21.3.9 Processing Reporting Agents File Authorizations

Manual Transmittal

August 25, 2017

Purpose

(1) This transmits revised IRM 21.3.9, Taxpayer Contacts, Processing Reporting Agents File Authorizations.

Material Changes

(1) This IRM was revised to reflect the following changes:

SUBSECTION CHANGE
IRM 21.3.9 Editorial changes made throughout.
IRM 21.3.9.1 Complete revision to this section and all underlying subsections to add required Internal Controls information. Existing content revised, updated, and placed within the new subsection structure as appropriate.
IRM 21.3.9.2.4 Deleted (6) and moved that content to other paragraphs in the section as appropriate. Revised content throughout for clarity and correctness.
IRM 21.3.9.4 Deleted (2) and (3); content of those paragraphs moved to bullet list in (1). Revised content throughout for clarity and correctness.
IRM 21.3.9.5 Deleted (2), (3), and (6); content of those paragraphs reorganized, primarily as notes to (1). Revised content for clarity and completeness.
IRM 21.3.9.7(2) Revised content for clarity.
IRM 21.3.9.9.3(1) Added EO Entity Status 25 to list of Form 940 exempt organizations.
IRM 21.3.9.10(8) Added reference to Document 12990 relative to retention period for processed Forms 8655.
IRM 21.3.9.11 Reformatted content into an If/Then table.
IRM 21.3.9.12 Revised title and reformatted content into a step list.
IRM 21.3.9.13 Reformatted content into a step list.
IRM 21.3.9.14 Revised content for clarity.
IRM 21.3.9.14.1 Reformatted content into a step list and clarified handling.
IRM 21.3.9.14.2(3) Reformatted content into a step list and clarified handling.
IRM 21.3.9.14.3(1) Revised content for clarity.
IRM 21.3.9.14.4 Added clarification to indicate no RAF Function action is required for the listing discussed.
IRM 21.3.9.17 Revised title slightly for number agreement and clarified text.
IRM 21.3.9.18 Revised title and text to indicate content is limited to RAF operations.
IRM 21.3.9.18.1 Deleted (5) and (6); former content of those paragraphs has been incorporated into the step list found in (4).
IRM 21.3.9.18.2 Reformatted content into a step list.

Effect on Other Documents

IRM dated August 22, 2016 (effective October 1, 2016) is superseded.

Audience

The primary users of this IRM are Small Business/Self-Employed (SB/SE) and Wage and Investment (W&I) Customer Account Services employees.

Effective Date

(10-01-2017)

Kevin M. Morehead
Director, Accounts Management
Wage and Investment Division

Program Scope and Objectives

  1. This section contains information on processing Form 8655, Reporting Agent Authorization to the Reporting Agents File (RAF).

  2. Purpose: To provide procedures for processing Form 8655 Authorizations to the RAF dabatase.

  3. Audience: The primary users of this IRM are Tax Examination Technicians located at the Ogden Accounts Management Campus (OAMC) who are tasked with processing Form 8655 Authorizations to the RAF database.

  4. Policy Owner: Director, Accounts Management

  5. Program Owner: Process and Program Management (PPM) Business Adjustments, Accounts Management, Wage and Investment (W&I)

  6. Primary Stakeholders: Wage and Investment (W&I), Small Business Self Employed (SBSE), and Large Business and International (LB&I)

  7. Program Goals: Program goals for this type of work are included in the Accounts Management Program Letter as well as IRM 1.4.16, Resource Guide for Managers - Accounts Management Guide for Managers.

Background

  1. Form 8655, Reporting Agent Authorization, is used to authorize a designated agent to assist an employer in making required tax deposits and tax information filings to federal, state, and local governments. The Form 8655 allows a Reporting Agent (RA) to exercise the authorities listed below on behalf of their clients:

    1. File and sign certain tax returns electronically, or on paper where authorized and electronic filing is not supported.

    2. Make Federal Tax Deposits (FTDs) and submit FTD information electronically.

    3. Receive duplicate copies of official notices, correspondence, transcripts or other information with respect to the electronic returns filed by the agent.

      Note:

      After consideration by the Taxpayer Communications Task group (TACT), an administrative decision was made to stop sending Reporting Agents inserts with their copy of taxpayer notices effective July 15, 2009.

    4. Receive duplicate copies of official notices, correspondence, transcripts, filing frequency information or other information with respect to the FTDs submitted electronically by the agent.

      Note:

      Upon request, a RA is entitled to receive transcripts of accounts for tax periods in which the RA filed the return electronically. The RA is also entitled to request and receive a transcript reflecting tax deposits/payments submitted electronically by the RA. Transcripts are required to be sanitized, per IRM 21.2.3.6., Sanitizing IDRS Transcripts.

      Reminder:

      Reporting Agents are not entitled to receive transcripts for tax periods for which they were not authorized to act as the Reporting Agent for the taxpayer.

    5. Provide information, as an "other third party" , to assist the IRS in deciding whether or not reasonable cause exists for penalty abatement when related to a filing or payment made electronically by the RA. Under these circumstances, the RA can be advised as to whether or not the penalty will be abated at the time the determination is made. Form 8655, Reporting Agent Authorization, does not authorize the RA to request penalty abatement on behalf of the taxpayer, argue the facts or appeal a denied request without Form 2848, Power of Attorney and Declaration of Representative. The determination can be conveyed over the telephone to the RA named in the authorization because, once made, the determination to abate or charge the penalty becomes part of the return information.

  2. Reporting Agents File (RAF) authorizations, additions, deletions, and/or corrections are processed in the Ogden Accounts Management Campus. Any employee with Integrated Data Retrieval System (IDRS) access has the ability to research the RAF, but only RAF employees can add, delete or update the RAF. All Forms 8655 are mailed to:
    Internal Revenue Service
    Ogden Accounts Management Campus
    MS 6748 RAF Team
    1973 N Rulon White Blvd.
    Ogden, Utah 84404

  3. The Restructuring and Reform Act of 1998, Section 3705, provides identification requirements for all IRS employees working tax related matters:

    • IRS employees are required to give their title, last name, and identification/badge number during taxpayer telephone, face-to-face, and written contact.

    • In addition, a telephone number is required on all taxpayer correspondence.

    • Correspondex letters require a specific employee name and telephone number only if the employee initiating the correspondence is in the best position to respond to any questions the taxpayer may have about the correspondence, or the employee is asking the taxpayer to provide additional case-related information.

    • If the taxpayer does not need to contact a specific employee, then the correspondence needs only an IRS telephone number and standard signature.

Authority

  1. The authority for receipt and processing of Form 8655, Reporting Agent Authorization by Accounts Management is primarily provided for in Treasury Regulations Section 31.6011(a)-7 and Section 31.6061-1, as described in Rev. Proc. 2012-32.

Roles and Responsibilities

  1. IRM 1.1.13.9.4, Accounts Management, provides various guidance for Accounts Management employees including the following:

    • Data Management and Reports

    • Planning and Analysis

    • Joint Operations Center Representative

    • Process and Program Management (BMF)

    • Project management Office and Support

    • Electronic Services and Programs

    • Policies, Procedures and Guidance

    • Chief Accessibility Coordinator

    • Field Directors, Accounts Management

  2. IRM 21.1.1, Accounts Management and Compliance Services Overview, provides guidance to employees assigned to the Accounts Management organization.

