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

Manual Transmittal

November 06, 2023

Purpose

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

Material Changes

(1) IRM 3.21.264 - Substantial changes has occurred throughout this IRM. Processing Form 13551, Acceptance Agent Applications will no longer require paper processing. Processing AA applications will be processed electronically. All references to EPSS Assistors processing applications has been removed. Fingerprint processing has been removed and replaced with Accurint Background checks. Subsections were renumbered.

(2) IRM 3.21.264.1 - (2) Removed reference to Form 13551, replace with Acceptance Agent applications. Application process is electronic. (3) Removed Austin e-Help Desk Assitors, no longer part of AA application processing.

(3) IRM 3.21.264.1.1 - (4) Removed reference to Form 13551, replace with Acceptance Agent applications. Application process is electronic.

(4) IRM 3.21.264.1.3 - Removed references for Form 13551 and Austin e-Help Desk Assistors.

(5) IRM 3.21.264.1.4(1) - Replaced RTS with External Services Authorization Management (ESAM). Added location for reports on External Services Authorization Management (ESAM)

(6) IRM 3.21.264.1.5 - Removed references to Electronic Products and Services Support (EPSS), and Austin e-Help Desk managers.

(7) IRM 3.21.264.1.6 - Removed reference to Real Time System (RTS).

(8) IRM 3.21.264.1.7 - Added ESAM to list of sources.

(9) IRM 3.21.264.2 - Removed Form 13551 and EPSS references.

(10) 3.21.264.3 - Added statement for AA applications process is electronically processed through ESAM. Paper no longer accepted. Added guidance for foreign nationals without SSN/ITIN to submit their AA application through the Certifying Acceptance Agent Document Upload Tool (CAA DUT).

(11) IRM 3.21.264.3.3(3) - Removed ITIN RTS, replaced with ESAM for authentication; Added IRM reference Centralized Authentication Policy for Authentication Requirements. Removed Note under table to research EHSS of information not available in RTS.

(12) IRM 3.21.264.4.1.1 - Added guidance for TE to follow when applicants call about the status of an ITIN.

(13) IRM 3.21.264.4.1.2 - Added instructions for AAs to follow established procedures for completing Form W-7

(14) IRM 3.21.264.4.1.3 - Added guidance for AAs processing W-7, W-7 COA and authentication of supporting documents provided by applicant.

(15) IRM 3.21.264.4.2- Moved Eligibility Requirements to IRM 3.21.264.4.2. Renamed section to Applying to be an Acceptance Agent- Added guidance for applicants to access ID.me prior to access IRS e-Services account.

(16) IRM 3.21.264.4.2.1 - Added a list of individuals or entities who may apply to become an AA. Added what is included in background check. (4) Added suitability statuses.

(17) IRM 3.21.264.4.2.2 - (1) Added definition for suitability, (2) Added who sets suitability standards. (3) Added types of suitability checks performed. (4) Added the types of suitability status. (5) Added instructions applicant to follow before becoming an AA by submitting to suitability checks. (6) Added who suitability checks not performed.

(18) IRM- 3.21.264.4.2.3 - Added business rules order performed for Not for Profit, DUT and background check.

(19) IRM- 3.21.264.4.2.4 - Added the criteria ASAP looks at for new, reapply and revised applications.

(20) RM- 3.21.264.4.2.4.1 - Added results from Business rules conducted on TIN that are sent to Masterfile.

(21) IRM 3.21.264.4.3 - Added reference to the specific transactions that would impact suitability for IMF and BMF.

(22) IRM 3.21.264.4.4 - Added command codes and tools used to research for IMF and BMF accounts.

(23) IRM 3.21.264.4.5 - Added the process to automate the business rule results from the compliance checks.

(24) IRM 3.21.264.4.5.1 - Added guidance for tax examiners to use command codes to identify offer in compromise and actions to take.

(25) IRM 3.21.264.4.5.2 - Added guidance for tax examiners to use various command codes to balance due on applicant account and actions to take.

(26) IRM 3.21.264.4.5.3 - Added guidance for tax examiners to identify transaction code on module(s) and actions to take.

(27) IRM 3.21.264.4.5.4 - Added guidance for tax examiners to take if no return posted on accounts for individual/firm.

(28) IRM 3.21.264.4.5.5 - Added list of status codes and definition, action to take if status is pass or fail.

(29) IRM 3.21.264.4.5.6 - Added guidance for TE to follow for fraud penalties when research is performed on IMF/BMF accounts.

