3.42.10 Authorized IRS e-file Providers

Manual Transmittal

September 04, 2018

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, and exhibits, were made throughout this section of the IRM.

(2) IPU 18U0458 issued 03-15-2018 IRM 3.42.10.14.6.11 New Procedures for biannual follow-up of deceased individuals.

(3) IPU 18U0458 issued 03-15-2018 IRM 3.42.10.14.16.3, IRM 3.42.10.14.16.4, and IRM 3.42.10.25 - Editorial changes.

(4) IPU 18U0470 issued 03-16-2018 IRM 3.42.10.14.6.11 Note -Editorial and Procedural changes.

(5) IPU 18U0886 issued 06-01-2018 Addition of new IRM Section 3.42.10.2.4, Misuse of Electronic Filing Identification Number (EFIN) or Electronic Transmitter Identification Number (ETIN).

(6) Publication 4600, Safeguarding Taxpayer Information Quick Reference Guide for Businesses was added to IRM 3.42.10.1.5.

(7) Third Party Data Store (TPDS) has been replaced with External Customer Data Store (ECDS).

(8) Letter numbers and titles have been updated as needed throughout IRM.

Effect on Other Documents

IRM 3.42.10 dated October 01, 2017, is superseded. The following IRM Procedural Updates (IPUs), issued from March 16, 2018, through June 5, 2018, have been incorporated into this IRM: IPU 18U0458, IPU 18U0470, IPU 18U0886.

Audience

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

Effective Date

(10-01-2018)

Patricia A LaPosta
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

    • 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, Exhibit 3.42.10-9 and Exhibit 3.42.10-10.

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. An ERO does not originate its own employment tax returns (Form 94X family); a third party provider must be used for this purpose.
    Intermediate Service Providers 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. Electronic Return Originators (EROs) and reporting agents may apply to be transmitters and transmit return data themselves or they may contract with accepted third-party transmitters that will transmit the data for them. 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 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 Filing Provider An Online Filing 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 Filing Provider acts as both an ERO and transmitter of self-prepared returns.
    Financial Agents 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 is not an IRS e-file Provider because it 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. An ACA Provider that is a third party does not have signature authority for the covered entity that it services.

Overview of IRS e-file Application

  1. The submission processing center where an electronic return is filed may not be the same as where taxpayers mail paper returns.

  2. 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).

  3. To become an Authorized IRS e-file Provider, an applicant submits an e-file application electronically once they have successfully registered for e-Services for e-Services.

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

  5. 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.

  6. E-file applications are reviewed on an issue based system. Work lists are generated for employees showing the applicant name, date assigned, length of time on worklist, business process and activity name. The activity name identifies the action that caused the item to appear on the worklist and the issue that needs to be addressed. Employees will handle the worklist item assigned to them until the particular issue is completed. Each e-file application is considered complete when all related worklist items are complete.

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 option or a combination of the following provider options:

    • Electronic Return Originator (ERO)

    • Intermediate Service Provider

    • Transmitter

    • Software Developer (SWD)

    • Reporting Agent (RA)

    • Online Provider

    • Financial Agent

      Reminder:

      This option is only available to an assistor.

    • Large Taxpayer

    • Affordable Care Act Provider (ACA Provider)

  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, Test Package for Electronic Filers of Individual Income 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, contains information and rules for applying and participating in IRS e-file.

    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,Modernized e-File (MeF) Test Package Business Submissions

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 (1), level two (2) and level three (3). See IRM 3.42.10.14.11, 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 External Customer Data Store (ECDS) .

  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, Electronic Filing Identification Number (EFIN), Employer Identification Number (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 Electronic Return Originator (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 Electronic Filing Identification Numbers (EFIN) and Electronic Transmitter Identification numbers (ETIN) 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 Criminal Investigation (CI) for review, investigation and then work to completion. To protect the integrity of the Authorized IRS e-file Provider Program. 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. Applicants can visit IRS.gov for more information on becoming an Authorized IRS e-file Provider.

New e-file Application

  1. If your issue in this section is ESAM related, use the ESAM User Guide, Job Aide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section.See e-file-application-suitability-desk-guide.

  2. Integrated enterprise portal (IEP) registered user portal (RUP) users must select "New application" when creating a new e-file application. See IRM 3.42.10.5, When to Submit a New IRS e-file Application, to determine who must submit a new application.

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

Firm Name and Business Type

  1. The user must complete the following information:

    1. Business Type (Association, Corporation, Credit Union, Federal Government Agency, Limited Liability Company (LLC), Limited Liability Partnership, Local Government Agency, Partnership, Personal Service Corporation, Sole-Proprietorship, State Government Agency, and Volunteer Organization).

    2. Employer identification number (EIN) Check Box, if applicable select "yes" .

      Note:

      If the business is an LLC with a sole owner and does not have an EIN, enter the business as a Sole Proprietorship. The system will not allow the user to enter "No" in the EIN box.

    3. Entity without EIN:
      Social Security Number*
      Last Name*
      Middle Initial
      First Name
      Doing Business As (DBA)

    4. Entity with EIN:
      EIN*
      Firm/Organization Legal Name*
      Doing Business As (DBA) (if other than Legal Name)

  2. If a user enters a SSN or EIN, and an application already exists under the TIN, the application will appear in the listing of applications. This enables the user to update an existing application by clicking the edit link or continue on if a new application is needed.

Firm/Organization Address

  1. Physical address* (enter country*, city*, state* and Postal* (ZIP code if within US)).

  2. Business phone* and fax numbers. The country code will be automatically populated with "001" * for the United States. This will have to be changed for other countries.

  3. Mailing address if different from the physical address. Selecting "yes" on the check box opens additional fields for mailing address information.

  4. Defaults to" yes" indicating the business is open for 12 months of the year. If user selects "no" , a box opens for an optional alternate year round address and phone number.

  5. Once saved or next is selected, a tracking number will be assigned to the application.

Principals

  1. Fields available on the e-file application are first name, last name*, middle initial, name suffix, title, social security number*, date of birth*, and e-mail address.

    Note:

    The fields above that are annotated with an asterisk (*) are verified against Master File.

  2. The citizenship status choices are: U.S. citizen, not a U.S. citizen or legal resident alien.

  3. If the principal is also the responsible official, they can indicate this by answering yes to the question directly below the e-mail address.

  4. If the "yes" box is selected indicating the principal is also the primary contact, a field will expand requiring a telephone number.

  5. Any information for the principals may be changed by using the "edit" button. Once saved or next is selected, the RUP user will have an association to the application, and will be allowed to continue at a later time.

Personal Information Page for Principals

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide.

  2. To review the personal information of the principal or responsible official, select the personal information link to the right of the principal’s or responsible official’s name.

  3. If the individual is a professional, he selects one or more of the professional status check boxes, and provides the respective information below which will be verified. See IRM 3.42.10.14.2.3, Suitability Credit Check.

  4. Attorney or Certified Public Accountant (CPA) enters the license/credential number, the state where licensed/credentialed, and the expiration date (if it doesn’t expire, enter ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ).

    • 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.

  5. 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.

  6. Officer of a publicly owned corporation may need to submit evidence on corporate letterhead which carries his 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.

  7. Bank official must submit a copy of bonding certificate and proof of fingerprinting within the last two years.

  8. 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.

    4. The answers to previous questions have been converted to correspond with the new questions. See the table below for conversion.

    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.
  9. The system requires comments for "yes" or "no" responses to the suitability questions as described above.

  10. The question, "Have you previously participated in IRS e-file?" must be answered.

  11. The terms of agreement must be signed by each new principal and responsible official under penalties of perjury and Terms of Agreement (TOA).

  12. Each new principal and responsible official must complete the above information.

Suitability Information for Principals and Responsible Officials

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide.

  2. If proof of professional status is provided, select the suitability information tab at the top of the principals table.

  3. Select the suitability link for an individual principal. The personal suitability information page will display.

  4. Select the professional credentials tab at the top of the page.

  5. Select professional type from the drop-down menu.

  6. Select the appropriate response from the drop-down menu as to whether supporting documentation was received. If supporting documentation was not received, check the appropriate state Certified Public Accountant (CPA)/attorney website, which can be accessed via the Electronic Products & Services Support (EPSS) Portal “Quick Links”. If unable to retrieve proper proof from website, contact the applicant by telephone and request the documentation. If unable to contact the applicant by telephone, issue Letter 5882C - E-file Application Information, Exhibit 3.42.10-50, requesting the documentation.

    Note:

    If the application is input without proof, the application will remain with a status of "submitted pending documents" for 45 days at which time if no documentation is received, the application status will systematically move to "deleted" making it inaccessible to the RUP user.

  7. Select a professional validation status from the drop-down menu.

  8. Select the current date as the professional validation status date.

  9. Select a status, as of the effective date, from the drop-down menu.

  10. Make the same entries above for each principal on the e-file application, if applicable.

  11. Responsible officials are required to enter the same suitability information as the principals. See IRM 3.42.10.4.3, Principals and IRM 3.42.10.4.5, Suitability Information for Principals and Responsible Officials.

Application Contact(s)

  1. Primary contact (enter first name, middle initial, last name and name suffix, salutation, title, country code, phone number, fax number, fax country code and e-mail address).

  2. Alternate contacts can be added by clicking on the triangle to the left of the field title alternate contacts. This allows for the contact information fields to display the same as they appear for the primary contact.

  3. Once the contact information has been added the user can edit or delete as necessary. When the edit link is selected, the corresponding contacts information will appear in the fields indicated above. After making the necessary changes, the user clicks the update button and the changes will appear. The user must select the save button to save all changes. To remove an alternate contact, the user selects the delete button that corresponds with the individual being removed.

Programs Applying for

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide.

  2. Provider Option. There is a link to the right of the drop-down menu to view definitions of all provider options. The provider options are Affordable Care Act provider, Electronic Return Originator, Financial Agent, Intermediate Service Provider, Large Taxpayer, Online Provider, Reporting Agent, Software Developer, and Transmitter.

    Note:

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

  3. The user must select the Add button to add the information to the application. For every additional provider option chosen, the business activity field will be auto-populated with the originally selected "For Profit" or "Not for Profit" , unless it is not allowable. The information added will be displayed in a table in the middle of the page.

  4. The system provides another field for type of business activity selection of business activity when selecting Financial Agent or Large Taxpayer. The drop-down menu will feature Employee Benefit Program, Large Taxpayer, Military Base, State Government Agency, Tax Assistance Centers, Tax Counseling for the Elderly and Volunteer Income Tax Assistance.

  5. When “Not for Profit” is selected, the Type of Business Activity drop-down menu will feature organizations that qualify for Not For Profit status (e.g., Volunteer Income Tax Assistance (VITA) sites, Tax Counseling for the Elderly (TCE) sites, IRS Taxpayer Assistance Center (TAC) offices, etc.).

  6. 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.

Form(s)

  1. Forms for each provider option, are selected from the list of forms. After the user selects all forms needed for a provider option, select the "Add" button and provide this information for each provider option.

  2. The selected forms with the applicable provider option will be displayed in a table in the middle of the page.

  3. Saving the application after adding all forms is required.

Provider Status

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. Provider Statuses are: "applied" , "accepted" , "dropped" , "non-compliant" , "non-compliant (PTIN suspended/revoked)" , "non-compliant (Field Mntrng)" , "rejected" (Ann/Daily Suit only), "revoked" and "testing" .

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

    2. Once an application is completed and has passed suitability, the provider status is updated to "accepted" .

    3. If an Electronic Filing Identification Number (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) preparer tax identification number (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-compliant (Field Mntrng)" .

    6. If a new or existing application fails suitability for issues with either the SSN or EIN, the provider options are updated to "rejected (Ann/Daily Suit Only)" .

    7. If the Lead Development Center (LDC) advises of a court injunction and recommends revocation or there is a match with the Specially Designated Nationals (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 Status

  1. The three Electronic Filing Identification Number (EFIN) statuses are "dropped" , "inactive" or "valid/active" .

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

    2. Inactive EFIN(s) will stay in "inactive" status until it has 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. Valid/active EFIN status means the EFIN can be used to e-file the particular forms selected, provided the provider option status is "accepted" .

Suitability Information for Firm/Organization

  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 Information Page for Principals for additional information.

Delegated User

  1. Delegated users can only be added through the RUP by a principal, responsible official or principal consent.

  2. The user must enter the first name, middle initial, last name, name suffix, title, SSN and e-mail address for each delegated user.

  3. Only a principal can choose whether a delegate user is given principal consent. By selecting this check box the delegated user is given authorities equal to that of a principal/owner of the firm.

  4. After entering the information, the user selects the "Add" button.

  5. The delegated user information will display in a table on the page.

  6. The "delegate" authorities link will add permissions for the delegated user from the listing.

  7. The "edit" button can be used to change information for each delegated user.

Application Status

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. Application Statuses are "saved" , "submitted pending documents" , "deleted" , "submitted new" , "submitted reapply" , "submitted revised" , "Completed" and "submitted in review" .

    1. If the application status remains in "saved" for more than 90 days, it will be systematically changed to the next status "deleted" .

    2. An application status that is marked "deleted" cannot be viewed by the Integrated Enterprise Portal (IEP) Registered User Portal (RUP) user and must be manually moved to "saved" in order to be viewed by the RUP user.

    3. While in "submitted pending documents" , the system tracks the number of days and will move it to "deleted" after 45 days.

    4. When an application has been submitted and the fingerprint card (FPC) has been received and/or proof of professional status has been input and verified, the application status is moved from "submitted pending documents" to "submitted new" , "submitted revised" or "submitted reapply" . The application will undergo the suitability process while in this status. If the RUP user attempts to access the application, they will receive a message that says "Your application is currently under review and cannot be updated" .

    5. "Submitted reapply " occurs when the provider option was previously rejected, application status has been completed, eligibility date has been met and the applicant has reapplied and resubmitted the application.

      Note:

      "Submitted in review" is a status currently not being used

      .

Transcript Delivery System (TDS)

  1. The e-Services product Transcript Delivery System (TDS) is available to:

    • An Electronic Return Originator (ERO) who has successfully submitted five accepted e-file returns in the current or prior year.

    • Circular 230 Participants without having to meet the five accepted e-file return requirement.

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

    • TDS can be manually assigned by an IEP EUP user if necessary.

    • All users must be successfully registered and confirmed for e-Services to have access to the TDS product link. The link defaults to principals, responsible officials and principal consents but must be manually assigned to a delegated user.

    • Low Income Tax Clinics (LITC) who have been granted the rights to TDS without a requirement to e-file five returns. The LITC Program Office is responsible for monitoring input of these e-file applications and can also make any necessary updates through the IEP EUP.

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.

Application Comments

  1. The "application comments" page shows remarks made by either Integrated enterprise portal (IEP) registered user portal(RUP) or integrated enterprise portal (IEP) employee user portal (EUP) users.

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

    • Comments cannot be edited or deleted.

Need for Completed Application Comments on External Customer Data Store (ECDS)
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. Comments must be entered by the assistor via IEP EUP and stored in External Customer Data Store (ECDS). 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: 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 and a tracking number is assigned. If required fields are missing or incomplete, an error message identifying the missing information will be displayed.

When to Submit a New IRS e-file Application

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. Certain rules govern when a new e-file application must be submitted for participation in IRS e-file as an Authorized IRS e-file Provider.

  3. A provider that changed its organizational structure, requiring the use of a new or different taxpayer identification number (TIN), must submit a new application. If the entity information remains the same, both IEP RUP and IEP EUP users open an existing Electronic Filing Identification Number (EFIN) application and select "Add New Location" from the application main menu. Otherwise, IEP RUP users select "application, e-file application, create new application" and IEP EUP users select "e-file, application, create new application" .