Program Management and Review

  1. IRM 1.4.16, Accounts Management Guide for Managers, provides guidance for program management and review of programs assigned to Account Management.

Program Controls

  1. FY 2017 Program Letter, Measures and Operating Guidelines

  2. IRM 21.10.1, Embedded Quality (EQ) Program for Accounts Management, Campus Compliance, Field Assistance, Tax Exempt/Government Entities, Return Integrity and Compliance Services (RICS) and Electronic Products and Services Support

Terms/Definitions/Acronyms

  1. The ReferenceNet Legal and Tax Research Service page provides an Acronym Database to research acronyms found within this IRM.

Related Resources

  1. IRM 21.2.2-2, Accounts Management Mandated IAT Tools

General Information

  1. This section provides a description and general information about the Reporting Agents File.

Reporting Agents File (RAF)

  1. The Reporting Agent File (RAF) is a database that contains:

    • Reporting Agent records

    • Taxpayer/Client records

  2. The RAF is researched by Reporting Agent Employer Identification Number (EIN) to determine whether or not a Reporting Agent is on the RAF.

  3. The RAF is researched by taxpayer EIN to determine:

    • Reporting Agent authorized by the taxpayer

    • Sequence Number of the RAF record

    • Applicable tax forms and/or payments authorized by the taxpayer

    • Beginning period for each tax form and/or payment authorized

    • Date current authorization was established on RAF

    • Authorization for Reporting Agent to receive notices

Reporting Agents, Batch Filers and Bulk Filers

  1. Reporting Agents (RAs) are companies, not individuals, who perform payroll services for other businesses (taxpayers/clients).

  2. In connection with these payroll services, RAs may file their client's employment tax returns electronically.

  3. RAs, Batch Filers and Bulk Filers may make Electronic FTDs for their clients. These FTDs are submitted through the Electronic Federal Tax Payment System (EFTPS).

    • A Batch Filer submits multiple EFTPS files at one time using a personal computer or telephone.

    • A Bulk Filer uses Electronic Data Interchange (EDI) to transmit EFTPS payments.

Related IRMs

  1. The following IRMs are used in conjunction with this section:

    • IRM 3.13.2, BMF Account Numbers

    • IRM 3.13.222, BMF Entity Unpostable Correction Procedures

    • IRM 2.3.16, Command Code RFINK and RAFRQ

    • IRM 2.4.40, Command Codes RFRTM, RFADD, RFUPT, RFRMA, AFADT, AFUPT, and RFMRG

Application for Approval

  1. RAs who want to file their client's tax returns electronically must formally apply to the IRS for this privilege. These RAs must follow guidelines in Rev. Proc. 2012-32 or Rev. Proc. 2007-40 (whichever is appropriate) or subsequent revisions.

    Note:

    Technical specifications for filing RA Authorization information can be found in Publication 1474, Technical Specifications Guide For Reporting Agent Authorization and Federal Tax Depositors.

  2. RAs and EFTPS filers who desire to make electronic FTDs for their clients must follow guidelines in Rev. Proc. 2012-34 or subsequent revisions.

  3. RAs/Filers send their applications to the appropriate Accounts Management Campus per the Revenue Procedures.

  4. As part of the application process, RAs/Filers must:

    • Attach a list of all clients/taxpayers for whom they will file returns. This list is called a Reporting Agent's List (RAL).

    • Attach a completed Form 8655 (both signed and dated) for each client/taxpayer on the RAL.

    Note:

    An example of a RAL can be found in Exhibit 2 of Publication 1474.

    Caution:

    RALs must list accounts in EIN order. Accompanying Forms 8655 must also be sorted in EIN order.

  5. RAs filing more than 100 Form 8655 Authorizations per week must submit their RAL as an electronic file through Secure Data Transfer (SDT) instead of on paper. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    RAs/Filers follow procedures in Publication 1474, Technical Specifications Guide For Reporting Agent Authorization and Federal Tax Depositors, to format their electronic files submitted through SDT.

  6. The RAF is a file of all authorized RAs, Batch Filers and Bulk Filers and their authorized clients. When the RA/Filer is approved for electronic filing of tax returns and/or FTDs, an account must be established on the RAF for the RA/Filer. Take the following steps to add a RA/Filer to the RAF:

    1. Research Master File to verify the RA's Employer Identification Number (EIN), name, and address.

    2. Research the RAF using Command Code (CC) RFINK with definer "R" to verify whether the RA is already on the RAF.

    3. If the RA is not on the RAF and the Form 8655 requests the electronic filing of Form 941, Employer's QUARTERLY Federal Tax Return, Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, and/or Form 944, Employer's ANNUAL Federal Tax Return, send the appropriate letter to the RA asking for the missing information.

    4. After verification steps are complete, use CC AFADT to add the EIN, name, and address of the RA/Filer to the RAF.

      Note:

      CC AFUPT is used to update information on the RAF for previously established RAs.

  7. Mergers/Take Overs/Buy Outs – When Reporting Agents are involved in a merger, take over, or buy out, forward copies of the purchase or acquisition documents to the Ogden RAF Function. The RAF function will examine the documentation and, on an as needed basis, will forward it to Counsel for advice. Since these acquisitions can be complex, determinations on the need for submission of new Forms 8655 for existing clients are made on a case by case basis.

    Note:

    Pending a final response, it is recommended the Reporting Agent begin to obtain new Forms 8655 for clients.

  8. The following guidance must be followed if the client is unable to sign Form 8655:

    If Then
    The taxpayer is mentally incompetent and unable to sign Form 8655. Form 8655 must be signed by a court-appointed representative who can act for the taxpayer. A copy of the court-appointed representation or valid Form 2848, Power of Attorney and Declaration of Representative, must be attached to the Form 8655.
    The taxpayer is mentally competent but physically unable to sign the Form 8655 (or Form 2848). A valid signature that is defined under state law and clearly indicates the taxpayer's intent to sign is acceptable.

    Example:

    The taxpayer's "X" with the signatures of two witnesses may be considered a valid signature under a state's law.

Processing Timeliness

  1. Within 30 days of receiving a formal application, (e.g., Form 8655), the Accounts Management Campus will return a validated Reporting Agent's List to the Reporting Agent, if one is provided per Publication 1474.

  2. The IRS will generally validate and return ADD Listings to the Reporting Agent within 10 business days of receipt.

  3. Error Listings are returned to the Reporting Agent within 30 days of receipt.

Authorizations - Form 8655, Reporting Agent Authorization

  1. Taxpayers may designate a RA/Filer to sign and file federal employment tax returns electronically.

  2. Taxpayers may designate a RA/Filer to make FTD payments electronically.

  3. Taxpayers may authorize a RA/Filer to receive copies of notices, correspondence, transcripts, filing frequencies, and deposit requirements with respect to the returns and/or payments filed by the RA/Filer. (When this authorization is given, the taxpayer is also authorizing the RA/Filer to discuss otherwise confidential tax information.)

  4. Taxpayers may authorize a RA/Filer to obtain information pertaining to Form W-2 series and Form 1099 series information returns (including related civil penalties), as well as Form 3921, Exercise of an Incentive Stock Option Under Section 422(b), and Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c).

