3.42.10 Authorized IRS e-file Providers

Manual Transmittal

September 11, 2019

Purpose

(1) This transmits revised IRM 3.42.10, Authorized IRS e-file Providers.

Material Changes

(1) Editorial changes, including new subsections, dates, updated figures, exhibits, and the removal of the general ESAM statement from all subsections, were made throughout the IRM.

(2) The following subsections were removed:

  • Review of Case Material

  • Firm/Organization and Principals

  • Suitability Information for Principals and Responsible Officials

  • Application Contact(s)

  • Programs Applying For and Forms

  • Application Status

  • Worklist

  • Worklist Escalation

  • Not for Profit Validation Procedures for IRS Taxpayer Assistance Center

  • Credit Check

  • Recommendation for Executive Review Board

  • Suitability Telephone Contact and Correspondence

  • Disclosure Guidelines for Suitability

  • Suitability Acceptance Letters

  • Mailing Letters with Suitability Issues

  • Failure to Respond to Suitability Letters

  • Undeliverable Suitability Letters

  • Inactivating a Provider for Undeliverable Mail Other than Suitability Issues

  • Correspondence or Phone call Provider in Inactive Status and Disconnected or Out of Service Telephone

  • Electronic Filing Identification Number Sanctioned or Revoked for Fraudulent Activities

  • Maintaining e-file Application Letters in External Customer Data Store (ECDS)

  • Generating e-file Letters from External Customer Data Store (ECDS)

  • Reporting Agent Personal Identification Number (PIN)

  • Undeliverable Electronic Return Originator (ERO) Correspondence

(3) The following subsections are new:

  • IRM 3.42.10.4.5 Personal Suitability Page for Principals and Responsible Officials

  • IRM 3.42.10.13.3 Professional Status and Credentials Documentation

  • IRM 3.42.10.14.1.3 Adjudication of Continuous Rap Back Monitoring Events

  • IRM 3.42.10.14.1.4.1 Fingerprint Card (FPC) Adjudication Appeals

  • IRM 3.42.10.14.2 Rap Back Subscriptions

  • IRM 3.42.10.14.2.1 Managing Rap Back Subscriptions

  • IRM 3.42.10.14.2.2 Processing Rap Back Activity Events

  • IRM 3.42.10.4.6 Provider Status

  • IRM 3.42.10.6.9 Cases

  • IRM 3.42.10.6.9.1 Business Rules

  • IRM 3.42.10.6.9.2 Workgroups

  • IRM 3.42.10.14.10 External Customer Data Store (ECDS) Disclosure Guidelines for Suitability

  • IRM 3.42.10.14.10.1 Suitability Telephone Contact and Correspondence

  • IRM 3.42.10.14.10.2 Generating and Mailing Letters with Suitability Issues

  • IRM 3.42.10.14.10.2.1 Failure to Respond to Suitability Letters

  • IRM 3.42.10.14.10.2.2 Undeliverable Suitability Letters

  • IRM 3.42.10.14.10.2.2.1 Inactivating a Provider for Undeliverable Mail Other than Suitability Issues

  • IRM 3.42.10.14.11 Disconnected or Out of Service Telephone

  • IRM 3.42.10.14.19 Data Breaches and e-file Application

  • IRM 3.42.10.14.20 ITIN Deactivation Cases

  • IRM 3.42.10.19 Generating e-file Letters from e-file Application

  • IRM 3.42.10.19.1 Reporting Agent Personal Identification Number(PIN)

  • IRM 3.42.10.19.2 Undeliverable e-file Provider Correspondence

  • IRM 3.42.10.26.2 Provider Option

(4) IPU 18U1292 issued 10-05-2018 IRM 3.42.10.14.6.13 The addition of Blank Citizenship Code to Citizenship Literal on Automated Suitability Analysis Program Report.

(5) IPU 18U1292 issued 10-05-2018 IRM 3.42.10.14.6.13.1 New IRM Section Biannual Follow-up for Individual’s Citizenship Status.

(6) IPU 18U1310 issued 10-10-2018 IRM 3.42.10.14.7 (3) New procedure for Suitability Documents for Proof of Citizenship that requires all original documentation to be returned.

(7) IPU 18U1356 issued 10-19-2018 Update IRM 3.42.10.12 to clarify procedures regarding when there is one person who is the Principal and Responsible Official on an application and new procedures regarding legal name change of a business.

(8) IPU 18U1377 issued 10-25-2018 IRM 3.42.10.23 Title was Application Tracking and Application Statics Management Reports, it is now Management Reports. New guidance was added regarding how to generate reports and a new table listing what reports are available.

(9) IPU 18U1377 issued 10-25-2018 New Acronym Business Objects Enterprise (BOE) was added to Exhibit 3.42.10-10, Acronyms.

(10) IPU 19U0787 issued 06-17-2019 IRM 3.42.10.7 Procedures regarding what to do if the assistor cannot validate a Not for Profit or Covered Entity business activity.

(11) IRM 3.42.10.1.5 Added reminder that Publications 3112 and 1345 will be revised every November.

(12) IRM 3.42.10.1.7 Revised term definition for Electronic Return Originator, Transmitters, and Affordable Care Act Provider.

(13) IRM 3.42.10.3 Applying to be an Authorized IRS e-file Provider change was made to add Secure Access.

(14) IRM 3.42.10.4.1 Title was Firm Name and Business Type, it is now Firm Information and the information to complete the application.

(15) IRM 3.42.10.4.2 Title was Firm/Organization Address, it is now Application Details with Procedural changes.

(16) IRM 3.42.10.4.3 Title was Principals, it is now Authorized User with Procedural changes.

(17) IRM 3.42.10.4.5 Title was Electronic Filing Identification Number Status, it is now Personal Suitability Page for Principal and Responsible Officials with new procedures.

(18) IRM 3.42.10.4.11 New additional information was added regarding a link to the e-file application.

(19) IRM 3.42.10.5 Title was When to Submit a New IRS e-file Application, it is now When to Submit a New and Reapply IRS e-file Application with an editorial change.

(20) IRM 3.42.10.5.2 Add a link when to submit a new or revised application and editorial changes.

(21) IRM 3.42.10.5.3 Title was Procedures for Online Filing Provider Option, it is now Procedures for Adding a Regular ERO EFIN to an Application with Online Filer Provider Option and editorial changes.

(22) IRM 3.42.10.6 Correction to the title, update to the status, and the addition of Resubmission Required to the statuses.

(23) IRM 3.42.10.6.1(f) was removed from this section.

(24) IRM 3.42.10.6.2 Correction to the title and new procedure when to notify application analyst.

(25) IRM 3.42.10.6.5(4) Editorial update was added when a Business Rule will appear.

(26) IRM 3.42.10.6.6 Editorial changes to Reapply Applications.

(27) IRM 3.42.10.7(6) New procedure for when a Not for Profit or Covered Entity cannot be validated.

(28) IRM 3.42.10.7.3(7)(b) New instruction on what paragraph to select for Letter 5881C, E-file Application Program Denial and editorial changes.

(29) IRM 3.42.10.7.4 Editorial changes to State Government Agency.

(30) IRM 3.42.10.7.5 Title was Affordable Care Act Provider (ACA) Provider Role-Covered Entity with Business Activity-Insurance Provider (Form 8963) or Pharmaceutical Company (Form 8947), it is now Affordable Care Act Provider (ACA) Provider Option – Covered Entity with Business Activity – Insurance Provider (Form 8963).

(31) IRM 3.42.10.10 Title was Login to E-Service and it is now Accessing E-Services and IRM 3.42.10.10(1)(3) and (4) has been removed.

(32) IRM 3.42.10.12 Editorial changes to Updating the External Customer Data Store (ECDS) for Previously Accepted Applicants.

(33) IRM 3.42.10.13(1) and (8) (a)(b) was removed from Processing of Fingerprint Cards.

(34) IRM 3.42.10.14 Removal of referral to ESAM User Guide and the addition of what paragraph to select for Letter 5882C, E-file Application Information and editorial changes.

(35) IRM 3.42.10.14.1.1 Title was Procedures for Data to be Sent to Scheme Development Center, Northern Area and Fingerprint Card Adjudication (FPC) for Review, it is now Procedures for Data to be Sent to Scheme Development Center, and Fingerprint Card Adjudication (FPC) for Review and editorial changes.

(36) IRM 3.42.10.14.3 Title was Initial Suitability Processing Time, it is now Initial Suitability and editorial changes.

(37) IRM 3.42.10.14.3.1 Title was Procedures for Initial Worklist, it is now Procedures for Working Initial Suitability Case and IRM 3.42.10.14.3.1(2) has been removed but was added to (1).

(38) IRM 3.42.10.14.3.2.1 Title was First (1st) Appeal, it is now Procedures for First (1st) Appeal to Criminal Investigation (CI)/ Scheme Development Center (SDC), and the referral to ESAM User Guide was removed from IRM 3.42.10.14.3.2.1(1), IRM 3.42.10.14.3.2.1(7) and (8). New instruction was added regarding what paragraph to select for Letter 5880C and Letter 5899C.

(39) IRM 3.42.10.14.3.2.2 Title was Name, Procedures change it is now Procedure for Second (2nd) Appeal Criminal Investigation (CI)/ Scheme Development Center.

(40) IRM 3.42.10.14.3 Title was Suitability Processing Time, it is now Initial Suitability, and Initial was replace with Initial within this section.

(41) IRM 3.42.10.14.5.2 & (1) Title was Procedures for Masterfile Transcript Suitability Worklist, it is now Procedures for Continuous Suitability Processing.

(42) IRM 3.42.10.14.7 Additional documentation that will be accepted as proof of citizenship.

(43) IRM 3.42.10.14.8.1(6),(7), and (8) has been removed.

(44) IRM 3.42.10.14.8.2 & (1) Title was Suitability Reason Codes, it is now Suitability Denial Reason Codes.

(45) IRM 3.42.10.14.12(1)(a) was removed.

(46) IRM 3.42.10.14.14 (3)(a),(6),(8)(a)(b)(c) and (9)(a)(b)(c)(d)(e)(f)(g),(10) was added.

(47) IRM 3.42.10.14.15 Updated procedures when to reject or sanction a firms or individuals.

(48) IRM 3.42.10.14.17 (2),(a),(c),(d),and (e),(g),(h) was removed from this section.

(49) IRM 3.42.10.14.23(2) addition of new suitability management reports.

(50) IRM 3.42.10.15(4)(a) and (b) has been removed from this section.

(51) IRM 3.42.10.15.1(4)(a)(c) and (5)(b) has been removed from this section.

(52) IRM 3.42.10.15.2(7)(a)(b) was added and (8),(9) was removed from this section.

(53) IRM 3.42.10.22(4) was removed and (5) was rewritten and (5)(a)(b) was removed.

(54) IRM 3.42.10.23.(4) note was removed.

(55) IRM 3.42.10.26(4),(6,)(a),(b), and (7),(a),(b) was removed.

(56) IRM 3.42.10.27 Title was Terms of Agreement (TOA) Report, it is now Application Requiring Resubmission, and (2) and (3) was added.

(57) IRM 3.42.10.27.1 Title was Terms of Agreement (TOA) Suitability Blank Report and it is now Principal or Responsible Official Added to Application and (5) (a), (b), (6), (7), (8) and (9) has been removed.

Effect on Other Documents

IRM 3.42.10 dated October 01, 2018, is superseded. The following IRM Procedural Updates (IPUs), issued from October 05, 2018, through September 30, 2019, have been incorporated into this IRM: IPU18U1292, IPU18U1310, IPU18U1356, IPU18U1377, and IPU19U0787.

Audience

Wage and Investment(W&I), Small Business Self Employed(SB/SE), Large Business and International (LB&I), and Field Personnel

Effective Date

(10-01-2019)

Robert D. Anuszewski
Acting Director, Electronic Products and Services Support
Wage and Investment Division

Program Scope and Objectives

  1. This Internal Revenue Manual (IRM) provides the basis for the Electronic Products and Services Support (EPSS) employee to respond to application questions and how to process the e-file application received. The objective of this IRM is to provide guidance and procedures in protecting the e-file program from fraud and identity theft.

  2. IRS e-file enables submission of tax return data, in the form of electronic records, to a designated IRS submission processing center.

  3. Assistors on the e-file help desk are located at Andover, MA and Austin, TX campuses.

  4. E-file Provider Program Management (EPPM) is responsible for:

    • E-file enrollment policy and procedures

    • E-file participation policy

    • E-file sanction and revocation policy and procedures for maintenance of e-file enrollment suitability

    • Conducting constant suitability background checks

    • Tax compliance checks

    • Educating Providers on privacy and security rules through external communications

    • Responding to Freedom of Information (FOIA) inquiries

  5. In addition, EPPM is responsible for the creation and maintenance of the e-file applications.

Background

  1. An applicant’s suitability to participate in the e-file program is governed by Rev. Proc. 2007-40 which provides the guidance to applicants to the e-file program.

Authority

  1. The following authorities are in this IRM.

    • IRC 6011

    • IRC 6012

    • Treas. Reg. 1.6012-5

    • Treas. Reg. 301.6061-1

    • Revenue Procedure 2007-40, 2007-1 C.B. 1488

Roles and Responsibilities

  1. Director of Electronic Products and Services Support (EPSS) is responsible for approving the policies and guidance.

  2. Chief of E-file Provider Program Management is responsible for the development and delivery of policy and guidance that impacts assistors.

Acronyms and Terms

  1. The list of acronyms used in this IRM can be found in Exhibit 3.42.10-10, Acronyms.

Publications and Letters

  1. EPPM is responsible for the creation and maintenance of e-file participation rules and the following publications:

    • Publication 3112, IRS e-file Application and Participation

    • Publication 1345, Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns

      Reminder:

      Publications 3112 and 1345 will be revised every November. During the Document Clearance process a memo will be included to stress the importance of the feedback from all organizations.

    • Publication 4557, Safeguarding Taxpayer Data: A Guide for Your Business

    • Publication 4600, Safeguarding Taxpayer Information Quick Reference Guide for Businesses

  2. EPPM is also responsible for the creation and maintenance of letters which can be found in Exhibit 3.42.10-8 and, Exhibit 3.42.10-9.

Related Resources

  1. The list of related resources can be found in IRM 3.42.10.2.2, IRS e-file Publications.

Terms and Definitions

  1. Below is a table of terms and definitions for this IRM.

    Terms Definitions
    Electronic Return Originator (ERO) An ERO originates the electronic submission of a tax return through IRS e-file after the taxpayer authorizes the electronic filing of the return.
    Intermediate Service Providers (ISP) An Intermediate Service Provider receives tax returns from EROs (or from a taxpayer or tax exempt organization that files electronically using a personal computer, modem or the Internet and commercial tax preparation software), processes the return information and either forwards the information to a transmitter or sends the information back to the ERO (or to the taxpayer or exempt organization).
    Transmitters A transmitter sends electronic return data directly to the IRS. A transmitter must have software and computers that can interface with the IRS.
    Software Developers A Software Developer creates software for the purposes of (a) formatting electronic return information according to publications issued by the IRS that set forth electronic return file specifications and record layouts for tax returns and/or (b) transmitting electronic tax return information directly to the IRS.
    Reporting Agents (RA) A Reporting Agent must be an accounting service, franchiser, bank, or other entity that complies with Rev. Proc. 2007-38, 2007-1 C.B. 1442, and is authorized to perform one or more of the acts listed in Rev. Proc. 2007-38 on behalf of a taxpayer. Reporting Agents must submit Form 8655, Reporting Agent Authorization, to the IRS prior to or at the same time that they submit an IRS e-file Application.
    Online Provider An Online Provider allows taxpayers to self-prepare returns by entering return data directly into commercially available software downloaded from an Internet site and prepared off-line or through an online Internet site. An Online Provider acts as both an ERO and transmitter of self-prepared returns.
    Financial Agents (FA) A Financial Agent acts on the behalf of the IRS in the submission of electronic return transmissions of employment taxes.
    Large Taxpayers A large taxpayer is a business or other entity with assets of $10 million or more or a partnership with more than 100 partners that originates the electronic submission of its own return. A large taxpayer does not act as a third party in submitting returns and they can only e-file returns for themselves.
    Affordable Care Act Provider (ACA Provider) An ACA Provider is a business or entity engaged in manufacturing or importing branded prescription drugs sold to specified government programs ("covered entity" ) or a health insurance provider reporting net premiums written ("covered entity" ) that originates the electronic submission of its own information report(s) or a third party that will transmit report(s) on behalf of a covered entity.

Overview of IRS e-file Application

  1. Filing a tax return through IRS e-file can be accomplished by using an Authorized IRS e-file Provider or by filing using a personal computer (Online Filing).

  2. To become an Authorized IRS e-file Provider, an applicant submits an e-file application electronically.

  3. Individuals and Firms are reviewed to determine if they meet the requirements for initial and continued participation in IRS e-file. This process is called suitability. See IRM 3.42.10.14, Suitability.

  4. Providers use electronic filing publications, such as Publication 3112, IRS e-file Application and Participation, which is available at IRS.gov, as their primary source of guidance.

  5. Cases are generated showing the applicant name, status, primary issue, business rule, firm/person, last update, and process. The business rule identifies the action that caused the item to appear in the case and indicates what needs to be addressed. Employees will work the cases assigned to them until the particular business rule is completed.

Authorized IRS e-file Provider Options

  1. Third party participants in IRS e-file are referred to as Authorized IRS e-file Providers. They offer clients specific services required for the electronic filing of federal returns.

  2. Applicants select the provider options that apply to the service or role they will perform. They may select one or a combination of the following provider options:

    • ACA Provider

    • ERO

    • FA (This option is only available to an assistor)

    • ISP

    • Large Taxpayer

    • Online Provider

    • Reporting Agent

    • SWD

    • Transmitter

  3. For definitions of these terms, see IRM 3.42.10.1.7, Terms and Definitions.

  4. The categories used to describe providers are not mutually exclusive. For example, an ERO can simultaneously be a transmitter, a software developer or an intermediate service provider depending on the function being performed.

IRS e-file Publications

  1. IRS e-file publications and updates are available on IRS.gov. IRS e-file publications are:

    1. Publication 1345,Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns

    2. Publication 1436, Assurance Testing System (ATS) Guidelines for Modernized e-File (MeF) Individual Tax Returns

    3. Publication 1474,Technical Specifications Guide For Reporting Agent Authorization and Federal Tax Depositors

    4. Publication 3112,IRS e-file Application and Participation

    5. Publication 4163,Modernized e-file (MeF) Information for Authorized IRS e-file Providers for Business Returns

    6. Publication 4164, Modernized e-file (MeF) Guide for Software Developers and Transmitters

    7. Publication 5078,Assurance Testing System (ATS) Guidelines for Modernized e-File (MeF) Business Submissions

    8. Publication 5293,Protect Your Clients; Protect Yourself - Data Security Resource Guide for Tax Professionals

Monitoring of Authorized IRS e-file Providers

  1. The Service will monitor and either warn or sanction providers in accordance with Rev. Proc. 2007-40, 2007-1 C.B. 1488 and Publication 1345, Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns.

  2. Monitoring may include reviewing IRS e-file submissions and advertising material, investigating complaints and potential identity theft issues, checking adherence to electronic filing signature requirements, examining files, observing office procedures and conducting suitability checks.

  3. Sanctioning may be a written reprimand, suspension or expulsion from IRS e-file depending on the seriousness of the infraction. The seriousness of the infraction is in the opinion of the IRS and categorized by Levels of Infraction.

  4. The IRS categorizes infractions as level one, level two and level three. See IRM 3.42.10.14.13, Levels of Infractions, for further details.

  5. Sanctions may be appealed through the administrative review process. This process includes an initial review by the office proposing the sanction and a subsequent review by the Office of Appeals for suspensions and expulsions. (For further information, see Publication 3112, IRS e-file Application and Participation).

  6. Small Business/Self Employed (SB/SE) Examination completes field monitoring to determine compliance of Providers. See IRM 4.21.1, Electronic Filing Program, Monitoring the IRS E-file Program, for SB/SE e-file Monitoring Coordinator (EMC) procedures.

  7. SB/SE EMCs fax sanctioning sheets, with a copy of the signed sanctioning letter, to the Andover e-help Desk for input of data to the e-file application.

  8. EMCs may contact a designated Point of Contact (POC) in e-help Desk when additional assistance is needed. An example may be sanctioning sheet data that was not input correctly.

  9. EMCs may refer firms and individuals, currently participating in IRS e-file, to the e-help Desk when information is available indicating that the firm or individual is non-compliant with tax filing and paying regulations.

  10. To refer a non-compliant firm or individual, the EMC must fax or e-mail the following to the e-help Desk POC: the provider name, EIN, the applicable tax periods, and an explanation/evidence to support the suitability issue to irs.e-Helpmail@irs.gov. For example, the EMC may identify a missing return that is not in the TDI (Taxpayer Delinquency Investigation) status but has evidence that the ERO is liable to file the return.

Misuse of Electronic Filing Identification Number (EFIN) or Electronic Transmitter Identification Number (ETIN)

  1. A priority of the Service is protecting IRS e-file from fraud and abuse. The misuse of EFINs and ETINs compromises the integrity of IRS e-file and the Authorized IRS e-file Provider program. This information and the circumstances surrounding the misuse should be shared with EPSS as early as possible.

  2. Organizations should refer to EPSS potential EFIN or ETIN misuse through the W&I EFIN Referral mailbox at ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . Some referrals will be sent to CI for review, investigation and then work to completion. EPSS should be notified as early as possible, to reduce the risk of fraud. Examples of referral criteria are:

    1. Compromised EFIN/ETIN

    2. Database breaches

    3. Identity theft

    4. Proven e-filing of fraudulent returns

    5. Misrepresentation on an e-file application

Applying to be an Authorized IRS e-file Provider

  1. Applicants must successfully register for e-Services before initiating an electronic IRS e-file application. Registration involves a two-factor authentication process called Secure Access. Applicants can visit irs.gov for more information regarding registration.

New e-file Application

  1. The IEP RUP users must select "New application" when creating an e-file application. See IRM 3.42.10.5, When to Submit a New and Reapply IRS e-file Application, to determine who must submit a new application.

  2. The user is required to complete all fields preceded by an asterisk and some information is verified against Master File.

Firm Information

  1. The firm must choose the Tax ID that they operate under by checking the box for "EIN" , "SSN" or "Not Required" , then select their Business Structure below:

    1. The "EIN type" : Association, Corporation, Credit Union, Federal Government Agency, Limited Liability Corporation, Limited Liability Partnership, Local Government Agency, Partnership, Personal Service Corporation, Sole Proprietorship, State Government Agency or Volunteer Organization.

    2. The "SSN type" : Sole Proprietorship.

    3. The "Not Required type" : Volunteer Organization.

  2. The firm will then input the following information:
    Firm/Organization Legal Name*; if “SSN” chosen, they will input their First Name*, Middle Initial and Last Name*
    Doing Business As (Trade Company Name)
    Business Phone*
    Business Fax
    Business Address (Physical Location)*
    City*
    Providence/State/U.S. Territory*
    Postal Code*

    Note:

    All Required fields marked with an asterisk.

  3. The firm will answer Yes or No to the question "Do you want your firm/organization contact information on IRS.gov public website?" If they do not make a selection, it defaults to Yes.

  4. The firm will need to answer, "Do you own or operate Web site(s) through which taxpayer information is collected, transmitted, stored, or processed?" If they answer "Yes" , then they must supply the applicable URLs once the application moves to complete and an EFIN is issued.

  5. The applicant may provide a mailing address or year-round address, if necessary. This information will only be necessary if the applicant states they have a mailing address different from the physical address and/or they are not open 12 months of the year.

  6. A tracking number is assigned when the user selects save or continue.

Application Details

  1. The user will select a provider option from the drop-down menu.

  2. The Applicant will add the applicable Provider Options on this page. Provider Option choices are limited by the Tax ID input on the application. The Provider is able to choose all options available to them.

    Note:

    Re-submission is required when adding a provider option to a completed application.

    1. Sole Proprietorship can only select from ERO, ISP, Online Provider, Software Developer, and/or Transmitter.

    2. The applicant has to choose the Service Type of either "For Profit" or "Not for Profit" . Software Developer is only allowed "For Profit" and defaults to that.

  3. When Not for Profit is selected, The system provides another field for "Type of Business Activity" . The drop-down selections are Employee Benefit Program, Large Taxpayer, Military Base, State Government Agency, Taxpayer Assistance Centers, Tax Counseling for the Elderly and Volunteer Income Tax Assistance.

  4. Selection of a business activity of VITA will require a valid SIDN. All other “Not for Profit” selections will create a worklist item for manual validation. See IRM 3.42.10.7, Validating Not for Profit Business Activities.

Authorized Users

  1. Application authors will be required to input “Authorized Users” on the application:

    1. Principal: Generally, is the individual owner of a sole proprietorship, officers of a corporation, partners in a partnership or a person for another entity who is authorized to act for the entity in legal and/or tax matters.

      Note:

      For large corporations and partnerships, an individual can be on the application in lieu of an officer or partner. Their position on the application must be designated as "Key Person" .

    2. Responsible Official: An individual with authority over the provider’s IRS e-file operation at a location and is the first point of contact with the IRS and has the authority to sign revised IRS e-file applications.

    3. Contacts: Person available for the IRS to contact for general questions concerning the firm and e-file application

    4. Delegated User: Person authorized by the provider to use one or more of the e-services products, even though they are not a "Principal" or "Responsible Official" .

    5. Principal Consent: Person associated with the firm who is not a "Principal" or "Responsible Official" who has been granted by the firm the same authorities as a "Principal" .

  2. The chart below shows the fields that need to be completed for each authorized user with an asterisk (*) being required.

    Entity/Role Principal RO Contact Delegated User Principal Consent
    First Name * * * * *
    Middle Initial          
    Last Name * * * * *
    Name Suffix          
    Title * * * N/A N/A
    Citizenship Status * * N/A N/A N/A
    SSN/ITIN * * N/A * *
    DOB * * N/A N/A N/A
    e-mail * * * * *
    Phone Number N/A * * N/A N/A
    Fax Number N/A N/A   N/A N/A
    Should person be notified for all e-file Application Updates Question   N/A N/A N/A N/A
  3. The citizenship status choices are: "Yes" , "No" (US Citizen) or "legal resident alien" .

  4. If the Principal is also the Responsible Official, they can indicate this by answering "Yes" to the question.

  5. If the "Yes" box is selected indicating the Principal is also the primary contact, a field will expand requiring a telephone number.

  6. The "Delegated User" and "Responsible Official" have authorities that the Principal/Principal Consent may assign.

  7. Information for the "Authorized User" may be changed by using the "Edit" button. Once "Saved" or "Next" is selected, the user will have an association to the application, and is allowed to take appropriate action.

Personal Credentials Page for Principals and Responsible Officials

  1. To input the personal credentials of the Principal or Responsible Official, click on the application summary and then select the personal credentials link to the Terms of Agreement Signature(s) & Personal Information section.