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

  5. An applicant must reapply if they were previously denied participation in IRS e-file or were previously suspended and have either met the eligibility date or resolved the suitability issue(s). They may reapply to the program through an existing "application" in External Customer Data Store (ECDS) provided the business entity has not changed. They will access the application on file and make any necessary updates (i.e., address, phone/fax, contacts) then select the programs applying for link from the application menu page. Next, they will click on the reapply link to the right of the provider option and the provider option status will move to "applied" . They need to save their changes and submit the application for suitability review.

    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 must reapply when their EFIN is dropped due to inactivity and their provider status is "reapply" . 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 the provider wants an EFIN for use by a firm in its business related group when the 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 provider 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 with current credentials by purchase, transfer or gift, must submit a new e-file application and receive a new Electronic Filing Identification Number (EFIN), Electronic Transmitter Identification number (ETIN), login identification and password. Applicants may not use the identification numbers or passwords 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 a new e-file application, FPCs (fingerprint cards) 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. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

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

    1. The firm name or doing business as (DBA) name.

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

    3. A change to the firm business type and EIN requires a new application.

    4. Address or telephone number.

  3. Updates 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 Electronic Return Originator (ERO), intermediate service provider, Transmitter, reporting agent, Financial agent or Large taxpayer in the future.

    2. There is a change to the principal or responsible official section of the e-file application such as adding an individual, deleting an individual or changing information concerning a current individual. Fingerprint cards (FPCs) may be required for the individual who has been added:

      Note:

      Only a principal or a delegated user who has been given 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 Employer Identification Number (EIN).

  4. 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 Employer Identification Number (EIN).

Procedures for Online Filing (OLF) Applicants

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

  2. Any applicant that is interested in participating in online filing must select online provider from the provider options drop-down menu on the "programs applying for" page of the application.

  3. When an online provider subsequently requests a regular Electronic Filing Identification Number (EFIN), special procedures are required to generate a regular and online EFIN within the same application:

    1. When both ERO and online provider options are selected, the application must be modified to acknowledge the regular EFIN first.

    2. On the provider status page select "online" , edit and move from "applied" to "dropped" .

    3. Generate a regular EFIN from the EFIN status link on the e-file application menu.

    4. Return to the "Programs Applying for link" on the e-file application menu and select the reapply link for the online provider.

    5. Generate an online EFIN by accessing the "EFIN status" link from the main menu of the e-file application.

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

    7. Move the online provider option back to original status and then save the application.

E-file Application Process

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

  2. 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, finger print card (FPC) or proof of professional status, the application status will systematically update to the correct status.

  3. Statuses are:

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

    • "Submitted pending documents" : e-file application requires credentials, fingerprint cards or other information

    • "Submitted new" : initial submission of a new e-file application that does not have documents pending

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

    • "Completed" : information is available and all research has been completed and entered into the system

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

    • "Submitted revised" : a firm is adding or deleting a principal or responsible official or adding a provider option

    • "Deleted" : e-file application has been in the system for 90 days without having been submitted or has been in submitted status for 45 days without supporting documentation (FPC/proof of professional status)

  4. If there are no pending documents and no suitability issues associated with a submitted e-file application, External Customer Data Store (ECDS) systematically passes the firm and personal suitability, changes the provider status(s) to "accepted" , assigns Electronic Filing Identification Number (EFIN) and Electronic Transmitter Identification number (ETIN) when applicable, moves application status to "complete" and generates an acceptance letter.

Manual Assignment of Electronic Filing Identification Number

  1. The system will automatically assign an Electronic Filing Identification Number (EFIN) for the e-file application, 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 doing business as (DBA) Name link from the existing application which appears below the search screen

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

    4. Select valid/active status from the EFIN status drop-down menu

    5. Select the "assign" button and the EFIN will display in a table on the page. A message will also indicate that the number was assigned

      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. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

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

  3. External Customer Data Store (ECDS) associates a ULC to each applicant record based on the ZIP/postal code of the physical address on the e-file application.

  4. Upon submission of an e-file application, the system will attempt to assign an Electronic Transmitter Identification number (ETIN). If ECDS is unable to assign it due to unavailability within the given ULC, a worklist item will be created in the e-file application review workgroup, with the APP_ULC_UNAVAIL_IRS business activity name.

    1. The assistor must notify the system administrator of the error, showing the city, state and zip code for creation or activation of a new ULC.

  5. If an e-file application is submitted and the system attempts to assign an EFIN but cannot due to the zip codes, ECDS will assign a worklist item to the e-file application review with the APP_PHY_ZIP_NVLD_IRS business activity name. 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. Assign the EFIN.

    4. Save the added EFIN.

    5. Change the invalid ZIP code to the valid ZIP code on ECDS and save the change.

    6. Notify the systems administrator 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: Applications Initiated

  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 always initially 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 have been received, the application status will change the following day to "submitted new" and generate an Electronic Transmitter Identification number (ETIN).

  5. If suitability is required, the TIN will be processed through Master File producing results through automated suitability analysis program(ASAP) with hits (issues) or no hits (no issues).

  6. If no suitability is required or if the suitability has been passed, the application status will move to "completed" and an acceptance letter will be generated.

Applications Pending Documentation
  1. Once an application has been submitted, External Customer Data Store (ECDS) will review it daily for pending documentation for up to 45 days.

  2. If documentation is received and additional suitability research is required, a worklist item will be 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 have been received.

Automated Suitability Analysis Program with No Hits

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

  2. Firm and personal suitability status will move to "in process" .

  3. Master file will return results using the automated suitability analysis program (ASAP). The ASAP results are uploaded to the application.

  4. If there is a "no hit" on a firm, the suitability status will move from "in-process" to "pass" .

  5. If there is "no hit" on an individual and a fingerprint card (FPC) check is not required or the FPC results indicate "no data" , the suitability status will move from "in-process" to "pass" .

Automated Suitability Analysis Program with Hits

  1. If your issue in this section is ESAM related, use the ESAM User Guide Suitability Desk Guide or to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

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

  3. Firm and personal suitability status will move to "in process" .

  4. Master File (MF) will return results using Automated Suitability Analysis Program (ASAP) and results are uploaded to the application.

  5. When a "hit" is identified, a worklist is created in the ANSC_Leads workgroup.

  6. The worklist item is assigned to an assistor for review.

Reapply Applications

  1. A “reapply” application is required for an applicant that has been denied participation and has resolved the issue, met the eligibility date or whose Electronic Filing Identification Number (EFIN) has been dropped, see IRM 3.42.10.5, When to Submit a New IRS e-file Application.

    Note:

    A "deleted" application is not considered a "reapply application" .

  2. 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 3.42.10.14.11, Levels of Infractions. Applicants may reapply when:

    • The suspension period has been completed.

    • The suspension was prior or equal to November 01, 2011, the eligibility date is not ≡ ≡ ≡ ≡ ≡ ≡ and the provider status is not ”Non-Compliant for Field Monitoring”. Even if the principal and responsible official is the same person, you must “apply” the eligibility date on both pages of the application. All such eligibility dates were reset to September 30, 2012, on that date.

    • When the suitability issue has been 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 will be "new" but will be 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 External Customer Data Store (ECDS), historical 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 "apply" . Also, update the eligibility date of each principal and responsible official to the current date if applicable and select "apply" .

  5. When 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 will verify the receipt of the fingerprint card to ensure it is after the eligibility date. The application status will move from "submitted pending documents" to "submitted reapply."

    • The application will be 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 was placed in "dropped" status due to ECDS-EFIN clean-up (see IRM 3.42.10.22, Electronic 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 will move from "complete" to "submitted pending documents" .

  4. If documents are not required or the suitability results are available, the e-file application status will move to "submitted revised" .

Systemic Application Completion Process

  1. If the e-file application passed suitability, the system will move provider status from "applied" to "accepted" , issue an Electronic Transmitter Identification number (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, the system generates a reporting agent Personal Identification Number (PIN) letter which includes a five (5) digit PIN.

  3. The system sets e-file application status to "complete" .

  4. The system deletes any remaining worklist items for the firm, but worklist items for personal suitability will remain.

Worklists

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

  2. Worklist items are generated for actions by an assistor necessary to complete an application.

  3. Worklist items are:

    • APP_SUBMIT_N_REV_IRS- generated when an EUP user moves the e-file application into "submitted in review" status. This worklist item is deleted when the e-file application is moved to "completed" status.

    • APP_ASAP_HIT_IRS- generated when the IRS receives a hit on an individual. After all suitability research is completed and all necessary actions taken, the worklist item must be manually removed and the application status set to "completed" when "fail" is determined.

    • APP_SUIT_LATE_IRS- generated when the personal suitability status is set to "in process" for 15 days or more. After all suitability research is completed and all necessary actions taken, the worklist item must be manually removed and the application status set to "completed" when "fail" is determined.

    • APP_ORGASAP_HIT_IRS- generated when the IRS receives a hit on the firm entity on an e-file application after all suitability research is completed and all necessary actions taken, the worklist item is removed when the application status moves to "completed" .

    • APP_ORG_SUIT_LATE_IRS- generated when the firm's suitability status is set to "in process" for 15 days or more. The worklist item is removed when the e-file application status moves to "complete" .

    • • APP_FPC_LATE_ IRS- generated after a finger print card (FPC) is sent to the Federal Bureau of Investigation (FBI) and the results have not been returned within 30 days. It must be manually removed from the worklist.

    • ASSIGN_OLF_EFIN_IRS- generated when Online Provider is selected. Assistor will evaluate the information received and manually assign the EFIN for a true Online Provider. Worklist item must be manually removed.

    • MF_TRANS_FIRM_IRS- generated when a firm on an active application has a new tax compliance issue. Suitability status will be changed to "recheck" research and take necessary actions.

    • MF_TRANS_IND_IRS- generated for an individual on an active application that has a new tax compliance issue or PTIN status is updated to suspended, revoked or deceased. Suitability status will be changed to recheck (for deceased PTIN status which will be set to incomplete). Research and take necessary actions.

    • APP_PHY_ZIP_NVLD- generated when the physical address zip code submitted by an IEP RUP user does not match the EFIN assignment table.

    • APP_VALD_NFP_IRS- generated when a not for profit program is selected with the exception of IRS Sponsored Business activities containing a valid Site Identification Number (SIDN). Validation and manually assign the EFIN for a true not for profit is required.

    • APP_SUIT_SDN generated when a specially designated national (SDN) name appears on an e-file application.

    • APP_LETTER_REVIEW– generated when a letter is created for review, edit and printing. Worklist must be manually removed.

    • APP_CRDNTL_NEEDED- generated when the individual has indicated a professional status of attorney, bank official, certified public accountant (CPA) and officer of a publicly owned corporation requiring validation.

    • APP_PRISONER- generated when the system identifies a match of an individual on an "active" or "submitted" application with the IRS prisoner list. Information will be contained on the individual ASAP tab for evaluation.

    • APP_ACA_NFP_IRS – generated when a provider option of Affordable Care Act is selected as Covered Entity. Validation and manually assign the EFIN for a true not for profit is required.

    • APP_ULC_UNAVAIL_IRS – generated when all available EFINs within the ULC have been exhausted. Worklist item must be elevated to an e-file application analyst for database modification.

    • APP_UNFPC_LATE_IRS – generated when a fingerprint image is unprocessable and a new card has not been submitted within the 30 days letter request.

  4. Assistors perform the necessary work for an item appearing on their worklist. When reassigning a worklist item, notate in the comment section the reason for reassigning.

  5. When the necessary work is completed, the assistor selects the check box to the left of the worklist item selecting the Marked Work Link. The item is then removed from the worklist item.

Worklist Escalation
  1. An e-mail is sent to the assistor's manager if a worklist item has been assigned to the assistor's worklist for more than 15 calendar days.

  2. Subsequent e-mails are sent to the manager every seven (7) days until the worklist item has been worked.

Validating Not for Profit Business Activities

  1. Not for Profit business activities include Large Taxpayer, Employee Benefit, IRS sponsored Taxpayer Assistance Centers (TAC), Volunteer Income Tax Assistance (VITA), Military Bases, Tax Counseling for the Elderly (TCE), State Government Agencies and Affordable Care Act 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 create work lists APP_VALD_NFP_IRS with the exception of VITA Affordable Care Act as a Covered Entity.

  4. Affordable Care Act as a Covered Entity defaults the application status to "Submitted New" and creates a worklist APP_ACA_NFP_IRS.

  5. The assistor validates all not for profit and covered entity business activities on the worklists as described below.

    1. The assistor explains the actions taken in the application comments per IRM 3.42.10.4.16, Application Comments and manually assigns an Electronic Filing Identification Number (EFIN) per IRM 3.42.10.6.1, Manual Assignment of Electronic Filing Identification Number.

    2. If the assistor cannot validate a Not for Profit or Covered Entity business activity, drop Not for Profit provider status, change application status to Save allowing applicant to revise and send Letter 5229, NFP Reject Letter.

IRS Sponsored Not for Profit Business Activities

  1. External Customer Data Store (ECDS) systematically 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 the Integrated Enterprise Portal (IEP) Registered User Portal (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 "Program(s) Applying For" then click on the blue hyper link "Edit" .

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

  4. Stakeholder partnership, Education and Communication (SPEC) may request e-help to place a VITA or TCE Electronic Filing Identification Number (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 Stakeholder partnership, Education and Communication (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 3.42.10.4.16, 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 5229, NFP Reject Letter 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 Electronic Filing Identification Number (EFIN) and Electronic Transmitter Identification number (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 3.42.10.4.16, 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 990 Waiver Level 2 application and includes comments per IRM 3.42.10.4.16, Application Comments, the application tracking number, EHSS Incident "open referred" , "elevated to 990 Waiver Level 2 for decision" .

  4. If BOD: CD is not equal to LM and the form type is other than 990, 990-EZ, 990-PF or 1120-POL, the assistor assigns the EHSS Incident to 1120 Waiver Level 2 and 990 Waiver Level 2 LB & I large taxpayer application and includes the following comments per IRM 3.42.10.4.16, Application Comments: the application tracking number, EHSS Incident "open referred" , "elevated to 1120 Waiver Level 2 provider group and 990 Waiver Level 2 provider group for decision" .

  5. Level 2 LB & I (Large Business and International) large taxpayer application or Level 2 TEGE support researches the taxpayer and determines if it qualifies as a valid large taxpayer. This will include contacting the large taxpayer, if necessary.

  6. If the applicant is a valid large taxpayer, Level 2 LB & I-1120WAIVL2 or Level 2 Tax Exempt Government Entities (TEGE) will refer the EHSS Incident back to the ANSC Lead Group. The assistor will close the EHSS Incident, includes comments and continues to process the e-file application.

  7. If the applicant is not a valid large taxpayer, Level 2 LB & I or Level 2 TEGE will contacts the taxpayer to explain why the application is not accepted.

    1. Level 2 LB & I or Level 2 TEGE includes comments in the EHSS Incident explaining why the applicant does not qualify as a large taxpayer and refers the EHSS Incident back to the ANSC Lead Group.

    2. The assistor includes comments in the e-file application and sends Letter 5229, NFP Reject Letter 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 LB & I analyst group.

Not for Profit Validation Procedures for IRS Taxpayer Assistance Centers

  1. The IRS taxpayer assistance center applicant must include the TAC office designation number (ODN) on the appropriate field on the IRS e-file application (name line or comments field). An ODN must have nine (9) characters, eight (8) numbers followed by a letter, for example IRS TAC Gotham City, NY 11021234Z.

  2. The assistor validates the ODN by checking the ODN list on the field assistance management information system (FAMIS) in the Technology application section.

  3. If the assistor validates the ODN, the assistor enters comments and assigns the Electronic Filing Identification Number (EFIN) to continue the processing of the e-file application.

  4. If the assistor cannot validate the ODN on FAMIS Insider, the assistor enters comments and sends Letter 5229, NFP Reject Letter explaining the application is being returned because a valid ODN is required and they must contact the appropriate field assistance area analyst and move to SPEC if applies.

State Government Agency

  1. An IRS e-file application worklist item 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 business operating division code (BOD:CD) and the employment code or the client code.