    Note:

    The authority for the Form W-2 series is limited to years 2004 and subsequent. The authority for the Form 1099 series is limited to years 2006 and subsequent. The authority for Form 3921 and Form 3922 is limited to years 2010 and subsequent.

    Note:

    When a taxpayer gives authorization to a RA/Filer, the taxpayer is authorizing the company (not an individual) to file and sign their returns, make FTD payments and to receive otherwise confidential tax information.

  5. Form 8655, Reporting Agent Authorization, is used by the taxpayer to provide this authorization to a RA/Filer.

    • IDRS letters/notices are sent to the RA/Filer when the Notice Indicator "Y" is present on the RAF.

    • The taxpayer authorizes the RA/Filer to receive letters, notices, etc., by checking the appropriate box on Form 8655.

    • Once input to the RAF, either manually or via processing of an electronic file submitted through SDT, the notice indicator "Y" is shown on Command Code RFINK as "NOTICE<Y" .

    • An extra copy of any notice generated on the authorized accounts is systemically sent to the RA/Filer.

    • If the notice indicator is "N" , then the RA/Filer is still authorized to discuss the returns and/or payments which were authorized on Form 8655 (and which appear on RFINK). However, letters, notices, or correspondence are not systemically issued to the RA/Filer.

      Note:

      Form 8655 does not authorize the RA/Filer to represent the taxpayer in matters concerning "reasonable cause" for abatement of penalties. However, the RA may provide IRS information as a third party to assist IRS in the determination of whether or not "reasonable cause" exists for penalty abatement.

  6. The receipt of a new Form 8655 does not revoke the prior reporting agent's authorization. The prior authorization will remain in effect for all periods from the beginning period through the ending period. It also does not revoke Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization, on the Centralized Authorization File (CAF).

  7. A RAF authorization starts with the "Beginning Period" indicated on Form 8655 and remains in effect through the end date. The tax period that appears on CC RFINK represents the "Beginning Period."

  8. Form 8655 does not authorize a RA/Filer to request a change of address for the client/taxpayer. Change of address requests must be submitted by the taxpayer/client (generally on Form 8822-B, Change of Address or Responsible Party - Business). See IRM 3.13.2.3.6, Change of Address, for additional information.

  9. Form 8655 may be used to validate/verify one of the taxpayer entity items (name, address, or EIN) if two of the three items are known. For example, if the Reporting Agent wants the EIN verified, they must verify the name and address. The information can be shared with the Reporting Agent verbally, in writing with an appropriate C letter, or via fax.

  10. Form 8655 can be obtained at www.irs.gov.

    Note:

    RAs/Filers must use Form 8655, Reporting Agent Authorization, with a revision date of May 2005 or later or an approved substitute. All prior versions are obsolete.

Review of Form 8655, Reporting Agent Authorization

  1. If a paper Form 8655, Reporting Agent Authorization, is received with a revision date prior to May 2005, return the form to the RA/Filer using the appropriate letter and advise they are using an obsolete version of the form. Notify the RA/Filer that Form 8655 is available from the IRS website at www.irs.gov.

  2. Review each Form 8655 filed on paper for completeness. Verify the following are present:

    1. Clear identification of the taxpayer. Review the name, address, and employer identification number (EIN). The presence and accuracy for two of these three elements is sufficient if the missing or incomplete item can be perfected.

    2. Reporting Agent name, EIN, and complete address. If the RA is established on the RAF and changes have been made to his mailing address, phone number, and/or fax number, the RAF must be updated.

      Note:

      Special requests made by Reporting Agents will be reflected in the comments field on CC RFINKR.

      Example:

      Reporting Agent has requested not to update fax, phone or address per Form 8655.

    3. Line 15, Authorization of Reporting Agent to Sign and File Returns, must be completed by the RA as follows:
      Annual tax returns- Enter the beginning year in "YYYY" format.

      Note:

      When Form 944 authorizations are added to the RAF, programming automatically adds the same authority for Form 941.


      Quarterly tax returns- Enter the beginning quarter in "MM/YYYY" format, where "MM" is the ending month of the quarter the named reporting agent is authorized to sign and file tax returns for the taxpayer. This information will be input with input dates on RAF with the ending of the quarter 3, 6, 9, and 12. If the RA has input a date in this field, input the quarter which contains this date. If a specific date cannot be identified, use the taxpayer's signature date to determine the starting quarter.

      Note:

      When Form 941 authorizations are added to the RAF, programming automatically adds the authority for Form 944 with beginning year in "YYYY" format.

    4. Line 16, Authorization of Reporting Agent to Make Deposits and Payments, must be completed by the RA as follows:
      Use "MM/YYYY" format to enter the starting date, where "MM" is the first month the named reporting agent is authorized to make deposits or payments for the taxpayer. If a specific date cannot be identified, use the taxpayer's signature date to determine the starting month.

      Exception:

      Forms 8655 submitted through SDT may contain dates as mentioned above. However, when inputting manually using the IAT tool, this information will be input on RAF with the ending of the quarter 3, 6, 9, 12 which contains the starting month.

      Note:

      When Form 941 authorizations are added to the RAF, programming automatically adds the same authority for Form 944.

      Example:

      Form 8655 Line 16 shows the Reporting Agent is authorized to begin making deposits/payments for Form 944 as of 7/2016. Form 944 is an annual return and IAT programming defaults to the annual ending date. The RAF will show 201612 for deposits/payments.

    5. Line 17, Disclosure of Information to Reporting Agents consists of the following:
      Line 17a (Disclosure Field)- No input necessary. Beginning in 2007, RAF programming was changed to automatically record disclosure authority for the RA even if line 17a is not marked by the client.
      Line 17b (Notice Indicator)- Input to RAF when the box is checked to authorize the RA to receive copies of notices from the IRS.

    6. Items 18a (Form W-2 series), 18b (Form 1099 series) and/or 18c (Form 3921 and Form 3922) are not "mandatory" fields for the RA/Filer. However, if there is an entry for lines 18a, 18b, and/or 18c, this information must be input on the RAF.

      Note:

      The authority for the Form W-2 series is limited to years 2004 and subsequent. The authority for the Form 1099 series is limited to years 2006 and subsequent. The authority for Form 3921 and Form 3922 is limited to years 2010 and subsequent.

    7. The taxpayer's signature and date

      Reminder:

      Electronic signatures are acceptable. See IRM 21.3.9.3.3, Electronic Signature on Form 8655, for more information.

      Note:

      The date of the signature must be within 1 year from current date.

  3. If Form 8655 is not complete, return the form to the RA/Filer using the appropriate letter requesting the missing information.

Non-IRS Form 8655, Reporting Agent Authorization

  1. Rev. Proc. 2012-32 states "An authorization may be submitted on Form 8655, Reporting Agent Authorization, with a revision date of May 2005 or later or on an approved substitute form."

  2. Reporting Agents must seek approval in accordance with Publication 1167, General Rules and Specifications for Substitute Forms and Schedules, prior to making use of a substitute Form 8655.

  3. If approved for use, the Reporting Agent is provided with an approval code which must be printed in the lower left margin of each substitute Form 8655 filed with the IRS. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Electronic Signature on Form 8655

  1. Section 01.03 of Publication 1474, Technical Specification Guide for Reporting Agent Authorization and Federal Tax Depositors, describes the approved electronic signature (e-Signature) methods for Form 8655.