  2. If the individual is a professional, select one or more of the professional statuses from the Add Credentials drop-down provide the applicable information below which will be verified.

  3. An attorney or CPA enters the state license/credential number and indicates if the license/credential, has an expiration date or not. If it has expired, enter the expiration date.

    • A CPA must be qualified to practice as a CPA in any state, commonwealth, possession, territory, or the District of Columbia and must not currently be under suspension or disbarment from practice.

    • An attorney must be in good standing of the bar of the highest court in any state, commonwealth, possession, territory, or the District of Columbia and also show they are not currently under suspension or disbarment from practice before the IRS or the bar.

  4. An enrolled agent does not have to enter the enrolled agent number. The application will automatically populate this number when the enrolled agent check box is selected on this page as it is systematically validated against the Enrolled Practitioner System (EPS).

    Note:

    An enrolled agent may provide a valid enrolled agent number, or may submit a copy of a currently active enrollment card issued by the IRS if requested.

  5. An officer of a publicly owned corporation needs to submit evidence on corporate letterhead which carries their name as an officer, the stock symbol, the exchange where listed, and the name under which the stock is traded for the individuals listed as Principal, and/or Responsible Official.

  6. A bank official must submit a copy of bonding certificate and proof of fingerprinting within the last two years.

Personal Suitability Page for Principals and Responsible Officials

  1. To review the personal suitability of the Principal or Responsible Official, click on the application summary and then select the Personal Suitability Answers and TOA Signature(s) link to the Personal Suitability Answers and Signature(s) Information section.

  2. Each new Principal and Responsible Official must respond to the three suitability questions:

    1. Have you been convicted of a felony in the last 10 years? If "yes" , provide explanation.

    2. Are you currently incarcerated or have you been incarcerated in a federal or state prison during the last two years? If "yes" , provide an explanation including the date of release if applicable.

    3. Are you current with your individual and business taxes, including any corporate, and employment tax obligations? If "no" , provide explanation.

      Note:

      Responsible Officials for Not for Profit entities are not required to complete the suitability questions.

    New Question Previous Question Answer Conversion
    Have you been convicted of a felony in the last 10 years? If "yes" , provide explanation. Have you ever been convicted of a crime? If the answer is "yes" , state the offense which resulted in the conviction. Have you been convicted of any criminal offense under the U.S. Internal Revenue laws? If answer to either previous question was “yes”, new answer is "yes" .
    Are you currently incarcerated or have you been incarcerated in a federal or state prison during the last two years? If "yes" , provide an explanation including the date of release if applicable. N/A N/A. Answer will default to "No" and include a comment “9/2012 for conversion”.
    Are you current with your individual and business taxes, including any corporate and employment tax obligations? If "No" , provide explanation. Have you failed to file personal or business tax returns or pay your tax liabilities? Answer will be the inverse of the previous question – "yes" = "no" and "no" = "yes" .
    N/A Have you been assessed any preparer penalties? Answer not retained as it is no longer personal tax compliance criteria.
  3. The system requires comments for "Yes" or "No" responses to the suitability questions as described above.

  4. The question, "Have you previously participated in IRS e-file?" must be answered. If the answer is "Yes" , they will input the DBA Name or EFIN number.

  5. Each new Principal and Responsible Official must sign using their personal pin, acknowledging they have read:

    • The Privacy Act and Paper Reduction Act Notice

    • The FBI Privacy Act Statement and

    • Accepted the TOA

  6. Each new Principal and Responsible Official must complete the above information.

Provider Status

  1. Provider Statuses are: "Applied" , "Accepted" , "Dropped" , "Non-compliant" (Continuous suit only), "Non-compliant (PTIN Suspended/Revoked)" , "Non-compliance (Field Mntrng)" , "Rejected" (Initial suit only), "Revoked" and "Testing" .

    1. When an application is submitted, the provider status of any provider option remains in "Applied" if the suitability is not completed.

    2. Once an application is completed, the provider status is updated to "Accepted" .

    3. If an EFIN is dropped or the office is closed, the provider status(es) will also move to "Dropped" .

    4. Provider status "Non-compliant (PTIN suspended/revoked)" is currently used when an individual(s) PTIN was suspended or revoked, due to failing a suitability compliance check.

    5. When an e-file Monitoring Coordinator recommends that an EFIN be inactivated due to an operational or procedural non-compliance issue, the provider status is moved to "Non-compliance (Field Mntrng)" .

    6. If a new application fails suitability for issues with either the SSN or EIN, the provider options are updated to "Rejected (Initial suit Only)" . Non-compliant is used for continuous suitability.

    7. If the LDC advises of a court injunction and recommends revocation or there is a match with the SDN listing, the provider status is updated to "Revoked" . The applicant or provider can’t appeal a revocation and can’t reapply.

    8. Provider status "Testing" is currently not in use and is shown for historical purposes.

Electronic Filing Identification Number (EFIN) Status

  1. The three EFIN statuses are "Active" , "Inactive" and "Dropped" .

    1. Active EFIN status means the EFIN can be used to e-file the allowable forms, provided the provider option status is "Accepted" .

    2. Inactive EFIN(s) will stay in "Inactive" status until they have been manually updated to another status.

      Note:

      If suitability status is “Passed” and the EFIN remains “Inactive” for more than 60 days, the EFIN may be dropped.

    3. Dropped EFIN(s) cannot be updated or used again by the provider. It may be recycled and reassigned systematically to another provider after 12 months have passed.

Firm/Organization Suitability Questions

  1. There are two questions concerning the firm's suitability that the user must answer with a "Yes" or "No" .

    1. Has the firm been convicted of a felony in the last 10 years? If "Yes" , provide explanation.

    2. Is the firm current with its business taxes, including any corporate and employment tax obligations? If "No" , provide explanation.

  2. See IRM 3.42.10.4.4, Personal Credentials Page for Principals and Responsible Officials.

Delegated User

  1. Delegated users can only be added through the RUP by a Principal, Responsible Official delegated authority or Principal consent by using the Authorized Users page.

    Note:

    If Prior to initial submission, they can also be added by the author.

  2. The user must select Add and then Delegated User from the drop-down and enter the first name, middle initial, last name, name suffix, title, SSN and e-mail address for each individual and then select the delegate authorities.

  3. After entering the information, the user selects the "Save" button.

  4. The delegated user information will display in the "Authorized User(s)" table on the page.

Transcript Delivery System (TDS)

  1. The e-Services product TDS is available to:

    • An ERO who has successfully submitted five accepted e-file returns.

    • Circular 230 Participants, CPAs or attorneys that do not e-file and are applying only for TDS access.

      Note:

      The EUP user must select the "Do Not Cleanup" button on the "Summary" page to prevent these EFINs from getting inactivated during the EFIN Cleanup process.

    • Reporting agents with no minimum number of returns needed to gain access.

      Note:

      TDS can be manually assigned by an IEP EUP user if necessary. Prior to accessing TDS, a user must have or create an online account using Secure Access Authentication. See IRM 3.42.8.6 E-Services Secure Access Registration for additional information. The TDS link defaults to principals, responsible officials and Principal consents but must be manually assigned to a delegated user. The TDS link defaults to principals, responsible officials and Principal consents but must be manually assigned to a delegated user.

    • Low Income Tax Clinics (LITC)-t he LITC Program Office input these e-file applications and can also make any necessary updates through the IEP EUP.

      Note:

      The "Do Not Cleanup" button must be selected for these applications.

Application Summary

  1. The "Application Summary" is a one page overview of the e-file application based on the data input and the current status of the application data fields. It also provides links to directly access other sections of the e-file application.

Application Comments

  1. The "Application Comments" page shows remarks made by either Integrated Enterprise Portal (IEP) Registered User Portal (RUP) or IEP Employee User Portal (EUP) users.

    • IEP EUP comments are not visible to the IEP RUP user.

    • Comments can’t be edited, deleted and can only be edited during the current application session.

Need for Completed Application Comments on E-file Application
  1. Comments must be entered by the assistor via IEP EUP. The comments must be complete and accurate in order for the assistor and other IRS personnel to have an understanding of account activities. All account documentation must be specific to the actions performed and case resolution. For example: Undeliverable (UD) mail comment may state, "Letter of Inquiry (LOI) returned UD. Completed research on IDRS and sent LOI to possible new address 123 State Street, Cleveland, OH 24444."

    Caution:

    If a provider challenges the IRS in court over suitability issues or other rulings, the comments in the application may be admissible in court and, therefore, must be accurate and complete.

Submission of Application

  1. After the user has entered all information through the RUP on an e-file application, they must submit it by selecting "submit" .

  2. Users must input their five (5) digit e-Services Personal Identification Number (PIN) and select "submit" .

  3. The application is acknowledged upon submission. If required fields are missing or incomplete, an error message identifying the missing information will be displayed that links to the issues needing correction.

When to Submit a New and Reapply IRS e-file Application

  1. Certain rules govern when a new e-file application is submitted to participate in IRS e-file as an Authorized IRS e-file Provider.

  2. An entity that changed its organizational structure, requiring the use of a new or different TIN, must submit a new application.

  3. If the entity information remains the same, both IEP RUP and IEP EUP users open an existing e-file application and select "New Location" from the ESAM landing page.

  4. If a provider opens an additional e-file location where returns would be electronically submitted, suitability may be required.

  5. An applicant may reapply to the program through an existing "Application" provided the business entity has not changed:

    • If they were previously denied participation in IRS e-file

    • Previously suspended and have either met the eligibility date or

    • Resolved the suitability issue(s)

    • Make the necessary updates (i.e., address, phone/fax, contacts)

    • Select the "Application Details" link from the application menu

    • Click on the Reapply link to the right of the Provider Option and the Provider Option status will move to "Applied"

    • Submit application

    Note:

    If EFIN status is "Inactive" and the Provider status is "Non-compliant" , the Principal and/or Responsible official will be required to call the e-help Desk. The assistor will have to update the provider status to "Dropped" allowing the RUP user to reapply.

  6. An applicant may reapply when their EFIN is dropped due to inactivity and their provider status is "Dropped" . A new EFIN will be assigned. Please refer to IRM 3.42.10.6.6, Reapply Applications for more information on reapplying.

  7. A provider must submit a new IRS e-file application when they want an EFIN for a business related group when that firm cannot obtain an EFIN because its principals and/or responsible officials are not U. S. citizens or aliens lawfully admitted for permanent residence as described in 8 U.S.C. §1101(a)(20). The term "Business-Related Group" applies to brother-sister firms, subsidiaries, franchises, affiliates, etc. The firm must obtain an EFIN for each firm location as described above.

Acquiring an IRS e-file Business by Purchase, Transfer or Gift

  1. An applicant acquiring an existing IRS e-file business by purchase, transfer or gift, must submit a new e-file application and receive a new EFIN and ETIN. Applicants may not use the identification numbers of the previous provider. Providers should contact the IRS, prior to the acquisition, for assistance in making a smooth transition when it will occur during a filing season. The old EFIN associated with the business must be put in "Dropped" status and the e-file application must be deleted. The following requirements must be met by the new applicant:

    1. The purchaser must submit new e-file application, FPCs if necessary, and meet current suitability requirements.

    2. The purchaser must submit the new application within the period beginning 45 days before the acquisition date and ending 30 days after the acquisition date.

    3. The purchaser must send supporting documentation (proof of sale) in separately after completing an online e-file application which must provide the following:

    • Seller's name, address, business name, business address, and signature.

    • Purchaser's name, address, business name, business address and signature.

    • Tracking number of the e-file application, if filed.

Revising an IRS e-file Application

  1. Providers must also revise the e-file application if there is any change to the following information:

    1. The firm name or DBA name.

    2. The provider's roles, unless the provider will function solely as a Software Developer.

    3. Address or telephone number.

      Note:

      A change to the firm business type and EIN requires a new application. See IRM 3.42.10.5, When to Submit a New and Reapply IRS e-file Application.

  2. Updates to an e-file application must be made within 30 days after any change. Providers must submit a revised e-file application, electronically signed by a Principal, Responsible Official or a Delegated User who has been given the authority to make changes to an application if:

    1. The Provider functioned solely as a Software Developer and intends to function as an ERO, Intermediate Service Provider, Transmitter, Reporting Agent, or Large Taxpayer in the future.

    2. There is a change to the Principal or Responsible Official such as adding an individual, deleting an individual or changing information concerning a current individual. FPCs may be required for the individual who has been added:

      Note:

      Only a Principal or Principal Consent may add or delete another Principal or Responsible Official. The assistor must direct customer to IRS.gov to update their e-file application. If the customer filed a paper application instruct them to register for e-Services so they can update their application.

    3. A Sole Proprietor is updating the application to include an EIN.

  3. Follow the solution for IRS e-file Application when the business structure can’t be updated or created for a new application under the same EIN.

Procedures for Adding a Regular Electronic Return Originator (ERO) Electronic Identification Number (EFIN) to an Application with Online Filer Provider Option

  1. Any applicant that is interested in participating in online filing must select Online Provider from the provider options drop-down menu on the "Application Detail" page of the application.

  2. When an Online Provider subsequently requests a regular EFIN, special procedures are required to generate an EFIN with the ERO provider option added:

    1. When ERO is added to an application with Online Provider the following steps must be done to issue a regular EFIN.

    2. On the Provider Status page select edit Online Provider, and move from "Accepted" to "Dropped" .

    3. Generate an EFIN from the EFIN status page.

    4. Return to the "Application Details" page and select the reapply link for the Online Provider.

    5. Generate an EFIN from the "EFIN status" page.

    6. Confirm that the EFIN generated does not begin with 10, 21, 32, 44 or 53.

    7. Move the Online Provider option back to original status and then click save.

E-file Application Process

  1. When an e-file application is submitted, the application status will default to "submitted pending documents" with the exception of "Not for Profit" applications. When necessary documentation is received, FPC or proof of professional status, the application status will systematically update to the correct status.

  2. Statuses are:

    • "Saved" : e-file application has been started and saved

    • "Submitted pending documents" : e-file application requires credentials verification, fingerprint cards or other information and a case will generate

    • "Submitted new" : new e-file application that does not have documents pending

    • "Submitted pending review" : IRS is reviewing the e-file application and research is being conducted

    • "Completed" : all processing is finished and an EFIN is assigned

    • "Submitted reapply" : a firm is reapplying after being out of the program for a period of time

    • "Submitted revised" : a firm is adding a Principal or Responsible Official or adding a provider option

    • "Resubmission Required" a firm has added a Principal or Responsible Official that has not passed suitability or add a provider option to the application

    • "Deleted" : application is no longer accessible to the external user as the firm closed the office, it has been in saved status more than 90 days or submitted pending documents status for more than 45 days.

  3. If there are no pending documents and no suitability issues associated with a submitted e-file application, ESAM will systematically pass the firm and personal suitability, change the provider status(s) to "accepted" , assign an EFIN and ETIN when applicable, move application status to "completed" and generate an acceptance letter.

Manual Assignment of Electronic Filing Identification Number

  1. The system will automatically assign an EFIN for the e-file application once application status is completed and all issues have been addressed, but sometimes it is necessary to manually assign it. To do this:

    1. From the search page of the Integrated Enterprise Portal (IEP) employee user portal (EUP), enter the tracking number or other search fields, of the e-file application and select the Search button

    2. Select the view or edit icon for the existing application which appears below the search screen

    3. Select the EFIN status tab from the e-file application menu

    4. Select the Add EFIN button and enter the required comment

    5. The EFIN will display in a table on the page.

      Note:

      If EFIN is not displayed after assigning, check EFIN history before assigning another EFIN.

Assignment of Electronic Filing Identification Number when Zip Code for Physical Address is Invalid

  1. The ECDS receives updated ZIP code/ULC (Universal Location Code) tables approximately twice a year using the authoritative source table available on the IRS mainframe.

  2. The system associates a ULC to each applicant record based on the ZIP/postal code of the physical address on the e-file application.

  3. Upon submission of an e-file application, the system will attempt to assign an EFIN. If it is unable to assign one due to unavailability within the given ULC, a case will be created in the e-file application review workgroup, with the business rule "Unavailable EFIN" . The assistor must notify the application analyst of the error, showing the city, state and zip code for creation or activation of a new ULC.

  4. If an e-file application is submitted and the system attempts to assign an EFIN but cannot due to the zip codes, it will generate a case in the e-file application review workgroup with the business rule "Invalid ZIP Code" . The assistor will take the following steps: verify correct zip code in the USPS website, https://tools.usps.com/go/ZipLookupAction_input. If the zip code is typed incorrectly, enter correct zip code and save. If the zip code is correct:

    1. Enter a valid ZIP code, from the ZIP code/ULC table, nearest to the invalid ZIP code on the e-file application.

    2. Save the added ZIP code.

    3. Mark worked and close the case.

    4. Add a mailing address using the zip code originally input on the DBA address unless a different mailing address is already on the application.

    5. Notify the application analyst through EHSS of the error, showing the city, state and ZIP code. Request to have the valid ZIP code added to the ZIP code/ULC table.

Systemic Process: New Applications

  1. The user enters the requested information for the e-file application.

  2. The e-file application status defaults to "Saved" and assigns a tracking number.

  3. When the e-file application is submitted, the system displays the status "Submitted Pending Documents" on a For Profit Application and “Submitted New” on a Not for Profit Application.

  4. When all documents needed are received, the application status changes to "Submitted New" .

  5. If suitability is required, the TIN(s) are processed through and the system generates cases with business rule issues, if applicable ASAP.

  6. If no suitability is required or if the suitability is in "pass" , the application status will move to "Completed" , an EFIN is generated and an acceptance letter will be issued.

Applications Pending Documentation
  1. Once an application has been submitted, the system reviews it daily for pending documentation for up to 45 days.

  2. If documentation is received and additional suitability research is required, a case is created for review.

  3. If the application is new and has been pending documents for 45 days, the application status will move to "Deleted" on the following day.

    Note:

    The Application status can be manually updated from "Deleted" to "Save" allowing re-submission once the documents are received.

Automated Suitability Analysis Program with No Hits

  1. All TINS requiring suitability are sent to MF daily.

  2. Firm and personal suitability status moves to "In Process" .

  3. MF returns results using ASAP and results are uploaded to the application.

  4. If there is a "No Hit" on a firm, the suitability status moves from "In-Process" to "Pass" .

  5. If there is "No Hit" on an individual and a FPC check is not required, the FPC results indicate "No Data" or credentials are verified, the suitability status will move from "In-Process" to "Pass" .

Automated Suitability Analysis Program with Hits

  1. All TINS requiring suitability are sent to Master File (MF) daily.

  2. Firm and personal suitability status moves to "in process" .

  3. MF returns results using ASAP and results are uploaded to the application.

  4. When a "hit" is identified, a case is created in the ANSC_Leads workgroup showing the business rule issue.

  5. The case is assigned to an assistor to work.

Reapply Applications

  1. A “Reapply” application is for an applicant that has been denied participation and has resolved the issue, met the eligibility date or whose EFIN has been dropped. See IRM 3.42.10.5, When to Submit a New and Reapply IRS e-file Application.

    Note:

    A "Deleted" application is not considered a "Reapply Application" .

  2. The suspension period and eligibility date are determined by the level of Infraction (1 yr, 2 yrs, expulsion), but firms and individuals "may reapply as soon as they resolve their suitability issue" . See IRM 3.42.10.14.13, Levels of Infractions. Applicants may reapply when:

    • The suspension period is completed.

    • The suitability issue is resolved prior to the eligibility date. The applicant will need to contact the e-help Desk to have the eligibility date updated for the firm and any Principal or Responsible Official.

    • If the firm suitability equals "Fail" and the firm’s TIN equals the SSN of the individual, the system will update the eligibility date for both the firm and personal suitability allowing the applicant to reapply without having to contact the e-help Desk.

  3. If the business organizational structure, EIN or SSN has changed, the application "New" but treated as a "Reapply" and all suspension periods must be met.

  4. When the firm, Principal or Responsible Official has resolved the suitability issue(s) prior to completing their suspension period, the applicant may reapply. The eligibility date(s) must be updated to the current date before the applicant can reapply.

    1. Research e-file application comments, summary page, comments, EFIN status and eligibility date to determine if the applicant is eligible to reapply.

    2. Research IDRS and determine if the applicant is compliant.

    3. Update the eligibility date(s) to the current date.

      Note:

      If the firm had failed, update the eligibility date of the firm with the current date and select "Save" . Also, update the eligibility date of each Principal and Responsible Official to the current date if applicable and select "Save" .

  5. Once a "Reapply" application is submitted:

    • The application status will update from "Complete" to "Submitted Pending Documents" .

    • New professional information or fingerprint cards for failed individuals are required.

    • The system verifies the receipt of the fingerprint card or professional information to ensure it is after the eligibility date. The application status moves from "Submitted Pending Documents" to "Submitted Reapply."

    • The application is systematically processed for suitability and treated as a new application. See IRM 3.42.10.6.4, Automated Suitability Analysis Program with No Hits, and IRM 3.42.10.6.5, Automated Suitability Analysis Program With Hits.

  6. If the provider option was placed in "Dropped" status due to EFIN clean-up, see IRM 3.42.10.22Electronic Filing Identification Number and Electronic Transmitter Identification Number Clean-up.

Systemic Application Revisions

  1. If a provider option is added, re-submission is required.

  2. If a Principal or Responsible Official is added, re-submission is required.

  3. The e-file application status moves from "Completed" to "Submitted Pending Documents" .

  4. If documents are not required or the suitability is in Pass or not required, the e-file application status will move to "Submitted Revised" .

Systemic Application Completion Process

  1. If suitability is passed, the system will move provider status from "Applied" to "Accepted" , issue an EFIN and ETIN, if applicable, move the application status to "Complete" and generate an acceptance letter.

  2. If the provider option "Reporting Agent" was selected on the application and the status is validated on the RAF, the system generates a reporting agent PIN, which is a five digit number, and include it in the acceptance letter.

Cases

  1. Cases, triggered by Business Rules, are generated that require an assistor to take actions necessary to complete an application. These cases will show the primary issue first, as determined by the system to be the highest priority.

  2. For new and re-apply applications, ASAP is run subsequent to all other Business Rules being run. Therefore, many cases will be systematically reopened for the same firm or individual (e.g. FPC business rule initially and then a subsequent case with tax compliance issues). When reopened, these will be assigned to the workgroup identified.

  3. Assistors can access cases assigned to them by selecting the tabs "Cases" and then "My Cases" from the top line menu. Any cases assigned to them will appear in the list.

    • This list contains many columns to include "Case ID" , "Case Status" , "Case Type" (Firm/Person), "Application Type" (e-file or TCC), "Primary Issue" , "Workgroup" , etc.

  4. To work the case, select the "Case ID" link. The "Application Case Overview" screen will show the Business Rules triggered with the primary issue being first. Click on the Firm/Person name link to access the "Business Rule Results " screen. Any Business Rules with a status of "Not Confirmed" need to be worked. Select edit to update the status of the business rule result – "Hit" or "No Hit" .

  5. When the business rule is addressed, the assistor selects "Mark as Worked" under "Actions" . Once all Business Rules are addressed, select "Close" from the "Case Action" drop-down. The case is now closed.

  6. If the case needs to be reassigned, select "Reassign" by using the "Case Action" drop-down, enter the workgroup or user and provide an explanation.

Business Rules
  1. Business rules are as follows and are shown in a predetermined prioritized order as follows:

    • Credentials Needed - triggered when the individual has indicated a professional status of attorney, bank official, CPA, or officer of a publicly owned corporation requiring validation.

    • Late FPC Result – triggered when a FPC is sent to the FBI and the results have not been returned within 30 days.

    • Late Unprocessable FPC – triggered when an Edit Fingerprint card record is saved with a blank value (unprocessable FPC) for the FBI Response and not updated for 30 days.

    • Present on SDN List – triggered when a potential match is identified with a firm/individual on an e-file application and the SDN list.

    • ASAP-Identity Theft – triggered when an ASAP result is returned for that specific EIN or SSN.

    • FPC returned from FBI – triggered when the FBI response for the FPC is with Data.

    • ASAP-Z-Freeze – triggered when an ASAP result of Z freeze is returned for that specific EIN or SSN.

    • ASAP-T-Freeze – triggered when an ASAP result of T freeze is returned for that specific EIN or SSN.

    • Prisoner/Convicts – triggered if the individual's SSN and date of birth match an entry on the Prisoner List.

    • Continuous Suitability - triggered when MF Transcript provides a Hit on the TIN.

    • ASAP-Deceased – triggered when an ASAP result indicating deceased (TC 540) is returned for that specific SSN or the PTIN Status Indicator is equal to "Deceased" and individual is not the only person on the application.

    • ASAP-Citizenship – triggered when an ASAP result indicating a citizenship code of C, D, E, F or Blank is returned for that specific SSN.

    • ASAP-Tax Compliance – triggered when an ASAP result indicating a tax compliance issue is returned for that specific EIN or SSN for Initial or Continuous suitability.

    • ASAP-Penalty Assessment – triggered when an ASAP result indicating a penalty assessment issue is returned for that specific EIN or SSN for Initial or Continual suitability.

    • SSN Cross-Reference – triggered when an ASAP result indicating a spousal cross reference issue is returned for that specific SSN.

    • NFP EFIN – triggered when a Not for Profit program is selected with the exception of IRS Sponsored Business activities containing a valid SIDN. Validate and manually assign the EFIN for a true Not for Profit.

    • Online Provider EFIN – triggered when Online Provider is selected. Assistor will evaluate the information received and manually assign the EFIN for a true Online Provider.

    • Invalid Zip Code – triggered when the EFIN is not able to be assigned based on the zip code against the table.

    • ACA for Covered Entity – triggered when Service type is equal to covered entity which is only available for the ACA provider option.

    • Unavailable EFIN – triggered when the EFIN is not able to be assigned based ULC depletion.

  2. Other Business Rules that will be triggered and generate cases are:

    • Late Firm Suit - triggered when the Firm Suitability is set to In-Process over 15 days.

    • Late Person Suit - triggered when the Personal Suitability is set to In Process over 15 days.

    • RESUBMSSN_PENDING_45_DAYS - triggered when the application is in the Resubmission Required status for 45 continuous days.

    • INDV_SUIT_QUESTION – triggered if a Principal or Responsible Official changes the answers to the personal suitability questions.

    • ORG_SUIT_QUESTION – triggered if the entity changes the answers to the firm suitability questions.

    • Foreign Filer – TCC business rule; not used for e-file application.

    • Date of Death Exists for RO/Contact - triggered if the weekly DM1 check indicates a date of death for the TIN.

    • L2 REG DECEASED – triggered if the PTIN Status Indicator is equal to "Deceased" and individual is registered for e-Services.

    • ITIN Deactivation 5882C – triggered when the ITIN for a responsible official on an application has been deactivated. This should only be seen on applications with the provider option of "Large Taxpayer" filing form 1120F.