(30) IRM 3.21.264.4.5.7 - Added guidance for tax examiners to search account for any cross reference identified on account, and take action once identified.

(31) IRM 3.21.264.4.5.8 - Added guidance for TEs to take appropriate action on accounts that has certain literal(s) during researched.

(32) IRM 3.21.264.4.5.8.1 - Added a list of acceptable documents applicant may provide for proof of citizenship.

(33) IRM 3.21.264.4.5.9 - Added guidance for tax examiners to follow conducting background check on applicants that participate in the acceptance agent program.

(34) IRM 3.21.264.4.5.9.1 - Added guidance for tax examiners to update ESAM with comments with name of authorized party that require background check.

(35) IRM 3.21.264.4.5.9.2 - Added instructions for tax examiners to follow for data and no data identified.

(36) IRM 3.21.264.4.10 - Added information for applicants to select the Yes or No box on ESAM in order to be placed on public list of AA or not or send request to ITIN Policy Section (IPS).

(37) IRM 3.21.264.5 - Revised section 5 to reflect updated electronic application process. EPSS will no longer process Form 13551, Application to Participate in the Acceptance Agent Program. Added guidance for applicant to log into ESAM and select new application to start AA application process. Removed obsolete instructions related to processing Form 13551.

(38) IRM 3.21.264.5.1 - Added the types of business structure for an Employer Identification Number (EIN).

(39) IRM 3.21.264.5.2 - Added two questions that a firm must answer in order to continue with input of their AA application.

(40) IRM 3.21.264.5.3 -Added service type applicant must choose: for profit or not for profit. Requirement for NFP requires applicant to include a Site Identification Number (SIDN).

(41) IRM 3.21.264.5.4 - Added authorized users and their role that must be listed on AA application.

(42) IRM 3.21.264.5.4.1 - Added each role for a Principal, Authorized Party, Author, Tax Examiner and Principal Consent.

(43) IRM 3.21.264.5.5 - Added tools for Principal/Authorized Party to use to submit their professional credential.

(44) IRM 3.21.264.5.5.1 - Added guidance for entry of credentials from Principal and Responsible Party by clicking on Application Summary and select personal credential link and follow prompt.

(45) IRM 3.21.264.5.5.2 - Added guidance that Principal and Responsible Party must answer the suitability questions and accept the TOA found on the Application Summary page.

(46) IRM 3.21.264.5.6 -Added how a 6 digit EFIN number is assigned to businesses that is an authorized e-file provider.

(47) IRM 3.21.264.5.6.1 - Added PTIN requirements for enrolled agents and tax preparers that prepare taxes for compensation. Added exceptions for those that are not required to have a PTIN.

(48) IRM 3.21.264.5.6.2 - Added who must submit an original FDTC, and where to submit the FDTC via CAA Document Upload Tool (CAA DUT).

(49) IRM 3.21.264.5.7 - Added the process for Principal Consent/Author with delegated authorities to add individuals to AA application.

(50) IRM 3.21.264.5.8 - Added the timeframe a tax examiner or applicant have to update comments on the Application Comments page.

(51) IRM 3.21.264.5.9 - Added various typed of comments and example that is acceptable about the AA application.

(52) IRM 3.21.264.5.10 - Added who may submit the completed AA application in ESAM.

(53) IRM 3.21.264.5.10.1 - Added instructions for Foreign applicants who must use the Certifying Acceptance Agent Document Upload Tool.

(54) IRM 3.21.264.5.10.2 - Added the types of letters issued to applicants for either missing documents, incomplete or rejected. Letters are either generated or systemic.

(55) IRM 3.21.264.5.10.2.1- Added information about the Rejection letter which is issued for several reasons, such as suitability failure all or at least one authorized party or failure to provide requested information, etc.

(56) IRM 3.21.264.5.10.2.2 - Added information about the Rejection letter which is used for authorized party that failed their compliance check.

(57) IRM 3.21.264.5.10.2.3 - Added information about the Returned for Incomplete Application letter which is issued for various reasons such as incorrect or missing EIN, Green card or missing income not reported on Schedule C, etc.

(58) IRM 3.21.264.5.10.2.4 - Added information about the preliminary agreement for the AA that will generate to applicant for their signature.

(59) IRM 3.21.264.5.10.2.5 - Added information for Renewal agreement reminder that is generated to applicant at least six months before their agreement expires.

(60) IRM 3.21.264.5.10.2.6 - Added information for the CAA Preliminary Agreement which will generate for their signature..