  2. Because e-Signature methods have been published in Publication 1474, any Reporting Agent that implements the exact process described in Publication 1474 can submit electronically signed Forms 8655 to the IRS without prior approval.

  3. Reporting Agents who adopt an approved e-Signature method as described in Section 01.03 of Publication 1474 are required to follow all other requirements for Authorizations, including but not limited to submitting paper copies of Authorizations to the Internal Revenue Service and retaining a copy or reproducible image of each completed, original Form 8655 as discussed in Section 03.01 of Publication 1474. However, RAs who adopt an approved e-Signature method as described in Section 01.03 of Publication 1474 and who are required to file Reporting Agent’s Lists electronically (exceeds the 100 per week submission threshold described in Section 01.05 of Publication 1474 and in Rev. Proc. 2012-32 (2012-34 I.R.B. 267)) will not be required to submit copies of such Authorizations when submitting the Reporting Agent’s List.

RAF Filing Indicators and RAF EFTPS Indicators

  1. Taxpayer account records on Master File contain RAF filing indicators and RAF EFTPS indicators on Master File. These indicators:

    • Show which tax forms and/or types of FTD payments for which a taxpayer has authorized a RA/Filer to act on their behalf.

    • Are used by Master File programs to trigger issuance of appropriate duplicate notices and letters to authorized RA/Filers (and for other purposes).

    Caution:

    Detailed information about a Reporting Agent’s relationship with a taxpayer (such as the identity of the Reporting Agent, the time frames for which they were authorized, etc.) are found in the RAF rather than Master File and is researched via CC RFINK with the appropriate definer code. See IRM 21.3.9.6, RAF Command Codes.

  2. RAF Filing Indicators and RAF EFTPS Indicators are shown on IDRS in two different locations: CC ENMOD and BMFOLE.

  3. CC ENMOD shows this information in a sixteen-digit field titled RAF-INDS. Each digit represents the tax forms (position 1-7) and payments (position 8-16) as shown in the tables below for which the RA has authorization.

    RAF Filing Indicators
    Position Indicator Value Value Meanings
    1 940 0 or 1 0 — No Authorization on file
    1 — Authorization is on file
    2 941 0 or 1
    3 943 0 or 1
    4 944 0 or 1
    5 945 0 or 1
    6 CT-1 0 or 1
    7 1042 0 or 1
    RAF EFTPS Indicators
    Position Indicator Value Value Meanings
    8 940 0 or 1 0 — No Authorization on file
    1 — Authorization is on file
    9 941 0 or 1
    10 943 0 or 1
    11 944 0 or 1
    12 945 0 or 1
    13 CT-1 0 or 1
    14 720 0 or 1
    15 1042 0 or 1
    16 CORP* (1041, 1120, 990/C/T/PF) 0 or 1
  4. Command Code BMFOLE reflects the same data described above but it is found under two headings and is displayed in a different format:

    • "RAF FILING INDS" :— Each form for which filing authority can be granted is listed and followed by a one-digit field. The field values are 0 to indicate no authorization on file and 1 to indicate an authorization is on file.

    • "RAF EFTPS INDS" : — Each form for which EFTPS payment authority can be granted is listed and followed by a one-digit field. The field values are 0 to indicate no authorization on file and 1 to indicate an authorization is on file.

Transaction Codes

  1. A Transaction Code (TC) 960 is set at Master File (entity) when a taxpayer account is added to the RAF, or if there is a change in authorities granted. The posting of the TC 960 establishes and/or updates the RAF Filing Indicators and EFTPS Indicators on the taxpayer's account discussed in IRM 21.3.9.4, RAF Filing Indicators and RAF EFTPS Indicators.

    Note:

    The RAF TC 960 is reflected on CC BMFOLE but not on CC ENMOD.

    Caution:

    A TC 960 is not posted to Masterfile when a taxpayer changes Reporting Agents if the new Reporting Agent has the same filing/payment authorities as the previous Reporting Agent since this would not result in a change to the RAF Filing Indicators or EFTPS Indicators. Such changes are reflected solely in the RAF database.

  2. A TC 961 is generated when an account is removed from the RAF. This transaction turns off the RAF Filing Indicators and EFTPS Indicators by updating all field values to zeros. A TC 961 is only generated when a taxpayer’s relationship with a Reporting Agent ends and is not being replaced with another Reporting Agent.

  3. It takes at least two cycles for the RAF Filing Indicators and EFTPS Indicators to be set at Master File by the RAF input. If the RAF input does not pass through Master File validation, or if the Filing Requirements and EFTPS Indicators mismatch, then the RAF TC 960 unposts. See IRM 21.3.9.15, RAF Unpostables, for a list of common RAF unpostables.

  4. A programming problem was discovered and corrected in April of 2016. For an indeterminate period of time, certain TC 960 transactions were not systemically posted to Masterfile. Although Masterfile dropped the TC 960 transactions in the situations discovered, the RAF indicators for the impacted cases were in fact correctly set. Accordingly, there is no taxpayer or Reporting Agent impact arising from these missing transaction codes and no recovery effort is therefore anticipated. However, it should be kept in mind that the RAF must be researched as appropriate via Command Code RFINK anytime RAF Filing Indicators or EFTPS Indicators are present even if a TC 960 is not posted to BMFOLE.

RAF Command Codes

  1. Refer to IRM 2.3.16, Command Codes RFINK and RAFRQ, for information concerning Command Code RFINK.

  2. Refer to IRM 2.4.40, Command Codes RFRTM, RFADD, RFUPT, RFRMA, AFADT, AFUPT, and RFMRG, for information concerning these command codes.

  3. CC RFINK is used to research the RAF history.

    • CC RFINK without a definer is used to research taxpayer account history.

    • CC RFINK with definer "R" is used to research Reporting Agent accounts.

    • CC RFINK with definer "L" is used to research taxpayer accounts for specific tax modules, payment modules, Form 1099, Form 3921, Form 3922, Form W-2, and disclosure fields for a particular RA.

  4. CC RFRTM is used to request the format for RFADD and RFUPT. This command code must be preceded by CC RFINK.

    • CC RFRTM without a definer brings up the format for RFADDM or RFADDT, depending on which accounts RFINK found on the RAF file.

    • CC RFRTM with definer "T" brings up the format for RFUPT.

  5. CC RFADD is used to add or modify authorization information on the RAF. This command code must be preceded by CC RFRTM.

    • CC RFADD with definer "M" is used to delete, add, revoke, or end date additional modules to taxpayer information already on the RAF.

    • CC RFADD with definer "T" is used to add new taxpayer information to the RAF. This information appears on the screen immediately after real-time input.

  6. CC RFUPT is used to update taxpayer information on the RAF. This command code must be preceded with CC RFRTM.

  7. CC RFRMA is used to request the format for AFADT and AFUPT. This command code must be preceded with CC RFINK(R).

    • CC RFRMA with definer "T" brings up the format AFADT.

    • CC RFRMA with definer "M" brings up the format for AFUPT.

  8. CC AFADT is used to add Reporting Agent information to RAF.

  9. CC AFUPT is used to modify Reporting Agent information on RAF.

Reporting Agent's Lists (Electronic File Submitted Via SDT)

  1. The Reporting Agents File (RAF) Function is responsible for:

    • Validating the RA/Filers client's taxpayer's EIN, name control and filing requirements.