    • Letter Generation Validation – triggered when a systematic letter can’t be generated by the system.

Workgroups
  1. When cases are generated, they will be assigned to specific workgroups initially. Individuals with the proper roles can reassign these cases as needed to other workgroups or a specific user, or close them.

  2. Business rules triggered generate cases in the specific workgroups, based on the primary issue, are as follows:

    • ANSC_Lead_TE_Clerks includes "Late FPC Result" and "Late Unprocessable FPC" .

    • ANSC_Leads includes "FPC with Data" , "Prisoner" , "ID Theft" , "SDN Person" , "SDN Firm" , "Tax Comp" , "Z Freeze" , "-T Freeze" , "Penalty Assess" , "Citizenship" , "SSN Cross Ref" , "Deceased" , "ITIN Deactivation 5882C" , "Ind_Suit_Question_Change" and "Org_Suit_Question_Change" .

    • APP_Workflow_Admin – includes "Unavailable EFIN" .

    • E-file Application Review includes "credentials needed" , "NFP EFIN" , "OL Provider EFIN" , "Invalid Zip Code" and "ACA for Covered Entity" .

    • L2_Reg includes "L2 Reg Deceased" .

    • Efile_Admin_Leads – used as needed.

    • Efile_Letter_Review – used for reviewing letters prior to marking final.

Validating Not for Profit Business Activities

  1. Not for Profit business activities include Large Taxpayer, Employee Benefit Program, IRS sponsored, VITA, Military Bases, TCE, State Government Agencies and ACA as a Covered Entity.

  2. The VITA business activity is systematically validated through SPECTRM.

  3. Not for Profit business activities default the application status to "submitted new" and creates a case with a business rule of NFP EFIN with the exception of ACA as a Covered Entity.

  4. The ACA as a Covered Entity defaults the application status to "Submitted New" and creates a case with a business rule of ACA for covered entities.

  5. The assistor explains the actions taken in the application comments per IRM 3.42.10.4.12, Application Comments and close the case.

  6. If the assistor cannot validate a "Not for Profit" or "Covered Entity" business activity, add comments, delete the application and send Letter 5881, NFP Reject letter advising a new application is required.

IRS Sponsored Not for Profit Business Activities

  1. The system validates IRS sponsored Not for Profit business activities by matching Site Identification Numbers (SIDNs) against the SPECTRM file which is downloaded daily to ECDS. The SIDN has nine characters; the first character is the letter S followed by eight numeric digits; for example S12345678.

  2. When an IRS sponsored Not for Profit business activity applicant completes the IRS e-file application via IEP RUP, the applicant must enter its SIDN.

    1. Applications with valid SIDN will continue processing.

    2. Applications with an invalid SIDN will see a pop-up message advising them "Your SIDN is not valid. Contact your SPEC Area Analyst."

      Note:

      SIDN can also be viewed by selecting "Application Details" then click on the hyper link "View" .

  3. An IRS sponsored Not for Profit business activity applicant should include the SIDN on the Doing Business As line.

  4. SPEC may request e-help to place a VITA or TCE EFIN in "inactive" status if the site refuses to comply with SPEC's QSR (Quality Site Requirements) or if the site is closed.

    1. SPEC will fax a request for deactivation check-sheet and a copy of the Partner Notification letter to the e-help manager at 877–477–0567.

    2. E-help will place the EFIN(s) in "inactive" status.

      Note:

      Please refer any SPEC application issues to the local area coordinator.

      See SPEC Organization Program Information.

Employee Benefit Program

  1. The employee benefit program may or may not be a newly created volunteer organization or a volunteer organization with existing coalitions, Partnerships or other SPEC initiatives serving as a not for profit business entity.

  2. Check the filing requirements of the applicant on IDRS command code INOLES or ENMOD to confirm they are required to file employment tax returns 94x. Then continue processing the e-file application.

  3. If the applicant is filing employment tax returns, the assistor continues processing the e-file application.

  4. If verification shows applicant is not required to file 94x employment tax returns, make notation in comments per IRM 3.42.10.4.12, Application Comments and open an interaction to elevate to ANA_ SPEC for validation, include the tracking number of the application in EHSS.

  5. ANA_SPEC validates the applicant has a relationship with an existing coalition, partnership or other SPEC initiative in their comments in the interaction and then refer the case back to the ANSC Lead Group.

  6. If ANA_ SPEC fails to validate the applicant in the employee benefit program, close the interaction. Send Letter 5881C (select from drop-down Daily Denial Firm) with the explanation: IRS cannot verify the applicant is an employer.

Large Taxpayer

  1. For Large Taxpayer, the assistor validates the activity by using IDRS command code INOLES and the Business Operating Division Code (BOD:CD).

  2. If BOD: CD is equal to TE, the applicant is a Tax Exempt Organization.

    1. Use IDRS command code BMFOLO to research the organization to determine if the applicant qualifies as a large taxpayer exempt organization.

    2. Use the Filing Requirements Code at the bottom of the screen to determine the last filed Form 990, Form 990-EZ, Form 990-PF or Form 1120 POL.

    3. Determine if the filer qualifies as a large taxpayer by reviewing the Asset Code in the center of the screen. If the Asset Code is "8" or "9" , the applicant is a large exempt organization and eligible for large taxpayer Not For Profit business activity. The assistor will enter comments and continue processing the application to issue the EFIN and ETIN (Large Taxpayers are issued both ETIN and EFIN).

    4. If the Asset Code is other than "8" or "9" , the applicant is not considered a large taxpayer but may be eligible. The assistor opens an interaction "open referred" to the Analyst 990 (ANA-990) provider group, who will serve as the Level 2 Tax Exempt Government Entities (TEGE) analyst. Per IRM 3.42.10.4.12, Application Comments include the following information in the comments: the application tracking number, interaction "open referred" and "elevated to ANA-990 for decision" .

  3. If the assistor receives a message at the bottom of the BMFOLO screen that reads, "no exempt organization information is available for this account" , the assistor assigns the EHSS Incident to Analyst 990 Level 2 application and includes comments per IRM 3.42.10.4.12, Application Comments, the application tracking number, EHSS Incident "open referred" , "elevated to Analyst 990 Level 2 for decision" .

  4. If BOD: CD is equal to LM then the application is for a valid Large Taxpayer. Enter comments and continue processing the application to issue the EFIN and ETIN.

  5. If BOD: CD is not equal to LM or TE, then check ENMOD to verify the form type. If the form type is 990, 990-EZ, 990-PF, or 1120-POL, the assistor opens an interaction and escalates the incident to 990 Analyst Level 2, all other form types are referred to 1120 Waiver Level 2. Add comments per IRM 3.42.10.4.12, Application Comments.

  6. If the applicant is a valid large taxpayer, Level 2 will refer the incident back to the ANSC Lead Group. The assistor will close the Incident, add comments and continues to process the e-file application.

  7. If the applicant is not a valid large taxpayer, Level 2 will contact the taxpayer to explain why the application is not accepted.

    1. Level 2 will add comments in the EHSS Incident explaining why the applicant does not qualify as a Large Taxpayer and refers the Incident back to the ANSC Lead Group.

    2. The assistor includes comments in the e-file application, updates the Business Rule status of Not Confirmed to Hit, drops the provider status of Large Taxpayer, updates application status to save and sends Letter 5881C (select from drop-down “Not for Profit Rejection”), explaining why the application cannot be processed.

  8. If there is evidence that a current provider listed as large taxpayer is not acting as a large taxpayer such as filing Forms 1040, case should be referred to appropriate Level 2 provider.

State Government Agency

  1. An IRS e-file application Business Rule of NFP will be generated for an applicant selecting provider option "state government agency" .

  2. The assistor will access IDRS command code INOLES with the EIN of the State Agency on the IRS e-file application to determine the BOD:CD and the employment code or the client code.

  3. Validity is determined by performing the following checks listed below:

    If ... And ... Then ...
    BOD:CD is equal to TE Employment Code is equal to "G" or "T" or Client Code is equal to "F" or 2 The application is for a valid State Government Agency. Proceed to Step 4
    BOD:CD is NOT equal to TE Employment Code is equal to "G " or "T" or Client Code is equal to "F" or 2 Assign to 1120 Waiver Level 2 and Analyst 990 Level 2 based on form type:
    • 1040/1065/1120 (1120 Waiver) 990/990EZ/990PF (ANA-990)

    BOD:CD is equal to TE Employment Code is blank or is NOT equal to "G" or "T" ; or Client Code is NOT equal to "F " or 2 Assign to 1120 Waiver Level 2 and Analyst 990 Level 2 based on form type:
    • 1040/1065/1120 (1120 Waiver)

    • 990/990EZ/990PF (ANA-990)

  4. If the application is a valid state government agency, the assistor will take the steps identified below to continue processing application:

    1. Verify legal name is the state and the DBA name contains the appropriate code. This is a manual inspection, as the EIN and name have already been validated before the application was submitted. The DBA name is made up of the state abbreviation, ST and additional codes. These additional codes identify how the state is participating in the fed/state Program. For example: MD Dept. of State: MDSTCB, where the C stands for corporate and B stands for both (linked and stand-alone) or MI Attorney General: MISTEF, where the E stands for exempt and F stands for linked only.

    2. For Forms 1040, 1065 and 1120, if the state agency name contains the name of the state’s taxing agency (i.e., Dept. of Revenue, Dept. of Tax Commission) and the DBA name is in the correct format, approve the application and proceed to section 5. If the state agency name does not contain a taxing agency and/or the DBA name is not in the correct format, assign the interaction to Level 2 1120 Waiver.

    3. The assistor will open an interaction in EHSS (be sure to include the applications tracking number in the interaction). The assistor will edit comment to read, ‘elevated to 1120 Waiver for decision.’ The 1120 Waiver analyst proceeds to section 6.

    4. For Forms 990, 990-EZ and 990-PF, if the state agency name contains the name of the state’s charitable agency (i.e., Attorney General, Secretary of State) and the DBA name is in the correct format, then approve the application. Proceed to section 5.

    5. If the state agency name does not contain the charitable agency and/or the DBA name is not in the correct format, assign an interaction to Level 2 990 (ANA-990). The assistor will open an interaction in EHSS (be sure to include the applications tracking number in the interaction). The assistor will edit comment to read, ‘elevated to ANA-990 for decision.’ The ANA-990 analyst proceeds to section 6.

  5. The assistor will continue processing the application to issue the EFIN and ETIN(s) and move the Transmitter Provider Option to "Accept" . Assign one ETIN for test and one ETIN for production. The assistor will manually generate an acceptance letter and move the application to "completed" .

    Note:

    If the assistor does not manually generate the acceptance letter, only one EFIN and ETIN will be included.

    Note:

    After the application is complete, the state Responsible Official must add Delegated Users and assign authorities (i.e., MeF Enroller, etc.). The Responsible Official receives all authorities by default.

  6. Level 2 1120 Waiver or Analyst Form 990, Return of Organization Exempt From Income Tax, application support will research the state and determine if they qualify as a valid state government agency. This will include contacting the state government agency if necessary.

  7. Level 2 1120 Waiver or Analyst 990 for Form 990, Return of Organization Exempt From Income Tax, application support will add comments to the interaction to instruct the assistor as to the disposition of the interaction.

  8. Level 2 1120 Waiver or Analyst 990 application support will refer the case back to the Andover Lead Group so that the e-file application can continue to process and close the case.

  9. If the application is disapproved the Level 2 1120 or ANA-990 will contact the taxpayer to explain why their application is not being approved.

    1. Level 2 1120 Waiver or ANA-990 will update comments in the interaction to explain the reason for disapproval and return to the Andover Lead Group.

    2. The assistor will add comments in ECDS with the reason for the disapproval and reject the e-file application and close the case.

Affordable Care Act Provider (ACA) Provider Option – Covered Entity with Business Activity – Insurance Provider (Form 8963)

  1. For ACA provider role - Covered Entity with Business Activity – Insurance Provider (Form 8963, Report of Health Insurance Provider Information), a case is generated with the business rule of ACA for Covered Entity, the assistor validates the activity by accessing IDRS on the IRS e-file application and identifying the BOD:CD. Approved ACA providers are issued an EFIN and sent Letter 5120-C, e-File Acceptance for ACA Provider.

  2. If BOD: CD is equal to TE, the applicant is a Tax Exempt Organization.

    1. If the "527-POL-ORG-CD" is 0, the applicant is considered an ACA provider. The assistor will edit the business rule status from Not Confirmed to No Hit enter comments and close the case.

    2. If the "527-POL-ORG-CD" is other than 0, the applicant is not considered an ACA provider but may be eligible. The assistor opens an interaction in EHSS and escalates the incident to ACA IPF analyst for Form 8947. Per IRM 3.42.10.4.12, Application Comments include the following information in the comments: the application tracking number, case" Escalated to ACA IPF analyst Form 8963 for decision" .

  3. If BOD: CD is equal to LM, the applicant is an approved ACA provider. The assistor will edit the business rule status from Not Confirmed to No Hit, enter comments and close the case.

  4. If BOD: CD is not equal to LM or TE, the assistor escalates an interaction to ACA IPF analyst (for Form 8963) or ACA BPD analyst (for Form 8947), depending on the business activity identified in the application and include the following comments per IRM 3.42.10.4.12, Application Comments: the application tracking number, case "Escalated to ACA IPF Analyst Form 8963 or ACA BPD Analyst Form 8947 for a decision" .

  5. The ACA IPF Analyst researches and determines if it qualifies as an approved ACA provider. This will include contacting the applicant, if necessary.

  6. If the applicant is an approved ACA provider, the ACA IPF Analyst refers the case back to the ANSC Lead Group. The assistor will edit the business rule from Not Confirmed to No Hit, enter comments and close the case.

  7. If the applicant is not a valid ACA provider, the ACA IPF Analyst or ACA BPD Analyst contacts the applicant to explain why the application is not accepted.

    1. ACA IPF analyst includes comments in the case explaining why the applicant does not qualify as an ACA provider and refers the case back to the ANSC Lead Group.

    2. The assistor includes comments in the e-file application, moves the application status from submitted "new" to "save" , moves the provider status as a Not for Profit from "applied" to "Dropped" and sends Letter 5881C (select from drop-down Not for Profit Rejection), with appropriate ACA rejection paragraph explaining why the application cannot be processed.

Retention of Forms

  1. This section will advise you when and how to retain specific forms.

Retention of IRS e-file Application Documentation

  1. EPSS retains and purges the obsolete paper Form 8633, Application to Participate in IRS e-file Program and any related documentation three years after the EFIN has been dropped in accordance with Document 12990, Records Control Schedules; Tax Administration – Wage and Investment see page 434 schedule 55.

  2. An annual reconciliation is performed by EPSS after the EFIN drop program is completed. It uses the ad hoc report, EFIN_DROPPED_DATE_RANGE, created with the applicable periods, to purge the folders associated with a dropped EFIN.

  3. EPSS clerical staff ensures that the EFIN and the name in the folder match the report so that an application with either a recycled or an active EFIN is not purged in error.

  4. Ensure that Form 11671, Certificate of Records Disposal, is completed prior to sending the folders to Federal Records Center (FRC) to be maintained for two years and then destroyed. This form is forwarded to the business unit records coordinator and area records manager. Facilities Management & Security Services web page has a Program Contact tab, listing territory sensitive document coordinators.

Retention of Fingerprint Cards (FPC)

  1. FPC may be destroyed three years after they are scanned. The electronic back up copy will be available if necessary.

Retention of Office of Appeals

  1. Generally, the Office of Appeals retains e-file appeal cases for two years plus the current year. The file includes the information sent by Andover plus their case memorandum.

  2. For additional information, see Document 12990, Records Control Schedules: Appeals.

External Customer Data Store (ECDS)

  1. ECDS, maintained at the Enterprise Computing Center in Martinsburg, WV, is a database that is used to store all IRS e-file application information. The database is also used to store information for other e-Services products as well. There are two ways to access the information:

    1. The IEP EUP is a web hosting infrastructure. It supports an Intranet portal that allows IRS employees to access business applications and data. The IEP EUP registration process allows users to register for access to e-Services. The Online 5081, Automated Information System (AIS) User Registration/Change Request is used to identify the IEP EUP user roles for managerial approval. Refer to the Form 5081 for a complete listing of roles and role definitions. View "e-file" application is the most commonly selected role associated with application usage. The role only allows view access of the e-file application within the IEP EUP.

    2. IEP RUP infrastructure gives users the ability to electronically file certain returns and create or revise certain applications via the internet after registering as an e-Services user.

  2. All e-file applications receive a unique tracking number that can be used as a search criterion for e-file applications on the database. The tracking number indicates the year, month, day and time that the e-file application was entered into ECDS.

  3. A six digit numeric EFIN is generated for all new Authorized IRS e-file Providers.

  4. Applicants who choose the provider option of Transmitter, Software Developer, Online Filer, Large Taxpayer or ACA Provider will be issued a five digit numeric ETIN.

Accessing E-Services

  1. Employees can access e-Services products via the Integrated Enterprise Portal (IEP) Employee User Portal (EUP) by using their SEID and password to login

Two Major Menu Areas

  1. Two major menu areas are displayed after login:

    1. Applications section which allows the user to access applications such as e-Services.

    2. Tools sections which allows the user to perform actions such as password maintenance and logging off of the system.

External Services Authorization Management (ESAM) e-file Application Menu Options

  1. To start a new e-file application or add an additional location:

    1. select the "esrv-appl-efile"

    2. select "New Application" from the drop-down and select "e-File Application"

    3. Firm Information page will appear

  2. To globally replace an authorized user:

    1. select esrv-ESAM-Applications

    2. select Replace Authorized User

    3. select e-file Application

    4. Replace Authorized User page will appear

  3. To access an existing e-file application:

    1. select esrv-ESAM-Applications

    2. Select Search, from the drop-down menu

    3. Select Application from the drop-down menu

    4. Under the Search Criteria use Search By application type with a Value of e-file Application from the drop-down menu

    5. Select additional criteria as needed to refine the search

    6. Search results will appear

  4. To add a fingerprint card:

    1. select "esrv-ESAM-Applications"

    2. select "Add Fingerprint Card"

    3. Add fingerprint Card Record will popup

Disclosure and IRS e-file Application

  1. Observe disclosure safeguards as prescribed in IRM 11.3, Disclosure of Official Information.

  2. The Internal Revenue Code (IRC) 6103 and the Privacy Act contain the disclosure restrictions for tax and non-tax information.

  3. See IRM 21.3.10.3(6), Authentication and Disclosure Guidelines, for durable power of attorney.

  4. An unauthorized disclosure that involves an Authorized IRS e-file Provider viewing the information of another provider on the third party data store must be reported to your Manager, then to the Computer Security Incident Response Center using the Computer Security Incident Reporting Form, or calling 240–613–3606. This disclosure can occur if an IEP RUP user accesses the system and views application information that they are not authorized to access. Please reference IRM 11.3.1.9, Unauthorized Access and Disclosures of Returns or Return Information, for unauthorized disclosure procedures.

  5. When an e-help assistor receives a telephone call from a caller concerning the status of their Freedom of Information Act (FOIA) request, direct them to the IRS Disclosure Office for their state. Provide the caller with the public liaison telephone number and the disclosure office address.

  6. IRS Disclosure Offices respond to written FOIA requests for agency records not available in the IRS reading room. They receive and process these requests within time frames set by law. You can refer them to the IRS FOIA Guide available on irs.gov for more detailed information.

  7. E-help assistors can provide "yes" or "no" response to a telephone inquiry requesting verification as to whether a business or organization is a provider.

    Caution:

    E-help assistors can only verify those providers who chose to be listed on the "Authorized IRS e-file provider locator" .

  8. Refer the caller to IRS.gov for a list of providers in their area.

Updating the E-File Application for Previously Accepted Applicants

  1. If the applicant needs to update or revise their application, direct them to e-Services.

  2. If the provider is unable to access the e-Services application, a documented interaction may be used. For disclosure purposes, the name, company name (if applicable), EFIN, ETIN or TIN (SSN or EIN) must be verified in an interaction. For additional authentication, the company address is sufficient (for example, if the company name the caller gives differs from our records). The individual requesting the revision or update to the application, must be listed as a Principal, Responsible Official or Delegated User with the appropriate authorities on the existing e-file application.

  3. There may be a need for exception processing on applications which are owned by a firm with an EIN. Some applications have EINs with only one person on them as a Principal and/or Responsible Official. If you have this situation and a person from the firm calls in to report that the individual is no longer with the firm or deceased, and there is no change to the business structure, do the following:

    1. Advise the caller to have an officer of the corporation, or if another type entity, an individual authorized to act for the entity in legal and/or tax matters send information on company letterhead regarding the change. They need to indicate who needs removal and who needs to be added to the application, with their full name, Social Security Number, Date of Birth, e-mail address, citizenship status and position title. The correspondence must be signed by the authorized person. Ask them to include information on the firm’s charter showing the makeup of the current officers, if possible. This information may also be researched on the Secretary of State Contact Information page. (National Association of Secretaries of State)

      Note:

      Sole Proprietorships are not transferable. Potential ERO’s who purchase an existing e-file business must apply for a new EFIN.

    2. On receipt of the correspondence, remove the individual requested and add the new individual. Do not complete the Terms of Agreement or answer their personal suitability questions.

    3. Contact the new Principal/Responsible Official and request that he/she registers for e-Services if they have not previously done so. The new Principal/RO must complete the revisions on the application and submit it.

  4. If the legal name of the business is being changed, the entity change must already be reflected on IDRS before it can be changed on the e-file application. However, if the company has a new EIN and/or the business structure has changed, a new application is required.

  5. Assistors will not add or remove Principals, Responsible Officials or Delegated Users or submit an application based on a phone call, even if speaking to an authorized person. These changes require a signature of the authorized person.

Processing of Fingerprint Cards

  1. Review FPCs to ensure that the following is included on the card:

    1. Name

    2. Date of birth

    3. Citizenship

    4. Sex

    5. Social security number

    6. Signature of the person fingerprinted

    7. Signature of the official taking fingerprints

  2. With the exception of a signature, any information missing from the FPC can be obtained by telephone call or correspondence to the applicant or by copying the information from the online application.

  3. FPCs without signatures, other missing information or poor quality will be returned and not entered into ECDS. Send Letter 5885, Fingerprint Card Unprocessable by FBI and select the correct paragraph.

  4. For each FPC to be processed, add a record using the ESAM landing page add Fingerprint Card Record page, and make sure all fields are completed. The received date defaults to the current date however, a prior date can be entered.

  5. On a daily basis, scan all FPCs for FBI check into the AEF and submit them to the FBI electronically.

    Note:

    If the FBI is unable to process the FPC and no second fingerprint card is available, generate Letter 5885 - Fingerprint Card Unprocessable by FBI Letter and select appropriate paragraph.

  6. Results from FBI check will automatically be updated in ECDS.

  7. E-file application displays six statuses for FPCs:

    1. "None submitted" - no FPC was received from the applicant.

    2. "In-process" - the FPC was received and sent to the FBI for processing but has not yet been returned.

    3. "Data" - findings with history are received back from the FBI.

    4. "No Data" - findings with no history are received back from the FBI.

    5. "Unprocessable" - FBI was unable to process the fingerprint that was submitted.

    6. "Duplicate" - FBI has detected that the same fingerprints were previously submitted under a different name/social security number.

  8. If FBI results of "Data" have been received, clerical will forward the FBI findings for adjudication.

  9. When the result of the FPC check is "Unprocessable" an Application Case will be created.

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  11. When the result of the Name Check is received, update the Fingerprint Card Record with the result using the pull down indicating "Data" or "No Data" .

  12. If the name check is returned with a negative search result, the applicant can be accepted into IRS e-file. A negative search result means that the FBI did not find the name in its criminal arrest database. If the name check is returned from the FBI showing a criminal history or as a reject, forward FBI findings for adjudication.

  13. When the result of the FPC Check is "Duplicate" an Application Case will be created. The case should be assigned to the IDT Team for further research.

  14. FPCs may be destroyed three years after they are scanned For additional information regarding retention of fingerprint card, see IRM 3.42.10.8.2, Retention of Fingerprint Cards (FPC).

Professional Status Review and Processing

  1. All principals and responsible officials that have selected a professional status of attorney, bank official, CPA, EA and officer of a publicly owned corporation will have completed the professional status information on the personal information page. This will include:

    • Professional type

    • State where licensed/credentialed, license number, expired (yes or no) and expiration date for CPAs and attorneys

    • Enrolled agent number for EAs

  2. Upon submission of the e-file application, a case with the business rule "Credentials Needed" will be created in the E-File Application Review workgroup.

  3. When working a "Credentials Needed" case, click on the Case ID link and then the Credentials Needed link to access the Personal Professional Result(s) tab of the individual to verify the professional credential.

  4. Credential(s) needing validation will auto populate in the Submitted Credential(s) table. Select edit in the Validated Credential(s) to confirm. All links to validate credentials can be found on the EPSS portal Quick Links.

    1. For CPAs and attorneys, the state, license/credential number and expiration date will populate for up to five credentials. If more than one appears, only one needs to be verified. Research the “State Boards of Accountancy ” for CPA(s) and the State Bar Association for attorneys found at Public Record Center.com.

    2. For enrolled agents, their number will auto populate. Because of this, a case is not generated for most that select enrolled agent.

    3. To verify officers of publicly held corporations, research the List of Publicly Traded Companies on Quick Links. Select the first letter of the company. Once you locate the company, select profile, then click on company profile and you will see the officers listed under Executives.

    4. To verify bank officials, send Letter 5882C - E-file Application Information, (select from drop-down "Unable to Verify – Bank Official" ) requesting the documentation indicated in IRM 3.42.10.4.4, Personal Credentials Page for Principals,

  5. Select the appropriate response from the drop-down menu as to whether supporting documentation was received (Validating status as indicated above is equivalent to receiving documentation).

  6. If professional status can’t be confirmed or documentation is needed, send Letter 5882C (select from drop-down Unable to Verify – CPA/Attorney Banking Official or OPOC ). Request professional status documentation as described in IRM 3.42.10.4.4, Personal Credentials Page for Principals.

    1. If a certificate is not normally issued, a letter indicating good standing from the bar or regulatory agency will be sufficient.

    2. Input all required information, obtained from documentation provided, on the e-file Application.

    3. The credentials for attorney, CPA and EA can be destroyed after they have been entered into the e-file application.

    4. Documentation received for banking official and officer of a publicly owned corporation must be maintained for three years after the application has been dropped.

  7. After verifying professional status select a professional validation status from the drop-down menu:

    • Select a professional validation status.

    • The current date is the professional validation status date.

    • Select a status, as of the effective date.

    • Make the same entries above for each Principal and Responsible Official on the e-file application, if applicable.

Professional Status and Credentials Documentation

  1. Acceptable evidence of a currently active professional status:

    1. A CPA must show qualifications to practice in any state commonwealth, possession, territory or the District of Columbia, they must not currently be under suspension or disbarment from practice.