(61) IRM 3.21.264.5.10.2.7 - Added information about the AA Congratulatory letter which is issued to inform applicant that their agreement has been finalized and can be accessed via Registered User Portal.

(62) IRM 3.21.264.5.10.2.8 - Added information about the AA Response letter which is issued to notify the applicant that changes requested has been updated per their request.

(63) IRM 3.21.264.6 - Added the timeframe for acceptance of new AA applications.

(64) IRM 3.21.264.6.1 - Added the timeframe that applicant must submit a renewal application. Added guidance for TEs to process application as amended if agreement not scheduled to expire. Removed obsolete instructions related to EPSS process.

(65) IRM 3.21.264.6.2 - Added various reasons an amended application may require submission, such as updating individuals listed on current application, etc.

(66) IRM 3.21.264.6.3 - Added the reasons an AA application may require resubmission for the applicant.

(67) IRM 3.21.264.6.4 - Added the reason(s) AA suspended for AA program and eligible date may to reapply for participation in the AA application program.

(68) IRM 3.21.264.6.5 - Added the process for processing AA applications from foreign entity.

(69) IRM 3.21.264.7 - Added the statuses for processing AA applications once applicant submits the application.

(70) IRM 3.21.264.7.1 - Added the requirements for VITA/TCE participation in the AA program.

(71) IRM 3.21.264.7.2 - Added the status as For Profit and Not for Profit the applications go through.

(72) IRM 3.21.264.7.2.1 - Added the deleted status a document that is pending for 45 days not received will generate. Added guidance for manual update from deleted status to saved status once document is received.

(73) IRM 3.21.264.7.3 - Added the systemic status changes once an individual is added that requires documents or not, of if suitability is pass.

(74) IRM 3.21.264.7.4 - Added the priority order cases triggered by business rules and actions tax examiners must take that’s necessary to complete an AA application.

(75) IRM 3.21.264.7.4.1- Added the cases that would cause a continuous suitability check to be performed.

(76) IRM 3.21.264.7.4.2 - Added the business rule Hit that opens application cases and listed the conditions for each case triggered, i.e., Credentials needed when individual has indicated a professional status on AA application.

(77) IRM 3.21.264.7.4.3 - Added that an EUP role will be associated with specific workgroups in ESAM when a case is generated, and defined the workgroups.

(78) IRM 3.21.264.8 - Added the database that is used to store AA applications and ways how employees and applicants can gain access.

(79) IRM 3.21.264.9 - Added how employees can access e-Services product via Employee User Portal (EUP).

(80) IRM 3.21.264.10 - Added how tax examiners are to click on the Credentials Needed link and select Case ID link to access the Personal Professional Results tab of individuals listed on application for verification of professional credential.

(81) IRM 3.21.264.10.1 - Added the acceptable proof of a current active profession documentation for CPA, Attorney and enrolled agent.

(82) IRM 3.21.264.11- Added individuals that will perform quality review on tax examiners work.

(83) IRM 3.21.264.12 - Added the reasons why a compliance check is performed on Certifying Acceptance Agents and identified the Rev. Proc used for reference that governs the review. Identified the two types of compliance reviews performed. Moved information from the prior section 8.

(84) IRM 3.21.264.12.1- Added SB/SE to perform the review for on-site visits.

(85) IRM 3.21.264.12.1.1- Added the ITIN Policy Section (IPS) determines the method to select CAAs for compliance reviews by SB/SE Examination.

(86) IRM 3.21.264.12.1.2 - Added how the visit must be set. Added guidance for monitor to contact coordinator if not able to make contact CAA.

(87) IRM 3.21.264.12.1.3 - Added guidance for monitor to conduct interview with authorized party listed on AA application prior to the visit at location identified on application.

(88) IRM 3.21.264.12.1.4 - Added guidance for monitor to include reasons for non -compliance with file from CAA.

(89) IRM 3.21.264.12.1.5 - Added techniques that may be used to identify potential violations within the AA program.

(90) IRM 3.21.264.12.1.6 - Added that the monitor may either accept knowledge of other CAAs who may be in violation of the AA program during the site visit or inform the CAA to email the information to the ITIN e-mail box.

(91) IRM 3.21.264.12.1.7 - Added guidance for monitor to document their observation on the Document Collection Instrument (DCI) that will be used by IPS to evaluate the CAAs compliance.

(92) IRM 3.21.264.12.1.8 - Added guidance for monitor to upload the documents to the PSP coordinator within five workdays of the visit.

(93) IRM 3.21.264.12.1.9 - Added the responsibilities for the PSP CAA/ITIN Coordinator.