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

    If ... And ... Then ...
    If 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
    If 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 990 Waiver Level 2 based on form type:
    • 1040/1065/1120 (1120 Waiver) 990/990EZ/990PF (ANA-990)

    If 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 990 Waiver 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 Electronic Filing Identification Number and Electronic Transmitter Identification number(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 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 be processed or the integrated enterprise portal (IEP) employee user portal (EUP) worklist item can be closed.

  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 edit comments in External Customer Data Store (ECDS) with the reason for the disapproval and reject the e-file application.

Affordable Care Act Provider (ACA) Provider Role – Covered Entity with Business Activity – Insurance Provider (Form 8963) or Pharmaceutical Company (Form 8947)

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

  2. For Affordable Care Act Provider (ACA) provider role - Covered Entity with Business Activity – Insurance Provider (Form 8963, Report of Health Insurance Provider Information) or Pharmaceutical Company (Form 8947, Report of Branded Prescription Drug Information) worklist APP_ACA_NFP_IRS, the assistor validates the activity by accessing IDRS command code INOLES with the EIN on the IRS e-file application and identifying the Business Operating Division Code (BOD:CD). Approved ACA providers are issued both an Electronic Filing Identification Number (EFIN) and an Electronic Transmitter Identification Number (ETIN) and are sent Letter 5120-C, e-File Acceptance for ACA Provider.

  3. 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 enter comments and issue the ETIN.

    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 and escalates the case to ACA IPF analyst (for Form 8963) or ACA BPD analyst (for Form 8947) depending on the form identified in the application. Per IRM 3.42.10.4.16, Application Comments include the following information in the comments: the application tracking number, case" Escalated to ACA IPF analyst Form 8963 or ACA BPD analyst Form 8947 for decision" .

  4. If BOD: CD is equal to LM, the applicant is an ACA provider. The assistor will enter comments and issue the EFIN.

  5. 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 form identified in the application and include the following comments per IRM 3.42.10.4.16, Application Comments: the application tracking number, case "Escalated to ACA IPF analyst Form 8963 or ACA BPD analyst Form 8947 for a decision" .

  6. Affordable Care Act Provider (ACA) IPF analyst or ACA BPD analyst researches the applicant and determines if it qualifies as a valid ACA provider. This will include contacting the applicant, if necessary.

  7. If the applicant is a valid ACA provider, the ACA IPF Analyst or ACA BPD Analyst refers the case back to the ANSC Lead Group. The assistor will close the case, enter comments and issue the EFIN.

  8. 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 or ACA BPD 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 5229, NFP Reject Letter 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. Electronic Products & Services Support (EPSS) retains and purges the obsolete paper Form 8633, Application to Participate in IRS e-file Program and any related documentation for three (3) 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 Electronic Filing Identification Number (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. Electronic Products & Services Support (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 (2) 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. Fingerprint cards (FPC) may be destroyed three (3) 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 (2) 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 (1) year after they are scanned into the EHSS.

  3. 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 and update all IRS e-file application information and generate Electronic Filing Identification Numbers (EFIN), Electronic Transmitter Identification Numbers (ETIN), letters and reports. The database is also used to store information for other e-Services products as well. There are two ways to access the information:

    1. Integrated Enterprise Portal (IEP) Employee User Portal (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. Integrated Enterprise Portal (IEP) Registered User Portal (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 (6) 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 affordable care act provider (ACA provider) will be issued a five (5) -digit numeric Electronic Transmitter Identification Number (ETIN).

Login to E-Services

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. Employees access e-Services products via the Integrated Enterprise Portal (IEP) Employee User Portal (EUP).

  3. The Standard Employee Identifier (SEID) and password are used to login.

  4. Once the SEID and password are entered and the submit button is selected, the employee will be able to navigate through e-Services.

Two Major Menu Areas

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

  2. 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.

Accessing the e-file Application

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

  2. The IRS e-file application is accessed by clicking the following links in the "Applications" section:

    1. select the "esrv-appl-efile" link;

    2. select the "e-services" link on the following page;

    3. select the "e-file" link on the next page.

  3. When the "process" link is accessed, the following items may display:

    1. New Print Notice

    2. Finger Print Card Entry

    3. Group worklist

    4. Recheck Suitability

    5. Individual worklist

  4. Under the "reports" link, the following items will display:

    1. Create New application

    2. Software Developer

    3. Search e-file application

    4. Personal Suitability

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 Integrated Enterprise Portal (IEP) Registered User Portal (RUP) user accesses the system and views application information that they are not authorized to access. Please reference IRM 11.3.1.6, 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 a 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 External Customer Data Store (ECDS) 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), Electronic Filing Identification Number (EFIN), Electronic Transmitter Identification Number (ETIN), taxpayer identification number (TIN) (SSN or EIN) or preparer tax identification number (PTIN) 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 to update the application, must be listed as a principal, responsible official or delegated user with the appropriate authorities on the existing e-file application. Exception: Some applications have EINs with only one person on them as a principal and/or responsible official. If an employee of the corporation contacts you stating that the person on the application is no longer associated with that EIN, do the following:

    1. Ask the person who will be added on as a principal and/or responsible official to fax, on company letterhead, a note stating who is to be removed from the application and why, who is to be added, their SSN, DOB and certification that the structure of the company has not changed due to the removed person no longer working for the firm. Ask if they can provide information on the company charter listing the names of the current officers. This can also be researched on the Secretary of State Contact Information page. Request that the original letter be mailed to the Andover e-help Desk for inclusion in the EFIN file. The letter must be signed by a current officer of the firm.

      Note:

      Sole proprietorships are not transferable. Potential EROs who purchase an existing e-file business must apply for a new EFIN.

    2. On receipt of the fax which contains all necessary information, input the person on the application and remove the original principal and/or responsible official. Do not input the terms of agreement or suitability questions for the individual.

    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.

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

  4. 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. Applicants must include fingerprint cards (FPC) for all principals and responsible officials listed on the e-file applications unless they are exempt from submitting the FPCs. If they are exempt and claim professional status, evidence of the professional status must be validated as stated in IRM 3.42.10.13.2, Professional Status Review and Processing. The External Customer Data Store (ECDS) provides an alert to submit all FPCs from e-file application for FBI processing.

  2. 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

  3. 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.

  4. Fingerprint card (FPCs) without signatures will be returned and not entered into ECDS. Send Letter 5882C - E-file Application Information. (Exhibit 3.42.10-50)

  5. On a daily basis, scan all FPCs for Federal Bureau of Investigation (FBI) check into the Automated Electronic Fingerprinting (AEF) and submit them to the FBI electronically in accordance with the AEF User Manual.

  6. External Customer Data Store (ECDS) displays six statuses for FPCs:

    1. "Not-on-File" - no FPC was received from the applicant.

    2. "Not-Pulled" - the FPC was received from the applicant but not pulled for FBI check.

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

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

    5. "no data" - findings with no history are received back from the FBI.

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

  7. Procedures after FBI results have been received.

    1. Manually update ECDS to show the FBI findings by using the drop-down box located in the fingerprint tab.

    2. Clerical will forward the FBI findings for adjudication.

    3. If the FBI is unable to process the FPC and no second fingerprint card is available, generate Letter 5882C - E-file Application Information Exhibit 3.42.10-50 requesting a new FPC. If the applicant does not provide a new FPC within thirty (30) days from the date of the letter, place the applicant’s provider options in "dropped" status.

  8. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Update worklist items and comments to reflect case activity and status.

  9. 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.

  10. For retention of fingerprint card, see IRM 3.42.10.8.2, Retention of Fingerprint Cards (FPC).

Review of Professional Status and Credentials

  1. Acceptable evidence of a currently active professional status:

    1. A Certified Public Accountant (CPA) must show qualifications 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.

    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 also show they are not currently under suspension or disbarment from practice before the IRS or the bar.

Professional Status Review and Processing

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

  2. All principals and responsible officials that have selected a professional status of attorney, bank official, Certified Public Accountant (CPA), Enrolled Agent (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

  3. Upon submission of the e-file application a worklist, APP_CRDNTL_NEEDED, will be created in the application review workgroup.

  4. When working APP_CRDNTL_NEEDED worklist, click on link to access the personal suitability/suitability tab of the individual and then select the professional credentials tab at the top of the page.

  5. Professional type will be populated from the drop-down menu with the first professional status indicated by the principal or responsible official on the Personal Information page.

    1. For CPAs and attorneys, the state, license/credential number and expiration date will populate from the personal information page for up to five credentials provided for each professional status. Verify this information as indicated below (If more than one appears, only one needs to be verified). Research “The American Institute of Certified Public Accountants” found on the Electronic Products & Services Support (EPSS) Portal “Quick Links” for CPAs. Check the appropriate state bar association for attorneys found at PublicRecordCenter.com.

    2. For enrolled agents, their number will populate from the personal information page.

    3. To verify officers of publicly held corporations, check the List of Publicly Traded Companies on Public Record Center.com. Select the first letter of the company; Once you locate the company select profile; Select company profile and you will see the officers listed under Executives.

    4. To verify bank officials, request the documentation indicated in IRM 3.42.10.4.4, Personal Information Page for Principals either by telephone or by mailing Letter 5882C - E-file Application Information to the individual.

  6. 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).

  7. If professional status cannot be confirmed or documentation is needed, contact the applicant either by telephone or by mailing Letter 5882C - E-file Application Information requesting the documentation needed for the indicated professional status as described in IRM 3.42.10.4.4, Personal Information 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. The credentials for attorney, CPA and EA can be destroyed after they have been entered in ECDS. Documentation received for banking official and officer of a publicly owned corporation must be maintained for three (3) years after the application has been dropped.

    3. Input all required information, obtained from documentation provided, on the personal information page of the integrated enterprise portal (IEP) employee user portal (EUP).

  8. 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.

Credit Checks

  1. Credit checks may be performed on an as needed basis by the Andover e-help Desk and the assistor will update the application with related information.

Suitability

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. 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.

  3. 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.

  4. Suitability checks may include a Federal Bureau of Investigation (FBI) criminal background check, credit history check, IRS tax compliance check and prior history check for compliance in IRS e-file.

  5. The suitability statuses are "passed" , "failed" , "recheck" , "in-process" , "none required" and "incomplete" .

  6. Suitability checks are not conducted on the following:

    1. Software developers who function solely as software developer

    2. Providers who offer e-file solely as an additional benefit

    3. IRS sponsored Not for Profit organization

    4. Large Taxpayers

    5. Delegated users

    6. Contacts/Alternate contacts

    7. Affordable Care Act Provider (ACA) providers who are covered entities

  7. Suitability checks for new applications must be completed within 45 calendar days of submission. If the suitability status remains “in process” for more than 45 days, the assistor must send Letter 5882C, E-file Application Information, indicating that an additional 30 days is needed to process the application.

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

Fingerprint Cards Results

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

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

  3. 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 3.42.10.14.2, Daily Suitability.

  4. 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.

  5. 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.).

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

  7. Adjudication will recommend either Pass, Fail, or request Court Documentation 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, Northern Area and Fingerprint Card Adjudication (FPC) for Review
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. When fingerprint cards are processed electronically by Automated Electronic Fingerprints (AEF) and data is found, an official record of arrest and prosecution sheet is printed.

  3. Clerks will match the social security number (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.

  4. Clerks will create an e-mail to include area scheme development center (ASDC) referral report containing the SSN and names to criminal investigation. Update application comments page and the fingerprint cards tab "Data forwarded to adjudication do not pass" and save.

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

  6. Clerical will send Form 3210, Document Transmittal containing all new cases marked, including annotating the electronic filing identification number (EFIN) and SSN on the upper right hand corner, to CI. This should be done weekly.

  7. Clerks will input remaining cases (cases not selected by CI) into EHSS for adjudication by FPC adjudication and update comments on the application comments page and the Fingerprint Cards tab: "Data forward to adjudication do not pass" and save.

  8. Remaining fingerprint cards will be adjudicated.

  9. The assistor will then complete the regular suitability checks on the SSN and Employer Identification Number (EIN), if applicable. Suitability will be worked as a daily worklist item. Follow procedures in IRM 3.42.10.14.8, 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" , send Letter 5881C, E-file Application Program Denial and address all suitability issues. See Exhibit 3.42.10-8 and Exhibit 3.42.10-25.

    • If adjudication needs additional information, then send the CD letter.

    • If adjudication recommends "pass" , but there are suitability issues, follow suitability procedures and send to management review. Issue Letter 5881C, E-file Application Program Denial.

Fingerprint Card Adjudication
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

  2. 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 Federal Bureau of Investigation (FBI) from the Record of Arrests and Prosecutions (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.

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

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

  5. 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:

    Federal Bureau of Investigation (FBI) result may not always be an exact match. If additional validation is needed then research IDRS.

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

  7. 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.

  8. 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

  9. Assistor will go to the associated incident to document the action taken. Close the case in EHSS using Pass, Fail, or Fail Court Documentation, 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.

First Level Appeal after Initial Adjudication
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. 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" .

  3. 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.

Procedures for Electronic Products & Services Support (EPSS) Appeal
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. 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 E-file Provider Program Management (EPPM)/Electronic Products & Services Support (EPSS). If the initial recommendation was made by Criminal Investigation (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, Northern Area Referral

Review of Case Material
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  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. If "FAIL" , include the reason for failing the applicant on a new referral sheet.

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

Electronic Filing Identification Number (EFIN) Adjudication Appeals Follow-up and Communication
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. Applicants are allowed two levels of appeals, an administrative level and a final appeal to the Office of Appeals.

  3. If the applicant appeals the Electronic Products & Services Support (EPSS) decision, the appeal will be sent to EPSS.

  4. Electronic Products & Services Support (EPSS) will make a pass/fail determination based on the additional information and the original rap sheet based on ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  5. Send correspondence to the applicant advising them of their pass or fail determination.

  6. 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 3.42.10.14.2.2.2 (4), Second (2nd) Appeal.

    Reminder:

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

Recommendation for Executive Review Board
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

  2. When or if Electronic Products & Services Support (EPSS) disagrees with the decision recommended by Criminal Investigation (CI) or adjudication of a one (1) or two (2) year suspension or expulsion, take the following actions:

    1. Forward the case to manager for contact via telephone, e-mail etc., with CI or adjudication for further discussion or reversal of recommended decision.

  3. If manager/CI or adjudication is not able to agree/resolve the recommendation after additional discussions, contact the suitability program analyst before any action is taken. The analyst will advise when to prepare and send Interim Letter 5882C, E-file Application Information to applicant advising of extension of review. Update comments on integrated enterprise portal (IEP) employee user portal (EUP).

    1. The suitability analyst will be notified if no agreement is reached and forward the case for review by adjudication executive for "FINAL" decision on case.

    2. Upon completion of the review by the executive, the suitability analyst will provide instructions to resolve the case in accordance with the decision rendered.

Daily Suitability

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

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

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

  4. Daily suitability is conducted on all Taxpayer Identification Numbers (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 3.42.10.14.11.2, Levels of Infractions-Level Two.

  5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Criteria: ASAPlooks at:
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    Identity Theft See IRM 3.42.10.14.16
  6. For daily suitability, applicants that require a suitability check will have an Electronic Filing Identification Number (EFIN) generated or reactivated 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 worklist notification for the hits and assign them to an assistor for research and follow up.

  7. There are several worklist items related to daily suitability:

    1. APP_ASAP_HIT_IRS

    2. APP_SUIT_LATE_IRS

    3. APP_ORGASAP_HIT_IRS

    4. APP_ORG_SUIT_LATE_IRS

    Note:

    See IRM 3.42.10.6.9, Worklists, for a description of each worklist item shown above.

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

Procedures for Daily Worklist
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. A daily worklist is generated when the IRS receives an issue from the automated suitability analysis program (ASAP) on a firm or individual within an e-file application. ASAP results will post as a "hit" and the issue will be annotated in the ASAP description.

    • 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.