    • Inputting appropriate information to the RAF.

    • Updating information already on the RAF.

    • Deleting information from the RAF.

  2. The RA/Filer submits an electronic file through SDT. This file is the electronic equivalent to a Reporting Agent’s List (RAL) and also contains the authorization data from their clients' Forms 8655. This file is processed through various RAF computer runs.

    • The computer runs will first check the RA/Filer has formatted the electronic file according to instructions in Publication 1474. If the file is not formatted correctly, the RAF run aborts and output is not generated. If the electronic file does not run successfully, the responsible IT employee will contact the Reporting Agent and request a replacement file.

    • Forms 8655 which are associated with the original electronic file which could not be processed are held until the replacement electronic file is received. Once the replacement electronic file is received and processed, process the Forms 8655.

  3. RAF26 is the computer run that prompts validations of EIN, name control and filing requirements before systemically adding the taxpayer's account to the RAF.

    • Taxpayer accounts that are validated and added to the RAF print out on an ADD Listing (RAF9645I).

    • Taxpayer accounts that cannot be validated are added to the RAF by the system and print out on an ERROR Listing (RAF9642I).

  4. RAF26 validation is performed as follows:

    RAF 26 Validation
    If And Then
    EIN is not found on National Accounts Profile (NAP)

    Note:

    EIN will appear on an ERROR Listing

    The account is added to RAF systemically
    EIN is on NAP

    Note:

    Input name is validated by the system with the primary name (not primary continuation name).

    The input name control matches primary name control NAP provides a primary name and the program moves on to validate the filing requirements
    EIN is on NAP

    Note:

    Input name is validated by the system with the primary name (not primary continuation name).

    The name control does not match primary name control the account is not added to RAF. An error indicator is set and the account appears on an ERROR Listing
    EIN is on NAP The Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, indicator in the RA's electronic file is set to "yes" Form 940 filing requirement (FR) is validated by the system, added to the RAF and appears on an ADD listing.

    Exception:

    An error indicator is set for the following accounts when:
    the FR is 88 or
    the Entity Employment Code is G, T, W, F or C or
    the EO Entity Status is 01-19 and the EO Subsection Code is 03, 50, 60, or 70.

    EIN is on NAP The Form 941, Employer's QUARTERLY Federal Tax Return, indicator in the RA's electronic file is set to "yes" Form 941 FR is validated by the system, added to the RAF and appears on an ADD listing.

    Exception:

    An error indictor is set when the FR is 06, 09, 10, 13, 14 or 88.

  5. An ERROR Listing is created for the following conditions:

    • EINs not on the NAP

    • EINs with an input name that does not match the NAP primary name. The NAP primary name prints out on the ERROR Listing.

    • EINs for which the RA has requested to file Form 940 and the Employment Code, EO Entity Status or Subsection Code are not valid with a 940 filing requirement.

    • EINs for which the RA has requested to file Form 941 and the Form 941 filing requirements are not compatible.

  6. After the NAP validation is completed, the system performs the following processes:

    If And Then
    An error indicator was not set The account is established on RAF No action is necessary by the RAF Function to update the RAF.
    An error indicator was set The account is not established on RAF The RAF Function performs research to validate these accounts. After research, the RAF Function uses CC RFADD to establish these accounts to the RAF.

ADD Listings RAF9645I

  1. After a RA's electronic file is run through the RAF26 and RAF70 programs, the RAF Function:

    1. Associates Form 8655 with the ADD Listing.

    2. Removes the related accounts from RAF using CC RFADD with definer "M" for any Forms 8655 not received and annotates the ADD Listing "Form 8655 not received — Deleted from RAF."

    3. Removes the related accounts from RAF for any Form 8655 that is illegible and annotates the ADD Listing "Form 8655 illegible — Deleted from RAF" . Return the Form 8655 to the RA with the ADD Listing.

    4. Returns one copy of the ADD Listing to the RA when all Forms 8655 have been associated. Annotate the listing as needed for any accounts deleted from the RAF.

    5. Files one copy of the ADD Listing by date and RA name.

    6. Maintains a six-month file, destroying (per local procedures) the oldest listings on a monthly or weekly basis.

    7. Maintains file in the RAF area.

    Exception:

    Reporting Agents following the approved e-Signature methods for Form 8655 described in Section 01.03 of Publication 1474, Technical Specification Guide for Reporting Agent Authorization and Federal Tax Depositors, are not required to submit physical copies of forms when submitting their Reporting Agent's Lists if they are required to file Reporting Agent's Lists electronically. See IRM 21.3.9.3.3, Electronic Signature on Form 8655, for more information. Accordingly, the procedures in this subsection for the handling of physical forms (or regarding their absence) are waived for Authorizations submitted by reporting agents who are following an approved e-Signature method as described in Publication 1474 and are required to submit their Reporting Agent's Lists electronically.

  2. The formats for annotating the ADD Listing is shown in the table below:

    ADD Listing Annotations
    If Then
    Form 8655 is missing Form 8655 NOT RECEIVED — DELETED FROM RAF
    Form 8655 is illegible Form 8655 ILLEGIBLE — DELETED FROM RAF

ERROR Listings RAF9642I

  1. After a RA's electronic file is run through the RAF26 and RAF70 programs, the RAF Function:

    1. Associates Form 8655 with the ERROR Listing.

    2. Annotates the ERROR Listing, "Form 8655 not received — Not added to RAF" , for any Form 8655 not received.

    3. Annotates the ERROR Listing, "Form 8655 illegible — Not added to RAF for any Form 8655" that is illegible. If illegible, do not add to RAF and return the form to the RA with the ERROR Listing.

    4. Corrects obvious errors, such as: typographical errors in the name line, transposed figures in the EIN, misspelled words in the name line, and "Doing Business As" (DBA) names used instead of Sole Proprietor/Owner's name.

    5. Only edits corrections to the name line when it is entirely different from what is listed on the form.

      Note:

      The input data from the RA electronic files has already been input to RAF. If you are returning Form 8655, for any error condition, the information must be deleted off RAF.

    6. Returns any Form 8655, with a listing, to the RA for any error condition which cannot be resolved by correcting obvious errors or by following any other specific section in this IRM.

    7. Retains a copy of the electronic ERROR Listing once all Forms 8655 have been associated, all error conditions have been resolved, and all accounts have been added to the RAF.

    8. Files the electronic ERROR Listing by date and RA name.

    9. Maintains a six-month file, destroying (per local procedures) the oldest listings on a monthly or weekly basis.

    10. Maintains file in the RAF area.

    Exception:

    Reporting Agents following the approved e-Signature methods for Forms 8655 described in Section 01.03 of Publication 1474, Technical Specification Guide for Reporting Agent Authorization and Federal Tax Depositors, are not required to submit physical copies of Forms 8655 when submitting their Reporting Agent's Lists if they are required to file Reporting Agent's Lists electronically. See IRM 21.3.9.3.3, Electronic Signature on Form 8655, for more information. Accordingly, the procedures in this subsection for the handling of physical Forms 8655 (or regarding their absence) are waived for Authorizations submitted by reporting agents who are following an approved e-Signature method as described in Publication 1474 and are required to submit their Reporting Agent's Lists electronically.

