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3.42.10  Authorized IRS e-file Providers

Manual Transmittal

September 20, 2016

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 the IRM.

(2) IPU 15U1481 issued 10-07-2015, IRM 3.42.10.5.6 (5) fourth bullet was reworded.

(3) IPU 15U1481 issued 10-07-2015, New IRM 3.42.10.13.2.3.2 (4), (5), (6). IRM 3.42.10.13.2.3.2 (4) was renumbered to (7).

(4) IPU 15U1481 issued 10-07-2015, IRM 3.42.10.13.6.8 (1) was reworded.

(5) IPU 15U1481 issued 10-07-2015, New IRM 3.42.10.13.6.8 (1) (a) (b).

(6) IPU 15U1481 issued 10-07-2015, New IRM 3.42.10.13.6.8 (2) (a) (b) (c) (d).

(7) IPU 15U1481 issued 10-07-2015, New IRM 3.42.10.13.6.8 (3).

(8) IPU 15U1481 issued 10-07-2015, IRM 3.42.10.13.6.8 (5)(a)(b) has been removed.

(9) IPU 15U1481 issued 10-07-2015, IRM 3.42.10.13.6.8(6) and (7) has been removed.

(10) IPU 15U1481 issued 10-07-2015, IRM 3.42.10.13.6.8 (1) has been renumbered.

(11) IPU 15U1481 issued 10-07-2015, New IRM 3.42.10.13.18 (6) (a)(b)(c).

(12) IPU 15U1481 issued 10-07-2015, Editorial change was made to update exhibit links in the IRM 3.42.10.

(13) IPU 15U1586 issued 10-30-2015, Editorial change was made to IRM 3.42.10.6(1) and the addition of Affordable Care Act.

(14) IPU 15U1586 issued 10-30-2015, New IRM 3.42.10.6(4), Validating Not for Profit Business Activities.

(15) IPU 15U1586 issued 10-30-2015, Editorial change was made to IRM 3.42.10.6.6.(1).

(16) IPU 15U1586 issued 10-30-2015, IRM 3.42.10.5.9 (2) - Three new bullets added: APP_ACA_NFP_IRS, APP_ULC_UNAVAIL_IRS, APP_UNFPC_LATE_IRS.

(17) IPU 15U1586 issued 10-30-2015, Editorial change was made to the AND box in IRM 3.42.10.13.16.3(2).

(18) IPU 15U1636 issued 11-09-2015, New IRM 3.42.10.13.15.1, Electronic Filing Identification Number Sanctioned or Revoked for Fraudulent Activities.

(19) IPU 16U0157 issued 01-21-2016, IRM 3.42.10.13.6.11(1) and (2) Editorial changes.

(20) IPU 16U0157 issued 01-21-2016, IRM 3.42.10.13.15(2)(a) the number of attempts has changed from two attempts to one attempt.

(21) IPU 16U0564 issued 03-18-2016, IRM 3.42.10.13.15(2) (d) the number of attempts has changed from two attempts to one attempt.

(22) IPU 16U0564 issued 03-18-2016, IRM 3.42.10.20(6) editorial change Letter 3250(SC/CG) is now 3250 C.

(23) IPU 16U0866 issued 05-06-2016, IRM 3.42.10.13.18(1) Procedural change regarding the review of appeals, the appeal must now have a signature.

(24) IPU 16U0866 issued 05-06-2016, IRM 3.42.10.13.18(2) (b) Procedural change for the reviewers of appeals, the reviewers will now look for signatures.

(25) IPU 16U0866 issued 05-06-2016, IRM 3.42.10.13.6.12 (1) (b) Procedural change regarding when proof of citizenship is received.

(26) IPU 16U0866 issued 05-06-2016, New IRM 3.42.10.13.18 (4) (a)(b).

(27) IPU 16U0866 issued 05-06-2016, IRM 3.42.10.13.18(5) (a) Has been reworded.

(28) IPU 16U0866 issued 05-06-2016, IRM 3.42.10.13.18(5) (b)(c) (e) and (f) Have been removed.