  3. Additional steps for daily worklist:

    If Fingerprint Status is Then
    Not on file and professional status is not passed Move suitability status from "in-process" to "incomplete" .
    Not on file and professional status is passed Enter in application comments, "Working daily worklist 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 worklist item is current Work current issues and all other TIN(s) on the application that can be passed.
    In-process and the worklist item is "Late Suitability" Check comment to see if assigned, reassigned to assistor, if not resolved.
    Unprocessable Work all other TIN(s) on the application that can be passed, reassign worklist to ANSC_Lead_TE_Clerks.
    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 worklist item to the applicable assistor. 3. If no specific TE is indicated, annotate in comments "Reassigned" to ANSC_Management Workgroup.
    No Data or Not Pulled Enter in application comments "Working daily worklist in process" .
Procedures for Appeals on Fingerprint Card Data
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. Below are the appeal procedures to be followed regarding fingerprint card data.

First (1st) Appeal
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. Get the folder with original record of arrest and prosecution sheet and paperwork.

  3. Attach a new fraud referral sheet with Electronic Filing Identification Number (EFIN), Social Security Number (SSN), name of applicant and Z /-T freeze (if applicable). See Exhibit 3.42.10–5, Form 14632, Electronic Filing Suitability Scheme Development Center, Northern Area Referral, and attach it to the appeal and previous paperwork.

  4. Send to adjudication or scheme development center depending on original decision for reconsideration. 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 the scheme development center.

  5. Document on the application comment section, "appeal forwarded to adjudication" .

  6. The appeal will be reviewed and decision whether to pass the applicant or uphold the previous fail recommendation will be made.

  7. When the response is received from adjudication, complete Form 14629, First Appeal – Suitability Recommendation.

  8. If pass, update application statuses and comments and send pass Letter 5880C, E-file Application Program Acceptance Exhibit 3.42.10-22 and also the appropriate acceptance letter.

  9. If upholding the fail, send Letter 5899C, Prisoner Denial – Sanction and Specialty Designated Nationals Revocation.

  10. If necessary, send Letter 5881C, E-file Application Program Denial .

Second (2nd) Appeal
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability -desk-guide

  2. Get folder with original and 1st appeal paperwork.

  3. Complete Form 14633, OOA Appeal Rights - Suitability Recommendation (see Exhibit 3.42.10-4).

  4. Make complete copy of all paper work and give case to designated Office of Appeals assistor.

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

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

  7. Wait for decision; the Electronic Return Originator (ERO) will be unable to participate in IRS e-file until a decision is rendered by the Office of Appeals.

Suitability Credit Check
  1. Credit checks may be requested at the discretion of the e-help Desk.

Suitability Processing Time

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

  2. Daily suitability checks of all new applicants must be completed within 45 days of submission or receipt of the complete applications and all documentation.

  3. When the assistor determines the 45 day processing time for e-file applications will not be met, the assistor will send the applicant Interim Letter 5882C, E-file Application Information for the delay in processing and acknowledgement letter, acknowledging that we received their application and to allow an additional 30 days for processing.

Continuous Suitability Review

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

  2. After acceptance into IRS e-file, providers are subject to continuous suitability checks, which is the review of IRS records.

  3. 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

  4. External Customer Data Store (ECDS) provides weekly worklists of Taxpayer Identification Numbers (TINs) that meet continuous suitability criteria status. Suitability must be "passed" , a provider status must be of "accepted" and Electronic Filing Identification Number (EFIN) must be "active" .

  5. When Master File Transcript criteria are identified, results are systematically moved to "recheck" .

  6. Inquiries such as telephone contact or Letter of Inquiry (LOI) must be made to determine if the criteria identified in the ASAP report constitutes passing/failing the EFIN(s). All telephone contacts must be documented on the comments section of the e-file application and in the e-help Support System (EHSS).

  7. If a provider submits a new e-file application for an additional office and there are compliance issues with the firm(s)/individual(s), the new office will not be allowed to participate until all compliance issues are resolved. ECDS automatically monitors suitability of principals, responsible officials and firms.

Automated Suitability Analysis Program

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

  2. The automated suitability analysis program (ASAP) program uses criteria from Master File (MF) to determine a provider's compliance.

  3. ASAP is used for new/revised applications and continuous suitability review. It analyzes both IMF and BMF data to determine if applicants meet various suitability criteria. ASAP also analyzes the SSN files (SSF).

  4. ASAP may identify issues that an assistor has previously addressed or new issues may be identified through research that did not originally appear on the ASAP report.

  5. In either case, the assistor must address all issues with the provider through either a telephone call or correspondence.

  6. Review the comments section of the e-file application to see if prior ASAP issues were identified. Historical data file folders must be reviewed for all ASAP reports with literals/hits to ensure the issue was not previously addressed.

  7. Some cases contain unusual circumstances such as those involving the Scheme Development Center, Northern Area. 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, Northern Area 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. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

  2. An entity code on Master File (MF) identifies individuals and businesses that participate as Electronic Return Originators (ERO), transmitters and reporting agents, etc., This entity code generates a worklist when specific transactions appear on a tax account that would impact suitability.

  3. An extract of all Taxpayer Identification Number (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.

  4. The current ASAP (Automated Suitability Analysis Program) criteria are used to generate worklists MF_FIRM_TRANS_IRS and MF_FIRM_IND_IRS. 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 Collectable accounts (TC 530) with the following closing codes: 03, 09, 10, 12, 13 and 39.

    11. Identity Theft Indicator (IDT) TC 971 with AC 501, AC 506, AC 522 or AC 524.

  5. The worklists are generated for the specific tax modules affected for each applicant’s account when the suitability criteria are met and include the tax year, MFT code and the dollar amount when applicable.

  6. The worklists are worked in accordance with continuous suitability processing procedures.

Procedures for Master File Transcript Suitability Worklists
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. Worklists MF_TRANS_FIRM_IRS and MF_TRANS_IND_IRS are issue driven, on a weekly basis included in workgroup ANSC_Leads and generated only once per issue. These worklists will be generated as the information is received. firm and/or personal suitability will systematically move to "recheck", automated suitability analysis program (ASAP) results will post as a “hit”, and the issue will be notated in the description:

    • Research via IDRS to determine if Employer Identification Number (EIN)/Social Security Number (SSN) is in compliance.

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

    Additional steps for worklists MF_TRANS_FIRM_IRS and MF_TRANS_IND_IRS:

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

    • If the Electronic Return Originator (ERO) is in compliance, enter ASAP results "no hit" and External Customer Data Store (ECDS) comments "no hit from IMF (BMF) worklist" .

    • Move suitability status to "pass."

    • If ERO is non compliant then notate in "ASAP comments" the issue and EFIN which the Letter of Inquiry (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, Northern Area.

    • If LOI is issued, up to two EFIN(s) may be listed on the Letter 5876C. The wording and all associated EFINs, systematically populates on all letters generated.

    • Manually update firm and/or personal suitability to recheck if LOI is to be issued.

      Reminder:

      If the firm has suitability issues, only update the firm suitability to "recheck" .

    When a worklist generates 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 for Worklist Items Transcripts and Provider Suitability Report
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. The research tools for IMF and BMF are:

    1. The External Customer Data Store (ECDS)

    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

    3. Integrated Automation Technologies (IAT)

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

    5. Internal Revenue Manuals

  3. 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

    • Currently Not Collectible (CNC)

    • Citizenship

    • Incarceration

    • Identity Theft

  4. If new/additional issues are identified through ASAP/research, research IDRS. These issues must be addressed in the initial correspondence or telephone call.

    Note:

    If no new/additional issues are identified, update ASAP 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" .

  5. When a phone call is made to a provider to address personal suitability issue(s) and the individual no longer works for the company, request that they revise their application via the Integrated Enterprise Portal (IEP) Registered User Portal (RUP).

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

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

Reasonable Cause and Automated Suitability Analysis Program Literals
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. Reasonable cause is based on all the facts and circumstances in each situation.

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

  4. 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.

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

  6. 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.

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

  8. 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. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. This process is designed to automate the input of the automated suitability analysis program(ASAP) results from the compliance check against the IMF and BMF systems. The process records the results received back for each TIN. A worklist item is generated for each TIN where there is a "hit" received on the results. The suitability status changes to "pass" for TINs with no "hits" and where all supporting documents have been received and passed validation or have no issues, returned back from the FBI check.

  3. The worklist contains only applicants that have issues identified on their applications, a "hit" from the ASAP upload or ASAP results not updated within 14 days from being selected. Note that the persons and organizations that have been selected for ASAP and are "in process" , may be on the worklist if the fingerprint card (FPC) results have not been received or the assistor is having problems validating the professional credentials.

  4. Literals that appear on ASAP reports are based on programmed criteria. Some circumstances such as late filing/paying history are not part of the criteria, but may be considered when other ASAP criteria are present.

  5. See IRM 3.42.10.14.8, Suitability Procedures After Initial Research, for pass/fail instructions after decision.

No Suitability Checks Met Literal on Automated Suitability Analysis Program Report
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section.See e-file-application-suitability-desk-guide

  2. The literals "NO SUITABILITY CHECKS MET AGAINST MF" and/or "NO SUITABILITY CHECKS MET AGAINST SP" will only appear on daily suitability ASAP reports.

Offer in Compromise (OIC) Literal on Automated Suitability Analysis Program Report
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. Check for pending/posted Offers in Compromise (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. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. See IRM 3.42.10.14.8, Suitability Procedures After Initial Research.

Scheme Development Center, Northern Area Literal on Automated Suitability Analysis Program Report
  1. Scheme Development Center, Northern Area 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, Northern Area to get an updated status/recommendation.

  3. If Scheme Development Center, Northern Area transaction/freeze codes have been reversed and no other literal/hits appear, update this information on the ASAP (Automated Suitability Analysis Program) section of application.

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

    1. Prepare the Electronic Filing Suitability Scheme Development Center Northern Area Referral

    2. Attach IDRS screen print highlighting the TC 91x

    3. Attach ECDS summary page

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

    Note:

    If there’s an Identity Theft Indicator (IDT) or other IDT issue, do not forward the case to RICS; send the case to Scheme Development , Northern Area with a notation that there’s an IDT issue, along with appropriate documentation.

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

  6. The assistor will review the Scheme Development Center, Northern Area 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, Northern Area 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, Northern Area 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, Northern Area for correction.

  9. If Scheme Development Center, Northern Area returns the case without additional appropriate and specific language, recommend pass. Annotate the Suitability Scheme Development Center, Northern Area referral sheet, update ECDS and document comments in ASAP section.

Potentially Dangerous Taxpayer Literal on Automated Suitability Analysis Program Report
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

  2. The Automated Suitability Analysis Program (ASAP) report identifies Potentially Dangerous Taxpayer (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) 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.

  3. The e-file monitoring coordinator (EMCs) 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 Electronic Filing Identification Number and applicable provider's name. Update comments to state "PDT" on provider's name and date.

  4. 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 Electronic Return Originator (ERO) or concerned party.

Balance Due Literal on Automated Suitability Analysis Program Report
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

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

    Note:

    The assistor will pursue balances due in Master File status 21 only when working daily suitability cases or in conjunction with other issues when working continuous suitability cases.

  3. 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 Installment Agreement (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 installment agreement.

  4. If payment or proof of payment, see IRM 3.42.10.14.5.4, 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 Integrated Data Retrieval System (IDRS), pass.

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

    3. If the provider does not provide reasonable cause but provides the payment/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 at least 30 days have elapsed, send the next letter.

    6. If TC 470 closing code 90 is present, and it will be full paid within 30 days.

  5. If the provider is unable to pay balance due, recommend that an installment agreement (IA) and attach a copy of the agreement or IA conformation letter to the appeal letter. When the IA is established, pass.

    Note:

    If the individual meets the criteria for an Installment Agreement (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

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

  7. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ The account can also be in another status such as "uncollectible" , "bankruptcy" and/or "offer in compromise" . Resolution can include revision of the IA to include the other unpaid tax periods.

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

  9. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  10. If balance is not reduced below ≡ ≡ ≡ call or send letter.

  11. See IRM 3.42.10.14.8, Suitability Procedures After Initial Research, for specific pass/fail instructions.

Uncollectible Accounts Literal on Automated Suitability Analysis Program Report
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

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

    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
  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

  4. See IRM 3.42.10.14.8, Suitability Procedures After Initial Research, for specific pass/fail instructions.

No Return Literal on Automated Suitability Analysis Program Report
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

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

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

  4. The assistor will check CC IMFOL/BMFOL (and TXMOD for pending transactions) for a TC 150 (return filed and tax liability assessed), TC 610 (remittance with return) or TC 460 (extension of time for filing). The assistor must allow an additional 45 days from the due date or extension to allow for the processing of the tax return.

  5. Check CC INOLE for a spousal cross-reference Social Security Number. If a cross reference SSN is found, check CC IMFOL under the cross reference SSN for a joint return. See TC (Transaction Codes), SC (Status Codes) and CC (Closing Codes) 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.

  6. 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.

  7. 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.

  8. 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.

  9. 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 3.42.10.14.8, Suitability Procedures After Initial Research, for specific pass/fail instructions.

    1. If the provider indicates that the return was previously filed, a copy (with documentation to support the filing) with a letter of explanation may be faxed only per the request of the assistor working the case. Upon receipt, pass. Send return for processing. Using CC FRM49 input TC 599 with appropriate closing code. Input comments on ECDS 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 per request of the assistor.

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

      Note:

      Upon receipt of any original tax return or copies of tax return(s) that need to be processed, 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.

  10. 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.

  11. 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.

  12. See IRM 3.42.10.14.8, Suitability Procedures After Initial Research, for specific pass/fail instructions.

Fraud Penalties Literal on Automated Suitability Analysis Program Report
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. Automated suitability analysis program (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. If the penalty was abated in full, pass.

  3. Appeals related to TC 320 will be worked as follows:

    1. Send First level administrative reviews via an e-help Support System (EHSS) escalation to EPPM who will conduct the appeal and make decision on appeal. EPPM will send recommendation via Electronic Products & Services Support (EPSS) and Andover will issue letter accordingly.

    2. 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.

  4. The following should be included in the secured e-mail:

    1. All correspondences, protests, any related EIN numbers and tax years

    2. Include screenshot of application from ECDS and history sheet

    3. Suitability recommendation

    4. Power of attorney (POA) and any compliance memorandums

      Reminder:

      IDRS prints are no longer necessary.

  5. Appeals recommendation will be returned via secured e-mail to EPSS. The subject line of Appeals e-mail to Electronic Products & Services Support (EPSS) will read as follows, "T2 SEID EPSS-DOP-Appeals-(WUNO)-Closure to EPSS" .

Cross Reference SSN Literal on Automated Suitability Analysis Program Report
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. Daily Automated Suitability Analysis Program (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.

  3. 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 3.42.10.14.6.7, 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 ECDS, follow the procedures in IRM 3.42.10.14.6.7, No Return Literal on Automated Suitability Analysis Program Report.

  4. See IRM 3.42.10.14.8, Suitability Procedures After Initial Research, for pass/fail specific instructions.

Deceased Taxpayer Literal on Automated Suitability Analysis Program Report
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. Automated suitability analysis program (ASAP) checks for a date of death on the Data Master 1 (DM1) file.

    Note:

    If this literal is present see below.

Biannual follow up of Deceased Individuals
  1. Electronic Products & Services Support (EPSS) conducts biannually 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 Electronic Return Originators (ERO) for Andover to work and must ensure that all EFIN inactivation’s are done per IRM 3.42.10.14.6.12, Deceased Individuals.

    Note:

    E-help management operations has 30 days to take the initial action and is required to provide monthly updates to the National Office 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. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. When information is received that an individual is deceased, move personal suitability of the deceased individual to "incomplete" if it is not already "incomplete" due to system update for preparer tax Identification number (PTIN) deceased status.

  3. Research the application for associated Electronic Filing Identification Numbers (EFINs), Social Security Numbers (SSN) and Employer Identification Numbers (EINs).

  4. 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" .

  5. 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 provider 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 provider 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.

  6. 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" .