  2. The formats for annotating the Error Listing is in shown in the table below:

    Error Listing Annotation
    If Then
    Form 8655 is missing FORM 8655 NOT RECEIVED — NOT ADDED TO RAF
    Form 8655 is illegible FORM 8655 ILLEGIBLE — NOT ADDED TO RAF
    EIN is not established on Master File EIN NOT FOUND —NOT ADDED TO RAF
    Name and EIN do not match Master File NAME AND EIN MISMATCH — NOT ADDED TO RAF
    A newer authorization is on RAF NEWER AUTHORIZATION ON FILE — NOT ADDED TO RAF
    The form has an unauthorized signature UNAUTHORIZED SIGNATURE — NOT ADDED TO RAF
    The form has missing tax periods NO BEGINNING PERIODS — NOT ADDED TO RAF
    The form is missing taxpayer's signature and/or signature dates MISSING SIGNATURE AND/OR DATE — NOT ADDED TO RAF

ERROR Listings "TIN Not Established on MF"

  1. To resolve the error message: "TIN Not Established on MF" , first research using the following command codes:

    • INOLE - used to determine if the EIN was merged

    • NAMEB/NAMEI/NAMEE - used to locate another number for the taxpayer

    • BMFOL - used to view additional entity information not on the INOLE display

  2. Follow procedures in the table below to resolve the error condition.

    TIN Not Established on MF
    If Then
    Another EIN is found Annotate the correct EIN on the Form 8655 and the RA's copy of the error listing. Add the authorization to RAF.
    Another EIN is not found Annotate the copy of the error listing "EIN not found — Not added to RAF" .
    EIN has merged to another EIN Annotate the correct EIN on the Form 8655 and the RA's copy of the error listing. Add the authorization to RAF.
    An SSN is used instead of an EIN Research for correct EIN. If found, follow procedures above. If EIN is not found, annotate the copy of the ERROR Listing "Not an EIN — Not added to RAF" .

    Exception:

    Reporting Agents following the approved e-Signature methods for Forms 8655 described in Section 01.03 of Publication 1474, Technical Specification Guide for Reporting Agent Authorization and Federal Tax Depositors, are not required to submit physical copies of forms when submitting their Reporting Agent's Lists if they are required to file Reporting Agent's Lists electronically. See IRM 21.3.9.3.3, Electronic Signature on Form 8655, for more information. Accordingly, the procedures in this subsection for the handling of physical forms (or regarding their absence) are waived for Authorizations submitted by reporting agents who are following an approved e-Signature method as described in Publication 1474 and are required to submit their Reporting Agent's Lists electronically.

ERROR Listings "Primary Name Mismatch at MF"

  1. The name on the RA's electronic file must match Master File (MF) exactly. The first 4 characters are checked. The account may appear on the ERROR Listing simply because spaces were added or omitted in the name line or because abbreviations were used. When the input name control does not match the primary name on MF, the account is not added to RAF.

  2. The ERROR Listing contains the name as input in the RA's electronic file, followed by the error message, Primary Name mismatch.

  3. The "correct name" as printed on the ERROR Listing is considered as the primary name for the taxpayer.

  4. Use the "correct name" on the ERROR Listing and/or the name and address on the Form 8655 to determine what research, if any, should be performed.

  5. Use instructions in IRM 21.3.9.9, ERROR Listings RAF9642I, and IRM 21.3.9.9.1, ERROR Listings "TIN Not Established on MF" , to resolve obvious errors.

  6. Follow procedures in the table below to resolve other errors.

    Primary Name Mismatch at MF
    If Then
    Name on Master File is incorrect Use CC BNCHG to make the correction. Annotate the ERROR Listing with Name Control. Hold Form 8655 until the entity change posts. After the entity change posts, use CC RFADD "T" to add the account to the RAF.
    It is determined the taxpayer on the ERROR Listing matches the taxpayer on MF Correct Form 8655 and annotate the correct name on the electronic error listing. Use CC RFADD "T" to add the account to the RAF.
    Unable to determine the taxpayer on the ERROR Listing and the taxpayer on MF are the same, or unable to find a correct EIN Annotate the electronic ERROR Listing "Name and EIN Mismatch — Not Added to RAF." Do not add the account to the RAF.

    Exception:

    Reporting Agents following the approved e-Signature methods for Forms 8655 described in Section 01.03 of Publication 1474, Technical Specification Guide for Reporting Agent Authorization and Federal Tax Depositors, are not required to submit physical copies of forms when submitting their Reporting Agent's Lists if they are required to file Reporting Agent's Lists electronically. See IRM 21.3.9.3.3, Electronic Signature on Form 8655, for more information. Accordingly, the procedures in this subsection for the handling of physical forms (or regarding their absence) are waived for Authorizations submitted by reporting agents who are following an approved e-Signature method as described in Publication 1474 and are required to submit their Reporting Agent's Lists electronically.

ERROR Listings — Form 940 issues

  1. If the Form 8655 indicates Form 940 and certain criteria exists on Master File, no indicators are posted to RAF. This occurs when the following conditions exists: Form 940 filing requirement is 88 or the Entity Employment Code is G, T, W, F or C and the Exempt Organization (EO) Entity Status is 01-19 and the EO Subsection Code is 03, 50, 60 or 70, or the EO Entity Status is 25.

  2. When this occurs, the EIN appears on the ERROR Listing.

  3. Follow the instructions in the table below to resolve this error.

    Error Listings - Form 940 Issues
    If Then
    ERROR listing indicates "940 FRC NOT VALID WITH EMPLOYMENT CODE" Remove 940 indicator from RAF and continue processing by posting TC 960 with CC RFRTMT.
    ERROR listing indicates "940 FRC NOT VALID WITH EO SUBSEC CD" Remove 940 indicator from RAF and continue processing by posting TC 960 with CC RFRTMT.

ERROR Listings "Newer Authorization on File"

  1. This error message ("Newer Authorization on File" ) indicates an authorization is already on file for a different Reporting Agent.

  2. Annotate on the RA's copy of the ERROR Listing "Newer authorization on file — Not added to RAF" .

  3. Do not input the account to RAF.

  4. Return Form 8655 to the RA with the listing.

    Exception:

    Reporting Agents following the approved e-Signature methods for Form 8655 described in Section 01.03 of Publication 1474, Technical Specification Guide for Reporting Agent Authorization and Federal Tax Depositors, are not required to submit physical copies of forms when submitting their Reporting Agent's Lists if they are required to file Reporting Agent's Lists electronically. See IRM 21.3.9.3.3, Electronic Signature on Form 8655, for more information. Accordingly, the procedures in this subsection for the handling of physical forms (or regarding their absence) are waived for Authorizations submitted by reporting agents who are following an approved e-Signature method as described in Publication 1474 and are required to submit their Reporting Agent's Lists electronically.

Reporting Agent's Lists (Paper)

  1. Paper Reporting Agent's Lists (RALs) and accompanying Forms 8655 must meet the following conditions:

    1. RAs/Filers must submit one copy of their RAL.

    2. RALs must be prepared in the format specified in Publication 1474, Technical Specification Guide For Reporting Agent Authorization and Federal Tax Depositors.