(94) IRM 3.21.264.12.1.10 - Added instructions for PSP coordinator to follow prior to uploading the case file on the designated site.

(95) IRM 3.21.264.12.1.11- Added the CAA Monitoring Document that is used by PSP Coordinator to keep track of case files.

(96) IRM 3.21.264.12.2 -Added IPS to conduct correspondence reviews on CAAs not referred for on-site visit.

(97) IRM 3.21.264.12.2.1 - Added guidance for IPS to request information from CAA using the Initial Correspondence Compliance Letter.

(98) IRM 3.21.264.12.2.2 -Added the process of how the IPS Analyst reviews the information returned by the CAA.

(99) IRM 3.21.264.12.3 -Added instructions for IPS Analyst to follow to close the compliance review.

(100) IRM 3.21.264.12.4 -Added guidance for monitors to include any observed violations on DCI that will aid IPS in assigning infractions for CAA non-compliance in AA program.

(101) IRM 3.21.264.12.4.1 - Added the levels of infractions and their causes.

(102) IRM 3.21.264.12.4.2 - Added level one infraction to be minor or no adverse impact on the quality of ITIN AA applications or IRS.

(103) IRM 3.21.264.12.4.3 - Added level two infractions to negatively impact taxpayers or a continued behavior of non-compliance. Level two causes the CAA to be placed on probation and lose CAA privileges.

(104) IRM 3.21.264.12.4.4 - Added level three infraction to be major and egregious causing the CAA to be terminated from the AA program.

(105) IRM 3.21.264.12.4.5 - Added guidance for CAA to request reconsideration in the initial determination. Added guidance for IPS to review the case and consider the reconsideration request from CAA.

(106) IRM 3.21.264.13 - Added new section to navigate ESAM AA application.

(107) IRM 3.21.264.17(2) - Added AA Reports section to be included in ESAM.

(108) Editorial changes have been made throughout this IRM (i.e. 508 compliance, line number updates, spelling, punctuation, links, formatting, citations, etc). All other substantive changes to this IRM are listed above.

Effect on Other Documents

This material supersedes IRM 3.21.264 dated November 7, 2022 (effective January 1, 2023).

Audience

Wage and Investment (W&I), ITIN Policy Section, Small Business/Self-Employed (SB/SE), Field Examination and Kansas City Submission Processing Center (KCSPC)

Effective Date

(01-01-2024)

James L. Fish
Director, Submission Processing
Wage and Investment Division

Program Scope and Objectives

  1. This IRM provides guidance for administering the IRS Acceptance Agent (AA) Program and conducting compliance checks on AAs.

  2. Purpose: This IRM provides guidance for the processing Acceptance Agent applications and conducting compliance reviews for Certifying Acceptance Agents timely. This IRM provides guidance for reports for Acceptance Agents.

  3. Audience: The primary users of this IRM are Kansas City Submission Processing Center (KCSPC), Small Business/Self Employed, Field Examination and the IRS Individual Taxpayer Identification Number (ITIN) Policy Section employees.

  4. Policy Owner: Director, Submission Processing

  5. Program Owner: ITIN Policy Section is responsible for the administration, procedures and updates related to this program.

  6. Primary Stakeholders: Management Officials and other IRM users who rely on quality information such as:

    • Small Business/Self Employed (SB/SE),

    • Privacy, Governmental Liaison & Disclosure (PGLD),

    • Legislative Affairs (LA),

    • Taxpayer Advocate Service (TAS),

    • Office of Taxpayer Correspondence

  7. Program Goals: The goal for this program is to process Acceptance Agent applications, prepare Acceptance Agent agreements and conduct compliance reviews timely and accurately.

Background

  1. IRM 3.21.264, International Returns and Document Analysis, IRS Individual Taxpayer Identification Number (ITIN), Acceptance Agent Program was implemented to improve customer service and oversight of the Acceptance Agent program.

  2. On November 29, 2012, the IRS issued final changes for Certified Acceptance Agents to authenticate certain documents that supports the Individual Taxpayer Identification Number (ITIN) application.

  3. The information in the IRM provides essential background information pertinent to the program:

    • New Legislation
      The Protecting Americans from Tax Hikes Act of 2015 (PATH Act) was enacted on December 18, 2015, and Section 203 of the (PATH Act) modified IRC 6109 and in doing so, made significant changes to the ITIN program.