  7. Refer cases to national office analyst when an issue arise where a firm has no other EFIN and they need to use the current EFIN until the new EFIN is assign.

Citizenship Literal on Automated Suitability Analysis Program Report
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

  2. 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. Automated suitability analysis program (ASAP) will check daily any individual 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 literal "Citizenship Code C, D, E or F" appears, the assistor will research CC DDBOL to verify the citizenship code. Fail the individual if citizenship code C, D, E or F is present on IDRS. If documentation for proof of citizenship is received and even if DDBOL is not updated, pass.

      Citizenship Literals
      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/space - Unknown
    3. See IRM 3.42.10.14.8, Suitability Procedures After Initial Research, for pass/fail specific instructions.

      Note:

      Examples of paragraphs for Letter 5876C:

      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.

Suitability Documents for Proof of Citizenship

  1. Authorized providers will be required to provide documentation for verification when SSA shows citizenship code hit on automated suitability analysis program (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.

    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.

    5. Naturalization Certificate - issued to a person who became a U.S. citizen after 18 years of age through the naturalization process.

  3. Photocopies of the proof of citizenship and/or residence are acceptable forms of documentation.

  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. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. On the Form 14628, Initial Suitability Recommendation, assistors must notate any returns not filed, liabilities not addressed and assessed fraud penalties. These issues must be addressed in any correspondence or telephone contact. This includes any principal or responsible official who previously failed suitability must provide new fingerprint cards or enter professional status information. IRM 3.42.10.6.6 (5), Reapply Applications.

  3. If a "pass" decision is determined after initial research:

    1. Change suitability status to "passed" for all applicable taxpayer identification number (TINs);

    2. Document in comments and description field section passed suitability per W/L Electronic Filing Identification Number (EFIN).

    Note:

    When working appeals cases and the recommendations is to "Fail" a second line review is needed.

  4. If a "fail" recommendation is determined after initial research:

    1. Pull file folder;

    2. Prepare Form 14628, Initial Suitability Recommendation on all worklist items if recommendation is "fail" (See IRM 3.42.10.14.8.1, Suitability Recommendation);

    3. Input comments "sent for second line review" on the application;

    4. Forward the case file for second line review.

  5. 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 worklist items or appeals, change suitability status to "pass" in ECDS for all applicable TINs/EINs; input comments "passed suit" .

    4. File all information in the designated area.

  6. Upon concurrence of "FAILED" decisions by management, see IRM 3.42.10.14.13, Procedures for Rejecting and Sanctioning Firms and Individuals.

    1. If a principal or responsible official or a corporation/partnership 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 ASAP report 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 ECDS showing the type of letter that was generated. The assistor must add comments indicating the suitability issues/automated suitability analysis program (ASAP) tab(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 worklist items, update all applicable TINs to "fail" status, document issues in suitability ASAP tab(s) 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 field. Change application status to "complete" .

      Note:

      See IRM 3.42.10.14.2, Daily Suitability, if this is a new application for an additional office.

    7. System will update provider option to "rejected" and deactivate EFIN.

  7. The designated TE must contact EPPM (E-File Provider Program Management Branch) 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 can contact EPPM when a firm or provider is affiliated with more than 100 locations.

    1. E-File Provider Program Management Branch (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 Electronic Products & Services Support (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.

  6. The provider option and Electronic Filing Identification Number (EFIN) status are updated automatically. The application status must be manually updated.

  7. The overall suitability field is automatically updated to "pass" when the firm and all related principals and responsible officials have passed suitability.

  8. The overall suitability field is automatically updated to "fail" when the firm or any related principal or responsible official fails suitability.

  9. The overall suitability field is automatically updated to "recheck" when the firm or any related principal or responsible official suitability is changed to "recheck" .

Suitability Reason Codes
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. A 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 option in "reject" , "non-compliant" or "dropped" status. See figures below for these codes.

    Figure 3.42.10-1

    Reason Codes Reprimand Rejected Dropped Non-Compliant Non-Compliant (Field monitoring)
    1. Conviction of a criminal offense X X     X
    2. Failure to file timely          
    3. Failure to pay timely          
    4. Reserved          
    5. Suspensions/disbarment from practice X X     X
    6. Conduct of disreputable nature X X     X
    7. Misrepresentation on application X X     X
    8. Suspension/rejection prior year   X      
    9. Unethical practices in return prep X X     X
    10. Stockpiling returns prior to acceptance X X     X
    11. Knowingly employing a denied/suspended provider X X     X
    12. Knowingly working for a denied/suspended provider X X     X
    13. Credit check X X      
    14. Fingerprint Check   X      
    15. Date of birth   X      
    16. Citizenship   X      
    17. Advertising standards X       X
    18. Deterioration in format of transmissions X X     X
    19. Unacceptable cumulative error rate X X     X
    20. Untimely, missing or incomplete 8453 X     X X
    21. Stockpiling returns X       X
    22. Failure to retrieve acknowledgement files X       X
    23. Failure to provide taxpayer acknowledgement          
    24. Significant complaints about provider X       X
    25. EFIN compromised by provider X X     X
    26. ETIN compromised by Transmitter X X     X
    27. ETIN compromised by Software Developer X X     X
    28. Failure to cooperate with monitoring efforts X       X
    29. Improper use of W-2 indicator by provider X       X
    30. Improper use of RAL indicator X       X
    31. Failure to use providers EFIN by transmitter X X     X
    32. Other X X     X
    33. No return for one or more years IMF X X      
    34. No return for one or more years BMF X X      
    35. Failure to adhere to signature requirements X X     X
    36. IMF balance due X X      
    37. BMF balance due X X      
    38. Fraud penalty assessed X X      
    39. History of defaulted installment agreements X X      
    40. Uncollectible account X X      
    41. Offer in Compromise X X      
    42. Bankruptcy/Litigation X X      
    43. Criminal Investigation X X      
    44. Intelligence Hold (-T & Z freezes) X X      
    45. No reasonable cause provided X X      
    46. Owner/principal of controlling office failed suitability X X      
    47. Accepted returns from persons other than taxpayers or authorized e-file providers X X     X
    48. More than one EFIN for the same business entity at the same location X X     X
    49. Improper origination X X     X
    50. Failure to retain or provide records X X     X
    51. Failure to notify IRS of changes X X     X
    52. Other or Undeliverable mail     X    
    53. Voluntarily dropped (filers request/deceased provider)     X    
    54. Inactive (no response to inquiries)     X    
    55. No returns e-filed for the last two years     X    
    56. Other X X X   X

    Figure 3.42.10-2

    Status Codes
    1. Applied
    2. Accepted
    3. Rejected (App only/Suit only)
    4. Dropped
    5. Testing
    6. Non-compliant
    7. Non-compliant
    8. Non-compliant
    9. Revoked

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 the appropriate Letter of Inquiry (LOI).

  2. All telephone conversations must be documented in an interaction and included as a comment on the application.

  3. Supporting information/documentation requested must be received within 48 hours. If not received, the LOI must be sent.

  4. The correspondence must address all automated suitability analysis program (ASAP) issues including any new issues identified through IDRS research or issues not previously addressed. 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 appropriate letter must be sent to an individual who is contacted by telephone on a compliance issue and who provides the necessary information to satisfactorily resolve the issue.

  6. If a notice/letter is returned by the postal service as undeliverable, the undeliverable suitability procedures must be followed. See IRM 3.42.10.14.9.2.3, Undeliverable Suitability Letters.

  7. Suitability letters must contain the statement "and all associated Electronic Filing Identification Number(s)" .

  8. When responses are received from individuals/firms regarding suitability issues, follow the specific procedures for the ASAP literal.

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 Acceptance Letters
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. Acceptance letters are sent systematically upon original acceptance into the IRS e-file program.

  3. Acceptance letters may be manually generated, as needed, for any provider who requests a copy. Providers are encouraged to register for e-Services and retrieve acceptance information themselves from the "summary page" of the application. Go to irs.gov and enter "e-Services registration" in the keyword/search terms search box.

Mailing Letters with Suitability Issues
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

  2. When mailing correspondence to a firm concerning the suitability of one or more principals or responsible officials of the firm, send one letter that does not include details of the 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.

  3. Send a separate letter that includes details of the suitability issue and appeal rights to the appropriate principal or responsible official.

  4. Generate the suitability letter through the principal tab, as appropriate. Notate the Electronic Filing Identification Number (EFIN) from which the firm letter is created and include comments in the automated suitability analysis program results comments box of the EFIN in which the assistor is currently accessing. This will direct any subsequent assistor to the EFIN account when the TIN is associated to multiple EFINs.

  5. Suitability letters require a second level of review and will have appropriate notations in the e-file application comments that indicate that the specific letter was reviewed and mailed.

  6. 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.

  7. The following terminology will be used throughout the IRM for these various suitability letters:

    • Initial acceptance letter

    • 1st notice, Letter of Inquiry (LOI)

    • 2nd notice, Proposed Sanction Letter

    • 3rd notice, Recommended Sanction Letter

    • Immediate Suspension Letter

  8. 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 suitability letters, research to see if they have resolved their issues. Then send Letter 5886C, E-file Application Sanction (Letter 1) . Update the description field with no response to previous letter, list all suitability issues and EFIN number. Update application comments.

  2. If a provider fails to respond to Letter 5876C, E-file Application Sanction (Letter 1) and it has been over 30 days send Letter 5886C, E-file Application Sanction (Letter 2).

  3. If a provider fails to respond to the recommended sanction letter and it has been over 30 days send Letter 5886C, E-file Application Sanction (Letter 2) recommending sanctions.

  4. If a provider fails to respond to the recommended sanction letter and it has been over 30 days then place the suitability status to "fail" .

Undeliverable Suitability Letters
  1. If a suitability letter (LOI, proposed sanction or recommended sanction) is returned by the postal service as undeliverable or there is no response, follow the procedures in (a). For undeliverable mail other than suitability letters, please refer to IRM 3.42.10.19.3, Undeliverable ERO Correspondence.

    1. If no address is found after research and an attempt to contact the applicant, change the suitability status to "fail" with current eligibility date. Enter comments to show correspondence was undeliverable and the suitability issue remains. If multiple electronic filing identification numbers (EFINs), make sure to deactivate and input comments.

  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 3.42.10.14.9.2.2(1), Failure to Respond to Suitability Letters, before issuing the next appropriate letter.

  3. If there is an undelivered suitability letter(s) regarding Electronic Return Originator (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" .

  4. 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 ECDS 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. If the provider indicates change of address on their correspondence, make the change on ECDS.

  5. If the provider is a Not for Profit, VITA (Volunteer Income Tax Assistance) Site or TCE (Tax Counseling for the Elderly), open an interaction requesting correct year round 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 ECDS with the new information and reissue the original correspondence.

    2. If unable to reach ERO by telephone:

    3. Place the Electronic Filing Identification Number (EFIN) and any associated Electronic Transmitter Identification Numbers (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 ECDS. Add appropriate comments to the ECDS.

    5. Document telephone call in the application comments page of the EFIN and in an 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.

  6. If the ERO calls after the Undeliverable Mail Indicator is set, then:

    1. Update the address and any other information on the ECDS.

    2. Update the undeliverable indicator to "no" .

    3. Update the EFIN and any associated ETIN(s) to "active" .

    4. 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" then transfer the interaction to leads for review of the suitability issues before the letter is resent.

    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.

  7. 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. Assistors 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. Notate all actions in comments on External Customer Data Store (ECDS).

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:

    1. Update Undeliverable indicator to "yes"

    2. Update EFIN/ETIN to "inactive"

    3. Input Application comments: "Undeliverable mail Letter XXXX" or "Phone is Disconnected"

Correspondence or Phone call from Provider in Inactive Status
  1. If correspondence or a phone call is received and ECDS comments indicate the Electronic Filing Identification Number (EFIN) has been inactivated because of undeliverable mail:

    1. Have the folder retrieved, if available.

    2. Update the ECDS with the new information the provider has provided (e.g., new address).

    3. Update EFIN/ETIN to "active" .

    4. Update undeliverable indicator from "yes" back to "blank" .

    5. All assistors may resend an acceptance letter.

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 a LOI 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 3.42.10.14.9.2.3, Undeliverable Suitability Letters.

Disaster Areas

  1. During a Disaster:

    1. Compliance actions regarding IRS e-file application must not be done on affected providers/applicants.

    2. 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.

    3. When the address has been updated, continue to follow normal suitability procedures and send the appropriate suitability letter.

    4. 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. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

  2. The assistor will recommend the level of infractions.

  3. 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 (1), level two (2) and level three (3). Levels of infractions apply to all suitability determinations and to the monitoring of providers.

  4. 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.

  5. 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.

  6. 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.

  7. 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. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. Level one infractions are minor infractions that may result in the issuance of a written reprimand or other sanctions.

  3. 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

  4. 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. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. 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.

  3. 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

  4. 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. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide.

  2. 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.

  3. 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.

  4. 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 3.42.10.14.11.4, 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, Northern Area. The case must be brought to the attention of the second line reviewer for approval.

  5. 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, Northern Area 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. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. A level three infraction may result in expulsion from IRS e-file without the opportunity for future participation.

  3. 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. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. Principals and Responsible Officials may be expelled if the Scheme Development Center, Northern Area recommends suspension or expulsion of an individual due to an active IRS criminal investigation or if an individual is currently in prison.

  3. Principals and Responsible Officials may be expelled if stolen identities are used to obtain the Electronic Filing Identification Number (EFIN) and used to e-file returns. These cases will be referred to Return Integrity and Compliance Services (RICS) or Criminal Investigation (CI). Identity theft cases may also originate in other areas of the service and be referred to Electronic Products & Services Support (EPSS).

  4. All associated Taxpayer Identification Numbers (TINs) will be manually updated to "Failed" status. The EFIN(s) associated with the failed Taxpayer Identification Numbers (TINs) will then be systematically inactivated.

  5. Providers can request administrative review. Criminal Investigation (CI) will perform the first level administrative review for CI related cases. Return Integrity and Compliance Services (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.

  6. Second level appeals will be conducted by Office of Appeals (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 sent an e-mail to Scheme Development Center, Northern Area 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. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. The following procedures must be followed upon receipt of an e-mail from OPR regarding suspension/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 Electronic Filing Identification Number (EFIN)/Electronic Transmitter Identification Number (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/ETINis not"active" , input comments "suspended or disbarred by OPR indefinitely" with the date. Update and close interaction.

    4. If an application is on file and the EFIN/ETIN is active, research IDRS/IAT (Integrated Automation Technologies) 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, put a comment on application comments "suspended or disbarred by OPR indefinitely" with the date.

    6. If suitability issue(s) exist, follow the continuous suitability.

Denial and Revocation of Specially Designated Nationals

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

  2. Presidential Executive Order 13224 of September 23, 2001 restricts participation of Specially Designated Nationals (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 Office of Foreign Asset Control (OFAC) cannot be on an e-file application as a principal or responsible official.

  3. External Customer Data Store (ECDS) 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 the SDN List.

  4. ECDS compares the firm’s legal name and its "doing business as" (DBA) name against the SDN list. It also compares last name and the first 5 characters of the first name of each principal and responsible official against the SDN list.

  5. ECDS shall generate a worklist item to the e-help Desk operation group WL - Andover leads with the category code APP_SUIT_SDN_IRS. The worklist item will contain the following information:

    1. Applicant (DBA name)

    2. Date assigned

    3. Days on list

    4. Business process name

    5. Activity name

    6. Tran ID

    7. Comment (UID, last name (if a firm name appears here), First Name, SDN_TYPE from matching entry

  6. The assistor must access the Department of Treasury website to view the pdf version of SDN list to obtain the complete first name and additional information available on the report.