(29) IPU 16U0866 issued 05-06-2016, IRM 3.42.10.13.18(5) (g) a note has been added.

(30) IPU 16U0866 issued 05-06-2016, IRM 3.42.10.13.6.3(4) (d) a note has been added for procedural clarification.

(31) IPU 16U0866 issued 05-06-2016, Editorial change made IRM 3.42.10.13.9.2.2(1) and (4).

(32) IPU 16U0866 issued 05-06-2016, Editorial change made IRM 3.42.10.13.11.4(2)(3) and (4).

(33) IPU 16U0866 issued 05-06-2016, IRM 3.42.10.13.11.4(5) was added with a note.

(34) IPU 16U0866 issued 05-06-2016, Editorial change made to IRM 3.42.10.13.16.

(35) IPU 16U0866 issued 05-06-2016, Editorial change made to IRM 3.42.10.13.16.1.

(36) IPU 16U0866 issued 05-06-2016, Editorial change made to IRM 3.42.10.13.16.2(1).

(37) IPU 16U0866 issued 05-06-2016, IRM 3.42.10.13.16.2(1) (b) Removed Letter 2916-X and replace it with Letter 2916-T.

(38) IPU 16U0866 issued 05-06-2016, Editorial change made to IRM 3.42.10.13.16.2(1) (c).

(39) IPU 16U0866 issued 05-06-2016, IRM 3.42.10.13.16.3(1) and (2).

(40) IPU 16U0866 issued 05-06-2016, IRM 3.42.10.13.16.4(1) and (2).

(41) IPU 16U0866 issued 05-06-2016, IRM 3.42.10.14.1(8) Editorial change, Letter 2914-D is now 2914-F.

(42) IPU 16U0866 issued 05-06-2016, IRM 3.42.10.14.1(8) Editorial change, Letter 2914-F is now 2914-D.

(43) IPU 16U0866 issued 05-06-2016, Exhibit 3.42.10-12 Editorial change, Letter 2914-D to Letter 2914-F.

(44) IPU 16U0866 issued 05-06-2016, Editorial change made to Exhibit 3.42.10-12 change Letter 2914-F, Information Provided Accepted for Participation in IRS e-file to Letter 2914-D, Information Provided Accepted for Participation in IRS e-file.

(45) IPU 16U0866 issued 05-06-2016, Exhibit 3.42.10-13 Editorial change made to Letter 2914-D/OWNAFT1S to Letter 2914-F.

(46) IPU 16U0866 issued 05-06-2016, Exhibit 3.42.10-13 Editorial change made to Letter 2914-D to Letter 2914-F.

(47) IPU 16U0866 issued 05-06-2016, Exhibit 3.42.10-23 Editorial change made.

(48) IPU 16U0866 issued 05-06-2016, Editorial change made to Exhibit 3.42.10-24.

(49) IPU 16U1074 issued 06-15-2016, IRM 3.42.10.1.2 (e) was removed; Publication 3823, Employment Tax e-file System Implementation and User Guide is obsolete.

(50) IPU 16U1074 issued 06-15-2016, IRM 3.42.10.20 (3)(b) was removed and section was renumbered.

(51) IPU 16U1156 issued 06-29-2016, Editorial change made to IRM 3.42.10.20 (8) (d).

(52) IPU 16U1156 issued 06-29-2016, Editorial change made to Exhibit 3.42.10-33.

(53) IPU 16U1156 issued 06-29-2016, Editorial change made to IRM 3.42.10.13.15.1 title removed Filer and add Filing.

(54) IPU 16U1156 issued 06-29-2016, Editorial change made to IRM 3.42.10.13.15.1(1) removed filer and add filing.

Effect on Other Documents

IRM 3.42.10 dated September 08, 2015, is superseded. The following IRM Procedural Updates (IPUs), issued from October 02, 2015, through July 31, 2016, have been incorporated into this IRM: IPU 15U1481, IPU 15U1586, IPU 15U1636, IPU 16U0157, PU 16U0178, IPU 16U0564, IPU 16U0795, IPU 16U0866, IPU 16U0908, IPU 16U1074, and IPU 16U1156.