    • Information on changes in workflow
      June 2014, the back-end processing for Form 13551, Application to Participate in the IRS Acceptance Agent Program was moved to Cincinnati Submission Processing Center (CSPC).
      Tax Year 2019, the back-end process was moved from CSPC to Kansas City Submission Processing Center.
      September 7, 2016, the IRS issued changes to the Acceptance Agent program. Open season was expanded to allow new and renewal applications year-round.

  4. Also included in this IRM is guidance for administering the Acceptance Agent program, such as:

    • The application process to become an Acceptance Agent,

    • Procedures for reviewing and processing Acceptance Agent applications and

    • An outline for compliance reviews

Authority

  1. The Acceptance Agent Program is governed by Rev. Proc. 2006-10, 2006-1 C.B.293.

  2. The IRS Restructuring and Reform Act of 1998, Section 3705 (a) provides identification requirements for all IRS employees working tax- related matters.

Responsibilities

  1. Kansas City Submission Processing Center (KCSPC) employees use this IRM for processing of Acceptance Agent applications.

  2. ITIN Policy Section sets the standards for On-Site compliance reviews conducted by Small Business/Self Employed, Field Examiners and Correspondence compliance reviews conducted by the ITIN Policy Section.

  3. The ITIN Policy Section (IPS) administers the information in this IRM. Information is published in this IRM on a yearly basis.

  4. The ITIN Policy Section Chief ensures this IRM is timely submitted to publishing annually.

  5. The Director of Submission Processing oversees the policy related to this IRM.

Program Management and Review

  1. Program Reports: The program reports provided in this IRM are used to identify trends as it relates to the Acceptance Agent (AA) program. The Quality Standards report is used to identify which Acceptance Agent/ Certifying Acceptance Agent are not meeting the standards of the program. Various reports are located on External Services Authorization Management (ESAM).:

    • AA Agreements 180 Days Expiration Report

    • AA Over-aged Report

    • Acceptance Agent Summary Report

  2. Program Effectiveness:

    • At least one application is reviewed for Embedded Quality Review System monthly by Lead reviewer.

    • ITIN Policy Section (IPS) analyst conducts correspondence compliance reviews for CAAs selected for on-site review but not referred for visit.

Program Controls

  1. Quality guidelines for measurement is referenced in IRM 21.10.1, Embedded Quality (EQ) Program for Accounts Management, Campus Compliance, Field Assistance, Tax Exempt/Government Entities, Return Integrity and Compliance Services (RICS).

  2. Kansas City Submission Processing Center (KCSPC) manager is responsible for tracking and monitoring the ITIN AA application inventory to ensure adequate resources are available for timely processing. Lead reviewers performs random quality checks of applications processed by tax examiner to identify areas that need additional emphasis, training or clarification.

  3. Small Business/Self Employed (SB/SE) Examination Field provides support to the ITIN Policy Section (IPS) to conduct on-site compliance visits for Certifying Acceptance Agents (CAA).

  4. ITIN Policy Section (IPS) determines the method to select CAAs for compliance reviews.

Acronyms

  1. For a list of ITIN Real Time System (RTS) acronyms and their meaning, refer to Exhibit 3.21.264-4, Acceptable ITIN RTS Abbreviations.

Related Resources

  1. Resources specific to the Acceptance Agent program are:

    • IRM 3.21.264, International Returns and Documents Analysis - IRS Individual Taxpayer Identification Number (ITIN) Acceptance Agent Program

    • IRM 3.42.7, Electronic Tax Administration, EPSS Help Desk Support

    • External Services Authorization Management (ESAM), Real Time System (RTS)

    • Job Aid - ITIN Acceptance Agent 60194-003

    • www.IRS.gov

Overview

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

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

    • Procedures for reviewing and processing Acceptance Agent applications.

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

  2. This IRM is designed to be used by Kansas City Submission Processing Center (KCSPC), Small Business/Self Employed, Field Examination, and the IRS Individual Taxpayer Identification Number (ITIN) Policy Section employees. IRM deviations must be submitted in writing following instructions from IRM 1.11.2.2.4, Internal Management Documents System- Internal Revenue Manual (IRM) Process, IRM Standards, and elevated through correct channels for executive approval.

    Note:

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

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

  4. Prior to submitting a formal application, interested persons may request a telephone or in-person conference with the IRS to explore informally the benefits and responsibilities associated with the role of an Acceptance Agent. To request a pre-application conference the applicant can call (470) 639-2715 or send an e-mail to the ITINProgramOffice@irs.gov.

