.4.2.6.3  (08-20-2012)
Miscellaneous Changes

  1. Amended applications that do not add a location or representative are miscellaneous changes (i.e., change of representative’s home address). Enter a Comment in RTS (Reason for Change is "Other" ) and indicate what item(s) is being changed. Do NOT update the current/approved agreement in RTS. For example: If the business phone # is changed, simply add a comment such as "Amended application received, changing business phone #" .

  2. Prepare a Profile Sheet and notate it with the item(s) being changed. Put the application in the IPS basket (no review required).


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