Audience

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

Effective Date

(10-01-2016)

Patricia A LaPosta
Director, Electronic Products and Services Support
Wage and Investment Division

3.42.10.1  (09-20-2016)
Overview of IRS e-file Application

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

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

  3. 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).

  4. To become an Authorized IRS e-file Provider, an applicant submits an e-file application electronically once they have been confirmed for e-services.

  5. 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 3.42.10.13, Suitability.

  6. 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.

  7. 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.

3.42.10.1.1  (09-20-2016)
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 (ISP)

    • Transmitter (TR)

    • Software Developer (SD)

    • Reporting Agent (RA)

    • Online Provider

    • Financial Agent/IRS Agent

      Reminder:

      This option is only available to an assistor.

    • Large Taxpayer

    • Affordable Care Act Provider (ACA Provider)

    1. 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.

    2. Intermediate Service Providers: An Intermediate Service Provider (ISP) receives tax returns from ERO's (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).

    3. 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.

    4. 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.

    5. Reporting Agents: A Reporting Agent is an accounting service, franchiser, bank, service bureau or other entity that complies with Revenue Procedure 2012-32, 2012-34 I.R.B. 267. Rev. Proc. 2012-32 must be used in conjunction with Publication 1474. Applicants selecting the Reporting Agent option must submit Form 8655, Reporting Agent Authorization, to the IRS prior to submitting an application.

    6. 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 provider acts as both an ERO and transmitter of self-prepared returns.

    7. Financial Agents/IRS Agents: A Financial Agent/IRS Agent acts on the behalf of the IRS in the submission of electronic return transmissions of employment taxes.

    8. 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(s).

      Note:

      A large taxpayer is not an IRS e-file Provider because it does not act as a third party in submitting returns. They e-file returns only for themselves.

    9. 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.

  3. 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.

3.42.10.1.2  (06-15-2016)
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 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

3.42.10.1.3  (09-20-2016)
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 3112, IRS e-file Application and Participation.

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

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

  4. The IRS categorizes infractions as level one, level two and level three. See IRM 3.42.10.13.11, 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 third party data store (TPDS).

  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.

3.42.10.2  (10-01-2015)
Applying to be an Authorized IRS e-file Provider

  1. Applicants must 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.

3.42.10.3  (09-20-2016)
New e-file Application

  1. Integrated enterprise portal (IEP) registered user portal (RUP) users must select "Create a New application" when creating a new e-file application. See IRM 3.42.10.4, When to Submit a New IRS e-file Application, to determine who must submit a new application.

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

3.42.10.3.1  (10-01-2015)
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.

3.42.10.3.2  (10-01-2015)
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.

3.42.10.3.3  (10-01-2015)
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.

3.42.10.3.4  (09-20-2016)
Personal Information Page for Principals

  1. 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.

  2. 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 3.42.10.13.2.3, Suitability Credit Check.

  3. 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, enters ≡ ≡ ≡ ≡ ≡ ).

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

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

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

    Note:

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

  5. 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.

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

  7. 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 longer personal tax compliance criteria.
  8. The system requires comments for "yes" or "no" responses to the suitability questions as described above.

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

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

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

3.42.10.3.5  (09-20-2016)
Suitability Information for Principals and Responsible Officials

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

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

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

  4. Select professional type from the drop down menu.

  5. 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 3643 (Exhibit 3.42.10-47, Letter 3643), 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.

  6. Select a professional validation status from the drop down menu.

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

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

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

  10. Responsible officials are required to enter the same suitability information as the principals. See IRM 3.42.10.3.3, Principals and IRM 3.42.10.3.5, Suitability Information for Principals and Responsible Officials.

3.42.10.3.6  (10-01-2015)
Application Contact(s)

  1. Primary contact (enter first name, middle initial, last name and name suffix, salutation, titled, 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.