General Information

  1. The Acceptance Agent Program is governed by Rev. Proc. 2006-10, 2006–1 C.B. 293.

  2. On September 7, 2016, the IRS issued changes to the Acceptance Agent program. Open season was expanded to allow new and renewal applications year-round. Form 13551, Application to Participate in the IRS Acceptance Agent Program is accepted from January through December of each year.
    Certifying Acceptance Agents (CAAs) will now be allowed to authenticate the passport and birth certificate for dependents. CAAs will continue to authenticate identification documents for primary and secondary applicants.

    Exception:

    CAAs cannot authenticate foreign military identification cards and must submit the original of this document or a certified copy by the issuing agency

  3. Beginning August 15, 2022, the IRS imposed a moratorium on the Acceptance Agent Program. The moratorium will last until Summer 2023 and, when lifted, we will issue a notification of rescission. The moratorium will allow for significant modernization efforts resulting in a more efficient application process. The overall timeframe to process properly submitted applications will change from months to weeks. During the moratorium, Form 13551, Application to Participate in the IRS Acceptance Agent Program, will not be accepted.

  4. Beginning Summer, 2023, Acceptance Agents must complete the application process electronically through ESAM. Paper Form 13551 are no longer accepted.

  5. Foreign nationals, Principal, Partner, or Owner of the Business that does not have a TIN (SSN or ITIN) will use the Document Upload Tool (DUT) to submit a Form 13551. IRS employees will add the Responsible Party / Parties with or without a TIN.

Mission Statement

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

IRS Employee Contacts

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

    Note:

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

Disclosure Guidelines for Acceptance Agents

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

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

  3. Except for general information inquiries, External Services Authorization Management (ESAM) is used to authenticate customers calling about an Acceptance Agent application. Use the following tables to authenticate a customer and their authority to receive information about an Acceptance Agent application:

    Note:

    If unable to authenticate the customer with the following requirements, escalate the interaction to the lead.. Leads will contact the Program Manager (PM) analyst for referral to the ITIN Policy Section. Include the customer's name and contact information in the escalation. For foreign nationals, include their e-mail address.

    Position/Relationship Authentication Requirements Authorization Entitlements
    Principal, Partner, or Owner Refer to IRM 10.10.3, Identity Assurance - Centralized Authentication Policy - Centralizing Identity Proofing for Authentication Across All IRS Channels, EIN, legal or Doing Business As (DBA) name, physical or mailing address Application status, firm suitability or tax compliance issue
    Responsible Party (U.S. Citizen) Refer to IRM 10.10.3, Identity Assurance - Centralized Authentication Policy - Centralizing Identity Proofing for Authentication Across All IRS Channels, SSN, name, address, Date of Birth (DOB) and Country of Citizenship (COC) Application status and individual suitability
    Responsible Party (non-resident alien) Refer to IRM 10.10.3, Identity Assurance - Centralized Authentication Policy - Centralizing Identity Proofing for Authentication Across All IRS Channels, PTIN, name, address, DOB Application status and individual suitability
    Responsible Party (foreign national) Refer to IRM 10.10.3, Identity Assurance - Centralized Authentication Policy - Centralizing Identity Proofing for Authentication Across All IRS Channels, PTIN, name, address, DOB (CC RPVUE for foreign nationals) Application status and individual suitability
    Primary or Alternate Contact Refer to IRM 10.10.3, Identity Assurance - Centralized Authentication Policy - Centralizing Identity Proofing for Authentication Across All IRS Channels, EIN, title, phone number, e-mail address General information

  4. This also includes the protection of computer terminal information. For example, when applicants calling on IRS phone lines inquire about their application and less than 45 days have passed since the AA application was submitted, the employee must advise the applicant to allow more time for processing. If 45 days or more have passed and research shows no record of the application, employees are authorized to disclose to the applicant that we have no record of the application, and they must re-submit their application.

  5. For questions on disclosure, see IRM 11.3.13, Disclosure of Official Information - Freedom of Information Act (FOIA), refer to IRM 10.5.6, Privacy and Information Protection - Privacy Act, or the Disclosure Help Desk at ≡ ≡ ≡ ≡ ≡ ≡ ≡ (for internal use only).

    Note:

    The Disclosure Help Desk number is for internal use only and must not be given to taxpayers.

Disclosure Related to Acceptance Agent (AA) /Certifying Acceptance Agent (CAA) Applications - Release of Information
  1. The taxpayer’s signature on Form W-7 authorizes the IRS to disclose to the AA only information necessary to resolve matters about assignment of an ITIN, including any previously assigned taxpayer identifying numbers.