    2. An enrolled agent may submit a copy of a currently active enrollment card issued by the IRS or provide their enrolled agent number.

    3. A banking official must submit a copy of their bonding certificate and proof of fingerprinting within the last two years.

    4. An officer of a publicly owned corporation must submit evidence on corporate letterhead which carries their name as an officer, the stock symbol, the exchange where listed and the name under which the stock is traded for the individuals listed as Principal and/or Responsible Official.

    5. An attorney must show good standing in the bar of the highest court in any state, commonwealth, possession, territory or the District of Columbia and they are not currently under suspension or disbarment from practice before the IRS or the bar.

Suitability

  1. Suitability is the process used by the IRS to determine if the firms and individuals listed on e-file applications are appropriate to electronically file.

  2. The IRS sets suitability standards to screen and monitor applicants to ensure that they maintain a high degree of integrity and adhere to the highest professional and ethical standards.

  3. Suitability checks may include an FBI criminal background check, credit history check, IRS tax compliance check and prior history check for compliance in IRS e-file.

  4. The suitability statuses are "Expelled" , "Failed" , "In Process" , "Incomplete" , "None" , "None Required" , "Passed" , "Re-check" , "Re-run" and "Revoked" .

  5. Suitability checks are not conducted on the following:

    1. Software developers

    2. Providers who offer e-file solely as an additional benefit (NFP application with business activity of Employee Benefit Program)

    3. IRS sponsored Not for Profit organization

    4. Large Taxpayers

    5. Delegated users

    6. Contacts/Alternate contacts

    7. ACA providers who are covered entities

  6. Suitability checks for new applications must be completed within 45 calendar days of submission. If an application is not processed within this time frame, and the assistor must send Letter 5882C, (select from drop-down "Interim letter" ) indicating that an additional 30 days is needed to process the application.

  7. See Publication 3112 and Rev. Proc. 2007-40 for additional suitability information.

Fingerprint Cards Results

  1. Applicants will not be accepted into IRS e-file until any applicable FBI fingerprint results are received and analyzed.

  2. The applicant will be accepted into IRS e-file when the fingerprint card (FPC) is returned showing no criminal data and all other suitability checks have been completed and passed. See IRM 3.42.10.14.3, Initial Suitability.

  3. If convictions or indictments are found, adjudication may recommend that the applicant be denied participation or the provider may be sanctioned from IRS e-file as a result of conviction or indictment of crimes under revenue laws of the U.S. under Title 18, 26 and 31 or of a state or other political subdivision.

  4. Adjudication will evaluate other items on the criminal record to determine if the nature of the items will adversely impact IRS e-file (e.g., Name, Date of Birth, Address, etc.).

  5. Adjudication will consider the seriousness of the offense and duration of time since the offense when recommending the applicant/provider be denied participation/sanctioned.

  6. Adjudication will recommend either "Pass" , "Fail" , or request "Court Documentation (CD)" if needed. For additional adjudication guidance, see IRM 3.42.10.14.1.2 Fingerprint Card Adjudication.

Procedures for Data to be Sent to Scheme Development Center (SDC), and Fingerprint Card Adjudication (FPC) for Review
  1. When FPCs are processed electronically by Automated Electronic Fingerprints (AEF) and data is found, an official record of arrest and prosecution sheet is printed.

  2. Clerks will match the SSN, name and date of birth on the record of arrest and prosecution sheet to the application. If they do not agree, the assistor will research IDRS (e.g., INOLE, name, etc.) to verify the applicant.

  3. Clerks will create an e-mail to include SDC referral report containing the SSN and names to criminal investigation.

  4. SDC will run the information through their database (e.g., STARS, CIMIS, etc.). SDC will place a check mark next to the SSN they are requesting to retain for review.

  5. Clerical will send Form 3210, Document Transmittal containing all new cases marked, including annotating the SSN on the upper right hand corner, to SDC. This should be done weekly.

  6. Clerks will input remaining cases (cases not selected by SDC) into EHSS for adjudication by e-Help FPC adjudication.

  7. Clerks will update comments on the application comments page and the Fingerprint Cards tab: Data forwarded to adjudication Do Not Pass and save.

  8. Once the Adjudication results are determined the assistor will then complete the regular suitability checks on the SSN and EIN, following procedures in IRM 3.42.10.14.9, Suitability Procedures After Initial Research, with the following adjustments:

    • If adjudication recommends "Pass" and there are no other suitability issues, change all relevant TIN suitability statuses to "Pass" . Allow automated system to update all other statuses and issue the acceptance letter.

    • If adjudication recommends "Fail" or court disposition is needed, send Letter 5881C, (select from drop-down Denial per FBI Data and Daily Denial Firm, if applicable) and address all suitability issues.

    • If adjudication recommends "Pass" , but there are suitability issues, follow suitability procedures and send to management review. Issue Letter 5881C, select from drop-down Daily Denial Individual or Daily Denial Firm, if applicable.

    • Assistor will update the Application Comments in ESAM using "Pass" ," Fail" , or "Fail CD" for reporting purposes.

Fingerprint Card Adjudication
  1. Fingerprint adjudication provides an important segment for individuals seeking admission into the IRS e-file program. The adjudication process involves reviewing and classifying data that is provided by the FBI from the RAP sheet. Arrest data is reviewed and classified as major, moderate or minor, in order to make a determination of "Pass" , "Fail" , or "Court Disposition" .

  2. Clerical will create an Interaction in EHSS for each RAP sheet requiring adjudication using Product Type= FPC ADJ and Problem Type= FPC ADJ.

  3. Confirm the Name/TIN shown on the RAP sheet to the person applying for the EFIN with the Interaction for adjudication.

  4. If the name on the RAP sheet cover is different from the name on the e-file application, research to see if there has been a name change for example (e.g., marriage). In addition, the RAP sheet may also show additional name(s) used by the individual as Also Known As or (AKA).

    Note:

    FBI result may not always be an exact match. If additional validation is needed then research IDRS.

  5. If the applicant’s information does not match the name on the arrest record, prepare the cover sheet for a failed applicant.

  6. If the arrest record information matches, continue to review the FBI report for arrest/conviction.

    Note:

    When reviewing the FBI report for arrest/conviction, ensure each arrest is carefully reviewed and there is a disposition/conviction listed.

  7. There are three parts in determining whether an applicant should be accepted in the e-file program:

    1. The crime(s) were minor, moderate, or major.

    2. Can the issue (seriousness of the crime) be reduced by the time frame?

    3. If there are multiple convictions.

  8. Assistors will go to FPC page and add a comment documenting whether the adjudication resulted in a Minor, Moderate, or Major followed by a hyphen "-" to identify this is a result per review of the Rap Back notification.

  9. Assistor will go to the associated incident to document the action taken. Close the case in EHSS using "Pass" , "Fail" , or "Fail CD" , then prepare the recommendation based on the outcome using the cover sheet. Assistor will print, initial and attach recommendation to the FBI report, then continue with initial suitability and update the application appropriately.

  10. If a recommendation is changed after being reviewed, go to the Lead with the capability to reopen the associated incident, remove the old solution, update the associated incident with the new solution and close interaction.

Adjudication of Continuous Rap Back Monitoring Events
  1. The FBI will provide a Rap Back Activity Notification, when there are changes to the Criminal History Record Check of a subscribed individual. This notification will systematically generate a case with Business Rule "Rap Back Activity Event" . Information regarding the new event will be included on the official RAP sheet.

  2. Criminal Related Activities can include the following information:

    1. Criminal Retain Submission (new criminal activity)

    2. Dispositions

    3. Expungements

    4. Want Addition

    5. Want Deletion

    6. Want Modification

    7. Sexual Offender Registry Addition

    8. Sexual Offender Registry Deletion

    9. Sexual Offender Registry Modification

    10. Death Notification

  3. These cases should follow the same adjudication process as IRM 3.42.10.14.1, Fingerprint Cards Results. The individual’s suitability status will remain in "Pass" , pending the adjudication of the Rap Back event.

First Level Appeal after Initial Adjudication
  1. Assistor will perform the first level appeal of adjudication cases that were initially denied entry into IRS e-file. This is known as an "Administrative Review" .

  2. The assistor must make a determination to either "PASS" or "FAIL " and the language for the letters will be included on the Appeal Cover Sheet.

Fingerprint Card (FPC) Adjudication Appeals
  1. Appeal case data should include the following:

    1. Original RAP sheet

    2. Copy of the original denial letter and envelope

    3. If the original denial letter is not attached, reprint letter via Notice Print in the EUP

    4. The original EFIN adjudication cover sheet and any information submitted by the applicant

    5. All initial recommendations should be from EPPM/EPSS. If the initial recommendation was made by CI, the appeal should be routed back to CI with a new referral sheet attached.

    6. Complete Form 14632, Electronic Filing Suitability Scheme Development Center, Referral.

  2. Assistors will perform the following review of case material:

    1. Verify appeal was received timely within 30 days from date of the letter. The appeal will be denied if not received timely (use the postmark dates shown on the envelope to compare to the letter date).

      Note:

      Formal appeal rights will be given to the applicant.

    2. All information requested must correspond with the initial decision to deny the case prior to reversal of the original denial decision.

    3. Review the time frame on the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (see finger print adjudication job aide) carefully to determine the risk level of the conviction.

      Note:

      Time frames are not the same as the initial adjudication.

    4. Using the≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and information included from the applicant, determine if the applicant has satisfied the requirement for a "PASS" decision.

    5. If the additional information does not satisfy passing the individual, or the applicant did not provide sufficient supporting documentation, the original decision will be upheld (FAIL).

    6. Complete appeal cover sheet with either "PASS" or "FAIL" . If "PASS" , make sure to include date the appeal was received, and the date the initial letter was issued. In addition, a new referral sheet must be attached.

    7. Refer to your Lead for final approval or denial.

Electronic Filing Identification Number (EFIN) Adjudication Appeals Follow-up and Communication
  1. Applicants are allowed two levels of appeals, an administrative level and a final appeal to the OOA.

  2. If the applicant appeals the EPSS decision, the appeal will be sent to EPSS.

  3. EPSS will make a "Pass" or "Fail" determination based on the additional information and the original rap sheet based on ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  4. Send correspondence to the applicant advising them of their "Pass" or "Fail" determination.

  5. This will be the final action on cases for EPSS adjudication. Further appeals will be sent to the Office of Appeals via EPSS for a final decision, which is binding. See IRM 3.42.10.14.3.2.2 (4), Procedure for Second (2nd) Appeal Criminal Investigation (CI) / Scheme Development Centers (SDC).

    Reminder:

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

Rap Back Subscriptions

  1. The fingerprint(s) are retained in the NGI and a Rap Back Subscription is set on the individual. If there is activity on the identity history for that subscribed individual, Andover will be notified immediately.

  2. New participants who were required to submit a fingerprint card as part of the application process, will also be enrolled in the NGI Rap Back Services. IRS enrolls these individuals by submitting a "Rap Back Subscription" associated with their Fingerprint card. When an individual who is subscribed to Rap Back is no longer in the program, a "Subscription Cancellation" must be processed. In most instances the Rap Back Subscription and the Rap Back Subscription Cancellation will be processed systemically. There will be instances when an assistor will need to manually Subscribe or Cancel a Subscription to Rap Back.

    Note:

    At this time, only new applicants will be subscribed to Rap Back.

Managing Rap Back Subscriptions
  1. A "Subscribe to Rap Back" request is systematically generated when an individual's initial suitability is updated to "Passed."

    Note:

    At this time, only new applicants are subscribed to Rap Back.

  2. A "Cancel Rap Back Subscription" request is systematically generated when a subscribed individual's suitability status is updated to: "None" , "Incomplete" , "Failed" , "Expelled" or, "Revoked" .

  3. The current Rap Back Subscription status, as well as the Rap Back History, is located on the Personal Rap Back Status tab under Personal Suitability status.

  4. If a "Subscribe to Rap Back" or "Cancel Rap Back Subscription" request fails, a person case is created and assigned for research.

  5. A "Subscribe to Rap Back" or "Cancel Rap Back Subscription" request can be manually submitted using the Subscribe / Unsubscribe button on the Personal Rap Back Status page. The functionality of the button changes depending on if the individual is currently subscribed / not subscribed.

    Note:

    An individual whose fingerprint cards are "Unprocessable" will not be subscribed to Rap Back.

Processing Rap Back Activity Events
  1. When an individual is subscribed to Rap Back, any subsequent criminal related activity reported to the FBI, will be systematically reported back to ESAM. A person case will be created, and a RAP sheet will be printed.

  2. ESAM cases will be generated for the following events:

    1. Criminal Retain Submission (new criminal activity reported) - This trigger will activate when a retained criminal Ten print Fingerprint Identification Submission transaction matches against a subscribed NGI Identity.

    2. Dispositions - This trigger will activate when an existing criminal arrest has been updated and is matched against a subscribed NGI Identity.

    3. Expungements - Expungement / Partial Expungement - This trigger will activate whenever all or a portion of a subscribed NGI Identity is expunged providing notification of the information being removed from their record.

    4. Want Addition - This trigger will activate when an NGI identity is entered into the Wanted Persons file or Immigration Violator file.

    5. Want Deletion - This trigger will activate when an NGI Identity is deleted from the Wanted Persons file or Immigration Violator file.

    6. Want Modification - This trigger will activate when an NGI Identity is modified within the Wanted Persons file or Immigration Violator file.

    7. Sexual Offender Registry Addition - This trigger will activate when a subscribed NGI Identity is entered for the first time, or each time thereafter, in the Sex Offender Registry.

    8. Sexual Offender Registry Deletion - This trigger will activate when a subscribed NGI Identity is deleted from the Sex Offender Registry.

    9. Sexual Offender Registry Modification - This trigger will activate when a subscribed NGI Identity is modified within the Sex Offender Registry.

    10. Death Notification - This trigger will activate when NGI receives a death notice and associates it with a subscribed NGI Identity.

Initial Suitability

  1. Initial suitability is completed on new e-file applications prior to their acceptance into IRS e-file.

  2. The initial suitability process conducted on new applicants may include an FBI criminal background check, professional status check, a credit history check, citizenship and tax compliance check.

  3. Initial suitability is conducted on all TINs listed on the e-file application for the firms and the principals and responsible officials. Applicants with compliance issues will be denied participation in the program until all issues have been satisfactorily resolved. See IRM 3.42.10.14.13.2, Levels of Infractions-Level Two.

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Criteria: ASAPlooks at:
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    Identity Theft See IRM 3.42.10.14.18
    Citizenship See IRM 3.42.10.14.7.13
  5. For initial suitability, applicants that require a suitability check and associated TINs will be added to the daily ASAP extract for processing. The program updates the ASAP results with a "Hit" or "No Hit" and provides comments in the file when there are hits. Andover Leads will receive a case for the hits and assign them to an assistor for research and follow up.

  6. There are several business rules related to initial suitability:

    1. APP_ASAP_HIT_IRS

    2. APP_SUIT_LATE_IRS

    3. APP_ORGASAP_HIT_IRS

    4. APP_ORG_SUIT_LATE_IRS

  7. If the decision is made to fail suitability, it will affect all associated EFIN(s).

Procedures for Working Initial Suitability Case
  1. ASAP results will create a case and post a "not confirmed" business rule results and the issues will be notated on the ASAP Audit page when the IRS receives an issue from ASAP on a firm or individual within an e-file application.

    • Research via IDRS to determine if the EIN/SSN is in compliance.

    • Research to determine all associated Electronic Filing Identification Number(s) (EFINs) for the Employer Identification Number (EIN)/Social Security Number (SSN) in question.

    • Research EFIN comments to see if the issue is already being worked.

  2. Additional steps for working initial suitability

    If Fingerprint Status is Then
    Not on file and professional status is not validated Move suitability status from "in-process" to "incomplete" .
    Not on file and professional status is validated Enter in application comments, "Working initial suitability in process" .
    Not on file and comments indicate that FPC was received over a week ago Bring case to your lead’s attention.
    In-process and the business rule result is current Work current issues and all other TIN(s) on the application that can be passed.
    In-process and the business rule results "Late Suitability" Check comment to see if assigned, reassigned to assistor.
    Unprocessable Work all other TIN(s) on the application that can be passed, reassign case to ANSC_Lead_TE_Clerks workgroup.
    Data Work all other TIN(s) on the application that can be passed, 1. Check fingerprint tab description to ensure results were forwarded to adjudication, if not bring to your lead’s attention for printing and forwarding, reassign worklist to designated employee 2. Check fingerprint tab description, if a specific TE is indicated, reassign case to the applicable assistor. 3. If no specific TE is indicated, annotate in comments "Reassigned Data" to ANSC_Management Workgroup.
    No Data Enter in application comments "Working initial suitability in process" .
Procedures for Appeals on Fingerprint Card Data
  1. This section will advise you of the appeal procedures to be followed regarding fingerprint card data.

Procedures for First (1st) Appeal to Criminal Investigation (CI) / Scheme Development Center (SDC)
  1. Get the folder with original record of arrest and prosecution sheet and paperwork, and attach Form 14632, Electronic Filing Suitability Scheme Development Center, Referral.

  2. Attach a new fraud referral sheet with EFIN, SSN, name of applicant and Z /-T freeze (if applicable). See Form 14632, Electronic Filing Suitability Scheme Development Center, Referral, and attach it to the appeal and previous paperwork.

  3. If FPC adjudication was determined by SDC, follow 2 above and mark FPC appeal. If no personal information page was included in the first referral, include it now.

    Note:

    If no Z/-T Freeze information was indicated in the first referral and there is a Z/-T freeze, then the case will go to SDC.

  4. Document on the "Application Comments" , "appeal forwarded to SDC" .

  5. The appeal will be reviewed and a decision whether to "Pass" the applicant or uphold the previous "Fail" recommendation will be made.

  6. When the response is received back from SDC, complete Form 14629, First Appeal – Suitability Recommendation.

  7. If "Pass" , update application status and "Application Comments" . In addition, send Letter 5880C, "E-file Application Program Acceptance" and Letter 5883C, E-file Application Appeal Response, (select from drop-down ERO Acceptance or Decision Reversed-Accepted for Participation).

  8. If upholding the fail, send Letter 5899C, select from drop-down SDC Appeals Denied.

Procedure for Second (2nd) Appeal Criminal Investigation (CI) / Scheme Development Centers (SDC)
  1. Get folder with original and first appeal paperwork.

  2. Complete Form 14633, O.O.A. Appeal Rights - Suitability Recommendation.

  3. Make complete copy of all paperwork and give case to designated OOA assistor.

  4. Scan all paperwork and forward via e-mail to OOA’s mailbox *AP-COS-APS-East-NYC ACDS Update Request.

  5. OOA shall reply via Andover’s mailbox *W&I EPSS OOA.

  6. Wait for decision. The ERO will be unable to participate in IRS e-file until a decision is rendered by OOA.

Suitability Credit Check
  1. A credit history check may be conducted.

Initial Suitability Processing Time

  1. Initial suitability checks of all new applicants should be completed within 45 days of submission or receipt of the complete applications and all documentation.

  2. When the assistor determines the 45 day processing time for e-file applications will not be met, the assistor will send Letter 5882C (select from drop-down Interim letter), acknowledging the IRS received their application and to allow an additional 30 days for processing.

Continuous Suitability Review

  1. After acceptance into IRS e-file, providers are subject to continuous suitability checks, which is the review of IRS records as well as criminal record monitoring for those subscribed to Rap Back.

  2. The checks are performed to determine:

    1. if all business and personal tax returns are filed

    2. if all tax liabilities are paid or appropriately addressed (e.g., installment agreement)

    3. if there are any fraud penalty assessments

    4. if there is an open IRS criminal investigation

    5. if there are any changes related to FBI criminal records

  3. The system provides weekly cases of TINs that meet continuous suitability criteria. Suitability must be "Passed" or Recheck, a provider status must be "Accepted" and the EFIN must be "Active" .

  4. Changes related to FBI criminal records are referred to be adjudicated.

  5. When Master File Transcript criteria are identified, applicable TINs are systematically moved to "Recheck" .

  6. Inquiries such as telephone contact or a LOI must be made to determine if the criteria identified in the ASAP report constitutes inactivating the EFIN(s). All telephone contacts must be documented on the comments section of the e-file application and in EHSS.

  7. An individual/firm in Recheck can't submit a new e-file application for an additional location until all compliance issues are resolved. ESAM automatically monitors suitability of Principals, Responsible Officials and firms.

    Note:

    The User will receive an error message upon submitting a new application.

Automated Suitability Analysis Program (ASAP)

  1. The ASAP program uses predetermined criteria from MF to identify provider's potential eligibility and IMF/BMF compliance issues.

  2. ASAP is used for new and revised applications.

  3. New issues that did not appear through Business Rule results may be identified through research by the assistor.

  4. The assistor must address all issues with the provider through either a telephone call or correspondence.

  5. Review the comments to see if prior Business Rule issues were identified. Historical data file folders must be reviewed for all Business Rules results with literals/hits to ensure the issue was not previously addressed.

  6. Some cases contain unusual circumstances such as those involving the Scheme Development Center. The appropriate field office or submission processing center function must be contacted to obtain further clarification on these issues. Cases must be referred to the Scheme Development Center via the designated assistor. Tax specialists and e-file monitoring coordinators must be contacted ONLY when a suitability issue may have been previously addressed by the respective function.

Suitability Analysis Worklists from Master File
  1. An entity code on MF identifies individuals and businesses that participate as EROs, Transmitters and Reporting Agents, etc. A case is generated when specific transactions appear on a tax account that would impact suitability.

  2. An extract of all TINs subject to suitability in IRS e-file is used to mark the Master File account on a biannual basis for IMF and an annual basis for BMF. The system turns this indicator on and off.

  3. The current ASAP criteria are used to generate a case for the Firm and Individual. The specific criteria used are:

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. Fraud penalties (TC 320) of any amount for any of the last six (6) years.

    3. Intelligence Hold/Criminal Investigation (Z or -T Freeze).

    4. Deceased taxpayers, TC 540.

    5. Extension of Time for Filing (TC 460) for other than current year or later and no TC 150 present.

    6. Offer-in-Compromise Pending (TC 480).

    7. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    8. No return posted and MF status 02, 03 or 04 on any of the last six tax modules on record and the extension has expired.

    9. Potentially Dangerous Taxpayer (PDT), TC 971 with AC 271 or AC 272.

    10. Currently Not Collectible accounts (TC 530) with the following closing codes: 03, 09, 10, 12, 13 and 39.

    11. IDT Indicator TC 971 with AC 501, AC 506, AC 522 or AC 524.

  4. Cases are worked in accordance with continuous suitability processing procedures. See IRM 3.42.10.14.6.2

Procedures for Continuous Suitability Processing
  1. Business rules regarding Firms and Individuals are issue driven, on a weekly basis. These cases will be generated as the information is received, firm and/or personal suitability will systematically move to "recheck", continuous suitability issues will post as a primary issue business rule and be notated in the description:

    • Research IDRS to determine if EIN/SSN is in compliance.

    • Research EFIN comments to see if the issue has been included in a previous letter sent within the last 45 days. If a letter was issued, add comment "transcript no action-already worked" .

    Additional steps needed

    • Research to determine all associated EFIN(s) for the EIN/SSN in question.

    • If the TIN is in compliance, enter business rule results "No Hit" and application comments "No Hit from cases" .

    • Move suitability status to "Pass."

    • If the TIN is Non-Compliant then notate in "Application Comments" the issue and EFIN which the LOI was generated from.

    • If Z or -T freeze is identified and it is a new issue or has not been addressed in the previous six months, forward the case to a designated assistor for elevation to Scheme Development Center.

    • If LOI is issued the wording "and all associated EFINs" systematically populates on the letter generated.

    When a case is generated for an issue (e.g., balances due, missing returns, fraud penalties assessed) and the taxpayer has not received any notice from the IRS and there are no other issues, do not send the LOI. However, If additional research discovers other issues, include them in the LOI.

Initial Research for Automated Suitability Analysis Program (ASAP) Literals/Hits
  1. The research tools for IMF and BMF are:

    1. E-file application

    2. IDRS, e.g., CC INOLE (valid and invalid), CC IMFOL, CC INTST, CC BMFOL, CC ENMOD, CC TXMOD, CC IRPTR, CC SUMRY, CC FFINQ, CC DDBOL, CC TRDBV

    3. IAT

    4. Document 6209, ADP and IDRS Information, for explanation of sequence, status, transactions and indicator codes

    5. Internal Revenue Manuals

  2. Research required to include but is not limited to:

    • Module balances

    • Returns filed

    • Reverse transaction codes

    • Installment agreements

    • Freeze codes

    • Unpostables

    • Offers in Compromise

    • Assessment of fraud penalty

    • Bankruptcy

    • CNC

    • Citizenship

    • Incarceration

    • Identity Theft

  3. If additional issues are identified, research IDRS and address them in the initial correspondence or telephone call.

    Note:

    If no additional issues are identified, update Business Rules to "No Hit" and suitability of SSN and/or EIN to "Pass" . Notate in the description field and Application Comment page, "Transcript dated mm/dd/yy already being worked" or "Transcript dated mm/dd/yy no suitability issues" .

  4. When addressing personal suitability issues and the individual no longer works for the company, request that they revise their application via the IEP RUP.

    1. If the firm is replacing the individual, a FPC may also be necessary. If a FPC is necessary, have them submit it after revising the application online and enter appropriate comments.

    2. If a revised application is not received within 30 days, a LOI is issued with a reference made to the telephone conversation.

Reasonable Cause and Automated Suitability Analysis Program Literals
  1. Reasonable cause is based on all the facts and circumstances in each situation.

  2. The firm(s)/individual(s) must provide the necessary tax returns, payments and/or information and must address reasonable cause concerning each violation/infraction.

  3. Reasonable cause relief is generally granted when the taxpayer exercises ordinary business care and prudence in determining their tax obligations, but was unable to comply with those obligations.

  4. Ordinary business care and prudence includes making provisions for business obligations to be met when reasonably foreseeable events occur.

  5. In determining if the taxpayer exercised ordinary business care and prudence, review available information including taxpayer's reason, compliance history and circumstances beyond the taxpayer's control.

  6. Reasonable cause is referenced in IRM 20.1.1.3.2, Reasonable Cause or IRM 21, Customer Account Services.

  7. If there is a -C (combat zone), -O or -S (disaster freezes) on an account, this constitutes reasonable cause.

Procedures for Literal/Hits on Automated Suitability Analysis Program Report

  1. This process is designed to automate the input of the ASAP Business Rule results from the compliance check and process the results received. A case is generated for each TIN where there is a compliance issue. The suitability status changes to "Pass" for TINs with no compliance issues, all supporting documents received, and passed validation or adjudication.

  2. Cases are generated for applicants when the Business Rule check results in a "Hit" . Note: The individual or firm suitability is "In Process" and a case may have already been generated if FPC results returned data that has not been adjudicated or the professional credentials that has been validated. In this instance, the case is updated with the ASAP business rule "Hit" .