  7. Search the SDN list using the "find" feature and entering the last name and first five letters of the first name.

  8. Use the following information if it is available on the SDN list, to determine if there is a match:

    1. Complete first and last names and middle initial if available

    2. Social Security Number (SSN)

    3. Date of birth (month/day/year)

    4. Place of birth (consider specific provinces)

  9. Recheck review:

    1. Send appropriate letter

    2. Add comments to the application

  10. Otherwise, continue to research further as described below. All matches of first and last name and middle initial when available, on accepted or submitted e-file applications.

  11. If a fingerprint card is available, check the place of birth on the card for a match with the place of birth on the SDN list. If place of birth matches continue with revocation.

  12. If place of birth cannot be determined, submit the fingerprint card to the FBI for criminal background report which may show the individual as being on the SDN list. If the individual is on the SDN list, continue with revocation. However, if the FBI report does not show the individual is on the SDN list but shows other criminal activity forward the record of arrest and prosecution sheet containing the findings from the FBI to the adjudication.

  13. If the individual input professional status information instead of a fingerprint card, confirm that it is valid. If unable to determine the validity of the information, contact the individual for proof of professional status or a fingerprint card.

  14. After the above checks are completed and the individual is not determined to be the same individual as on the SDN list, complete an updated tax compliance check and take appropriate suitability actions for any findings.

  15. Mark worklist item worked when all actions are completed, including revocation when appropriate.

  16. The e-help assistor takes the following actions to deny or revoke the applicant’s or provider’s participation in IRS e-file and to ensure individuals and firms cannot participate in IRS e-file in the future.

    1. Update the provider statuses for all applied and accepted applications to revoked, select denial reason of other and enter comment "SDN Revocation" .

    2. Update all Electronic Filing Identification Number(s) (EFIN) and Electronic Transmitter Identification numbers(ETIN) to inactive.

    3. Update firm suitability for each entity to "failed" , input eligibility date as ≡ ≡ ≡ ≡ ≡ ≡ , enter the denial reason of other and enter comment "SDN Revocation."

    4. Update personal suitability for matched individual to "failed" , input eligibility date as ≡ ≡ ≡ ≡ ≡ ≡ ≡ , select denial reason of other and enter comment "SDN Revocation."

    5. If the provider is matched with the SDN list, send the provider revocation letter to the provider. (See Letter 5899C, Prisoner Denial – Sanction and Specialty Designated Nationals Revocation)

    6. If an individual is matched with the SDN list, but not the provider, send the individual revocation letter to the principal and/or responsible official who matched with the SDN list (as described above) and send the firm revocation letter to the provider. (See Letter 5899C, Prisoner Denial – Sanction and Specialty Designated Nationals Revocation)

  17. A firm or individual revoked as a match with the SDN list will not be able to reapply as their eligibility date will be set as ≡ ≡ ≡ ≡ ≡ ≡ .

  18. The assistor will update the eligibility date to allow them to reapply only if they provide proof that they are either not the same person on the SDN list or that they have been removed from the list. Proof could include, but is not limited to, a letter from the Department of Treasury’s Office of Foreign Asset Control or a birth certificate showing a different date or place of birth.

Procedures for Rejecting and Sanctioning Firms and Individuals

  1. The assistor will update the suitability fields for firms and/or individuals to "fail" , select one (1) or two (2) years for eligibility date and select the denial reason from the respective drop-down boxes.

  2. Appropriate documentation includes Form 14634, Suspension without Appeal Rights - Suitability Recommendation and e-file Monitoring Sanction sheets.

  3. Form 14634 and interaction must include the following:

    1. Who to fail (firm, principals and/or responsible officials)

    2. Denial reason(s), including the respective tax modules involved

    3. Levels of Infraction: one (1) or two (2) years

  4. The e-file Monitoring Sanction sheets and interaction will include all information that the assistor needs except the eligibility date.

  5. The assistor enters the appropriate eligibility date(s) as calculated by the system on the suitability page.

  6. Worklist items for daily suitability review:

    1. Input comments in the Automated Suitability Analysis Program (ASAP) tab, including the Electronic Filing Identification Number (EFIN) from which any letters will be sent.

    2. Update suitability to "fail" for (firm, principals and/or responsible officials).

    3. Indicate denial reason on ECDS.

    4. Choose eligibility date based on the number of years suspended by the level of infractions.

    5. Send appropriate letter (Exhibit 3.42.10-8).

    6. Add comments to ECDS.

  7. Continuous suitability review (transcripts):

    1. Enter ASAP results.

    2. Update suitability tab status to the date working the issue.

    3. Send appropriate letter (Exhibit 3.42.10-8).

    4. 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 Office of Appeals.

  8. The denial/suspension date for daily/continual review cases is the date the action is being entered on ECDS.

  9. The eligibility date must also be 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)" .

  10. The eligibility date for an expulsion is ≡ ≡ ≡ ≡ ≡ ≡ .

    Reminder:

    Do not include ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ in any letters.

  11. If the firm (EIN) fails daily 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.

  12. If a principal fails as a result of personal suitability, the assistor will update the SSN 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.

  13. If a responsible official fails as a result of daily or suitability review, the suitability status for the SSN is updated to "fail" and the same eligibility date entered for the suitability status.

  14. 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 applicant 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.

  15. An e-file monitor may be requested to visit the organization to determine compliance on an individual basis.

    1. The assistor will enter comments for all field monitoring reprimands and warnings.

  16. For e-file monitoring suspensions and expulsions, the assistors will:

    1. Change the provider status to noncompliance (field monitoring)

    2. Input the denial reason(s)

    3. Fail the related provider'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. Criminal Investigations (CI), Scheme Development Center, Northern Area or OOA (Office of Appeals) will send to e-help Desk employees (Andover) an ITIN (Individual Taxpayer Identification Number) 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 e-help Support System (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. Cut the comments relative to the CI suspension from ECDS.

    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. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. 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.

  3. Use the If and Then chart below for working ITIN Database cases:

    If ... Then ...
    The individual is not in the ITIN Database Update application comments section with comment ‘Not in ITIN Database’.
      Close case.
    The individual is in the ITIN Database Update interaction comments section with comment elevating recommendation form 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

  1. There may be times when the IRS is notified, or uncovers, through internal sources 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. Try to contact owner of EFIN and inform of possible compromised EFIN. Make one attempt to contact the owner.

    2. Place the compromised EFIN and any associated ETIN(s) into "inactive" status.

    3. If you are able to contact the owner by letter or telephone, inform the owner that the old EFIN is no longer valid and a new EFIN was assigned, notate in comments.

    4. If you are unable to contact the owner after one attempt, do not issue a new EFIN.

    5. Put comments on application that you are unable to contact provider concerning compromised EFIN.

    6. If the owner calls in regarding the EFIN, authenticate caller, then inform them of the compromise and issue a new EFIN.

    7. Pull the folder if available and reconcile contents into the new folder that reflects the new EFIN.

    8. If owner needs additional time for returns to be processed, allow up to one week before issuing a new EFIN.

    9. Enter appropriate comments on ECDS.

  3. Follow disclosure guidelines if information indicates that disclosure occurred due to the compromised EFIN.

  4. For an Electronic Filing Identification Number (EFIN) compromised due to identity theft, see IRM 3.42.10.14.16, Identity Theft.

Electronic Filing Identification Number Sanctioned or Revoked for Fraudulent Activities
  1. When an Electronic Filing Identification Number (EFIN) is sanctioned or revoked for fraudulent activities, an interaction must be initiated and escalated to e-help Level 2 assistors. The problem description must include the EFIN that has been sanctioned/revoked per Department of Justice, Criminal Investigation Division or other sources; Level 2 will review e-service Registration procedures for removal of their access to e-Services, if warranted. Include all pertinent information with the interaction.

  2. Notate on e-file application comments page that interaction was submitted for review of e-service Registration privileges.

Identity Theft

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

  2. Identity Theft (IDT) is an issue all employees should be aware of in order to relieve taxpayers’ burden and eliminate potential fraud.

    Example:

    Taxpayer’s Social Security Number (SSN) or other identifying information was used without their permission. For more information regarding IDT, see IRM 21.3.4.29.4, Non-Tax Related Identity Theft Issues

    .

  3. If you suspect you have a case with an IDT issue, open an Incident and refer to the IDT Research Group for review and referral to Return Integrity and Compliance Services (RICS).

Identity Theft Case Referrals
  1. When receiving cases regarding potential Identity Theft (IDT), take the following actions:

    1. Research for any indication of IDT in the e-file application comments page and ASAP and Fingerprint Card tab.

    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 Incident 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 Return Integrity and Compliance Services (RICS), Criminal Investigation (CI) or other appropriate areas recommend expulsion of the Provider based on a stolen identity used to obtain an Electronic Filing Identification number(EFIN) or submit a return using that EFIN, take the following action:

    1. Update all associated TINs to "Fail" and enter eligibility date of ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      EFIN will systematically move to "Inactive" status.

    2. Send Letter 5881C, E-file Application Program Denial when an EFIN is obtained using a stolen identity and Letter 5877C, E-File Application IDT Sanction – Criminal Expulsion Letter when an EFIN is used to e-file returns with stolen identities.

      Reminder:

      Do not include ≡ ≡ ≡ ≡ ≡ ≡ in any letters.

    3. The IDT Research Group will revoke registration.

  2. When the provider is expelled based on RICS recommendation for using stolen identities to e-file tax returns, refer to IRM 3.42.10.14.11.4, Immediate Suspension or Expulsion, for necessary action.

Identity Theft Indicator Procedures for Daily Automated Suitability Analysis Program
  1. If your issue in this section is ESAM related, use the ESAM User Guide, Job Aide or Solutions to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. When an Identity Theft (IDT) Indicator appears on Automated Suitability Analysis Program (ASAP), a worklist 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 discovered IDT

    4. AC 524 - Deceased taxpayer has no filing requirement

    These indicators can be found on the taxpayer’s entity section using command codes ENMOD, IMFOLE, etc.

  3. Use the “If and Then” chart below for working the action code.

    If ... And ... Then ...
    Identity theft appears on ASAP Worklists Research shows TC 971 AC 501. Look back 4 yrs. using CC IMFOLI, CC IMFOLE, CC TRDBV and CC IRPTR (L) to see if there is a discrepancy between where they worked and lived. Example: IRPTR (L) documents show taxpayer has income and lives in Hawaii but tax return shows income from Florida.
    • Open an Incident annotating EFIN and action code, escalate to the IDT Research Group for referral to Return Integrity & Compliance Services (RICS).

    • Update suitability status to "incomplete" until resolved.

    • If response from RICS is no IDT, continue suitability processing. Update the comments section "no IDT detected" .

    • If response from RICS is potential IDT, issue Letter 5881C. Update the application Status to "delete" and add to the comments section "IDT Detected."

      Research shows TC 971 AC 506 or 522
    • Open an Incident annotating EFIN and action code, escalate to the IDT Research Group for referral to RICS.

       
    • Update suitability to "incomplete" until resolved.

    • If response is no IDT issues, continue suitability processing. Update the comments section to "no IDT detected" .

    • If response from RICS is potential IDT, issue Letter 5881C. Update the application status to "delete" and add to the comments "IDT detected."

    Identity theft appears on ASAP worklists Research shows TC 971 AC 524 If primary SSN on the application belongs to a deceased person, do not process.
    • Refer to IRM 3.42.10.14.6.12, Deceased Individuals.

       
    • Open an Incident annotating EFIN and action code, escalate to IDT Research Group for referral to RICS.

    • Move suitability to "incomplete" and application status to "delete" .

    • Update the comment section.

Identity Theft Indicator Procedures for Continuous Master File Transcript
  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. When an Identity Theft IDT Indicator appears on Master File transcript, a worklist 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 524 - Deceased taxpayer has no filing requirement

    These indicators can be found on the taxpayer’s entity section using command codes ENMOD, IMFOLE, etc.,

  3. Use the “If and Then” chart below for working the action code.

    If ... And ... Then ...
    Identity theft appears on Master File transcript worklists Research shows TC 971 AC 501. Look back 4 yrs. using CC IMFOLI, CC IMFOLE, CC TRDBV and CC IRPTR (L) to see if there is a discrepancy between where they worked and lived. Example: IRPTR (L) documents show taxpayer has income and lives in Hawaii but tax return shows income from Florida.
    • Open an Incident annotating EFIN and action code, escalate to the IDT Research Group for referral to Return Integrity & Compliance Services (RICS).

    • Take no further action until a response from RICS is received.

       
    • If response from RICS “no IDT Detected” and there are no other suitability issues, place suitability to pass.

    • If response from RICS is potential IDT, issue Letter 2916-T. Update suitability to "fail" with eligibility date of ≡ ≡ ≡ ≡ ≡ and add to the comments section "IDT Detected" .

    Identity theft appears on Master File transcript worklists Research shows TC 971 AC 506
    • Open an Incident to the IDT Research Group for escalation to RICS.

    • Wait for response from RICS. Take no further action until a response from RICS is received.

       
    • If response from RICS "no IDT" issue and there are no other suitability issues, move suitability to "pass" .

    • If response from RICS is potential IDT, issue Letter 2916- T. Update Suit status to "fail" an eligibility date of ≡ ≡ ≡ ≡ ≡ ≡ .

      Research shows TC 971 AC 524 If primary SSN on application belongs to a deceased person:
    • Refer to IRM 3.42.10.14.6.12 Deceased Individuals.

    • Open an Incident to the IDT Research Group for review and referral to RICS.

    • Update the comment section.

       
    • Move suitability to "incomplete" and application status to "delete."

Referrals from IRS e-file Monitoring Coordinators for Suitability Issues

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. IRS e-file Monitoring Coordinators will refer suitability issues to Andover e-help Desk.

  3. 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. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

  2. 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 Electronic Products & Services Support (EPSS) e-help Desk appeal is also "fail" , the firm or individual may appeal to the Office of Appeals (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 - E-file Application Program Acceptance, for EIN/SSN after 1st Appeal.

    2. Send case through Identity Theft Indicator (IDT) Research Group to RICS for decision.

  3. 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 daily appeal or working continuous appeal.

    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 the ECDS suitability to "passed" or "fail" and add 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, First (1st) Appeal Denial regarding Identity Theft with appeal rights.

    9. If allowed to pass by RICS, send Letter 5880C, Pass Letter for EIN/SSN after First (1st) Appeal.

  4. 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 rejecting the appeal. Return the unsigned appeal in the letter.

    2. Allow 30 days from the issuance of Letter 5883C for a signed appeal to be received back.

    3. Letter 5876C, Letter of Inquiry (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.

  5. Use Form 14632, Electronic Filing Suitability Scheme Development Center North Area Referral, to recommend denials or sanctions.

    1. If appeal is not signed, send Letter 5883C, rejecting the appeal. Return the unsigned appeal in the letter.

    2. Allow 30 days from the issuance of Letter 5883C for a signed appeal to be received back.

  6. Appeals related to Identity Theft (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 Electronic Return Originator (ERO) e-filed returns with stolen identities will have first level of appeal reviewed by Return Integrity & Compliance Services (RICS).

    3. If RICS, denied the appeal, send Letter 5877C, E-File Application IDT Sanction – Criminal Expulsion Letter with verbiage from RICS.

      Note:

      If additional information arrives from Provider after the first level of appeals 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.

  7. Work TC 320 appeals as follows:

    1. Send first level administrative reviews to national office analyst for review and decisions by opening a ticket and selecting the provider group analyst application in e-help Support System (EHSS).

    2. The national office analyst will review and provide recommendation via EHSS to Andover.

    3. Send second level appeals to the OOA using the electronic scanning process.

  8. 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 the Office of Appeals within 15 business days. See IRM 3.42.10.14.6.8, Fraud Penalties Literal on Automated Suitability Analysis Program Report.

  9. The appeal shall be scanned and sent via e-mail to the OOA’s mailbox *AP-COS-APS-East-NYC ACDS Update Request.

  10. 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. Office of Appeals (OOA) informs the provider they may appeal once the investigation is completed. Criminal Investigation (CI) will send a letter to the provider when the examination is closed and provider can send appeal at that time.