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

    Exception:

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

  3. Refer to IRM 3.21.264.3.3, Disclosure Guidelines for Acceptance Agents, above for more information on disclosure.

Unauthorized IDRS Access

  1. While working assigned cases, SP employees may come across some accounts that are blocked on IDRS. These accounts can be identified by an IDRS security violation message: Unauthorized Access to This Account. Forward the case (Form 8822-B, Form 2553, etc.) to your manager. Managers will notify the local Planning & Analysis Staff who will scan the case and send encrypted information to the "≡ ≡ ≡ ≡ ≡ ≡" mailbox to request access to the account. Managers will retain the original case in a file awaiting access (can take up to five business days). Once notified access has been granted, the case can be processed following applicable procedures.

Acceptance Agent Defined

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

Acceptance Agent and Certifying Acceptance Agent

  1. There are two types of Acceptance Agents:

    • Acceptance Agent

    • Certifying Acceptance Agent

  2. AAs are authorized to assist resident alien and non-resident individuals ineligible to receive a Social Security Number (SSN) in obtaining an Individual Taxpayer Identification Number (ITIN) or Employer Identification Number (EIN) from the IRS. The following responsibilities are included in their role:

    • AAs can conduct interviews with clients either through face to face or video conference (i.e., SKYPE)

      Note:

      AA must have the original identification document in their possession during the interview to see security features and authenticate the documents.

    • Verify the completeness of the application.

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

      Note:

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

  3. Certifying Acceptance Agents (CAA) are authorized to assist resident alien and non-resident individuals ineligible to receive a Social Security Number (SSN) in obtaining an Individual Taxpayer Identification Number (ITIN) or Employer Identification Number (EIN) from the IRS. The following responsibilities are included in their role:

    • CAAs can conduct interviews with clients either through face to face or video conference (i.e., SKYPE)

      Note:

      CAA must have the original identification document in their possession during the interview to see security features and authenticate the documents.

    • Substantiate the claim of identity and foreign status and authenticate the accuracy and completeness of supporting identification documentation. CAAs may authenticate the passport and birth certificate for dependents, other documents submitted must be original or certified copies from the issuing agency.

    • CAAs cannot authenticate foreign military identification cards and must submit the original of this document or a certified copy by the issuing agency.

    • Prepare an original Form W-7 (COA), Certificate of Accuracy for each application submitted.

      Note:

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

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

      Note:

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

Designated Telephone Lines
  1. Acceptance Agent and Certifying Acceptance Agent (AA/CAA) must initially follow routine procedures (including Form W-7, Application for IRS Individual Taxpayer Identification Number, and related publications) for questions about the status of an ITIN. If they need more guidance, they must call the applicable number provided in the AA/CAA agreement.

    Note:

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

Acceptance Agent/Certifying Acceptance Agent (AA/CAA) Form W-7 Requirements
  1. Acceptance Agents must use the most current revision of Form W-7, Application for IRS Individual Taxpayer Identification Number, which is available on www.IRS.gov. The AA/CAAs must follow established procedures for completing Form W-7, and attach the required valid U.S. tax return or evidence that they meet one of five exceptions.

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

Supporting Identification Documentation for Form W-7
  1. All Form W-7, Application for IRS Individual Taxpayer Identification Number, is submitted by an AA or CAA must meet supporting identification documentation requirements by proving identity and foreign status.

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

  3. Form W-7, submitted by a CAA must have a Form W-7 (COA), Certificate of Accuracy, attached with copies of the original or certified copies for the primary, secondary and dependent. The W-7 COA stipulates that to the best of the CAA’s knowledge, the applicants supporting identification documentation is authentic and accurate.

    Note:

    CAAs cannot authenticate foreign military identification cards for a primary or secondary taxpayer and must submit the original document or certified copy by the issuing agency.

    Reminder:

    A passport and birth certificate are the only two documents CAAs may authenticate for dependents, all other documents for dependents must be original or certified copies (certified by the issuing agency).

Applying to be an Acceptance Agent

  1. Applicants must have an IRS e-Services account before starting and submitting an electronic IRS Acceptance Agent application. Applicants can visit IRS.gov for more information about Secure Access Digital Identity (SADI).

  2. To access the new Acceptance Agent application, you must login to IRS e- Services. The Acceptance Agent Application is one of several e-Services applications. To access e-Services, users must create credentials using Credential Service Provider, ID.me to confirm their identity.