    3. RALs must list clients in EIN order.

    4. A Form 8655 must be attached for every EIN on the listing.

    5. Forms 8655 must be sorted in EIN order.

    6. Each Form 8655 must be complete as shown in IRM 21.3.9.3.1, Review of Form 8655, Reporting Agent Authorization.

    7. Information on each Form 8655 must be legible.

  2. If the Reporting Agent's List (RAL) does not meet all of the conditions above, then correspond with the RA/Filer for missing information, or return the RAL and Form(s) 8655 to the RA/Filer.

  3. Use CC RFADD with definer "T" to add the accounts (Tax Return Modules and Payment Modules) to the RAF. The system will validate the EIN, name control and filing requirements. Underline or edit the name control on the Reporting Agent's List.

    Note:

    Form 941 and Form 940 can be added to the RAF even if those filing requirements are not present on Masterfile. However, do not add other accounts to the RAF for which the taxpayer does not have a filing requirement. For example, if both Form 941 and Form 943 are marked on the Form 8655, but the taxpayer only has a Form 941 filing requirement, add the Form 941 to the RAF but not the Form 943 and annotate the Reporting Agent's List with the appropriate information.

  4. If you receive a terminal response error message:

    1. Refer to IRM 2.4.40, IDRS Terminal Input — Command Codes RFRTM, RFADD, RFUPT, RFRMA, AFADT, AFUPT, and RFMRG, to resolve input errors.

    2. Refer to IRM 21.3.9.9, ERROR Listings RAF9642I, to resolve obvious errors.

    3. Refer to IRM 3.13.2, BMF Account Numbers, and IRM 21.3.9.9 , ERROR Listings RAF9642I, to resolve EIN, name, filing requirement and/or Employment Code errors.

    4. Refer to IRM 21.3.9.2.4, Application for Approval, if the Reporting Agent is not on RAF.

    Note:

    Taxpayers can generally only have one income tax return recorded on the RAF for EFTPS payment purposes. For example, a Reporting Agent authorization cannot be recorded for both Form 1041 and Form 1120 for the same taxpayer because they cannot be liable for both of those tax returns. However, it is possible for a Form 990-PF filer (only) to also be required to file a Form 990-T. Current programming does not allow a Form 990-PF and Form 990-T authorization to be recorded on the RAF at the same time. Until the programming is corrected, add only the Form 990-PF to the RAF when Forms 8655 are received showing both Form 990-PF and Form 990-T authorizations.

  5. When a mismatch cannot be resolved, return Form 8655 to the RA and annotate the Reporting Agent's List with the appropriate information.

    Example:

    Name and EIN mismatch — Not Added to RAF.

    Example:

    Form 941 and Form 943 marked on Form 8655 but taxpayer does not have Form 943 filing requirement — Form 943 Not Added to RAF.

  6. Once all name controls are edited and all Forms 8655 are added to the RAF, return the edited copy of the Reporting Agent's List to the RA.

  7. Forms 8655 will be maintained in the RAF area until sent to Files. Once in Files, they are maintained for one year after the processing year and are then destroyed as per Item 346 in Document 12990, Records Control Schedules.

Change Agents (Account already on RAF)

  1. CC RFINK may indicate the taxpayer is already on the RAF with another RA. This indicates the account was not deleted from RAF when the taxpayer terminated with the previous RA and the previous RA may need to be replaced by updating to the present RA with new Beginning/Starting period dates. Take the following action:

    If Then
    The Beginning/Starting period dates on RFINK are older than the dates shown on the Form 8655
    1. Overlay CC RFINK with CC RFRTM to bring up RFADDM

    2. Input appropriate fields and use the Add/Rev field to revoke and replace the current authorization for the RA.

    3. Forms will be maintained in the RAF area.

    The input date on RFINK is newer than the signature date on Form 8655
    1. Do not input to RAF.

    2. Annotate ERROR Listing "Newer Authorization on File — Not added to RAF" .

    3. Return Form 8655 to the RA.

RAF Updates — Business Name Changes

  1. Whenever a business changes its name or any correction is made to its name line on Master File, the RAF also must be changed or updated. As appropriate:

    1. Make any necessary change to the Master File name line using CC BNCHG.

    2. Wait two cycles for the entity change to post.

    3. Update the RAF to match Master File.

Loose Form 8655

  1. Form 8655, Reporting Agent Authorization, may be received without a Reporting Agent's List (RAL). Take the following actions as appropriate:

    1. Review these forms for completeness. See IRM 21.3.9.3.1, Review of Form 8655, Reporting Agent Authorization.

    2. Research CC RFINK to determine whether the taxpayer is already on the RAF. See IRM 21.3.9.11, Change Agents (Account already on RAF).

    3. If the taxpayer account is not already on the RAF, then add the account to RAF using CC RFADD with Definer T. Forms will be maintained in the RAF area.

    4. If the Reporting Agent is not on RAF, see IRM 21.3.9.2.4, Application for Approval.

DELETE Listings

  1. Delete Listings are submitted by Reporting Agents when their relationship with clients are terminated or revoked.

  2. RAs/Filers may submit paper DELETE Listings when the number of clients to be deleted is less than 100. These are processed as per procedures in IRM 21.3.9.14.1, Paper DELETE Listing, and IRM 21.3.9.14.2, Loose Paper DELETEs-Revoke/Withdraw.

  3. When RAs/Filers have more than 100 clients to be deleted at one time, the deletes must be submitted through SDT as an electronic file. Computer run RAF26 validates delete information submitted electronically. Taxpayer accounts that are validated are end dated on RAF (RAF9647I). See IRM 21.3.9.14.3, DELETE Listings RAF9647I, and IRM 21.3.9.14.4, DELETE Error Listings RAF9643I, for more information.

Paper DELETE Listing

  1. When a paper DELETE listing is received from a RA, manual processing is required as follows:

    1. Verify whether the taxpayer is still recorded on RAF with the RA..

    2. If the RA is still reflected on RAF for the taxpayer, use CC RFADD with definer M to end date specified modules on RAF.

    3. If the taxpayer's record on RAF has already been updated to show a newer/different RA, then do not delete/end date the account from RAF.

    4. File DELETE Paper Listings by date and RA name. Hold for one year, then follow local procedures for destruction.

Loose Paper DELETEs-Revoke/Withdraw

  1. When a taxpayer wants to revoke an existing authorization, they must send a copy of the previously executed Form 8655 and re-sign the copy of the Form under the original signature. They should write REVOKE across the top of the form. A statement can be submitted in lieu of the form, provided the statement is signed by the taxpayer and indicates that the authority of the reporting agent is revoked.

  2. A reporting agent can withdraw from authority by filing a statement with the IRS or by using a delete listing. The statement must be signed by the reporting agent (if filed on paper) and identify the name and address of the taxpayer and authorization(s) from which the reporting agent is withdrawing.

  3. When documentation as described in paragraphs 1 and 2 above is received, take the following action:

    1. Verify whether the taxpayer is still recorded on RAF with the RA.

    2. If the RA is still reflected on RAF for the taxpayer, use CC RFADD with definer M to end date specified modules on RAF.

    3. If the taxpayer's record on RAF has already been updated to show a newer/different RA, then do not delete/end date the account from RAF.

    4. File loose Forms 8655/ statements by date. Hold for one year, then follow local procedures for destruction.

    Exception:

    When documentation (described in paragraphs 1 and 2 above) is incomplete, return to the sender using the appropriate letter requesting the missing information.