  11. Office of Appeals 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. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. The following reports are available on ECDS for use by management to monitor suitability:

    • Suitability Listing Audit Report

    • Provider Suitability Recheck Report

    • Submitted application's Suitability

    • Hits and no Hits Report

    • In-process Suitability Aging Report

Procedures for Incarcerated Individuals

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

  2. Individuals in prison are restricted from participation in IRS e-file while incarcerated.

  3. 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.

  4. The system creates a worklist APP_Prisoner in the work group ANSC_Leads when it finds a match and provides a link to access the personal suitability/suitability status tab from the worklist. The description field displays the incarceration date, release date and institution code. The system doesn’t issue an acceptance letter for submitted applications.

    1. New applications can be identified by AUTOPASS in the "from" column.

    2. Current applications can be identified by AE_PRSNR_IRS in the "from" column.

      Note:

      If the individual is a delegated user, mark the worklist as worked and process the application normally as if the worklist did not generate.

  5. 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. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. 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.

  3. If the release date is either a zero (0) or a date in the past on the worklist, 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 worklist 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 External Customer Data Store (ECDS)) 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.

  4. If the individual is currently incarcerated:

    1. Manually assign the Electronic Filing Identification Number (EFIN). See IRM 3.42.10.6.1, Manual Assignment of Electronic Filing Identification Number.

    2. Update personal suitability for matched individual to "fail" , input eligibility date as ≡ ≡ ≡ ≡ ≡ ≡ , select denial reason of "other" and enter comment "Prison Suspend" .

    3. Move provider status to "rejected" and application status to "complete" .

    4. Send Letter 5899C - Prisoner Denial – Sanction and Specialty Designated Nationals Revocation for Individuals to the principal and/or responsible official who matched with the prisoner list (as described above). Send Letter 5899C - Prisoner Denial – Sanction and Specialty Designated Nationals Revocation to each principal of the firm if there is more than one person on the e file application.

  5. If the individual has been released from prison and fingerprint cards (FPCs) were received:

    1. Manually assign the EFIN. See IRM 3.42.10.6.1, Manual Assignment of Electronic Filing Identification Number.

    2. Continue with the tax compliance check.

    3. Let the system process the application as normal and follow normal procedures per IRM 3.42.10.14.2, Daily Suitability and IRM 3.42.10.4, New e-file Application.

  6. 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.

  7. 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.

  8. 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 3.42.10.14.13, Procedures for Rejecting and Sanctioning Firms and Individuals.

  9. If adjudication confirms documentation and proves 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, E-file Application Appeal Response (if applicable).

  10. If adjudication confirms documentation but does not prove not the same person or never incarcerated, send Letter 5877C, E-File Application IDT Sanction – Criminal Expulsion Letter and Letter 5881C, E-file Application Program Denial (if applicable) for appeal to Office of Appeals (OOA).

Procedures for Incarcerated Individuals on Active Applications

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. 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.

  3. 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.

  4. 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.

  5. 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 individual prisoner suspension letter to the principal and/or responsible official who matched with the prisoner list (as described above) and send the firm prisoner suspension letter to the provider if more than one person is on the e-file application. (See Exhibit 3.42.10-8)

  6. If an appeal, including documentation is received, forward to adjudication for determination.

  7. 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.

  8. If adjudication does not prove release from prison or not the same person, send Letter 5899C, Prisoner Denial – Sanction and Specialty Designated Nationals Revocation to the individual and to the firm (if applicable) for appeal to OOA (Office of Appeals).

  9. If adjudication confirms the person was released from prison, see IRM 3.42.10.15.3, Procedures for Other than Incarcerated Individuals on the PrisonerList.

  10. 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, Application Appeal Response .

Procedures for Other than Incarcerated Individuals on the Prisoner List

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See -application-suitability-desk-guide

  2. To work cases for individuals on the prisoner list not currently incarcerated or who have a "0" in the release date field, check the prisoner list file to determine date of release and other needed information.

  3. 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, E-file Application Sanction (Letter 1) 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, E-file Application Sanction (Letter 1) (Exhibit 3.42.10-8) 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 Letter 5876C, E-file Application Sanction (Letter 1) (Exhibit 3.42.10-8), send it to the individual and to the firm if applicable.

  4. 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.

  5. If the individual applied before incarceration, a new criminal background check is needed:

    1. Send Letter 5876C, E-file Application Sanction (Letter 1) (Exhibit 3.42.10-8) requesting new FPCs (fingerprint cards) and an explanation regarding incarceration.

    2. Send the new fingerprints provided to the 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.

    3. If the RAP sheet is not received, enter comment "New FPCs processed – no record of arrest and prosecution sheet" . Send Letter 5876C, E-file Application Sanction (Letter 1).

    4. If the individual is a professional who is not required to provide fingerprints, validate credentials via the Internet. Send an 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 the LOI, sent to the individual, then send Letter 5886C, E-file Application Sanction (Letter 2) to the firm if applicable.

Court Injunctions and 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 Internal Revenue Service (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 Lead Development Center (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 Lead Development Center (LDC) will coordinate as necessary with headquarters and Office of Professional Responsibility (OPR) prior to providing an e-file revocation request to e-help if the individual is a return preparer with a preparer tax Identification Number (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, Prisoner Denial – Sanction and Specialty Designated Nationals Revocation .

  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 on the ECDS 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 Lead Development Center (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 preparer tax identification number (PTIN), LDC will coordinate as necessary with headquarters and Office of Professional Responsibility (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 Office of Appeals (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 Electronic Products and Services Support (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 Office of Appeals (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. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section.See e-file-application-suitability-desk-guide

  2. 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.

  3. The e-file Participation Reconsideration Review Board will consist of a member from the Office of Professional Responsibility (OPR), Criminal Investigations (CI), Small Business /Self-Employed (SBSE), Electronic Products & Services Support (EPSS) and the Return Integrity and Compliance Services (RICS).

  4. The e-file Participation Reconsideration Review Board (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. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section.See e-file-application-suitability-desk-guide

  2. When EPSS receives correspondence requesting reconsideration for an expulsion decision, take the following action:

    1. Assistor will research the EUP to determine if the Electronic Filing Identification Number (EFIN) is inactive and that the summary page shows a date of 9999.

  3. If the 9999 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, E-file Application Information.

  4. If the 9999 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.

  5. The Reconsideration Review Board 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, E-file Application Appeal Response.

    2. The assistor will update comments with decision from the review board.

  6. 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. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section.See E-file-application-suitability-desk-guide

  2. Companies located outside the United States, who do not have employees who have Social Security Numbers and who are not eligible to register for e-Services, must meet special requirements in order to obtain an Electronic Filing Identification Number (EFIN). See Pub 3112, IRS E-File Application and Participation, regarding foreign EFIN’s.

  3. 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.

  4. 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 Electronic Transmitter Identification numbers (ETIN) of any "business-related" firm that is not adhering to IRS e-file rules without sanctioning the provider, impacting its other EFIN(s) or providing written notification.

  5. The e-help assistor will include the explanation for the action that is provided to it in the IRS e-file application comments.

  6. 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.

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

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section.See e-file-application-suitability-desk-guide

  2. Before generating a letter, it must be defined in the appropriate control tables. These control tables are used to define the content of the letter, as well as the database or user enter variables to be included in the letter. The control tables for letter definition may be found by selecting "Go" , "Application" , "Maintenance" and "Letters" in ECDS.

    1. Define the paragraphs that will be later selected for use within a letter. A separate paragraph must be defined for certain elements within each letter. For example, if the letter contains a date line, associate a paragraph of type "Date Line" with the letter. Each paragraph that is defined will have sequence number, paragraph type, description and paragraph text. The sequence number identifies each paragraph, while the paragraph type determines where the text will be placed on the letter. The description describes the paragraph content and provides any special instructions to the end user. The paragraph text is the actual text to be displayed in the letter.

    2. Paragraphs can be static or dynamic. A static paragraph is one that is hard coded and will always be the same from letter to letter. A dynamic paragraph is one that uses both data base and system variables that will be substituted in the letter at run time. Valid paragraph types include: date line, enclosures, recipient address, reference line, return address, signature line and body.

    3. Letters can contain two types of variables: user-defined variables and database variables. User-defined variables are defined by the user at run time. Database variables are supplied by a field in the database. Only certain fields may be used as database variables.

  3. If the letter paragraphs, tokens, definitions and variables are creating problems within the control tables and a specific letter requires correction, use the e-file Letter Change Request form (Exhibit 3.42.10-6, Form 14636, e-file Letter Change Request) to request the revision of a current letter or create a new letter.

    1. In section I, enter the name of the originator and the date and time of the request. The control number will be filled in by the letter maintenance analyst.

    2. In section II, check the appropriate box to identify if the letter request is to revise a current letter in ECDS or for a new letter. If a new letter request please provide the title and description of the new letter.

    3. In section III, enter the letter number and check the appropriate reason for the requested change. Describe the requested changes. Managerial approval must be obtained before forwarding to the letter maintenance analyst.

      Note:

      Section IV is to only be completed by the letter maintenance analyst. This area identifies when the corrections or changes were completed and if additional information or follow-up action is needed before the changes can be made.

  4. The letter definition component allows the user to define the letter. A letter is composed of the following:

    1. Letter name (name of the letter)

    2. Description (letter purpose)

    3. Revision Number (prints at bottom of the letter and is optional)

    4. Revision Date (prints at bottom of the letter and is optional)

    5. Paragraph Number (unique number associated with the paragraph to be attached to the letter)

    6. Paragraph Description (is view only and populated based on the paragraph number selected)

    7. Details (allows user to view the details associated with the paragraph)

    8. Paragraph type (is view only and populated based on the paragraph number selected)

    9. Order of Appearance (reflects the order in which the paragraphs will appear on the page)

    10. Paragraph Required/optional

    11. Paragraph Edit (this flag must be turned on if the paragraph can be edited by the user)

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

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section.See e-file-application-suitability-desk-guide

  2. To generate an e-file letter, select esrv-appl-efile, e-services, e-file, Search e-file application. Search by any of the criteria and select the appropriate application. Letters can be generated from many pages within the component. The following example uses the principal page:

    1. Select the "generate letter" tab.

    2. Click on the look up icon next to the name of the person to whom the letter will be addressed.

    3. Click on the search icon to find the applicable letter. The letter page will display and list the paragraphs of the letter that require user action: selection of optional paragraphs, entering of user supplied variables and user input of appropriate text for editable paragraphs.

    4. Spell check the verbiage by selecting the book on left below the open text box. Edit if necessary and select save.

    5. The user must select "Printable Format" to prevent the IRS header and e-Services privacy policy from printing.

  3. Worklist APP_Letter_Review will be created for all letters saved:

    1. Letters will be reviewed using the worklist in the efile_Admin_Leads workgroup.

    2. Edits and/or comments can be notated.

    3. Complete letters must be marked final version.

    4. Reassign or select the printer friendly to view.

    5. Letter is displayed for review and select print letter link to print.

    Note:

    Letters cannot be modified once marked final.

  4. To search for a created letter, select esrv-appl-efile, e-services, e-file, process, new print notice.

    1. Select notice ID from drop-down and use letter tracking number from application comments.

    2. View letter, editable unless marked final version.

Reporting Agent Personal Identification Number (PIN)

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See e-file-application-suitability-desk-guide

  2. When an attempt is made to add 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 reporting agent file (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 will not be able to be selected and the following error message will appear.

    A valid Form 8655, Reporting Agent Authorization, must be on file with the IRS prior to adding this provider option. The Employer ID Number (EIN) on this application could not be found on our reporting agents File. Please contact our e-help Desk at 866-255-0654 if you need assistance.

    • The results of the EIN validation can be checked manually using command code (CC) RFINK, definer R and the EIN of the reporting agent.

  3. If Andover e-help Desk receives a Form 8655 fax the form to 855-214-7523, the OAMC (Ogden Account Management Center) 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 Personal Identification Number (PIN) generation process, refer to IRM 3.42.4.9.3.1, Specific Reporting Agent Criteria .

  4. When an applicant selects the Reporting Agent provider option and the applicant becomes an accepted provider, Letter 5880C, E-file Application Program Acceptance which includes a PIN (personal identification number), will systematically generate and be sent to the reporting agent.

Undeliverable Electronic Return Originator (ERO) Correspondence

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

  2. 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 ECDS 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. If the provider indicates change of address on their correspondence, make the change on ECDS.

  3. If the provider is a Not for Profit, VITA (Volunteer Income Tax Assistance) Site or TCE (Tax Counseling for the Elderly), open an interaction requesting correct year round 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 ECDS with the new information and reissue the original correspondence. Exception: If password needs to be reset, elevate the interaction to EMS Level 2 to have a new password issued. EMS will contact the provider.

    2. If unable to reach ERO by telephone:

    3. Place the Electronic Filing Identification Number (EFIN) and any associated Electronic Transmitter Identification numbers (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 ECDS. Add appropriate comments to the ECDS.

    5. Document telephone call in the application comments page of the EFIN and in an 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 the second line reviewer 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.

  4. If the ERO calls after the Undeliverable Mail Indicator is set, then:

    1. Update the address and any other information on the ECDS;

    2. Prepare documentation for interaction, if necessary;

    3. Update the ERO record to the appropriate status on ECDS.

    4. Update the undeliverable indicator 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.

Valid Electronic Filing Identification Number File

  1. The valid Electronic Filing Identification Number (EFIN) file generated by the ECDS contains active EFINs.

  2. Electronic filing identification number (EFINs) that are not active will not be able to send electronic returns.

Electronic Transmitter Identification Number TYPES: Test to Production

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide.

  2. Electronic Transmitter Identification Number (ETIN) types can be "test" or "production" . ETIN(s) generated through auto pass will automatically be assigned a production ETIN with the exception of ETIN(s) for provider option of Software Developer, who will receive a test ETIN. The software developer’s ETIN cannot be updated to production status. These statuses will be shown on the ETIN status page of the e-file application.

  3. When assigning an ETIN manually, its use must be determined. If it will be used to transmit production returns, a production ETIN must be assigned.

  4. If an ETIN is in test status for a transmitter, update it to a production ETIN.

  5. Form types will also have a "test" and "production" status for transmitters and software developers. The form type must also be changed to correspond with the ETIN type once the assistor has verified that all necessary testing has been successfully completed.

    1. Update the form type from test to production on the forms page of the e-file application. This can be done by clicking the edit link.

    2. If there are multiple ETIN(s) related to the same provider option on the same application, updating the forms for that provider option will apply to each of the related ETIN(s).

Electronic Filing Identification Number and Electronic Transmitter Identification Number Clean-up

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide.

  2. Each year in May, analysis is conducted to identify all EROs and transmitters that have been inactive over the preceding two filing seasons. The EROs and/or ETIN of these 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.

  3. 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. The forms to be included are Form 1040, Form 1120, Form 1120-F, Form 1120-S, Form 1065, Form 1065-B, Form 2290, Form 8849 and Form 720. The EFIN clean-up will also include the combination of Form ETD and Form 1040.

  4. 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 1040 in the current or immediately preceding year.

    3. The EFIN is in "active" status.

    4. The ERO has indicated on ECDS that they will have filed Form 1040.

    The EFIN clean-up will not include any applicants who have indicated on their application that they would e-file Form 94x, Form 990, Form 1041, Form 1120 POL or they selected ETD only.

    Note:

    If an assistor receives a call from a Circular 230, large taxpayer, low income tax clinic (LITC) or state applicant and their EFIN was inactivated due to the EFIN clean-up only, reactivate their EFIN and add the Form 1041 to their application. This exception is for EFIN clean-up only.

  5. The EFIN dropped date appears on the EFIN status and summary page. It may vary from year to year but it will be the same for all EFIN(s) dropped in any given year as a result of the clean-up. A dropped EFIN may not be used by that ERO in any following year. A new EFIN must be issued for all new applications.

    Note:

    Dropped EFIN(s) are recycled and may be re-issued to new EROs 12 months after being placed in dropped status.