  3. Business rules are programmed criteria on which literals will appear. Late filing or late payment history is not part of the criteria however, it may be considered when other ASAP criteria are present.

  4. See IRM 3.42.10.14.9, Suitability Procedures After Initial Research, for "Pass" or "Fail" instructions after decision.

No Suitability Checks Met Literal on Automated Suitability Analysis Program Report
  1. The literals "NO SUITABILITY CHECKS MET AGAINST MF" and/or "NO SUITABILITY CHECKS MET AGAINST SP" will only appear on initial and continuous suitability results.

Offer in Compromise (OIC) Literal on Automated Suitability Analysis Program Report
  1. Check for pending or posted OIC, TC 480. ASAP will check for TC 480 (offer pending), TC 481 (offer rejected) and TC 482 (offer withdrawn). The assistor will check CC TXMOD, IMFOL and BMFOL for these transaction codes.

    1. If an OIC is pending (TC 480) or if an OIC is accepted (TC 780) and no other literal is present, "Pass" .

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. See IRM 3.42.10.14.9, Suitability Procedures After Initial Research.

Scheme Development Center, Literal on Automated Suitability Analysis Program Report
  1. Scheme Development Center, literals include:

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. If the issue is the same as a previous year, the case must be resubmitted to Scheme Development Center to get an updated status/recommendation.

  3. If Scheme Development Center transaction/freeze codes have been reversed and no other literal/hits appear, update this information on the ASAP section of application.

  4. If the Scheme Development Center transaction/freeze codes have not been reversed, submit documentation to a designated assistor for referral to Scheme Development Center. The designated assistor will:

    1. Prepare the Electronic Filing Suitability Scheme Development Center Referral

    2. Attach IDRS screen print highlighting the TC 91x

    3. Attach e-file application summary page

    4. Return the case so it can be routed to the Scheme Development Center for review and recommendation

    Note:

    If there’s an IDT indicator or other IDT issue, do not forward the case to RICS; send the case to Scheme Development, with a notation that there’s an IDT issue, along with appropriate documentation.

  5. Upon receipt of Scheme Development Center recommendation, the designated assistor will review the suitability results, prepare the recommendation sheet and make the appropriate recommendation.

  6. The assistor will review the Scheme Development Center’s recommendation for appropriate and specific language for the denial/sanction letter. See Publication 3112, IRS E-File Application and Participation, for denial/sanction and reasons on denial to participate in IRS e-file.

  7. If Scheme Development Center recommends fail and provides specific reasons that support that recommendation, recommend fail. If appropriate and specific language is provided, issue the applicable letter. The Scheme Development Center will indicate the level of Infraction and sanction imposed.

  8. If appropriate and specific language is not provided, the assistor will return the recommendation to the Scheme Development Center for correction.

  9. If Scheme Development Center returns the case without additional appropriate and specific language, recommend "Pass" . Annotate the Suitability Scheme Development Center referral sheet, update e-file application comments.

Potentially Dangerous Taxpayer Literal on Automated Suitability Analysis Program Report
  1. The ASAP identifies PDT by transaction code TC 016. If you are threatened, harassed, or forcibly interfered with during or related to the performance of official duties or have been assaulted you must report it to your local Treasury Inspector General for Tax Administration (TIGTA) office per IRM 25.4.1.2, Reporting to TIGTA. Visit the website of the Office of Employee Protection (OEP) for a list of TIGTA field division addresses and phone numbers.

    Note:

    The assistor must notify the lead of a PDT.

  2. The EMC coordinator must be notified that the PDT indicator has been placed on the provider's account by using secure e-mail. For the list of e-file monitors see e-file Monitor Coordinator by State. Provide the EMCs with the EFIN and applicable provider's name. Update Application Comments with "PDT" , "Provider's name" and "Date" .

  3. Also, notify the EMC of a condition, suspected condition or unusual circumstances regarding a provider that would aid or assist in monitoring. For example, unusual circumstances would include referrals or newspaper articles that show that the provider is involved in criminal activity, etc., or an unusual phone call received from an ERO or concerned party.

Balance Due Literal on Automated Suitability Analysis Program Report
  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    The assistor will pursue balances due in MF status 21 only when working initial suitability cases or in conjunction with other issues when working continuous suitability cases except for MFT 35.

  2. Check CC IMFOL, CC BMFOL, CC TXMOD, CC ENMOD and CC INTST for pending or posted transactions which would resolve the literal/hit or issue.

    1. If the liabilities have been addressed or resolved on all modules and no other literal/hit or issue is present, "Pass" . Examples: posted or pending transactions including payments, current or pending Installment Agreements (IA) and accepted/pending Offers in Compromise.

    2. If all outstanding balances are in a current IA, "Pass" . Check for Manually Monitored Installment Agreements (MMIA) as they are considered legitimate IAs.

    3. If all of the outstanding balances have been addressed through bankruptcy (TC 520) and the bankruptcy has not been reversed, Pass. If TC 520 is not present on all balance due accounts and the cumulative balance on which the TC 520 is not present (or has been reversed) ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , send the appropriate suitability letter to resolve those accounts. Include in the letter that any payment(s) for the return(s) must be made.

    4. If working appeals and the ERO states that the balance has been previously paid, but the payment has not posted to IDRS, send the next letter including the Accounts Management phone number, 800-829-1040, for payment tracer assistance.

    5. When a pending IA TC 971/043 is over 90 days, send appropriate suitability letter and advise them to contact customer service to correct the issue, as there is no valid IA.

  3. If payment or proof of payment, see IRM 3.42.10.14.6.4, Reasonable Cause and Automated Suitability Analysis Program Literals. Each case is required to be reviewed based on its own history, facts and circumstances.

    1. If the provider provides reasonable cause and the payment/proof of payment is posted to IDRS, "Pass" .

    2. If the provider provides reasonable cause and no payment or proof of payment is posted to IDRS, issue letter.

    3. If the provider does not provide reasonable cause but provides the payment or proof of payment, send a reprimand letter reminding the provider of their obligation to pay timely and that any future infractions may result in suspension. When proof of payment is received showing the payment was made timely and eliminated the balance due, reasonable cause is not necessary.

    4. If the provider does not provide reasonable cause or payment, issue letter.

    5. If outstanding balance shows TC 470 with closing codes 90 or 93 and 30 days has pass, send the next letter.

    6. If TC 470 closing code 90 is present; will full pay balance within 30 days.

  4. If the provider is unable to pay balance due, recommend an IA; have the provider attach a copy of the agreement or IA confirmation letter to the appeal letter sent. When the appeal is received with a valid IA, "Pass" .

    Note:

    If the individual meets the criteria for an IA, advise the individual to contact Customer Service Department at 800-829-1040 or use our online IA services via IRS.gov to establish the agreement. Research IDRS using command code IADIS to confirm the IA has been established

  5. If a provider does not provide all information within 30 days of correspondence, issue letter.

  6. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ The account can also be in another status such as "Uncollectable" , "Bankruptcy" and/or "Offer in compromise" . Resolution can include revision of the IA to include the other unpaid tax periods.

  7. If any IA is in default status, send letter to taxpayer and include the information regarding all defaults.

  8. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  9. If balance is not reduced below ≡ ≡ ≡ send letter.

  10. See IRM 3.42.10.14.9, Suitability Procedures After Initial Research, for specific "Pass" or "Fail" instructions.

Uncollectable Accounts Literal on Automated Suitability Analysis Program Report
  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Closing Code: Closing Code denotes:
    03 Unable to locate
    09 Tolerance
    10 Defunct corporation
    12 Unable to contact
    13 In business corporation
    39 ACS cases with low RWS score
  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. See IRM 3.42.10.14.9, Suitability Procedures After Initial Research, for specific pass or fail instructions.

No Return Literal on Automated Suitability Analysis Program Report
  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. If the research shows no returns posted for the last six years and MF status is 02, 03 or 04. The assistor must request the return(s), if extension due date has expired.

  3. The assistor should check CC IMFOL, BMFOL, TXMOD and TRDBV for an extension, posted or pending returns. The assistor must allow an additional 45 days from the due date or extension to allow for the processing of the tax return.

  4. Check CC INOLE for a spousal cross-reference SSN. If a cross reference SSN is found, check CC IMFOL under the cross reference SSN for a joint return. See TC, SC (Status Codes) and CC in Document 6209, ADP and IDRS Information:

    1. If a TC 150 is posted under the spouse's SSN, check the status of the tax account under the SSN appearing on the ASAP report.

    2. If the account is in status code 02 or 03 or 04 (extension due date has expired) with a TC 140, input TC 971, closing code 17 on the secondary spouse's SSN, using REQ77. This action will cross reference the account where the return is posted. Also, input TC 594 with closing code 84 to indicate the return was filed as a spouse on a joint return.

    3. If research does not indicate that all returns are posted or satisfying transactions, request the information from the provider. As a courtesy you may include in the letter that any payment for the return or request for an installment agreement can be made accordingly.

    4. Statute returns (original unprocessed return) are sent to the Statute Control area for clearance and processing. See IRM 3.13.222.12, Statute Dates, for applicable forms and statute dates.

    5. If there are no other issues, "Pass" .

  5. Research all EINs on IDRS using CC BMFOL.

    1. If CC BMFOL has "N" (for no return posted) and no status, pass.

    2. A written statement from the provider indicating that they are not liable is acceptable. However, the statement must be specific. For example, if the issue were a non-filed Form 94X return, the firm would have to spell out why they are not liable for this return, e.g., no employees.

      Note:

      If there is a credit on the account, the assistor should inform the Principal of the firm as a courtesy.

  6. For BMF accounts, check CC INOLE for Filing Requirement Code 11 (seasonal filer) for Form 941, Employer's Quarterly Federal Tax Return.

    1. If a provider is a seasonal filer or research indicates the possibility that the provider may be a seasonal filer the same quarter for prior years is in status 06, pass.

    2. If there is no indication that the provider is a seasonal filer, proceed with research.

  7. Check for TC 610 indicating a payment received with a return but return has not yet posted. If TC 610 is present, pass; if TC 610 is over one year old, send the appropriate letter.

  8. If there are unresolved modules in status 02, 03 or 04, the assistor may choose to contact the provider by phone to attempt to resolve the issue. See IRM 3.42.10.14.9, Suitability Procedures After Initial Research, for specific pass/fail instructions.

    1. If the provider indicates that the return was previously filed, send, a copy of the return with a letter of explanation. This may be faxed only at the request of the assistor working the case. Pass, upon receipt of the return, and send the return for processing. Then use CC FRM49 to input TC 599 with appropriate closing code. Input comments on e-file application page that return secured.

      Note:

      The clerical department routes returns secured for processing as detailed above.

    2. If the return was not filed, the provider may send the original return or copy with the appeal within 30 days. A fax copy is acceptable at the request of the assistor.

    3. If the provider provides proof that an original return was filed with a balance due, advise the provider to contact Customer Service Department at 800-829-1040 or use the online IA services via IRS.gov to establish the agreement, if they meet the criteria for an IA.

      Note:

      If an original tax return is received or copies of tax returns that need to be processed, then send the tax return(s) for processing. Use the routing sheet and notate "Live Return-Please Expedite " with "date stamp and route to" Campus Support Stop 505 and they will ship to Fresno after processing. Input TC 599 with the applicable closing code on each tax period to indicate the return(s) were secured. Refer to Document 6209 Section 11 for TDI Closing Codes.

  9. If providers indicate they are not liable to file a particular IMF/BMF return because there were no employees, they are not required to file based on income or are no longer liable to file the return, complete research via IDRS and other tools such as IAT, CC IRPTR, etc., to insure that the provider’s claim is correct.

    1. If no indication that provider is liable to file, pass and input TC 590 or TC 591 with applicable closing codes.

    2. If research indicates the provider may be liable to file, provide them with the information found during research and request that they review their filing requirements again.

    3. If the provider still claims that they are not liable to file, refer the caller to customer service.

    4. Faxed documentation to resolve suitability issues is acceptable "only" when requested by the assistor working the suitability case.

  10. If the provider does not provide the requested information within:

    1. 48 hours of telephone call, issue appropriate letters.

    2. 30 days of initial letter, issue appropriate letters.

  11. See IRM 3.42.10.14.9, Suitability Procedures After Initial Research, for specific "Pass" or "Fail" instructions.

Fraud Penalties Literal on Automated Suitability Analysis Program Report
  1. ASAP will check for any fraud penalties (TC 320) assessed within the last six years.

    1. The assistor will check CC IMFOL and/or BMFOL for TC 321 which reverses TC 320 within the last six years. If the penalty was abated in full, pass. The assistor will also check for and include all unaddressed balances for all years.

  2. Appeals related to TC 320 follow procedures in IRM 3.42.10.14.22 (8)(a).

Cross Reference SSN Literal on Automated Suitability Analysis Program Report
  1. Initial ASAP will check for any cross referenced SSNs that may be related to the individual(s) SSN listed on any e-file application. This literal is suppressed for continuous suitability review.

  2. If the above literal appears with literal "No Suitability Checks Met Against MF" and SSN, the assistor will verify that the SSN has filed jointly with the individuals listed on the application.

    1. If a joint return was filed and there are no other literals, pass.

    2. If a joint return has not been filed with the cross reference SSN, see IRM 3.42.10.14.7.7, No Return Literal on Automated Suitability Analysis Program Report.

    3. If the cross reference SSN is Married Filing Separate and no return has been filed for the individual shown on the e-file application summary page, follow the procedures in IRM 3.42.10.14.7.7, No Return Literal on Automated Suitability Analysis Program Report.

  3. See IRM 3.42.10.14.9, Suitability Procedures After Initial Research, for "Pass" or "Fail" specific instructions.

Deceased Taxpayer Literal on Automated Suitability Analysis Program Report
  1. ASAP checks for a Date of Death on the Data Master 1 (DM1) file; if a literal is present see IRM 3.42.10.14.7.11, Biannual follow up of Deceased Individuals.

Biannual follow up of Deceased Individuals
  1. EPSS conducts biannual matching (May and December) of Social Security Administration records against e‑file Providers records to determine if any e-file Providers are deceased.

  2. Information Technology (IT) will produce a file of deceased individuals for Andover to work and ensure that all EFIN inactivations are done per IRM 3.42.10.14.7.12, Deceased Individuals.

    Note:

    E-help management operations has 30 days to take the initial action and is required to provide monthly updates to the Headquarters until the cases are resolved: either the EFIN is turned off or the deceased person removed from application or a letter is sent.

Deceased Individuals
  1. When information is received that an individual is deceased, move personal suitability of the deceased individual to "incomplete" if it is not already in that status due to system update for PTIN deceased status.

  2. Research the application for associated EFINs, SSN and EINs.

  3. If the deceased individual is the only Principal on the application inactivate all applicable EFIN(s) and Electronic Transmitter Identification Numbers (ETINs), update all provider options to dropped, place firm suitability in "incomplete " and enter the following comment "Principal deceased" .

    Note:

    This process should be done systematically.

  4. If the deceased individual is not the only Principal on the application or is only a Responsible Official, request, either by telephone contact or LOI, that the firm remove the deceased individual from the e-file application within 30 days. Place firm suitability in "recheck" and enter comments "firm to remove deceased" .

    1. If provider has not removed deceased individual within 30 days, inactivate applicable EFIN(s) and related ETIN(s).

      Note:

      Inform the firm that if the death resulted in a change in business structure, it may need to obtain a new EIN and complete a new e-file application.

  5. If the deceased individual is a delegated user remove the delegated user from the e-file application and enter comment "Delegated user (last name) deceased/removed" .

  6. Refer cases to Headquarters analyst when an issue arises where a firm has no other EFIN and they need to use the current EFIN until a new EFIN is assign.

Citizenship Literal on Automated Suitability Analysis Program Report
  1. Each individual who is a Principal or Responsible Official must be a United States citizen or a resident alien lawfully admitted for permanent residence as described in 8 U.S.C. § 1101(a)(20)(1994). The term “alien” means any person not a citizen or national of the United States. The term “lawfully admitted for permanent residence” means the status of having been lawfully accorded the privilege of residing permanently in the United States as an immigrant in accordance with the immigration laws, such status not having changed. A resident alien lawfully admitted for permanent residence (Lawful permanent resident or LPR) often are described as a Permanent Resident Alien, a Resident Alien Permit Holder, or a Green Card Holder. The appropriate term according to the reference 8 U.S.C. § 1101(a) (20) is "lawfully admitted for permanent residence" . Alien is defined as "any person not a citizen or national of the United States" and lawfully admitted for permanent residence means "the status of having been lawfully accorded the privilege of residing permanently in the United States as an immigrant in accordance with the immigration laws, such status not having changed" .

    1. ASAP will check new applications for any individual’s citizenship code on the DM1 of the National Account Profile (NAP) to ensure all individuals subject to suitability are either US Citizens or Lawful Permanent Resident (LPR).

    2. If the Business Rule shows a literal "Citizenship Code C, D, E, F or Blank" , the assistor will research CC DDBOL to verify the citizenship code.

    3. If the research shows a "blank" on cc DDBOL, the assistor will research IDRS CC MFTRAU to verify the place of birth.

      A - American Citizen
      B - Legal Alien
      C - Alien not allowed to work
      D - Other than A, B or C
      E - Alien Student
      F - Conditional-Legal Alien
      Blank - Unknown

      Note:

      Per the Social Security Administration, if an individual made a request for SSN card made prior to May 1981 which has not been updated, e.g., request for a replacement card, the Citizenship code (CSP) field will be blank. There are times when SSA can infer citizenship, for these types of records by looking at the foreign country of birth (FCI) field which will contain an asterisk (*) to indicate birth outside of the U.S. or a blank to indicate birth in one of the 50 U.S. States, D.C. or the U.S. Territories.

    4. Here are examples of letter paragraphs used for Citizenship.

      1. You indicated you are a U.S. Citizen on your IRS e-file application. Each individual who is listed as Principal/Responsible Official on the application must be a U.S. Citizen or an alien lawfully admitted for permanent residence (legal resident alien) at the time they sign/submit their application. However, our records indicate you are not a U.S. Citizen.
      2. You indicated you are an alien lawfully admitted for permanent residence (legal resident alien) on your IRS e-file application. Each individual who is listed as Principal or Responsible Official on the application must be a U.S. Citizen or an alien lawfully admitted for permanent residence (legal resident alien) at the time they sign/submit their application or are added as a Principal or Responsible Official to the application. However, our records do not match the information reported on the application.
      3. For cases with a “blank” literal - Our records show that information obtained from the Social Security Administration doesn’t indicate your citizenship status. Each individual who is listed as Principal/Responsible Official on the application must be a U.S. Citizen or an alien lawfully admitted for permanent residence (legal resident alien) at the time they sign/submit their application. We are unable to determine your citizenship status. Please provide copies of documentation such as a Birth Certificate, U.S. Passport, Green Card, Certificate of Citizenship, or Naturalization Certificate to support your status. In addition, you should contact the Social Security Administration to update your files to avoid future discrepancies.
    5. If “Citizenship Code C, D, E, F” or “blank” indicator is present on IDRS, then fail the individual.

    6. Assistor should advise the individual to contact SSA to update their files to avoid future discrepancies.

    7. When documentation has been received regarding proof of citizenship and even if IDRS CC DDBOL/MFTRAU is not updated, then Pass.

Biannual Follow up for Individual’s Citizenship Status
  1. EPSS conducts biannually matching (May and December) of the Data Master 1 (DM1) of the National Account Profile to identify any principle or RO without a valid citizenship indicator/literal for participation in the e-file program.

  2. A file will be sent for assistors to work. The assistors are required to ensure the documentation of citizenship or legal resident alien status is provided or validated per IDRS research. See IRM 3.42.10.14.7.13

  3. The assistor and e-help management has 30 days to take an action on all cases. E-help management is required to provide monthly updates to the Headquarters until the cases are resolved. E-help management is also required to maintain documentation confirming citizenship or legal resident alien status received or IDRS research confirming U.S. place of birth.

  4. If “Citizenship Codes C, D, E, F or blank” indicator is present on IDRS, then put the individual into Recheck. Send Letter 5876C, select from drop-down "Continued Participation (LOI)" . See example of paragraphs for LOIs to use for Citizenship in the note per IRM 3.42.10.14.6.13 (2) (d).

  5. If proof is not provided, see IRM 3.42.10.14.9, Suitability Procedures After Initial Research, for pass/fail specific instructions.

Suitability Documents for Proof of Citizenship

  1. Individuals will be required to provide documentation for verification when SSA shows citizenship code hit on ASAP.

  2. Documents that can be accepted as proof of citizenship:

    1. Green Card - gives official immigration status (Lawful Permanent Residency) in the United States.

    2. Birth Certificate - issued by a U.S. State (if the person was born in the United States) or by the U.S. Department of State (if the person was born abroad to U.S. citizen parents who registered the child’s birth and U.S. citizenship with the U.S. Embassy or consulate).

    3. U.S. Passport - issued by the U.S. Department of State. (current or expired)

    4. Certificate of Citizenship - issued to a person born outside the United States who derived or acquired U.S. citizenship through a U.S. citizen parent. (N-560 or N-561)

    5. Naturalization Certificate - issued to a person who became a U.S. citizen after 18 years of age through the naturalization process. (N-550 or N-570)

    6. State Department documents (e.g., FS-240 or DS-1350)

    7. Military record showing a U.S. place of birth

    8. Voter Registration Card

  3. Photocopies of the proof of citizenship and/or residence are acceptable forms of documentation. All original documentation must be returned to individual.

  4. If these documents are not provided, the individual will not be allowed to participate.

    Note:

    Any additional questions regarding citizenship status or documents refer the applicant to the U.S. Citizenship and Immigration Services at 800-375-5283.

Suitability Procedures After Initial Research

  1. On the Form 14628, Initial Suitability Recommendation, assistors must notate any returns not filed, liabilities not addressed and assessed fraud penalties.

  2. If a "Fail" recommendation is determined after initial research:

    1. Pull file folder

    2. Prepare Form 14628, Initial Suitability Recommendation on all case business rules if recommendation is "Fail" (See IRM 3.42.10.14.9.1, Suitability Recommendation)

    3. Input comments "sent for second line review" on the application

    4. Forward the case file for second line review.

      Note:

      When working appeals cases and the recommendations is to "Fail" a second line review is needed.

  3. Upon concurrence of "Pass" decisions see above:

    1. Prepare a written response only if a firm/individual has been previously contacted.

    2. Input TC 590/591/594/599 if required.

    3. For cases or appeals, change suitability status to "pass" for all applicable TINs/EINs; input comments "passed suit" .

    4. File all information in the designated area.

  4. Upon concurrence of "Failed" decisions by management, see IRM 3.42.10.14.15, Procedures for Rejecting and Sanctioning Firms and Individuals.

    1. If a Principal or Responsible Official or a firm is non-compliant or if a "No response" , "Proposed Sanction" or "Suspension" letter is being sent to the provider, send one letter to the firm and a different letter to the appropriate individual at the firm's mailing address.

      Reminder:

      Ensure the firm's letter is addressed to the correct individual

    2. Be sure to include all literals/hits that appear on the Business Rule which are valid and any other pertinent information.

    3. Forward letter and case file for review.

    4. The letter will be mailed by the reviewer.

    5. Comments will be automatically added to e-file application summary page showing the type of letter that was generated. The assistor must add comments indicating the suitability issue(s) and the action(s) taken in application comments area.

      Reminder:

      For transcripts, the provider will remain in "Recheck" suitability until the Office of Appeals makes the final determination.

    6. For cases, update all applicable TINs to "Fail" status, document issues in suitability explanation and actions in application comments area and send the appropriate letter. It is permissible to enter comments "See EFIN XXXXXX" instead of typing the same lengthy comment under individual EFIN(s). Be sure to include the EFIN from which the letter was generated in the suitability explanation. Change application status to "complete" .

      Note:

      See IRM 3.42.10.14.3, Initial Suitability, if this is a new application for an additional office.

    7. Assistor will update provider option to "Rejected" / Non-Compliant and inactivate EFIN, if applicable.

  5. The designated TE must contact EPPM if an applicant and/or provider assigned to a national account manager does not pass suitability before any action is taken and letter sent. In addition, the designated TE should contact EPPM when a firm or provider is affiliated with more than 100 locations.

    1. EPPM will initiate a review of the facts of the case and make a determination on the level of the infraction and the impact on IRS e-file. This review will be conducted by EPSS management, EPPM and national account managers.

    2. Upon completion of the suitability review, EPPM will provide instructions to resolve the case in accordance with the reasonable cause guidelines and Publication 3112 participation rules.

Suitability Recommendation
  1. Suitability recommendations are used by assistors to summarize the results of their research.

  2. Upon completing their initial research, assistors will indicate on Form 14628, Initial Suitability Recommendation/IM Activities area: "Pass" or "Fail" . Assistors will not make a determination as to what sanction can be imposed, if applicable. The second line reviewer will review the TE decision.

  3. Each case will go through one review with the exception of "Office of Appeal" recommendations which will go through two levels of review.

  4. Form 14628, Initial Suitability Recommendation must state whether reasonable cause was established, the appeal was received timely and if the issues were resolved.

  5. There are four levels of suitability review/recommendations:

    1. Form 14628, Initial Suitability Recommendation is used after the response/appeal to the LOI or as the Initial recommendation for Daily Suitability.

    2. Form 14629, First Appeal - Suitability Recommendation is used for the first appeal/proposed sanction.

    3. Form 14634, Suspension without Appeal Rights - Suitability Recommendation is used when a response is received to a sanction.

    4. Form 14633, OOA Appeal Rights - Suitability Recommendation is used for appeal to the Office of Appeals.

Suitability Denial Codes
  1. A denial reason code must be entered when either a firm, Principal or Responsible Official fails suitability or when the Andover e-help Desk places a "Provider Status" in "Reject" , "Revoked" "Dropped" "Non-Compliant" or "Non-Compliance (field monitoring)" status. See figures below for these codes.