DELETE Listings RAF9647I

  1. RAF is systemically updated to end date the Reporting Agent record for each taxpayer identified in a delete type electronic file. The RAF9647I is a delete listing generated when processing of the electronic file is complete.

  2. Only one copy of the DELETE Listing is needed — a copy is not sent back to the RA.

  3. File DELETE Listings by date and RA name. Hold for one year, then follow local procedures for destruction.

DELETE Error Listings RAF9643I

  1. Accounts that cannot be validated do not systemically delete from RAF and print out on DELETE Error Listing (RAF9643I). No action by the RAF Function is required.

RAF Unpostables

  1. Refer to IRM 3.13.222, BMF Entity Unpostable Correction Procedures, for resolution instructions of all RAF Unpostables.

  2. Some Unpostables for RAF transactions are:

    • UPC 301 — No account present

    • UPC 303 — Name Control mismatch

    • UPC 313 — No related transactions

    • UPC 324 — Electronic File Update

    • UPC 341 — TIN resequenced

    • UPC 345 — TC 96X Unpostable

RAF Reports

  1. The RAF program produces Run Control Reports that help monitor RAF processing runs.

    • RAF9641I is the Run Control for RAF70 (ADD/DELETE Listings)

    • RAF701 must balance. If the reports do not balance, open an ITAMS ticket.

  2. RAF programs produce additional reports that alert the RAF Function to potential problems, or items which need correction.

  3. The RAF Function must monitor the following report and make any necessary corrections:

    Report Number RAF4202
    RAF Program Run Report Number Report Title
    RAF42 RAF4202 Error Report of Invalid Records

Researching and Correcting RAF Reports

  1. RAF4203:

    1. RAF4203, Error Report of Invalid Records, contains accounts that were input to RAF with invalid MFT or Tax Period.

    2. Using the taxpayer's EIN, research CC BMFOLE to determine whether or not there is a TC 960 on the account.

    3. Correct the MFT information by deleting the incorrect and entering the correct information on line 8.

    4. If the taxpayer's account contains an unreversed TC 960, then reenter TC 960 on RAFUP, line 8 to force the transaction to post.

    5. If the taxpayer's account does not contain a TC 960, then enter TC 960 on RFUPT, line 8.

Descriptions of RAF Program Runs

  1. RAF information is processed by batch programs which update the database and generate transaction records. Transaction records are sent to End of Day (EOD) processing. EOD sends these transactions through the Generalized Mainline Framework (GMF) to Master File (MF). The subsections which follow provide descriptions of the various RAF Program Runs.

RAF39

  1. For current adds, deletes, or updates from both RAF26/70 and RAF Command Codes; RAF39 creates TC 960 and TC 961 transactions. These transactions post at Master File to set the RAF Filing Indicators and RAF EFTPS Indicators in the Entity record.

  2. RAF39 is run weekly.

  3. RAF39 Output Files:

    • RAF391 — RAF TC 96X File

    • RAF3941 Run Control Report

RAF42

  1. RAF42 reads in RAF database information.

  2. It creates a listing, RAF4201, containing name and address information for all RAs and their clients.

  3. RAF42 is run weekly.

  4. RAF42 Output Files:

    • RAF4201 — BMF Name and Address File (cumulative file)

    • RAF4202 — Error Report of Invalid Records

    • RAF4241 — Run Control Report

    • RAF4203 — Control File

RAF41

  1. This is a special program that is run at the request of the RAF Function.

  2. RAF41 produces a list of taxpayers, by Reporting Agent, and the associated module information (MFT and Tax Period) as shown on the RAF database at the time of running.

  3. The output information is sent to the Reporting Agent to aid them in database matching and reconciliation.

  4. CC RAFRQ is used to order compare listings. The output file is on Control-D as RAFREPT COMPARE LISTING.

  5. RAFREPT is sometimes called RAF COMPARE.

  6. RAFREPT is run upon request.

  7. RAFREPT Output Files:

    • AGTFIL01 — Agent File

    • AGTRPT01 — Agent File Report

RAF26

  1. This run sends client information to be added, revoked, end dated, or deleted from the RAF database. It processes ADDs and DELETES.

    Note:

    If an ADD type electronic file is run twice in error, the second running overlays records created by the first running.

  2. RAF26 is run upon receipt of an electronic file from a RA.

  3. RAF26 Output Files:

    • RAF2601 — ERROR Listing

    • RAF2641 — Run Control Report

RAF70

  1. This run reads the Reporting Agent ADD/DELETE file and produces the following listings and reports — the ADD listing, DELETE listing, ADD error listing, DELETE error listing, and RUN CONTROL report.

  2. RAF70 is run every time RAF26 is run.

  3. RAF70 Output Files:

    • RAF9645I — RAF70 ADD Listing

    • RAF9643I — RAF70 ADD ERROR Listing

    • RAF9640I — Run Control Report

    • RAF9647I— RAF 70 DELETE Listing

    • RAF9643I — RAF 70 DELETE ERROR Listing

RAF08

  1. RAF08 is run daily.

  2. The run creates a report that contains RA, Taxpayer and MFT information.

  3. The report is created for each RA whose client(s) (TP) has revoked his/her authorization to a different Reporting Agent.

  4. The report is sent to each of the old Reporting Agents.

  5. RAF08 Output File:

    • RAF0831 — RAF08 Reporting Agent Report Revoke report

    • RAF0802 — RAF 08 Run Control Report

  6. RAF08 is sometimes called the RAF Revoke Listing.

RAF Undeliverable Mail

  1. The following subsections provide information for processing and resolving undeliverable mail related to RAF operations.

Reporting Agent Undeliverable — Notices/Correspondence

  1. Determine whether or not the notice is undeliverable or unclaimed.

  2. Unclaimed mail is usually certified mail that has not been claimed by the recipient. Unclaimed does not necessarily mean undeliverable.

  3. Undeliverable mail is identified as mail received that states:

    • Reporting Agent (RA) has moved with no forwarding address.

    • "No receptacle unable to forward."

    • Attempted - Not Known unable to forward.

    • No such address return to sender.

    • Not deliverable as addressed - return to sender.

    • Box closed unable to forward.

  4. If RA notices or letters are returned as undeliverable:

    1. Check RAF to determine if the authorization is still valid.

    2. If valid, attempt a phone call to the RA.

    3. If contact is made, verify address and make changes as necessary using CC RFRMAT to update the address.

    4. If unable to establish contact with the RA, either phone or send the applicable correspondence to the taxpayer requesting a current address for the RA.

      Note:

      If the RA determined they will no longer be filing tax returns or making FTD submissions for a taxpayer, the RA should notify the Service. This is done by submitting a Reporting Agent's List marked delete (either electronic file through SDT or paper as appropriate). Also see IRM 21.3.9.18.2, Reporting Agent Undeliverable — Authorization No Longer Valid.

Reporting Agent Undeliverable — Authorization No Longer Valid

  1. If telephone contact with the Reporting Agent or taxpayer reveals there is no longer an association with the taxpayer:

    1. Request a statement of revocation to be mailed or faxed to the RAF team for removal of the RA from the taxpayers account.

    2. Once revocation is received, process accordingly.