3.42.10.3.7  (10-01-2015)
Programs Applying For

  1. 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, IRS Agent, Intermediate Service Provider, Large Taxpayer, Online Provider, Reporting Agent, Software Developer, and Transmitter.

    Note:

    Submission is required when adding a provider option to an accepted application.

  2. 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.

  3. The system provides another field for type of business activity selection of Financial Agent, IRS 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.

  4. 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.).

  5. 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 3.42.10.6, Validating Not for Profit Business Activities.

3.42.10.3.8  (09-20-2016)
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.

3.42.10.3.9  (10-01-2015)
Provider Status

  1. 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 PTIN personal tax 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.

3.42.10.3.10  (09-20-2016)
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" .

3.42.10.3.11  (10-01-2015)
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 3.42.10.3.4, Personal Information Page for Principals for additional information.

3.42.10.3.12  (09-20-2016)
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.

3.42.10.3.13  (10-01-2015)
Application Status

  1. 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

      .

3.42.10.3.14  (09-20-2016)
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 registered and confirmed for e-services to have access to the TDS product link. The link default to principals, responsible officials and principal consents but must be manually assigned to a delegated user.

    • Low Income Tax Clinics (LITC) 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.

3.42.10.3.15  (10-01-2015)
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.

3.42.10.3.16  (10-01-2015)
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.

3.42.10.3.16.1  (10-01-2015)
Need for Completed Application Comments on Third Party Data Store (TPDS)

  1. Comments must be entered by the assistor via IEP EUP and stored in TPDS. 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.

3.42.10.3.17  (09-20-2016)
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 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.

3.42.10.4  (09-20-2016)
When to Submit a New IRS e-file Application

  1. 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.

  2. 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" .

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

  4. An applicant must reapply, if they had previously been denied participation in IRS e-file or was previously suspended and has either met the eligibility date or resolved the suitability issue(s) may reapply to the program through an existing "application" in third party data store (TPDS) 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.

  5. An applicant’s EFIN is dropped due to inactivity and their provider status is "reapply" . A new EFIN will be assigned. Please refer to IRM 3.42.10.5.6 Reapply Applications for more information on reapplying.

  6. 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.

3.42.10.4.1  (10-01-2015)
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 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:

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

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

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

3.42.10.4.2  (10-01-2015)
Revising an IRS e-file Application

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

    1. The firm name or 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.

  2. 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/IRS 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).

3.42.10.4.3  (10-01-2015)
Procedures for Online Filing (OLF) Applicants

  1. 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.

  2. 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 begins with 10, 21, 32, 44 or 53.

    7. The application can now move through the auto-process.

3.42.10.5  (10-01-2015)
E-file Application Process

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

  2. Statuses are:

    • "saved" : e-file application has been 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)

  3. If there are no pending documents and no suitability issues associated with a submitted e-file application, third party data store (TPDS) 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.

3.42.10.5.1  (10-01-2015)
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

3.42.10.5.2  (10-01-2015)
Assignment of Electronic Filing Identification Number When Zip Code for Physical Address is Invalid

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

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

  3. Upon submission of an e-file application, the system will attempt to assign an Electronic Transmitter Identification number (EFIN). If TPDS 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.

  4. If an e-file application is submitted and the system attempts to assign an EFIN but cannot due to the zip codes, TPDS will assign a worklist item to the-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 TPDS 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.

3.42.10.5.3  (10-01-2015)
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 masterfile 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.

3.42.10.5.3.1  (10-01-2015)
Applications Pending Documentation

  1. Once an application has been submitted, TPDS 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.

3.42.10.5.4  (10-01-2015)
Automated Suitability Analysis Program With No Hits

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

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

  3. Masterfile 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" .

3.42.10.5.5  (09-20-2016)
Auto Automated Suitability Analysis Program With Hits

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

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

  3. Masterfile will return results using Automated Suitability Analysis Program (ASAP) and results are uploaded to the application.