    Figure 3.42.10-1

    Denial Codes Suitability Fail/Expel Rejected Revoked Dropped Non-Compliant Non-Compliant (Field monitoring)
    Accepted returns from other than taxpayers/ERO           X
    Advertising Standards           X
    Assessment of IRC 6695(g) penalty X X     X  
    Citizenship X X     X  
    Conduct of disreputable nature X X     X X
    Conviction of a criminal offense X X     X X
    Credit check X X     X  
    Criminal Investigation X X     X  
    Currently Not collectible X X     X  
    Deceased       X    
    Delinquency penalty assessed X X     X  
    E-filing unauthorized returns X         X
    Employing a denied/suspended provider X X     X X
    Estimated tax penalty assessed X X     X  
    Fail to adhere to signature requirements X         X
    Fail to cooperate - monitoring           X
    Failure to file X X     X  
    Failure to pay X X     X  
    Failure to provide taxpayer acknowledgement           X
    Fail to retain or provide records X         X
    Fail to retrieve ack files           X
    Failure to notify IRS of changes X X     X X
    Fingerprint Check Adjudication X X     X  
    Fraud penalty assessed X X     X  
    FTD Penalty assessed X X        
    Identity Theft (IDT) X X     X  
    Improper origination X         X
    Improper use of RAL indicator           X
    Improper use of W-2 indicator by provider           X
    LDC Injunction X   X      
    Miscellaneous penalty assessed X X     X  
    Misrepresentation X X     X X
    Negligence penalty assessed X X     X  
    No response to inquiries       X X  
    No returns e-filed for the last two years       X X  
    Numerous EFINs at the same address X X     X X
    OPR Suspension/disbarment X X     X X
    Other X X     X X
    Owner/Principal of failed suitability X X       X
    SDN Revocation     X      
    Stockpiling returns prior to acceptance           X
    Transmitter form deteriorate           X
    Trmtr. fail to use EROs EFIN X         X
    Unacceptable high reject rate         X X
    Undeliverable mail   X   X X  
    Unethical practices in return prep X X     X X
    Voluntarily dropped (filers request/deceased provider)       X    
    Working for a denied/suspended provider X X     X X

    Figure 3.42.10-2

    Status Codes
    1. Applied
    2. Accepted
    3. Dropped
    4. Non-compliance (field-monitoring)
    5. Non-compliant
    6. Non-compliant (PTIN suspend/revoked)
    7. Rejected
    8. Revoked
    9. Testing

External Customer Data Store (ECDS) Disclosure Guidelines for Suitability

  1. Disclosure guidelines must be followed when contacting filers by telephone. Information cannot be disclosed to any person not listed on the application. In the case of a literal/hit on the SSN, you must speak to the individual with the suitability issue. See IRM 3.42.7.14.5.1, Authentication/Authorization for e-file Application, for disclosure guidelines.

Suitability Telephone Contact and Correspondence
  1. The first inquiry may be made by telephone. If there are complex issues or multiple issues that could not be easily addressed during a telephone inquiry, send Letter 5876C, (select from drop-down "Continued Participation (LOI)" ).

  2. All telephone conversations must be documented in an interaction and included as a comment on the application.

  3. If supporting information/documentation requested is not received within 48 hours, send Letter 5876C, select from drop-down "Continued Participation (LOI)" .

  4. The correspondence must address all suitability issues including any new issues identified through IDRS research. However, if an issue was inadvertently left out, or a return becomes due in the interim, the next notice must include any issues that arose since the original letter was issued.

  5. The letter must be sent to the individual who was contacted by telephone on a compliance issue and who will provide the necessary information to satisfactorily resolve the issue.

  6. If a letter is returned by the postal service as undeliverable, the undeliverable suitability procedures must be followed. See IRM 3.42.10.14.10.2.2, Undeliverable Suitability Letters.

  7. When responses are received from individuals/firms regarding suitability issues, follow the specific procedures for the ASAP literal.

Generating and Mailing Letters with Suitability Issues
  1. When mailing correspondence concerning the suitability of one or more principals or responsible officials of the firm, send one letter that does not include details of the individual's suitability issue to the firm. This letter will include appeal rights for the firm. A letter to the firm is not needed if the person with the suitability issue is the only Principal on the application.

    Reminder:

    Send firm letter to a Principal other than the one with the issue.

  2. Send a separate letter that includes details of the suitability issue and appeal rights to the appropriate Principal or Responsible Official.

  3. Generate the suitability letter. Add a note (by selecting Add) on the personal suitability status screen, identifying the EFIN from which the firm letter was generated. This will direct any subsequent assistor to the EFIN account when the TIN is associated to multiple EFINs.

  4. Suitability letters require a second level of review and will have appropriate notations in the e-file application comments that indicate that a specific letter was reviewed and mailed.

  5. When mailing correspondence concerning firm non-compliance, send a letter to the firm and to each of the principals of the firm that includes the details of the suitability issue and appeal rights. If there is only one Principal on the application send a letter only to the Principal.

  6. Failure to respond timely to a suspension letter will result in the forfeiture of the appeal rights. They may reapply if the suitability issued is resolved.

Failure to Respond to Suitability Letters
  1. If the provider fails to respond to the Letter 5876C, research to see if they have resolved their issues. If not send 5886C, (select from drop-down No Response Proposed Sanction for Individual) or Letter 5886C, (select from drop-down No Resp/Prop Sanction firm/Officer/Partner). Update the comments field after selecting "Save" , no response to previous letter, list all suitability issues and EFIN number.

  2. If there has been no response to the previous letters and it has been over 30 days, fail the individual and sanction the firm for the appropriate time period.

Undeliverable Suitability Letters
  1. If a suitability letter is returned by the postal service as undeliverable, follow the procedures in (a). For undeliverable mail other than suitability letters, please refer to IRM 3.42.10.19.2, Undeliverable ERO Correspondence.

    1. If no address is found after research and an attempt to contact the applicant, change the suitability status from recheck to "Fail" with current eligibility date, change provider status to rejected and Inactivate the EFIN. Enter comments to show correspondence was undeliverable, the suitability issue remains and all associated EFINs/ETINs inactivated. Set undeliverable mail indicator to "Yes" .

    2. If a new address is found and the letter was reissued and there is still no reply after the application has been on the provider suitability recheck for over 30 days, see IRM 3.42.10.14.10.2.1 (1), Failure to Respond to Suitability Letters, before issuing the next appropriate letter.

  2. If there is an undelivered suitability letter(s) regarding EROs who are in failed, expelled or revoked status, their suitability status remains in "Fail" and not moved to "Incomplete" . Enter comments "correspondence was undeliverable and the suitability issue remains" .

  3. If there is a United States Postal Service (USPS) National Change of Address (NCOA) which indicates a new address on the correspondence, change the address on the e-file application and indicate by comments that this is being done based on USPS NCOA. The NCOA is a recognized method of receiving updated taxpayer addresses per IRM 3.13.5.48, Form 8822, IMF Change of Address Request. Reissue the correspondence.

  4. If the provider is a VITA Site or TCE, open an interaction requesting to correct the mailing address and alternate contact information. Assign to SPEC_ANA L2 provider group. When the interaction is returned with the needed information, update the application accordingly:

    1. If you are able to reach the provider by telephone, then update the e-file application with the new information and reissue the original correspondence.

    2. If unable to reach ERO by telephone:

    3. Place the EFIN and any associated ETIN in “Inactive” status. Do not place the EFIN in “Dropped” status. Dropped EFIN(s) cannot be recovered.

    4. Set the Undeliverable Mail Indicator to "Yes" on the application summary screen, and add appropriate comments.

    5. Document telephone call in the application comments screen of the EFIN and in the EHSS interaction. Notate the letter number, letter date and main issue of letter in both areas.

    Note:

    When undeliverable mail involves a national account, an interaction is sent to designated assistor and / or lead to submit an e-mail to the ISE&S (Industry Stakeholder Engagement & Strategy) group on a weekly basis containing the national accounts with undeliverable correspondence. Hold interaction open until you receive a response from the ISE&S employee. Do not inactivate until a reply is received.

  5. If the ERO calls after the Undeliverable Mail Indicator is set, then:

    1. Update the address and any other information on the e-file application.

    2. Update the undeliverable indicator to "No" .

    3. Update the EFIN and any associated ETIN(s) to "Active" and provider status to rejected and Suitability to "Fail" .

    4. Reissue of prior correspondence may be required.

      Note:

      Update the appropriate TIN's suitability status to "Recheck" then transfer the interaction to leads for review of the suitability issues before the letter is resent.

  6. If the letter is undeliverable due to a disaster:

    1. Assistor is required to check the ZIP codes for undeliverable mail using the ZIP Code Lookup, to see if it is from the affected area.

    2. If the mail is returned as undeliverable from an affected area, a comment must be made on the e-file application with regard to the mail being returned.

    3. Assistor is required to attempt to find a new address through IDRS or other tools and if found, resend the letter.

    4. If the assistor is unable to find a new address, follow normal procedures and place the EFIN(s) and any associated ETIN(s) in "Inactive" status on the e-file application.

Inactivating a Provider for Undeliverable Mail Other than Suitability Issues
  1. The following procedures are required to be used on the application when inactivating a provider due to undeliverable mail when suitability issues are not involved:

    1. Update Undeliverable indicator to "Yes" .

    2. Update the e-file application with the new information the provider has provided.

    3. Update EFIN/ETIN to "inactive" .

    4. Input Application comments: "Undeliverable mail Letter XXXX" or "Phone is Disconnected" , EFIN/ETIN inactivated.

Correspondence or Phone Call from Provider in Inactive Status
  1. If correspondence or a phone call is received and e-file application comments indicate the EFIN has been inactivated because of undeliverable mail:

    1. Have the folder retrieved, if available.

    2. Update the e-file application with the new information the provider has provided (e.g., new address).

    3. Update EFIN/ETIN to "Active" .

    4. Update the provider status to accepted and suitability to "Recheck" .

    5. Update undeliverable indicator from "Yes" back to "Blank" .

    6. All assistors may resend an acceptance letter if needed.

    7. Update application comments with actions taken.

Disconnected or Out of Service Telephone

  1. When attempting to call the provider concerning continuous suitability issues and the telephone number has been disconnected or there are indications that it is out of service:

    1. Issue Letter 5876C (select from drop-down "Continued Participation" ) for suitability issues and include a statement requesting an updated telephone number.

    2. If the LOI is returned as undeliverable, follow the procedures in IRM 3.42.10.14.10.2.2, Undeliverable Suitability Letters.

    3. Enter appropriate comments.

Disaster Areas

  1. During a Disaster, compliance actions regarding IRS e-file application must not be done on affected providers/applicants:

    1. If an LOI or a proposed/recommended sanction letter has been issued, do not issue the next letter or fail suitability until a new address can be identified. Update comments to this effect.

    2. When the address has been updated, continue to follow normal suitability procedures and send the appropriate suitability letter.

    3. The suitability letter tracking report will be used to monitor these accounts until a new address or contact has been established for the provider.

Levels of Infraction

  1. The assistor will recommend the level of infractions.

  2. Levels of infraction are intended to categorize e-file rule infractions in accordance with the seriousness of the infraction. Infractions are categorized as level one, level two and level three. Levels of infractions apply to all suitability determinations and to the monitoring of providers.

  3. The period of denial and sanctions are imposed in accordance with the level of infraction. Sanctions may restrict or revoke the e-file privileges of a provider. Sanctioning may range from a written reprimand to suspension or expulsion, depending on the severity of the infraction and mitigating circumstances.

  4. Each suitability "Hit" , based on set suitability criteria, identifies a potential infraction or violation of e-file rules. Apply the levels of infraction and determine the appropriate period of denial or sanction.

  5. Compare the violation(s) to each level of Infraction and determine which one applies to the case. Determine the period of denial or the sanction to be imposed: level one - written reprimand; level two - one year suspension; level three - two year suspension or expulsion. If level three, determine if the suspension or expulsion can be immediate.

  6. If multiple or repeated infractions are identified, consider if the infractions meet the criteria for the next higher level of Infraction.

Levels of Infractions - Level One
  1. Level one infractions are minor infractions that may result in the issuance of a written reprimand or other sanctions.

  2. Level one infractions include violations that would:

    1. Have little or no impact on the quality of electronically filed returns or on IRS e-file

    2. Have a limited impact on government

    3. Have no negative media impact

    4. Be a non-compliant issue that was self-corrected prior to IRS intervention

    5. Be a procedural infraction of the above criteria

  3. The following is an example of a level one (1) infraction:

    1. There is a history of defaulted installment agreement, but issues were addressed or self-corrected with no reasonable cause or explanation.

      Note:

      Each case is required to be reviewed based on its own history, facts and circumstances.

Levels of Infractions - Level Two
  1. Level two infractions are serious and result in suspension from IRS e-file for one year or other sanction. Continued or additional level one (1) infractions incurred, after the service has brought the level one (1) infraction(s) to the attention of the provider, may constitute a level two infraction.

  2. Level two infractions include violations that would:

    1. Have an adverse impact upon the quality of electronically filed returns or on IRS e-file

    2. Have a negative impact on taxpayers' voluntary compliance

    3. Have minimum media impact

    4. Be considered a substantial omission

    5. Result from intentional disregard

    6. Be a non-compliant issue that was not self-corrected prior to IRS intervention

  3. The following may represent some examples of level two infractions:

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. A defaulted installment agreement with no reasonable cause or explanation.

    3. Two missing tax returns within the last six (6) years and no reasonable cause or explanation. The tax returns must be secured, if possible.

      Note:

      The examples given are not all inclusive. Each case is required to be reviewed base on its own history, facts and circumstances.

Levels of Infractions - Level Three
  1. Level three infractions are grave and could result in a suspension from IRS e-file or other sanction for two or more years (e.g., expulsion). Continued level two infraction(s), after the service has brought the level two infraction(s) to the attention of the provider, may constitute a level three infraction.

  2. Level three infractions include violations that would:

    1. Have a major impact on the government;

    2. Have a significant adverse impact on the quality of electronically filed returns;

    3. Have a significant adverse impact on the integrity of IRS e-file; or

    4. Involve intentional disregard.

  3. A level three infraction may involve:

    1. Fraud

    2. Having an e-file business related association with known criminals (disreputable conduct)

    3. Monetary crime

    4. Fiduciary crime

    5. Deliberate or intentional misrepresentation on an application

    6. Incarceration. See IRM 3.42.10.15.2, Procedures for Incarcerated Individuals on Active Applications

      Note:

      Violations at level three may result in immediate suspension. See IRM 3.42.10.14.13.4, Immediate Suspension or Expulsion, for other situations that warrant an immediate suspension. An example of an infraction warranting immediate suspension would be a fraud conviction or investigation by the Criminal Investigation Scheme Development Center. The case must be brought to the attention of the second line reviewer for approval.

  4. The following may represent some examples of level three infractions:

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    4. Conviction of any criminal offense under the revenue laws of the United States or of a state or other political subdivision or of any offense involving dishonesty or breach of trust.

    5. Suspension/disbarment from practice before the Service if the activity resulting in suspension or disbarment is also in violation of IRS e-file rules and regulations.

    6. Pending Scheme Development Center issues where documentation is provided by the Special Agent.

    7. Failure on the part of an authorized IRS e-file Provider to cooperate with the Service's efforts to monitor filing abuse.

      Note:

      The examples given are not all inclusive. Each case is required to be reviewed base on its own history, facts and circumstances.

Expulsion
  1. A level three infraction may result in expulsion from IRS e-file without the opportunity for future participation.

  2. Continuous level two or three behavior, additional level two or three infraction(s) after the service has brought the level two or three infraction(s) to the attention of the Authorized IRS e-file Provider, conviction of a felony crime, ID theft or fraud may be reason(s) for expulsion.

Immediate Suspension or Expulsion
  1. Principals and Responsible Officials may be expelled if the SDC recommends suspension or expulsion of an individual due to an active IRS criminal investigation or if an individual is currently in prison.

  2. Principals and Responsible Officials may be expelled if stolen identities are used to obtain the EFIN and used to e-file returns. These cases will be referred to RICS or CI. Identity theft cases may also originate from RICS, RAAS, and in other areas of the service and be referred to EPSS.

  3. All associated TINs will be manually updated to "Fail" status. The EFIN(s) associated with the failed TINs will then be systematically inactivated.

  4. Providers can request administrative review. CI will perform the first level administrative review for CI related cases and RICS will perform the first level review for IDT cases. If the case involves both CI and IDT issues, then CI will review the case.

  5. Second level appeals will be conducted by OOA. Cases involving a CI investigation will not be allowed the second level of appeal until the investigation is closed.

    Note:

    When a person was failed by CI and is found using an EFIN of another active ERO, refer the case to the Andover Lead Provider Group. The Lead Provider Group will then send an e-mail to SDC and they will then forward the case to the special agent who was originally assigned to the case for review and recommendation. These types of cases may be received from other areas for Andover Lead Provider Group to transfer.

Office of Professional Responsibility (OPR) Disciplinary Actions
  1. The following procedures must be followed upon receipt of an e-mail from OPR regarding suspension or disbarment of individuals from practicing before the IRS.

    1. Research the individual(s) name on the application to see if the individual has an application on file and an EFIN or ETIN was issued.

    2. If there is no record of an application on file, no action is required.

    3. If an application is on file but the EFIN or ETINis not"Active" , update comments with "Suspended or Disbarred by OPR Indefinitely" include the date and close interaction.

    4. If an application is on file and the EFIN or ETIN is active, research IDRS and IAT etc., to see if there are any e-file rules they are not abiding by.

      Note:

      If sufficient information is not in the e-mail or memo, contact OPR to obtain additional information.

    5. If no suitability issues exist, enter on application comments "suspended or disbarred by OPR indefinitely" include the date.

    6. If suitability issue(s) exist, see IRM 3.42.10.14.5.

Denial and Revocation of Specially Designated Nationals

  1. Presidential Executive Order 13224 of September 23, 2001, restricts participation of SDN in any financial/monetary activities in the United States including e-filing of tax returns. Identified SDNs on the SDN list of Department of Treasury's OFAC cannot be on an e-file application as a Principal or Responsible Official.

  2. The system will download the SDN list on the 1st and 15th of each month from the Dept. of Treasury server and match information from all e-file applications, with provider option status of applied or accepted, against firms and individuals on the SDN List and generate a case with the primary issue Present on SDN List. It is important that these cases be worked within 30 days of being initiated.

    1. ESAM compares the last name and the first five characters of the first name of each Principal and Responsible Official against the Treasury SDN list.

      Note:

      The middle initial is not part of the matching process so should not be considered when researching for possible matches on ESAM.

    ESAM will generate a case to the e-help Desk ANSC Leads provider group and based on the triggering will contain information such as:

    1. Applicant (DBA name)

    2. Date assigned

    3. Case Age

    4. Link to all possible matches in ESAM

  3. Eliminate entries from results if they have no associated "Active" or "Inactive" EFIN on an e-file Application. For the remainder, search and find SSN and DOB of the individual, if the case involves a person.

  4. The assistor must access the Department of Treasury website. Then search the PDF version by date of birth in DD MM YYYY format, where MM is the month abbreviation as APR for April.

  5. If the assistor finds a possible match, but not an exact match, then perform additional research:

    1. Check to see if there is a fingerprint card

    2. Ensure the country of birth matches the one noted on the Treasury SDN list

    3. If country does not match, access CC MFTRA “U” to obtain country of birth

  6. When a definite match is found, the assistor will take the following actions:

    1. If new applicant, update the provider statuses to "Rejected" , select reason for denial as "Other" and enter comments, "SDN Revocation" .

    2. For existing provider, update provider status to "Revoked" with denial reason of "LDC" and input the appropriate comments. NOTE: It is important to input clear comments for all cases; SDN, for example using "LDC" denial reason as this is not an LDC case but there is no other available reason to use at this time.

    3. For existing applications, update all associated EFINs and ETINs to "Inactive" .

    4. Update Firm suitability for each entity to "Failed" and input eligibility date as ≡ ≡ ≡ ≡ ≡ ≡ , enter the denial reason of "Other" and enter comment "SDN Revocation" .

    5. Update Personal suitability for matched individual to "Failed" , input eligibility date as ≡ ≡ ≡ ≡ ≡ ≡ ≡ , select denial reason of "Other" and enter comment "SDN Revocation" .

    6. If the applicant/provider is matched with the SDN list, send Letter 5899C, (select from drop-down "Revocation Provider" ).

    7. If an individual is matched with the SDN list, but not the provider, send Letter 5899C-SDN (select from drop-down "Revocation Individual" ).

Procedures for Rejecting and Sanctioning Firms and Individuals

  1. The assistor will update the suitability fields for firms and/or individuals to "Fail" , choose suspension period based on the levels of infractions, change provider status to rejected or non-compliant, select the denial reason from the drop-down box and enter comments regarding the reason for the rejection/sanction.

  2. Cases involving initial suitability:

    1. Update suitability to "Fail" for (firm, principals and/or responsible officials).

    2. Choose suspension period based on the levels of infractions.

    3. Move provider option to "Rejected" .

    4. Select the denial reason from the drop-down.

    5. Input comments in the explanation field and click "Save" .

    6. Send appropriate letter (Exhibit 3.42.10-8).

    7. Mark business rule worked and close case.

    8. Add comments to "Application Comments" if applicable.

  3. Cases involving continuous suitability review:

    1. Click on Firm/Person link.

    2. Select edit icon on the business rule hit "continuous suitability status" .

    3. Enter "Date of Results" , select Hit status - "Hit" or "No Hit" and enter research results in "Additional information" and select "Save" .

    4. Return to "Case Overview" and select "Worked" from the "Case Action" drop-down, mark business rule worked and close case.

    5. Send appropriate letter and add comments

      Note:

      Suitability status will stay in "Recheck" until issue has been resolved, all appeal rights are exhausted or until decision is made by OOA.

  4. The denial/suspension date for initial/continuous suitability cases is the date the action is being entered on the e-file application.

  5. The eligibility date is also inserted in the denial/suspension letters in the following sentence, "You may re-apply to participate on or after (insert eligibility date) or sooner if you resolve the suitability issue(s)" .

  6. The eligibility date for an expulsion is ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  7. If the firm (EIN) fails initial suitability or a suitability review, all principals will also fail individually as they are responsible for the firm's compliance with tax regulations and e-file rules. The same eligibility date is entered for the firm and the principals.

  8. If a Principal fails as a result of continuous suitability, the assistor will update the personal suitability to "Fail" . If the business type is a Sole Proprietor with an SSN, then the firm suitability must also be changed to "Fail" .

    Exception:

    If a Principal is associated with more than one EIN and EFIN and is denied participation on a new application, then that Principal’s suitability status must be placed in "Recheck" status. This will ensure that the other offices that the Principal is associated with will be allowed to participate while the Principal responds or appeals the denial decision. The new EFIN/ETIN will be placed in "Inactive" status. When the final determination is made, the suitability status must be updated and the appropriate letter must be sent to the affected Principal and the firm at the same time.

  9. If a Responsible Official fails as a result of initial or continuous suitability review, the suitability status for the SSN is updated to "fail" .

  10. Any provider can request a deletion of a Principal or Responsible Official who is in failed or recheck suitability if the applicant or provider indicates that the firm no longer associates with the Principal or Responsible Official.

    1. If the application contains only one Principal, the firm must provide a new Principal or Responsible Official, with proof and any necessary information through the IEP RUP or send a signed statement on official company letter head.

    2. Input the new Principal/Responsible Official (RO) personal information to allow the new Principal to update, sign and submit the application.

    3. Delete the Principal/RO with suitability issues.

    4. Once the application is submitted and fingerprint cards/credentials are received suitability will be completed.

    5. The appropriate letter will be sent systematically.

  11. An e-file monitor may be requested to visit the organization to determine compliance on an individual basis and will fax a sanction sheet to Andover if appropriate.

    1. The assistor will enter comments for all field monitoring reprimands and warnings.

  12. For suspensions and expulsions, the assistors will:

    1. Change the provider status to Noncompliance (field monitoring)

    2. Select the denial reason(s) from the drop-down menu

    3. If applicable fail the individual's personal suitability as shown on the e-file monitoring sanction sheet

    4. Update applicable EFIN(s) and ETIN(s) to inactive

Procedures for Working Suspended Individual Taxpayer Identification Number (ITIN) Suitability Cases

  1. CI, Scheme Development Center, or OOA will send to e-help Desk employees (Andover) an ITIN case in the final decision phase of the appeals process. The decision may be either to fail or suspend the applicant to participate in IRS e-file.

  2. The assistor will follow the procedures below:

    1. Update application in the application.

    2. Annotate comments with reason for the action.

    3. Create an EHSS interaction and choose business unit: e-services, product: application or problem type: suitability.

    4. Change the "source" which will default to "direct call" to "referral" .

    5. Enter the word "suitability ITIN" as the first words in the interaction description to facilitate routing.

    6. Copy the comments relative to the CI suspension from the e-file Application.

    7. Enter application comments into the interaction.

    8. Send the open referred interaction to the e-help Desk west (Austin leads) to be worked by an assistor in Austin team one who has access to the RTS (real time system) which is the ITIN database.

Procedures for Working Suspended Individual Taxpayer Identification Number (ITIN) Cases Received From e-help East (Andover)
  1. Austin team one group leads will assign and identify ITIN e-cases to employees who have access to the Real Time System (RTS) to be worked.

  2. Use the If and Then chart below for working ITIN Database cases:

    If ... Then ...
    The individual is not in the ITIN Database Update comments section with "Not in ITIN Database" .
      Close case.
    The individual is in the ITIN Database Update interaction comments section with "elevating recommendation" to e-help team leader. Complete "ITIN suspended in application" template insuring to include the following: taxpayer name, interaction number, EIN, ITIN, EFIN and comments that state, "Taxpayer suspended in application should they be suspended in RTS?" The e-help team Leader will forward to the ITIN Program Office for determination and necessary actions.
      Close the interaction.

    Note:

    From this point the ITIN program office will be responsible for determining if the customer will remain in the ITIN program and will be responsible for notifying the customer if they determine otherwise.

Compromised Electronic Filing Identification Number(EFIN)

  1. There may be times when the IRS is notified, or uncovers, through internal sources for example CI, RICS, and RAAS (Research, Applied Analytics & Statistics) that an Electronic Filing Identification Number (EFIN) has been compromised by either advertent or inadvertent actions. An EFIN can be considered compromised when it is being used by an unauthorized user who is not listed on the e-file application.

  2. When an EFIN is found to be compromised:

    1. Place the compromised EFIN and any associated ETIN(s) into "inactive" status.

    2. If the owner calls in regarding the EFIN, authenticate caller, then inform them of the compromise and issue a new EFIN.

    3. Enter appropriate comments.

      Note:

      If the EFIN identified as compromised has the corporate NAM EIN or has a DBA name indicating a franchise, send an e-mail to the HQ EPPM analyst, EPPM manager and the NAM involved regarding the intent to inactivate the EFIN. If no response within 48 hours, proceed as normal and inactivate the EFIN. If there is a response, proceed according to instructions given.

  3. Follow disclosure guidelines if information indicates that disclosure occurred due to the compromised EFIN.

  4. For an EFIN compromised due to identity theft, see IRM 3.42.10.14.18, Identity Theft.

Identity Theft

  1. IDT is an issue all employees should be aware of in order to relieve taxpayers’ burden and eliminate potential fraud.

    Example:

    Taxpayer’s SSN or other identifying information was used without their permission. For more information regarding IDT, see IRM 21.3.4.28.4, Non-Tax Related Identity Theft Issues

    .

  2. If you suspect you have a case with an IDT issue, open an interaction and refer to the IDT Research Group for review and possible referral to RICS.

Identity Theft Case Referrals
  1. When receiving cases regarding IDT, take the following actions:

    1. Research for any indication of IDT in the application comments tab and the firm Suitability Status.

    2. Assistors must use IDRS command codes IMFOLE, IRPTR, ENMOD etc., for information that may show IDT indicators or any other information indicating IDT.