  6. 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. National Office analysts will instruct the persons responsible for initiating the clean up.

  7. The Letter 5882C, E-file Application Information 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 (a valid ETIN), a second analysis must be performed on their Transmitter e-file activity before the EFIN is dropped.

  8. The ETIN clean-up identifies and deletes ETIN(s) where transmitters who have applied to participate in IRS e-file, but show no form type set to "production" status in 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 and add the Form 1041 to their application. This exception is for ETIN clean-up only.

  9. 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 screen. It may vary from year to year but it will be the same for all ETIN(s) dropped in any given year as a result of the clean-up.

    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, E-file Application Information is generated from ECDS when the firm is an inactive transmitter and an inactive ERO. The following sentence is added to the end of the first paragraph: We will deactivate any ETIN(s) issued to you under your EFIN.

Application Tracking and Application Statistics Management Reports

  1. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section. See E-file-application-suitability-desk-guide

  2. The following management reports are available to monitor the IRS e-file application.

    • Available EFIN(s) by ULC
      Total volume of EFIN(s) assigned and available by ULC
      Real time

    • Available ETIN(s)
      Total volume of ETIN(s) assigned and available by ULC
      Real time

    • Fingerprint Card Report
      Fingerprint cards sent to FBI
      Includes Name, Address, SSN, Date and Total Volume
      Select date range

    • Fingerprint Card Counts
      Total number of fingerprint cards received, sent, returned and results
      Select date range

    • Fingerprint Card Returned Unprocessable
      Unprocessable fingerprint cards from the FBI
      Includes Date Received, Date Sent, Person ID and Name
      Select date range

    • Application Aging Report
      Applications submitted through IEP EUP and IEP RUP that have not gone to status "complete"
      Includes Tracking Number, DBA, Legal Name, Tax ID, Date Submitted, Current Status and Aged Days
      Real time

    • Application Counts
      Total Volume application Statistics
      Includes saved, New, reapply, Revised, Review, Pending Documents and Complete
      Select date range

    • EFIN(s) Assigned
      EFIN(s) assigned by date
      Includes EFIN, Legal Name, DBA, Business Type and Tracking Number
      Select date range (14 day window)

    • EFIN(s) Assigned Summary
      Total volume of EFIN(s) assigned by date
      Includes Date, IEP EUP, IEP RUP and total
      Select date range

    • EFIN(s) Dropped
      EFIN(s) dropped by date
      Includes EFIN, Legal Name, DBA, Business Type, Current Status and Date Submitted
      Select date range (14 day window)

    • Applications Submitted via IEP RUP
      Applications submitted through the IEP RUP
      Includes Date, Legal Name, DBA, Tracking Number, Current Status, and Org Type
      Volume Summary by application Status and Business Type
      Select date range (7 day window)

    • Applications Submitted Pending Documents
      Aged Applications in "submitted pending documents" status
      Includes legal name, DBA, Tracking Number and Aged Days
      Volume summary by Days Old, IEP EUP and IEP RUP
      Real time

    • Applications deleted
      Aged Applications placed in "delete" status by IEP EUP and IEP RUP
      Includes legal name, DBA, Tracking Number and Aged Days
      Volume Summary of Aged days by IEP EUP and IEP RUP
      Select date range

    • Applications by Status
      Volume summary of Applications by status, IEP EUP and IEP RUP
      Includes deleted, saved, Review, New, Pending Documents, reapply and Revised
      Real time

    • Provider Status Drop/Reject Counts
      Volume Summary of Applications Dropped, Rejected and Non-Compliant
      Includes Provider status and list of reasons
      Real time

    • Auto Accept Generated Letters Listing
      Detailed listing of all auto-pass acceptance letters generated
      Includes Date, EFIN, Tracking Number, DBA, Provider Options and Profit/Not for Profit Organizations
      Select date range (14 day window)

    • Application Volume Report
      Volume Summary of application status by IEP EUP and IEP RUP
      Includes all manual and systematic applications
      Select date range

    • Application Provider Report
      Volume of Active Providers in ECDS
      Includes breakdown of provider options, returns transmitted and reject rate
      real time

    • Returned application Report
      Designed to insert letter number and produce the volume of letters generated within a given 14 day time frame using the comments field of ECDS
      Report does not retrieve information

    • Submitted Application Suitability Listing
      Detailed Suitability Listing with results for each application
      Includes Tracking Number, EFIN, Org, Principal, RO and Overall Suit
      Select date range (4 day window)

    • Security Letter Audit
      Detailed listing of security letters sent
      Includes Date, ETIN, address and name
      Select date range

    • Application Provider/Form Report
      Volume Summary of all Forms
      Includes Form, Provider option and Total
      Real time

    • Recheck Suitability Report
      Volume Summary of each Suitability Status
      Select date range (90 day time frame)

    • Suitability Listing Audit Report
      Detailed listing of Applicants who passed suitability and provider status is "applied"
      Includes Tracking Number, DBA and legal name
      Real time

    • Provider Suitability Recheck contains all suitability placed in recheck.

    • Includes first 5 digits of TIN
      Legal name, DBA, recheck date, EFIN and action due date. select date range.

    • Application Counts by State
      Volume summary for each state by IEP EUP and IEP RUP
      Includes New, reapply, Revised and completed
      Select date range

    • Application Counts by ULC
      Volume Summary for each District by IEP EUP and IEP RUP
      Includes New, reapply, Revised and completed
      Select date range

    • SBSE File Report
      Create an extract for e-file monitoring coordinators with the following fields:
      Legal name
      Business Address
      EFIN
      Contacts
      EFIN Status
      Number returns filed (current & last three (3) years)
      Mailing Address
      Provider status
      City
      Status date
      State
      County

    • Hits/No Hits Report
      Detailed Listing of Suitability Results
      Includes EFIN, firm, Principal, RO and Results
      Report does not contain any information
      Select date range (14 day time frame)

    • Daily Count of Hits/No Hits/FBI Results
      Volume Summary of Suitability and FBI Results
      Includes date, Hits, No Hits, Data, No Data and Unprocessable
      Report does not contain any information
      Select date range (14 day time frame)

    • In-process Suitability Aging Report
      Detailed listing of Applications with aged suitability set to "in-process"
      Includes Tracking Number, DBA, legal name, Date and Aged Days
      Real time

    • Worklist Activity Summary Report
      Volume summary of worklist items closed and open for each manager
      Includes Manager, Business Process and Worklist name
      Select date range

    • Worklist Individual Summary Report
      Volume summary of worklist item closed and open for each individual under a manager workgroup
      Includes Individual and Worklist name
      Select date range and Supervisor ID

    • Worklist Aging Report
      Detailed listing of aged worklist items over a given time frame under a manager workgroup
      Includes Aged Days, Assigned To, Tracking Number, DBA, Status and EFIN
      Select date range, Aged Days and Supervisor ID

Retention of Forms

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

Retention of IRS e-file Application Documentation

  1. Electronic Products & Services Support (EPSS) retains and purges the obsolete paper Form 8633, Application to Participate in IRS e-file Program and any related documentation up to three years in accordance with Document 12990, Records Control Schedules; Tax Administration – Wage and Investment; schedule 55 pages 371 and 372.

  2. Electronic Products & Services Support (EPSS) performs an annual reconciliation after the Electronic Filing Identification Number (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. Electronic Products & Services Support (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 the contacts and forms are available at Real Estate & Facilities Management - Sensitive Document Destruction Program (SDD) web page.

Create the Ad Hoc EFIN_DROPPED_DATE_RANGE Report
  1. A lead, manager or computer assistant with the External Customer Data Store (ECDS) reports role creates the Ad Hoc EFIN_DROPPED_DATE_RANGE report.

  2. To create the report, access ECDS:

    1. Select e-services>Efile>Reports>Ad Hoc Reports

    2. Use the Query Manager to perform a search

    3. Then click Search. When the query is returned select Excel

    4. The next screen will appear with the option to enter the date range. Use the calendar icons to select the "to" and "from" date range

    5. Select View Results then the File Download box will appear, choose save, select the location on your computer where you want to save the file, click save and the Download Complete box appears. If you want to verify if the file has been saved, click the open box to view the report immediately or close the box and view it later.

Retention of Fingerprint Cards (FPC)

  1. Fingerprint cards (FPCs) may be destroyed three (3) years after they are scanned as the electronic back up copy 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 (1) 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. If your issue in this section is ESAM related, use the ESAM User Guide or Suitability Desk Guide to resolve your ESAM issue; until additional information is provided for this IRM section.See E-file-application-suitability-desk-guide

  2. The Return Preparer Office (RPO) assigns preparer tax identification numbers (PTINs) to paid return preparers who apply and meet the requirements. Subsequently, RPO conducts suitability reviews, which may include background and personal tax compliance checks.

  3. If a principal or responsible official has a PTIN, the PTIN, as well as the status of the PTIN and the results of adjudication checks, will be included on the e-file application. The PTIN information will be updated systematically in the e-file application within a week of the actual change.

  4. Preparer tax identification numbers (PTIN) statuses of deceased, suspended and revoked will cause worklist MF_TRANS_IND_IRS to be generated.

  5. Preparer tax identification numbers (PTIN) statuses of deceased will systematically update the suitability status of the individual to “incomplete”:

    1. The assistor will follow procedures described in IRM 3.42.10.14.6.12 Deceased Individuals for worklist items of PTIN deceased status that are generated when more than one person is on the e-file application. Check the suitability tab to verify the PTIN status is "deceased" .

    2. External Customer Data Store (ECDS) will inactivate the Electronic Filing Identification Number (EFIN), Electronic Transmitter Identification number (ETIN) and change the provider option to "dropped" if the PTIN status indicator is equal to "deceased" when the individual is the only person on the application.

  6. Preparer tax identification numbers (PTIN) statuses of "suspended" /"revoked" will generate a worklist item when PTIN personal tax compliance is "failed" . Until further notice the worklist item is information that the PTIN status has been changed and a suitability issue may need to be addressed.

    1. The assistor ensures there is also an APP_ASAP_HIT_IRS or MF_TRANS_IND_IRS worklist item for the same individual.

    2. If there is not an APP_ASAP_HIT_IRS or MF_TRANS_IND_IRS worklist item for the same individual the assistor completes a mini-suit and takes appropriate actions prior to closing the "suspended/revoked" PTIN worklist item.

  7. Individuals with a PTIN Status of "active" who have passed the PTIN personal tax compliance check will not be included APP_ASAP_HIT_IRS or MF_TRANS_IND_IRS worklists unless there is a Z or –T freeze on their MF accounts.

    1. APP_ORGASAP_HIT_IRS and MF_TRANS_FIRM_IRS worklists may still be generated if the firm’s TIN is the same as the individual(s) SSN and there is an ASAP hit.

    2. The assistor takes appropriate actions to address the individual(s) personal suitability prior to closing the ORGASAP_HIT_IRS and MF_TRANS_FIRM_IRS worklists even if PTIN is "active" and the PTIN PTC is "pass" .

Terms of Agreement (TOA) Report

  1. When an e-file application is submitted; the Principal(s) and Responsible Official(s) must sign the Terms of Agreement (TOA) and provide Professional Status credentials or fingerprint cards.

Terms of Agreement (TOA) Suitability Blank Report

  1. If an Individual who has been added to an existing e-file application currently in "Accepted" status and has an incomplete revised application(s), the assistor will research the e-file application to determine any information required to allow the suitability process to complete. Assistor will do the following:

    1. Determine if the Provider status is for Profit.

    2. If the application is for Profit, the assistor will identify any Principals and/or Responsible Officials (RO) who haven’t signed the Terms of Agreement (TOA).

    3. Determine if fingerprint cards or professional Credentials are needed. Review the Summary page, Personal Suitability fingerprint card tab and/or Professional Credentials tab to see if a current FPC is on file or if professional credentials are present.

  2. If the Personal Suitability field is blank, check fingerprint field for the following:

    1. No Data - FPC has been received with no issue identified.

    2. Not-Pulled - No problem with fingerprint card or professional status.

    3. Not-on-File – Request FPC card unless Prof Status field is passed.

    4. Both fingerprint and Prof Status are blank - Request FPC or professional credentials. Include two fingerprint cards (FD-258) and Fingerprint Card instruction sheet (Catalog Number 66101W) in correspondence sent.

    Note:

    If Personal Suitability status is "Passed" , fingerprint cards or professional credentials are not required.

  3. Determine submission of the Application, if the Application status field shows:

    1. Completed and the date of last submission is older than the date the new Principal or RO was added – Application has not been submitted when additional individuals were added. Issue Letter 5550, Terms of Agreement (Letter 5550) requesting the customer to submit their application.

    2. Submitted pending documents – Application was submitted waiting for documentation.

  4. If the application has one or more incomplete items then:

    1. Send the individual(s) with the issue Letter 5550, Terms of Agreement (Letter 5550) with specific details of missing information. When more than one individual on the application has an issue, a letter for each individual is required. The firm will receive one letter with multiple names listed and all issues included.

    2. Send the firm Letter 5550, Terms of Agreement (Letter 5550).

      Note:

      Letters to the individual requesting fingerprint card(s) should include 2 blank Fingerprint Cards (FD-258) and Fingerprint Card instructions (Catalog Number 66101W).

  5. Update application comments with reason letter issued (For example, send letter to firm missing FPC, TOA, Submission, etc.).

  6. If no response to Letter 5550, Terms of Agreement (Letter 5550) after 45 days, inactivate the EFIN.

  7. If response is received, then update the application and move the appropriate status if there are no other issues. If other suitability issues remain, update EFIN back to active and appropriate statuses to “recheck” and pursue normally.

  8. Rerun the TOA report after 45 days from the previous report.

Form 14628, Initial Suitability Recommendation

This is an Image: 36617131.gif
 

Please click here for the text description of the image.

Form 14629, First Appeal - Suitability Recommendation

This is an Image: 36617132.gif
 

Please click here for the text description of the image.

Form 14634, Suspension without Appeal Rights - Suitability Recommendation

This is an Image: 36617133.gif
 

Please click here for the text description of the image.

Form 14633, OOA Appeal Rights Suitability Recommendation

This is an Image: 36617134.gif
 

Please click here for the text description of the image.

Form 14632, Electronic Filing Suitability Scheme Development Center, Northern Area Referral

This is an Image: 36617130.gif
 

Please click here for the text description of the image.

Form 14636, e-file Letter Change Request

This is an Image: 36617601.gif
 

Please click here for the text description of the image.

FPC Stuffer

This is an Image: 36617136.gif
 

Please click here for the text description of the image.

CRX Letters

CRX Letters Use For
Letter 5120C – E-file Acceptance Letter for ACA Provider  
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
5550 - Terms of Agreement (Letter 5550)
  • TOA – Firm

  • TOA – Person

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 - Unprocessable Fingerprint Card Letter  
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
CPA Certified Public Accountant
CC Closing Codes
CI Criminal Investigation
CNC Currently Not Collectible
CRX Correspondex Letter File
DBA Doing Business As
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
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
FBI Federal Bureau of Investigation
IDT Identity Theft
ISE&S Industry Stakeholder Engagement & Strategy
IA Installment Agreement
IEP RUP Integrated enterprise portal, registered user portal
IDRS Integrated Data Retrieval System
IRM Internal Revenue Manual
LPR Lawful Permanent Resident
LDC Lead Development Center
LOI Letter of Inquiry
MMIA Manually monitored installment agreements
MF Master File
PTIN Practitioner Tax Identification Number
PTC Personal Tax Compliance Check

Form 14631, e-file Revocation Request

This is an Image: 36617002.gif
 

Please click here for the text description of the image.

Form 14630, e-file Sanction Request from SBSE Lead Development Center

This is an Image: 36617003.gif
 

Please click here for the text description of the image.

Form 14635, CJIS NAME CHECK REQUEST

This is an Image: 36617004.gif
 

Please click here for the text description of the image.

Flow for Incarcerated Individuals on New Applications

This is an Image: 36617007.gif
 

Please click here for the text description of the image.