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

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

3.42.10.5.6  (09-20-2016)
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 3.42.10.4, 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 3.42.10.13.11, 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 third party data store (TPDS), 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 3.42.10.5.4, Automated Suitability Analysis Program with no hit, and IRM 3.42.10.5.5,Automated Suitability Analysis Program with Hits.

  6. If the provider was placed in "dropped" status due to TPDS-EFIN clean-up (see IRM 3.42.10.20, Electronic Filing Identification Number and Electronic Transmitter Identification Number Clean-up).

3.42.10.5.7  (10-01-2015)
Systemic Application Revisions

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

  2. If a principal or responsible official is added, 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" .

3.42.10.5.8  (10-01-2015)
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 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.

3.42.10.5.9  (10-30-2015)
Worklists

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

  2. 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 fifteen (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 fifteen (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 a 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.

  3. 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.

  4. 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.

3.42.10.5.9.1  (10-01-2015)
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 fifteen (15) calendar days.

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

3.42.10.6  (10-30-2015)
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 3.42.10.3.16,Application Comments and manually assigns an Electronic Filing Identification Number (EFIN) per IRM 3.42.10.5.1, 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.

3.42.10.6.1  (10-01-2015)
IRS Sponsored Not for Profit Business Activities

  1. TPDS systematically validates IRS sponsored Not for Profit business activities by matching Site Identification Numbers (SIDNs) against the SPECTRM file which is downloaded daily to TPDS. 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.

3.42.10.6.2  (09-20-2016)
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 3.42.10.3.16, 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.

3.42.10.6.3  (10-01-2015)
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 3.42.10.3.16, 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 3.42.10.3.16, 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 3.42.10.3.16, 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 closes 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 & 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 can not 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.

3.42.10.6.4  (10-01-2015)
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 can not 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.

3.42.10.6.5  (09-20-2016)
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 TPDS with the reason for the disapproval and reject the e-file application.

3.42.10.6.6  (10-30-2015)
Affordable Care Act Provider (ACA) Provider Role – Covered Entity with Business Activity – Insurance Provider (Form 8963) or Pharmaceutical Company (Form 8947)

  1. 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.

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

    1. If the "527-POL-ORG-CD" is 0, the applicant is considered an ACA provider. The assistor will 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 3.42.10.3.16, 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.

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

  4. If BOD: CD is not equal to LM or TE, the assistor escalates an interaction to ACA IPF analyst (for Form 8963) or ACA BPD analyst (for Form 8947), depending on the form identified in the application and include the following comments per IRM 3.42.10.3.16, Application Comments: the application tracking number, case "Escalated to ACA IPF analyst Form 8963 or ACA BPD analyst Form 8947 for a decision" .

  5. 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.

  6. 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.

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

    1. ACA IPF analyst 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 Rejection letter with appropriate ACA rejection paragraph explaining why the application can not be processed.

3.42.10.7  (10-01-2015)
Retention of Forms

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

3.42.10.7.1  (10-01-2015)
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 years after the EFIN has been dropped in accordance with Document 12990, Records Control Schedules; Tax Administration – Wage and Investment see page 372 schedule 48.

  2. EPSS performs an annual reconciliation 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 time frames, 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 recycle or an active EFIN is not purged in error.

  4. Ensure that Form 11671, Certificate of Records Disposal, is completed prior to sending the folders to Federal Records Center (FRC) to be maintained for two years and then destroyed. This form is forwarded to the business unit records coordinator and area records manager. A list of the contacts and forms are available at Real Estate & Facilities Management- Sensitive Document Destruction Program (SDD) web page.

3.42.10.7.2  (10-01-2015)
Retention of Fingerprint Cards (FPC)

  1. Fingerprint cards (FPC) may be destroyed 3 years after they are scanned. The electronic back up copy will be available if necessary.

3.42.10.7.3  (10-01-2015)
Retention of Office of Appeals

  1. Generally, the Office of Appeals retains e-file appeal cases for 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 1 year after they are scanned into the EHSS.

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


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