    3. Open an interaction and escalate to IDT Research Group for review and referral to RICS.

    4. If IDT is not confirmed by RICS, allow the provider to remain in the program.

Identity Theft Indicator Case Responses
  1. When RICS, CI, RAAS, or other appropriate areas recommend expulsion of the Provider based on a stolen identity used to obtain an EFIN or submit a return using that EFIN, take the following action:

    1. Update all associated TIN(s) Suitability Status to Expelled

      Note:

      EFIN will systematically move to "Inactive" status.

    2. Send Letter 5881C (select from drop-down "Denial for Identity Theft" ) when an EFIN is obtained using a stolen identity and Letter 5877C (select from drop-down "Removal Due to Identity Theft" ) when an EFIN is used to e-file returns with stolen identities.

  2. When the provider is expelled for using stolen identities to e-file tax returns, refer to IRM 3.42.10.14.13.4, Immediate Suspension or Expulsion, for necessary action.

Identity Theft Indicator Procedures for Initial Automated Suitability Analysis Program
  1. IDT Indicator will appear on ASAP, when a case is generated. Research the account to confirm the following:

    There is a transaction code (TC) 971 with

    1. Action code (AC) 501 - Taxpayer identified identity theft

    2. AC 506 - IRS identified identity theft

    3. AC 522 - IRS suspects IDT

    4. AC 524 - Deceased taxpayer has no filing requirement

    These indicators can be found on the taxpayer’s entity section using command codes IMFOLE.

  2. Work initial suitability as normal, if any of the following applies:

    • Intelligence Hold/Criminal Investigation (Z or -T Freeze)

    • FPC Data

    • Proof of Professional is validated

    • Reversal of the (TC) 971 with (TC) 972

    Do not escalate to IDT Research Group.

  3. Use the chart below for working IDT Indicator action codes:

    If ... Then ...
    IDT Indicator with TC 971 Action Codes 501, 506, 522, 524 appears on the Initial Suitability case
    • Open an Incident annotating EFIN, action code and case ID in the description field, escalate to the IDT Research Group.

    • Update suitability status to "Incomplete" and add notes.

    • IDT Research Group will research for potential IDT. If IDT is found IDT Research Group will refer to RICS, CI or other appropriate area. The case ID will remain on the assistors "My Cases" until resolved.

    • When response from IDT Research Group is "No IDT Detected" , continue initial suitability processing, close Incident and case ID.

    • When "IDT" is found the IDT Research Group will work the entire case.

  4. When the IDT Group receives the interaction, they will use the Identity Theft Research Desk Guide to determine if the case should be referred to RICS, CI or other areas.

Identity Theft Indicator Procedures for Continuous Master File Transcript
  1. IDT Indicator appears on MF transcript, a case is generated. Research the account to confirm the following:

    There is a transaction code (TC) 971 with

    1. Action code (AC) 501 - taxpayer identified identity theft

    2. AC 506 - IRS suspects identity theft

    3. AC 524 - Deceased taxpayer has no filing requirement

    These indicators can be found on the taxpayer’s entity section using command codes, IMFOLE, etc.

  2. Work initial suitability as normal, if any of the following applies:

    • Intelligence Hold/Criminal Investigation (Z or -T Freeze)

    • FPC Data

    • Proof of Professional is validated

    • Reversal of the (TC) 971 with (TC) 972

    Do not escalate to IDT Research Group.

  3. Use the chart below for working IDT Indicator action codes:

    If ... Then ...
    IDT Indicator with TC 971 Action Codes 501, 506, 524 appears on the Initial Suitability case
    • Open an Incident annotating EFIN, action code and Case ID, escalate to the IDT Research Group.

    • Add notes and comments to e-file application.

    • Take no further action until a response from IDT Research Group is received.

    • IDT Research Group will research for potential IDT. If IDT is found IDT Research Group will refer to RICS, CI or other appropriate area. The case ID will remain on the assistors "My Cases" until resolved.

    • When response from IDT Research Group is "No IDT Detected" , continue suitability processing, close Incident and case ID.

    • When "IDT" is found the IDT Research Group will work the entire case.

  4. When the IDT Group receives the interaction, they will use the Identity Theft Research Desk Guide to determine if the case should be referred to RICS, CI or other areas.

Data Breaches and e-file Application

  1. When a firm has a data breach, it is necessary for the EFIN to be inactivated to protect revenue for the IRS. When a breach occurs, we are not sure what information was obtained in the breach, therefore it is prudent to take all precautionary actions.

  2. The Stakeholder Liaison (SL) is the main conduit for reporting of data breaches, however the breach may be discovered in other areas of the IRS, including EPSS. If a call is received regarding a Data Breach refer to IRM 3.42.8.4.1.4(2).

  3. When a firm contacts the SL concerning a data breach, SL will add breach information to RPDB and send e-mail with RPDB’s Data Breach Incident Control Number to the W&I EPSS IDT mailbox.

  4. IDT Research Group will go into the RPDB Incident Control Number to check to see if the SL recommended the preparer’s EFIN be inactivated.

  5. If the SL recommends the EFIN be inactivated, if it is still active - EPSS IDT Research Group will:

    1. Inactivate EFIN notated in RPDB

    2. Assign a new EFIN

    3. Send letter 5880C, (select from drop-down "ERO Acceptance" ) to preparer with the new EFIN

    4. Update the RPDB with the new EFIN.

  6. If the EFIN is inactive and research shows:

    1. A new EFIN has been issued - check RPDB to see if the new EFIN has been added, then updated RPDB if needed.

    2. No new EFIN has been issued – follow steps 5 b. thru 5 d.

ITIN Deactivation Cases

  1. IRS is currently deactivating ITINs at the end of each year, as required by section 6109 of the Code. If e-file application receives notification that an ITIN has been deactivated, the EFIN is systematically inactivated and a case is generated with the primary issue of "ITIN Deactivation" . These cases should only concern applications with the provider option of "Large Taxpayer" that is filing form 1120F only.

  2. To work the case, send Letter 5882C (select from drop-down "ITIN Deactivation" ).

    Note:

    If a case is generated for an ITIN on any other type of application, do not send Letter 5882C as it does not apply. Open an interaction on EHSS and elevate the interaction to "Application Analysts" .

Referrals from IRS e-file Monitoring Coordinators for Suitability Issues

  1. IRS e-file Monitoring Coordinators will refer suitability issues to Andover e-help Desk.

  2. If all requested information is received for a suitability issue, Andover e-help Desk will work the case in accordance with suitability procedures.

Procedures for Appeals

  1. When a firm or individual fails suitability resulting in the denial of an applicant or sanctioning, the firm and individual may request an administrative review. Before sending for second line review, the assistor must ensure the appeal is timely and includes a signature. If EPSS e-help Desk appeal is also "fail" , the firm or individual may appeal to the OOA.

    1. If TAC has verified the identity, input comments and accept Form 4442 as decision overturned. Apply normal first level appeal processes and send Letter 5880C (select from drop-down "ERO Acceptance" ) for EIN/SSN after 1st Appeal.

    2. Send case through IDT Research Group to RICS for decision.

  2. The assistor will:

    1. Retrieve or create folder, if necessary.

    2. Review appeal for timeliness, signature, resolution of issues and reasonable cause. Notate your findings in the comments section of the recommendation (complete application research to determine all instances of the Taxpayer Identification Number (TIN) in question. Check application comments to determine if another assistor is working the appeal. If not, enter comments: working initial appeal or working continuous appeal.

      Note:

      If the appeal is received after 30 days and the individual/firm

      provide reasonable cause, consider the appeal timely. Include the reasonable cause in comments.

    3. Complete suitability recommendation for appeal. Notate: type of appeal, suspension date, postmark date, all Electronic Filing Identification Numbers (EFINs) and TINs being worked, if the appeal was timely received (based on postmark date), the specific suitability issues and if the suitability issues were addressed.

    4. On the recommendation, use the postmark date to determine the timeliness of an appeal.

    5. Generate the appropriate letter and route entire case to second line for review. Complete the recommendation in full for review.

    6. When the decision is returned, update suitability to "Passed" or "Fail" and comments SUIT APPL-Fail or Pass and send the appropriate letter.

    7. If second line does not agree with recommendation, the case will be returned.

    8. If TAC indicates that they were unable to authenticate the identity, send first denial Letter 5877C (select from drop-down 1st Appeal Denial Regarding Identity Theft) which includes appeal rights.

    9. If allowed to pass by RICS, send Letter 5880C (select from drop-down ERO Acceptance) for EIN/SSN after First (1st) Appeal.

  3. The recipient of the letter (principals or responsible officials) has to respond by mail within 30 days of receiving a suitability letter. The appeal letter must be signed and mailed with the appropriate documentation. Faxed appeals will only be accepted on a case by case basis upon request from an assistor.

    1. If appeal is not signed, send Letter 5883C (select from drop-down Response to First Appeal – Denied) rejecting the appeal. Return the unsigned appeal in the letter.

    2. Allow 30 days from the issuance of the letter for a signed appeal to be received back.

    3. Letter 5876C (select from drop-down "Continued Participation (LOI)" ), responses are not considered appeals and DO NOT require signatures. The letter is sent to inform, the firm/individual of an issue we have identified. Responses are merely replies to the identified issue(s) and a request for resolution on the information.

  4. Use Form 14632, Electronic Filing Suitability Scheme Development Center Referral, to recommend denials or sanctions.

    1. If appeal is not signed, send Letter 5883C (select from drop-down Response to First Appeal – Denied) rejecting the appeal. Return the unsigned appeal in the letter.

    2. Allow 30 days from the issuance of letter for a signed appeal to be received back.

  5. Appeals related to IDT cases will be worked as follows:

    1. Those expelled for obtaining an EFIN with a stolen identity will first be reviewed by TAC for validation of identity and forwarded to EPSS via Form 4442

    2. Those expelled where the ERO e-filed returns with stolen identities will have first level of appeal reviewed by RICS.

    3. If RICS, denied the appeal, send Letter 5877C (select from drop-down Removal Due to Identity Theft) with verbiage from RICS.

      Note:

      If additional information arrives from Provider after the first level of appeal has already provided a recommendation to sustain their opinion, include this new information in the referral to OOA when and if the provider responds to the first level appeal denial.

  6. When an appeal to the OOA is received in response to a denial letter, recommended sanction letter, immediate suspension or expulsion letter, assistor will prepare the case and forward to OOA within 15 business days. See IRM 3.42.10.14.7.8, Fraud Penalties Literal on Automated Suitability Analysis Program Report.

  7. The appeal shall be scanned and sent via e-mail to the OOA’s mailbox *AP-COS-APS-East-NYC ACDS. Update Request.

    1. Second level appeal will be sent to the Office of Appeals via secure e-mail to *AP-COS-APS-EAST-NYC ACDS Update Request to transmit. The subject line must contain your team number, SEID of the EPSS employee and EPSS-DOP-Appeals-To APS. When Appeals return their reply, the case will be identified by the specific assistor submitting the case. The subject line of the e-mail to Appeals will read as follows, T2 SEID EPSS-DOP-Appeals-To APS.

      Note:

      T2 is team number.

  8. Office of Appeals may return the appeal case to Andover if there is an open CI investigation after they send a letter to the appellant advising that Appeals does not have jurisdiction because of the open investigation.

    1. The denial or sanction will remain in effect. OOA informs the provider they may appeal once the investigation is completed. CI will send a letter to the provider when the examination is closed and provider can send appeal at that time.

  9. OOA will send a copy of all of its decisions to Andover mailbox *W&I EPSS OOA. An assistor will update ECDS and the IMs with the needed actions and comments.

Suitability Management Reports

  1. The following reports are available on BOE for use by management to monitor suitability:

    • IRCRM507 Report - Suitability Recheck

    • IRCRM524 Report - In-process Suitability Aging

    • IRCRM526 Report - Provider Suit Recheck

    • IRCRMS01 Report - Worklist Summary

    • IRCRMS02 Report - Worklist Ind

    • IRFNGRCD Report - FPC Results

    • IRSAPP02 Report - Application Aging

    • IRBLKSUT Report - TOA/Suitability Blank

    • IRCRMS03 Report - Worklist Aging

      Reminder:

      To run these reports, access to BOE and folder Eservices\E-file is required.

Procedures for Incarcerated Individuals

  1. Individuals in prison are restricted from participation in IRS e-file while incarcerated. Individuals convicted of a felony but not incarcerated may be restricted from participation.

  2. The system identifies currently incarcerated individuals by matching individuals on the prisoner list with individuals whose suitability is other than failed using SSN, name control and date of birth on "submitted" and "active" applications. Headquarters will provide lists of those convicted of a felony in the last 10 years (usually monthly).

  3. The system creates a case with the business rule "Prisoner/Convicts" in the work group ANSC_Leads when it finds a match. A link is provided (Case ID) under suitability status to access the case. The description field displays the incarceration date, release date and institution code. The system doesn’t issue an acceptance letter for submitted applications.

  4. Individuals suspended because of incarceration will not be able to reapply until they call e-help, as their eligibility date will be set as ≡ ≡ ≡ ≡ ≡ .

Procedures for Incarcerated Individuals Submitting New Applications

  1. New applications submitted by principals and/or responsible officials who are incarcerated with a release date in the future are denied participation in IRS "e-file" , may appeal the suspension and may reapply when released from prison.

  2. If the release date is either a zero (0) or a date in the past on the business rule, research the applicable website to determine if the individual is still incarcerated or has been released. Individuals on work release are considered incarcerated.

    1. Ensure the individual is incarcerated in a state or federal prison by researching the respective institution code on the business rule using the List of Prison Institution Codes found on the Electronic Products & Services Support (EPSS) portal. The state abbreviation or FE for federal prisons, will be in the column labeled as State.

    2. If the list shows the state as FE research the Federal Prison Locator at http://www.bop.gov/ using the Inmate Locator tool found on the EPSS Portal "Quick Links" . Enter the individual(s) name in the Search By Name feature. If there is more than one individual with same name, consider age (using the date of birth on the e-file application) to identify the correct individual.

    3. If the list shows a state abbreviation, research using either the state prison locator at www.vinelink.com/vinelink/initMap.do or the specific state inmate locator as found on the EPSS Portal "Quick Links" . Use the inmate ID, inmate’s name, age or date of birth to locate the individual. When using the VineLink website, click on the state in the map, then open the Search and Register tab to search for the inmate.

      Note:

      Call the South Dakota Department of Corrections at (605) 367-5190 or (605) 367-5140, as it does not allow prisoner information on the Internet.

  3. If the individual is currently incarcerated:

    1. Update personal suitability for matched individual to "fail" , input eligibility date as ≡ ≡ ≡ ≡ ≡ , select denial reason of "other" and enter comment "Prison Suspend" .

    2. Send Letter 5899C (select from drop-down Prisoner Denial Individual) to the Principal and/or Responsible Official who matched with the prisoner list as described above. If there is more than one person on the e file application send Letter 5899C (select from drop-down Prisoner Suspend Firm) to each Principal of the firm.

  4. If the individual has been released from prison and FPCs were received:

    1. Process the FPCs and adjudicate.

    2. Let the system process the application as normal and follow normal procedures per IRM 3.42.10.14.3, Initial Suitability and IRM 3.42.10.4, New e-file Application.

  5. If the individual has been released from prison and he has input professional status information:

    1. Review and consider answers to the personal suitability questions knowing that the individual has been incarcerated.

    2. If the answers acknowledge the individual was incarcerated, follow 4 above.

    3. If the answers do not acknowledge the individual was incarcerated, follow 3 above.

  6. If an individual appeals and states that he is no longer in prison or is not the same person on the prisoner list (never incarcerated) and has provided supporting documentation, forward to adjudication for determination.

    1. If adjudication confirms documentation, this is not the same person on the prisoner list or the individual was never incarcerated, add a row to update personal suitability, move provider options and EFIN statuses to prior status. Send Letter 5883C, if applicable and select from drop-down Information Provided - Accepted for Participation.

    2. If adjudication confirms documentation does not prove the individual is not the same person or never incarcerated, send Letter 5877C (select from drop-down "Response to First Appeal Denied" ) and Letter 5881C (select from drop-down "Daily Denial Firm" , if applicable) for appeal to OOA.

  7. If the firm advises in their appeal it wants to remove the individual on the prisoner list from the application, the assistor shall remove the person and submit the application for the systematic process to continue. See IRM 3.42.10.14.15, Procedures for Rejecting and Sanctioning Firms and Individuals.

Procedures for Incarcerated Individuals on Active Applications

  1. Principals and responsible officials who are incarcerated with a release date in the future will be immediately suspended from participation in IRS e-file but may appeal the suspension and may reapply when released from prison.

  2. If the individual is on the prisoner worklist, see IRM 3.42.10.15.1, Procedures for Incarcerated Individuals Submitting New Applications, to confirm prisoner information using the inmate locator tool.

  3. If the release date is in the past, see IRM 3.42.10.15.3, Procedures for Other than Incarcerated Individuals on the Prisoner List.

  4. If research indicates the individual is still incarcerated, the e-help assistor will take the following actions to "suspend" participation in IRS e-file to ensure individuals and firms cannot participate:

    1. Update personal suitability for the matched individual to "fail" , input eligibility date as ≡ ≡ ≡ ≡ ≡ , select denial reason of "other" and enter comment "Prison Suspend" .

    2. Send the Letter 5899C, (select from drop-down "Prisoner Suspend Individual" ) to the Principal and/or Responsible Official who matched with the prisoner list (as described above). Also send Letter 5899C, (select from drop-down Prisoner Suspend Firm) to the provider if more than one person is on the e-file application.

  5. If an appeal, including documentation is received, forward to adjudication for determination.

    1. If adjudication does not prove release from prison or not the same person, send Letter 5876C, (select from drop-down Recommended Sanction for Individual) to the individual and Letter 5876C (select from drop-down Recommended Sanction for Firm) to the firm (if applicable) for appeal to OOA.

    2. If adjudication confirms documentation proving the person was released from prison, see IRM 3.42.10.15.3, Procedures for Other than Incarcerated Individuals on the Prisoner List.

    3. If adjudication confirms not the same person on the prisoner list, add a row to update personal suitability, move provider options and EFIN statuses to prior status. Send Letter 5883C (select from drop-down Continued Participation after Sanction Response) to the individual and 5883C, (select from drop-down Firm Acceptance after Response) to the firm, if applicable.

  6. If the firm advises in the appeal it wants to remove the individual with the suitability issue from the application, the assistor shall remove the person and update provider options and EFIN status to prior statuses.

Procedures for Other than Incarcerated Individuals on the Prisoner List for Individuals / Convicted of a Felony in the last 10 Years

  1. To work cases for individuals on the prisoner list not currently incarcerated who have a "0" in the release date field or individuals convicted of a felony in the last 10 years, check the prisoner list file to determine date of release and other needed information.

  2. If the individual applied while in Prison or after release and answered "yes" to criminal question, complete the following:

    1. Review the explanation provided in the e-file application.

    2. Check fingerprint results to determine if a record of arrest and prosecution (RAP) sheet was received.

    3. If the record of arrest and prosecution sheet was received and reviewed by Criminal Investigation (CI) or fingerprint adjudication, enter appropriate comments. No further action needed.

    4. If no fingerprint cards (FPCs) or RAP sheet received, send Letter 5876C, (select from drop-down Continued Participation (LOI)) requesting fingerprints and an explanation and documentation of convictions of felony crimes committed in the last 10 years.

    5. If the individual is a professional who is not required to provide fingerprints validate credentials via the Internet.

    6. If credentials are valid, print credential verification from Internet and the explanation for crime provided in the e-file application and forward to fingerprint adjudication in accordance with RAP sheet procedures.

    7. If credentials are no longer valid or explanation of crime is not sufficient in detail, send Letter 5876C, (select from drop-down Continued Participation (LOI)) requesting fingerprints and an explanation and documentation of convictions of felony crimes committed in the last 10 years.

    8. When the requested documentation is received, send the new fingerprints provided to the Federal Bureau of Investigation (FBI). If the RAP sheet is received, forward it and explanation of incarceration to fingerprint adjudication according to the RAP sheet procedures. If fingerprint adjudication recommends fail, follow continual suitability procedures for potential sanction process; if pass is recommended, update personal suitability to "pass" , provider options and EFIN status to prior statuses and send appropriate letter(s) for result of administrative review.

    9. If there is no response to LOI, send Letter 5886C (select from drop-down No Response Proposed Sanction for Individual) to the individual and send Letter 5876C, (select from drop-down No Resp/Prop Sanction for Firm/Officer/Partner) to the firm if applicable.

  3. If the individual applied while in prison or after release and answered "no" to criminal question, follow the procedures outlined above as applicable:

    1. If sanctioning, also include "misrepresentation on application" as an infraction in addition to any other reasons for infractions.

  4. If the individual applied before incarceration, a new criminal background check is needed:

    1. Send Letter 5876C, (select drop-down Continued Participation (LOI)) requesting new FPCs and an explanation regarding incarceration.

    2. Send the new FPCs provided to the FBI. If a RAP sheet is received, forward it and the explanation of incarceration to fingerprint adjudication according to the RAP sheet procedures. If fingerprint adjudication recommends fail, follow continual suitability procedures for potential sanction process.

    3. If a RAP sheet is not received, enter comment "New FPCs processed – no RAP sheet" , send Letter 5876C, (select from drop-down Issue Resolved During Periodic Suitability).

    4. If the individual is a professional who is not required to provide fingerprints, validate credentials via the Internet send Letter 5876C (select from drop-down Continued Participation (LOI)), to request an explanation and documentation of convictions of felony crimes committed in the last 10 years and if needed, FPCs (if professional status not validated). When received, forward to fingerprint adjudication for determination.

    5. If no response to LOI, send Letter 5886C, (select from drop-down 5886C, No Response Proposed Sanction for Individual) to the individual, and Letter 5886C, (select from drop-down No Resp/Prop Sanction Firm/Officer/Partner) to the firm if applicable.

Court Injunctions for IRS e-file Participation

  1. An injunction is a court order requiring the person or persons to whom it is directed to do a particular act or to refrain from doing a particular act. A federal court at the request of the Department of Justice on behalf of the IRS may issue an injunction enjoining an individual or firm from preparing or filing returns or from performing other tax related activities. Depending on the language of the injunction, the IRS may be required to deny an application to participate in IRS e-file or revoke participation in IRS e-file.

Court Injunctions and Revocation of IRS e-file Participation

  1. When a federal court enjoins a provider, a Principal or Responsible Official from filing returns, the IRS must revoke the individuals or firms from participation in IRS e-file.

  2. The SB/SE examination LDC will complete the e-file revocation request and provide it via fax to the Andover e-help Desk to identify the individuals and/or firms that must be revoked from participating in IRS e-file if the enjoined individuals or firms are on an e-file application. See Exhibit 3.42.10-11, Form 14631, e-file Revocation Request. LDC will also provide a copy of the federal court order.

  3. The LDC will coordinate as necessary with headquarters and OPR prior to providing an e-file revocation request to e-help if the individual is a return preparer with a PTIN.

  4. The Andover e-help Desk assistor will take the appropriate actions to revoke the Authorized IRS e-file provider’s participation in IRS e-file and to ensure individuals and firms do not participate in IRS e-file in the future. Send Letter 5899C (select from drop-down SDN Revocation Individual or "SDN Revocation Firm" ).

  5. The revocation of participation in IRS e-file is not subject to the administrative review process as the revocation is based on federal court order and cannot be appealed.

  6. A firm or individual whose participation has been revoked in IRS e-file may try to systematically reapply to participate in IRS e-file. They will not be able to do so because their eligibility date will be set as ≡ ≡ ≡ ≡ ≡ . The assistor must request that they provide to the Andover e-help Desk a copy of a court order that indicates they are no longer enjoined from filing returns.

  7. If the firm or individual provides a court order that indicates the firm or the individual may no longer be enjoined from filing returns, Andover e-help Desk will use the e-file Revocation Request to request a recommendation from the LDC, prior to changing the eligibility date, to allow the individual and/or firm to reapply. LDC staff will advise Andover e-help Desk, within 14 days, if it will allow the firm or individual to reapply to participate in IRS e-file:

    1. If the LDC advises that the firm or individual may reapply to participate in IRS e-file, the assistor will update the eligibility date to the current date and advise the firm or individual of the action.

    2. If the LDC advises that the firm or individual may not reapply to participate in IRS e-file, the LDC will provide an explanation to be given to the firm or individual. The assistor will enter the explanation in the e-file application comments and advise the firm or individual.

Court Injunctions and Sanctioning of Authorized IRS e-file Providers

  1. Federal courts may enjoin individuals and sometimes firms from preparing returns and other activities. If the court enjoins a provider, a Principal or a Responsible Official from preparing returns or other activity, but does not enjoin the provider, Principal or Responsible Official from filing returns, the IRS may sanction the provider but may not revoke the provider's participation in IRS e-file.

  2. The SB/SE examination LDC will complete and provide an e-file sanction request with a copy of the court order via fax to Andover e-help Desk to identify the individuals and/or provider to be sanctioned. See Exhibit 3.42.10-12, Form 14630, e-file Sanction Request from SBSE Lead Development Center. LDC will identify the e-file infraction and recommend the level of infraction, the appropriate sanction and the explanation to be included in the letter.

  3. If the individual has a PTIN, LDC will coordinate as necessary with headquarters and OPR prior to providing an e-file sanction request.

  4. The Andover e-help Desk assistor will take appropriate actions in the application to sanction the providers as requested in the e-file sanction request from the LDC. This includes issuance of appropriate suitability sanctioning letters.

  5. All requests for administrative review, including request for review by the OOA, must be sent to the LDC for its recommendation prior to a decision or forwarding to appeals. Andover e-help Desk will use the e-file Sanction Request to request a recommendation from the LDC regarding the administrative review and appeal. LDC staff will advise EPSS e-help Desk operation within 14 days if the sanction is upheld or reversed.

  6. If the LDC recommends continuing with suspension or expulsion and review by the OOA is requested, the LDC must provide documentary evidence to Andover e-help Desk for forwarding to the OOA.

  7. Andover e-help Desk will take the appropriate actions to sanction the provider using normal procedures which include entering an appropriate eligibility date.

Reconsideration for Expelled Individuals

  1. Individuals who have committed certain financial and other egregious crimes (e.g., refund fraud, identity theft) are expelled from the e-file program and may exercise their appeal rights for reinstatement. After exhausting appeal rights and the expulsion is sustained, IRS has revised its expulsion policy to provide an expelled individual recourse for reconsideration.

    Note:

    Reconsideration is defined as the allowance of an expelled individual to request reentry for participation in the e-file program after meeting criteria established by the e-file Participation Reconsideration Review Board.

  2. The e-file Participation Reconsideration Review Board (EPRRB) will consist of a member from EPSS.

  3. The EPRRB will review all requests. The EPRRB will consider the following guidelines when reviewing requests for reconsideration after expulsion from the IRS e-file program:

    1. The elapsed time between release from incarceration or end of parole and the reconsideration request, if applicable.

    2. The types of crimes committed the impact on IRS e-file program.

    3. Any rehabilitation and restitution completed.

    4. Any patterns of behavior and risk of recurrence.

    5. Whether all suitability criteria outlined in Publication 3112 have been met.

Recommendation for the e-file Participation Reconsideration Review Board from Expelled Individual/Firm

  1. When EPSS receives correspondence requesting reconsideration for an expulsion decision, take the following action:

    1. Assistor will research the EUP to determine if the EFIN is inactive and that the summary page shows a date of ≡ ≡ ≡ ≡ ≡ .

  2. If the ≡ ≡ ≡ ≡ ≡ ≡ ≡ date is shown, forward the case to the e-file Participation Reconsideration Review Board using this mailbox "*W&I ETA New File Requirements" with subject line title, Reconsideration of Expulsion. The assistor will send Letter 5882C (select from drop-down Reconsideration Request Review).

  3. If the ≡ ≡ ≡ ≡ ≡ ≡ date is not shown, Andover will research account to determine if individual/firm expelled. If expelled, forward to the review board. If not, expelled, prepare letter advising the customer that they don’t meet reconsideration for an expelled individual/firm.

  4. EPRRB will review the correspondence to determine if the individual/firm expulsion decision will be overturned and allowed to reapply to the e-file Program.

    Note:

    The letter will advise if they provided enough evidence to either overturn or sustain the decision.

    1. If the Board agrees that the individual/firm is eligible and can reapply or if they uphold the expulsion, Andover will be provided with the verbiage to be included in the letter informing them of the decision via the mailbox. The assistor will issue Letter 5883C (select from drop-down "Decision Reversed - Accepted for Participation or Sustained Written Reprimand" ).

    2. The assistor will update comments with decision from the review board.

  5. The EFIN shall remain inactive until the individual/firm reapplies and pass all suitability checks. Take no additional actions.

Placing Foreign Electronic Filing Identification Number(s) In Inactive Status

  1. Companies located outside the United States, who do not have employees with Social Security Numbers and are not eligible to register for e-Services, must meet special requirements in order to obtain an EFIN. See Pub 3112, IRS E-File Application and Participation, regarding foreign EFIN’s.

  2. Obtaining a foreign EFIN is a special privilege and the IRS may request the provider inactivate the application related to that business office if the IRS has reason to believe that the business-related firm is not adhering to the e-file rules.

  3. If the IRS requests that the provider close the office and the provider does not do so, e-help will inactivate the EFIN and any associated ETIN)of that "business-related" firm that is not adhering to IRS e-file rules without sanctioning the provider, impacting its other EFIN(s) or sending a letter.

  4. The e-help assistor will include the explanation for the action that is provided in the IRS e-file application comments.

  5. If additional information or assistance is needed from the principals and responsible officials to gather information relating to a business-related firm’s noncompliance with e-file rules, e-help will refer the provider to the EMC for the area in which the provider is located within the U.S. for further investigation.

Generating e-file Letters from e-file Application

  1. All letters are generated by selecting "Generate Letter" in the "Person Letter" column next to the Principal or Responsible Official that the letter is addressing on the "Application Summary" screen.

    1. Select the "Generate Letter" .

    2. Choose the letter you want to send from the “Select a Letter Name” drop-down.

    3. Once a letter is chosen, you will need to select the return address - options are Andover and Austin for most letters. Depending on the letter, you may need to select person or firm from the drop-down because many letters can be used for either.

    4. The selected letter will display. Any text that is highlighted can be edited as needed by selecting the pencil icon in the "Edit" column. Optional paragraphs that are not needed can be deleted by selecting the "Delete" icon in the "Edit" column.

    5. Once all edits have been made, you can preview, save or mark final the letter by selecting one of the buttons at the bottom.

    6. After you have completed all edits, preview the letter. If the letter is satisfactory, save the letter. Saved letters can be edited if needed after review. Once review is complete, mark the letter final. You will then have the option to send (CRX) or print (locally printed) the letter.

  2. E-file Letter Review is a work-group that saved letters can be sent to for review.

    1. Letters will be reviewed using the worklist in the efile_Admin_Leads

    2. Edits and/or comments can be notated

    3. Complete letters must be marked final version

    4. Reassign or select printer friendly view

    5. Letter is displayed for review and select print letter link to print

      Reminder:

      Letters cannot be modified once marked final and cannot be retracted once sent.

  3. Letters can be found on individual applications by selecting the "Letter History" tab. They can also be found by using the "Search" function on the home screen and selecting letters in the drop-down.

Reporting Agent Personal Identification Number (PIN)

  1. When a user adds the reporting agent provider option to the e-file application, the system will validate that the EIN entered on the application has at least one Form 8655, Reporting Agent Authorization, posted to the RAF.

    • If the EIN is found, the provider option will be set to "applied" .

    • If the EIN is not found, the reporting agent provider option cannot be selected and the following error message will appear.

    We cannot validate the EIN you provided with our Reporting Agent file at this time. You may continue to complete this e-file application if you are applying for another provider option. Otherwise, you should save the application and try again later.

    • The results of the EIN validation can be checked manually using command code (CC) RFINK, definer R and the EIN of the reporting agent.

  2. If Andover e-help Desk receives a Form 8655, fax the form to 855-214-7523, the OAMC and request the reporting agent information be added to the RAF. Andover e-help Desk will not maintain a case history folder for the Form 8655 and the applicant’s reporting agent listing. For additional information on reporting agent application and PIN generation process, refer to IRM 3.42.4.9.3.1, Specific Reporting Agent Criteria.

  3. When an applicant selects the Reporting Agent provider option and the applicant becomes an accepted provider, an acceptance letter with the reporting agent provider option is systematically generated and includes a PIN.

Undeliverable e-file Provider Correspondence

  1. When undeliverable correspondence is received:

    1. If there is a USPS NCOA which indicates a new address on the correspondence, change the address on the e-file application and indicate by comments that this is being done based on USPS NCOA. The NCOA is a recognized method of receiving updated taxpayer addresses per IRM 3.13.5.45, "Updating Address Records" . Reissue the correspondence.

    2. If the provider indicates change of address on their correspondence, make the change on the e-file application.

  2. Place the EFIN and any associated ETIN in “inactive” status. Do not place the EFIN in “Dropped” status as dropped EFIN can’t be recovered.

  3. Set the Undeliverable Mail code to yes on the "Firm Information" screen of the e-file application. Add appropriate comments in" Application Comments" .

  4. If telephone call is received, document in application comments and notate the letter number, letter date and main issue of letter in the Application Comments of the e-file application and the EHSS interaction.

    Note:

    When undeliverable mail involves a national account, an interaction is sent to the second line reviewer. That individual will submit an e-mail to the ISE&S group on a weekly basis as needed containing all national accounts with undeliverable correspondence. Hold interaction open until you receive a response from the ISE&S employee and don’t inactivate until a reply is received.

  5. If the provider calls after the Undeliverable Mail code is set to "Yes" :

    1. Update the address and any other information provided on the e-file application.

    2. Prepare documentation for interaction, if necessary.

    3. Update the e-file application, if needed, to the appropriate status(es).

    4. Update the Undeliverable Mail code on the "Firm Information" screen to "No" .

    5. Update the EFIN and any associated ETIN(s) to "active" .

    6. Reissue of prior correspondence may be required.

      Note:

      If reissued prior correspondence was a suitability-related letter, update the appropriate TIN's suitability status to recheck.

    When (1) above does not apply or if the provider is a Not for Profit, VITA site or TCE, then call the applicant/provider or listed contact name as provided on the e-file application and reissue correspondence. If correspondence indicates a change of address, make the change on ECDS.

  6. If the provider is a Not for Profit, open an interaction requesting correct mailing address and alternate contact information. Assign to SPEC_ANA L2 provider group. When the interaction is returned with the needed information, update the application accordingly.

Valid Electronic Filing Identification Number File

  1. The valid EFIN file generated by the system contains active EFINs.

  2. EFINs that are not active will not be able to send electronic returns.

Electronic Transmitter Identification Number Types: Test to Production

  1. ETIN types can be "Test" or "Production" . ETIN(s) generated through auto pass will automatically be assigned as production with the exception of those for the provider option of Software Developer, which are test. The software developer’s ETIN cannot be updated to production. These statuses will be shown on the ETIN status page of the e-file application.

  2. When assigning an ETIN manually, its use must be determined. If it will be used to transmit, a production ETIN must be assigned.

  3. ETIN Type will show "Test" for Software Developers and "Production" for Transmitters. Once the Firm passes transmission testing, move the "Forms Transmission Status" from test to production on the Application Summary page. All transmitter ETINs on the application will be in production.

Electronic Filing Identification Number and Electronic Transmitter Identification Number Clean-up

  1. Each year in May, analysis is conducted to identify all EROs and Transmitters that have been inactive over the preceding two filing seasons. The inactive EROs and Transmitters are placed in "Inactive" status and their provider options are dropped. Inactive ETIN(s) of dropped Transmitters can be reissued immediately, if necessary.

  2. The EFIN clean-up identifies and inactivates EFIN(s) of EROs who applied to participate in IRS e-file but have not submitted any returns during the preceding two filing seasons.

  3. EROs in "Accepted" status and whose suitability status is in "Pass" are analyzed. If all of the following criteria are met then the EFIN status will be placed in "Inactive" status and later dropped if:

    1. At least one provider option is ERO in "Accepted" status.

    2. They have not filed any forms in the current or immediately preceding year.

    3. The EFIN is in "active" status.

    The EFIN clean-up will not include any applications marked "Do Not Cleanup" . Therefore, it is imperative that Circular 230, LITC and any other applications that should not be cleaned up are marked.

  4. The EFIN dropped date appears on the EFIN status and Application Search page. A dropped EFIN may not be used by that ERO; a new EFIN must be issued.

    Note:

    Dropped EFIN(s) are recycled and may be re-issued to new EROs 12 months after being placed in dropped status.

  5. The most current ELF1541 report and the final ELF1541 report from the prior year are used to determine whether returns have been filed for each EFIN reviewed. Headquarters analysts will instruct the persons responsible for initiating the clean up.

  6. The Letter 5882C, (select from drop-down EFIN/ETIN Clean-up Letter) is systematically generated and sent to the ERO advising that the firm’s EFIN has been placed in "inactive" status. To reactivate the EFIN the ERO must contact an e-help Desk assistor. Once the EFIN is dropped through the EFIN drop program, it cannot be reactivated. The letter also provides instructions on how to reapply after the EFIN is dropped.

    Note:

    If the ERO is also a transmitter with a valid ETIN, a second analysis must be performed on the Transmitter’s e-file activity before the EFIN is dropped.

  7. The ETIN clean-up identifies and deletes ETIN(s) for Transmitters who have applied to participate in IRS e-file, but the transmission status has remained in "Test" for the preceding two filing seasons.

    Note:

    If an assistor receives a call from a state applicant and their ETIN was dropped due to the ETIN clean-up only, assign them a new ETIN.

  8. An inactive transmitter who is an active ERO will have their ETIN(s) dropped but not their EFIN.

    1. Transmitters in accepted status whose suitability status is "Pass" or "Recheck " are analyzed.

      Exception:

      Transmitters who filed a new application after June 1 of the current year are not included in the analysis

    2. The ETIN dropped date appears on the ETIN status and Application Search pages.

    3. The most current ELF1543 report and the final ELF1543 report, from the prior year, determine whether returns have been transmitted for each ETIN reviewed.

    4. Letter 5882C is generated when the firm is an inactive transmitter and an inactive ERO. Select from drop-down EFIN/ETIN Clean-up Letter and add the following sentence to the end of the first paragraph; We will deactivate any ETIN(s) issued to you under your EFIN.

Management Reports

  1. All reports are generated from the BOE (Business Objects Enterprise).

  2. Management reports can be generated by accessing Reports from the top-line menu on the ESAM landing page.

  3. Those with a need or designated by management must submit an Online 5081 for access to ESERVICES BOE TDS RPTS USERS (ESERVICES BOE REPORTS).

  4. To run a report:

    1. Select the menu option "Reports"

    2. Click "Okay" on the BOE warning message

    3. Select the "Documents" tab on the left, select "Folders" , click the "+" by "Public Folders" , click the "+" by "Eservices" and double-click the folder "ESAM-Efile"

    4. From here, you can run the required report by double-clicking on the report and following the prompts

  5. For a list and description of available reports, see the table below:

    Report Number Report Name Description
    efileACA1 Report EFIN by URL Report This report provides a listing of those providers that have registered a URL for Web sites that collect taxpayer data. Parameters are date range, EFIN and URL.
      EFINs Reject Report This report provides reject rates for all EROs.
      Generic Email Report This report provides a list of all principals, responsible officials and contacts with unusual e-mail addresses.
    IRS230PRD-2 Professional status by Category This report provides the number of individuals in each professional status category.
    IRAPPFLD Failed Applications This report provides a count of the number of applications where the individual or firm has failed suitability.
    IRBLKSUT Blank suitability report This report lists e-file applications where an individual has suitability status = "None" .
    IRCRM521S Application Counts by State This report provides counts of applications by state that are in a "completed" or "other" status submitted through the EUP and RUP.
    IRCRM502 EFINs Dropped by Date This report provides a listing of all EFINs dropped within a specified date range.
    IRCRM507 Efile Suitability Recheck This report provides a count of individuals in different suitability statuses within a specified date range.
    IRCRM511 Efile Application Participants This report provides the number of active participants, returns filed range for active participants and reject rate range for active participants for a specific year.
    IRCRM519 Efile Application Provider Form This report provides a count for each provider option that has an active EFIN.
    IRCRM520 Fingerprint Card Results This report provides a count of fingerprint cards received and sent with the results.
    IRCRM524 In process Suitability Aging This report provides all applications where suitability is in process as of the date run.
    IRCRM528 Application Volume This report provides a count of applications in different application statuses – submitted new, submitted revised, submitted reapply and complete and indicates how many were EUP and RUP.
    IRCRM530 Provider Status Drop/Reject Counts This report provides a count of applications in a dropped, reject or non-compliant provider option status by reason code.
    IRCRMS01 Efile Worklist Activity Summary This report provides a count of open and closed cases by manager/lead for each business rule.
    IRCRMS02 Efile Worklist Individual Summary This report provides a count of cases by business rule for a specific assistor.
    IRCRMS03 Efile Worklist Aging (cases by manager/lead SEID) This report provides aged cases assigned to a specific manager/lead.
    IRFNGRCD Fingerprint Cards by Category This report provides a detailing listing of fingerprint cards and the status for a date range.
    IRSAPP02 Application Aging Report This report provides applications in a submitted state for more than 30 days.
    IRSAPP03 Available EFIN Report This report provides a count of EFINs in use and available by ULC.
      Available ETIN Count Report This report provides a count of ETINs in use and available.
      Locations by Entity This report provides detailed information regarding TINs that have more than five applications.

Retention of Forms

  1. This section will advise you when and how to retain specific forms.

Retention of IRS e-file Application Documentation

  1. EPSS retains and purges the obsolete paper Form 8633, Application to Participate in IRS e-file Program and any related documentation, then destroyed three years after the participant is removed from the program. Refer to Document 12990, Records Control Schedules (RCS) 29 - Tax Administration – Wage and Investment, Item 55 (3), (Job No. N1-58-95-1) for the National Archives and Records Administration (NARA) – approved disposition authority to prevent inadvertent/unlawful destruction of records.

  2. EPSS performs an annual reconciliation after the EFIN dropped program is completed. It uses the ad hoc report, EFIN_DROPPED_DATE_RANGE, created with the applicable time frames to purge the folders associated with a dropped EFIN.

    1. EPSS clerical staff ensures that the EFIN and the name in the folder matches the report.

  3. Ensure that Form 11671, Certificate of Records Disposal, is completed prior to sending the folders to the Federal Records Center (FRC) to be maintained for two years and then destroyed. This form is forwarded to the business unit records coordinator and area records manager. A list of contacts is available at Facilities Management & Security Services – Sensitive Document Destruction Program (SDD) web page. The contact for campus forms is located under the tab Campus Forms located on the web page.

Retention of Fingerprint Cards (FPC)

  1. FPCs are retained according to Document 12990, Records Control Schedules (RCS) 29 – Tax Administration – Wage and Investment, Item 33 (10), (Job No. N1-58-98-12), then destroyed three (3) years after participant is removed from the program. However, the scanned copy of the FPC will be available if necessary.

Retention of Appeals Sent to Office of Appeals

  1. Generally, the Office of Appeals retains closed files for two years plus the current year. The file includes the information sent by Andover plus their case memorandum.

  2. Andover will maintain the case files for one year after they are scanned into the EHSS.

  3. For additional information, see Document 12990, Records and Information Management Records Control Schedules.

Preparer Tax Identification Numbers and Statuses

  1. The Return Preparer Office (RPO) assigns PTINs to paid return preparers who apply and meet the requirements.

  2. If a Principal or Responsible Official has a PTIN, the PTIN, as well as the status of the PTIN and PTIN tax compliance, will be included on the "Personal Suitability Status" of the Principal/Responsible Official on the e-file application. The PTIN information is updated systematically weekly per the PTIN extract.

  3. The PTIN statuses of deceased will systematically update the suitability status of the individual to “incomplete”:

    1. If there is more than one Principal on the application, the system will trigger the "PTIN Deceased" business rule and generate a case with this as the primary issue. The assistor will follow procedures described in IRM 3.42.10.14.7.12, Deceased Individuals, for these cases. When working these cases, ensure the PTIN status is "Deceased" .

    2. If the individual is the only Principal on the application, the system will drop the EFIN and ETIN and move the provider option status to "Dropped" . No action by an assistor is needed.

Applications Requiring Resubmission

  1. When an e-file application is updated to add a Principal or Responsible Official or add a provider option, the application must be resubmitted. Application Status will be "Resubmission Required" .

  2. When an application is not resubmitted within 45 days, a case with the primary issue "Resubmission Required for 45" days is generated.

  3. If the application is not resubmitted within 90 days, the application will be systematically deleted.

Principal or Responsible Official Added to Application

  1. When a Principal or Responsible Official is added to a completed e-file application, the revised application must be submitted to complete the process.

  2. If the application is not submitted within 45 days, a case with the primary issue "Resubmission Required for 45 days" is generated.

  3. Issue Letter 5550 TOA Firm, selecting the appropriate paragraphs indicating what is needed by the individual to be added to the firm.

    1. Professional Status or FPCs needed

    2. Personal suitability questions need answered

    3. Terms of agreement need signed

    4. Submit the application

  4. Send Letter 5550 TOA Person, selecting the appropriate paragraphs needed, to the individual added to the application.

    1. Professional Status or FPCs needed (include two FPCs with correspondence sent)

    2. Personal suitability questions need answered

    3. Terms of agreement need signed

  5. If the application is not resubmitted with 45 days of the letter date, the system will delete it. See IRM 3.42.10.26.2 .

Provider Option Added

  1. When provider options are added to the application, it needs to be resubmitted.

  2. If the application is not submitted within 45 days, a case with the primary issue "Resubmission Required for 45 days" is generated.

    Note:

    These cases must be worked expeditiously because of the delete process that will occur 45 days later.

  3. Issue Letter 5550 TOA Firm, selecting the paragraph "Submit Application" , to the firm.

  4. If the application is not resubmitted within 45 days of the letter date, the system will delete it.

Form 14628, Initial Suitability Recommendation

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Form 14629, First Appeal - Suitability Recommendation

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Form 14634, Suspension without Appeal Rights - Suitability Recommendation

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Form 14633, OOA Appeal Rights Suitability Recommendation

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Form 14632, Electronic Filing Suitability Scheme Development Center, Northern Area Referral

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Form 14636, e-file Letter Change Request

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FPC Stuffer

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CRX Letters

CRX Letters Use For
Letter 5120C – E-file Acceptance Letter for ACA Provider
  • ACA Provider Acceptance Letter

Letter 5876C - E-file Application Sanction (Letter 1)
  • Continued Participation (LOI)

  • Proposed Sanction for Firm

  • Recommended Sanction for Firm

  • Suitability Passed, Late Filing History, Continue

  • Suspension for Individual without Appeal Rights

Letter 5877C - E-File Application IDT Sanction – Criminal Expulsion Letter
  • 1st Appeal Denial Regarding Identity Theft

  • Fraudulent Return Expulsion

  • LDC Expulsion

  • Proposed Sanction for Individual

  • Recommended Sanction for Individual

  • Removal Due to Identity Theft

  • SDC Expulsion

  • SDC Suspension

Letter 5880C - E-file Application Program Acceptance (Use for individual provider options or any combination by selecting appropriate paragraphs)
  • ERO Acceptance

  • Transmitter Acceptance

  • Software Developer Acceptance

  • Reporting Agent Acceptance

Letter 5881C - E-file Application Program Denial
  • Daily Denial Firm

  • Daily Denial Individual

  • Denial for Identity Theft

  • Denial per FBI Data

  • Not for Profit Rejection

Letter 5882C - E-file Application Information
  • Compromised EFIN w/o Call

  • EFIN/ETIN Clean-up Letter

  • ITIN Deactivation

  • Interim letter

  • Reconsideration Acknowledgement

  • Reconsideration Request Review

  • Unable to Verify – Bank Official

  • Unable to Verify – CPA/Attorney

  • Unable to Verify – OPOC

Letter 5883C - E-file Application Appeal Response
  • Continued Participation after Sanction Response

  • Decision Reversed - Accepted for Participation

  • Firm Acceptance after Response

  • Information Provided - Accepted for Participation

  • Response to First Appeal – Denied

  • Reversing Reprimand

  • Sustained Written Reprimand

Letter 5886C - E-file Application Sanction (Letter 2)
  • Issue Resolved During Periodic Suitability

  • No Resp/Prop Sanction Firm/Officer/Partner

  • No Resp/Recommend Sanction for Firm/Officer/Partner

  • No Resp/Recommend Sanction for EIN/SSN

  • No Resp/Suspension for Firm w/o Appeal Rights

  • No Response Proposed Sanction for Individual

  • Suspension for Individual without Appeal Rights/No Response

  • Suspension for Firm without Appeal Rights/Individual Suitability

Letter 5899C - Prisoner Denial – Sanction and Specialty Designated Nationals Revocation
  • Prisoner Denial Individual

  • Prisoner Suspend Firm

  • Prisoner Suspend Individual

  • Revocation Firm

  • Revocation Individual

  • Revocation Provider

  • SDC Appeal Denied

  • SDN Revocation Firm

  • SDN Revocation Individual

  • SDN Revocation Provider

Locally Printed Letters

Letter Conversion Use For
Letter 5550 - Terms of Agreement
  • TOA – Firm

  • TOA – Person

  • Resubmission Required Provider Option

Letter 5875 - Returning Form 8878 Received in Error  
Letter 5878 Missing or Incomplete Forms 8453 or 94X
  • Incomplete Form 8453-FE

  • Missing Form 8453-EMP

  • Missing Form 8453-FE

  • Missing Form 94X or Incomplete Form 8453-EMP

Letter 5884 - E-file Application Late/Unsigned Documentation  
Letter 5885 - Fingerprint Card Unprocessable by FBI  
Letter 6032 – Revision to e-file Application Letter  
Letter 6033 – Reconsider Reinstatement to e-file Application Letter  
Daily Appeal Transfer Letter  
Periodic Appeal Transfer Letter  

Acronyms

Acronym Definition
ACA Affordable Care Act
AKA Also Known As
ANSC Andover Service Center
AEF Automated Electronic Fingerprinting
ASAP Automated Suitability Analysis Program
BOD:CD Business Operating Division Code
BOE Business Objects Enterprise
CPA Certified Public Accountant
CC Closing Codes
CRX Correspondex Letter File
CD Court Documentation
CI Criminal Investigation
CNC Currently Not Collectible
CSP Citizenship Code
DM 1 Data Master 1
DBA Doing Business As
ECDS External Customer Data Store
EMC e-file Monitoring Coordinator
EPRRB e-file Participation Reconsideration Review Board
EPPM E-file Provider Program Management
EHSS E-Help Support System
EFIN Electronic Filing Identification Number
EPSS Electronic Products and Services Support
ERO Electronic Return Originator
ESAM External Services Authorization Management
ESDB External Customer Data Base
ETD Electronic Transmitted Documents
ETIN Electronic Transmitter Identification numbers
EIN Employer Identification Number
EA Enrolled Agent
EPS Enrolled Practitioner System
ECDS External Customer Data Store
FAMIS Field Assistance Management Information System
FA Financial Agent
FBI Federal Bureau of Investigation
FCI Foreign Country of Birth
FPC Fingerprint Card
FRC Federal Records Center
ID Identification
IDT Identity Theft
ISE&S Industry Stakeholder Engagement & Strategy
ISP Intermediate Service Provider
IT Information Technology
IA Installment Agreement
IAT Integrated Automation Technologies
IEP RUP Integrated enterprise portal, registered user portal
IDRS Integrated Data Retrieval System
IRM Internal Revenue Manual
LB & I Large Business and International
LM Large and Mid-Size
LPR Lawful Permanent Resident
LDC Lead Development Center
LOI Letter Of Inquiry
MMIA Manually monitored installment agreements
MF Master File
MFT Master File Transaction
NAP National Account Profile
NCOA National Change of Address
NFP Not for Profit
NGI Next Generation Identification System
OAMC Ogden Account Management Center
ODN Office Designation Number
OFAC Office of Foreign Asset Control
OOA Office of Appeals
OPR Office of Professional Responsibility
PIN Personal Identification Number
PTIN Practitioner Tax Identification Number
PTC Personal Tax Compliance Check
QSR Quality Site Requirements
RA Reporting Agent
RAAS Research, Applied Analytics & Statistics
RAF Reporting Agent File
RAP Record of Arrest and Prosecution
RPDB Return Preparer Database
RPO Return Preparer Office
RICS Return Integrity & Compliance Services
SDC Scheme Development Centers
SDN Specially Designated Nationals
SEID Standard Employee Identifier
SIDN Site Identification Numbers
SSA Social Security Administration
SSF Social Security Files
SSN Social Security Numbers
SC Status Codes
SPEC Stakeholder partnership, Education and Communication
SWD Software Developers
TAC Taxpayer Assistance Centers
TCE Tax Counseling for the Elderly
TC Transaction Codes
TDI Taxpayer Delinquency Investigation
TE Tax Exempt Organization
TOA Terms of Agreement
UD Undeliverable
USPS United States Postal Service
VITA Volunteer Income Tax Assistance

Form 14631, e-file Revocation Request

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Form 14630, e-file Sanction Request from SBSE Lead Development Center

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Form 14635, CJIS NAME CHECK REQUEST

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Flow for Incarcerated Individuals on New Applications

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