  3. ID.me is an account created, maintained, and secured by a private technology provider. Effective May 17, 2023, individuals will no longer be able to login to e- Services using their eAuth credentials. If you do not have an ID.me account, you must create a new account to access e-Services. See help.id.me for more information.

  4. Applicants must complete and submit their Acceptance Agent (AA) application through External Services Authorization Management (ESAM).

Eligibility Requirements
  1. Any eligible individual or entity can apply to become an Acceptance Agent. Persons eligible to be an Acceptance Agent include:

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

    • Education Institutions: Colleges or universities which are described in IRC 501(c)(3) and exempt from taxation under IRC 501(a)

    • Federal agencies (as defined in IRC 6402(h)

    • State and local governments, including agencies responsible for vital records

    • Casinos

    • Community-based organizations which are described in Section 501(c)(3) or (d) and exempt from taxation under IRC 501(a)

    • Persons that help taxpayers in the preparation of their tax returns

    • Other persons or categories of persons as authorized by regulations or other guidance of the Secretary of Treasury

  2. Everyone listed as an authorized party on the application must be at least 18 years of age when application is submitted.

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

  4. A Preparer Tax Identification (PTIN) is required. See www.irs.gov/ptin.

  5. Except for applications from VITA/TCE partners, all existing CAAs must provide an original certificate of completion from the vendor for the forensic document training course.

Suitability Checks
  1. Suitability is the process used by the IRS to determine if the firms and individuals listed on applications are appropriate to participate in the IRS Acceptance Agent program.

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

  3. Suitability checks may include standard background check (Accurint check), credit history check, and IRS tax compliance check.

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

  5. Applicants must submit to suitability checks before being authorized to act as an Acceptance Agent (AA).

  6. Suitability checks are not conducted on the following:

    • Principal

    • Principal Consent

    • Contacts (Primary/Alternate)

    • IRS sponsored Not for Profit organization

  7. Suitability checks for new applications are normally completed within 45 calendar days of submission if all necessary documentation was provided and processed.

  8. For initial suitability, applicants that require a suitability check are 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. Kansas City Submission Processing Center (KCSPC) Leads will review a case for the hits and assign them to a tax examiner for research and follow up.

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

    • ASAP - Identity Theft

    • ASAP - Z Freeze

    • ASAP - T Freeze

    • ASAP - Deceased

    • ASAP - Citizenship

    • ASAP - Tax Compliance

    • ASAP - Penalty Assessment

    • SSN Cross-Reference

AA Location Business Rule Eligibility/Suitability Checks
  1. The Eligibility BRs are run first followed by Suitability checks.

    • NFP (Verify Not-for-profit)

    • Document Upload

    • Background Check (if not NFP)

  2. If the Legal Entity selected is Not-for-profit, only the Business Rules will be run against the firm and users on the AA Location Application on Application Submission / Resubmission except:

    • Background Check [Principal, Partner, or Owner of the Business, RP(s)]

  3. ESAM will run applicable eligibility/suitability checks against the firm and users on AA Location Applications upon application submission or resubmission. On submission of an AA Location Application, applicant(s) that are listed as a Responsible Official / Principal on an E-FILE Application whose suitability is set to Passed will only require:

    • Tax Compliance

    • Penalty Assessment Business Rule

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • RP at Other AA Location

    • Documentation Required

    • DUT Doc Received

  4. ASAP Suitability Checks cannot be run against Responsible User Portal (RUP) users with an ITIN so the following Business Rules (BRs) would not be run against them.

    • ASAP - Identify Theft

    • ASAP - Z-Freeze

    • ASAP - T-Freeze

    • ASAP – DoD

    • ASAP – Citizenship

    • ASAP - Tax Compliance

    • ASAP - Penalty Assessments

    Note:

    Business Rule (BR) "Hit" opens Application Case

    .

Automated Suitability Analysis Program (ASAP)
  1. The ASAP program uses predetermined criteria from Master File (MF) to identify acceptance agent’s potential eligibility and IMF/BMF compliance issues.

  2. The table below illustrates the criteria used in the Automated Suitability Analysis Program (ASAP):

    Criteria: ASAP looks at:
    Cumulative balance due ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    No return posted (IMF/BMF) ≡ ≡ ≡ ≡ ≡ ≡ ≡
    Miscellaneous penalty is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ IMF/BMF ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    Negligence penalty is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ IMF/BMF ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ IMF/BMF ≡ ≡ ≡ ≡ ≡ ≡
    Identity Theft  
    Citizenship  
  3. ASAP is used for new, reapply and revised applications.

  4. New issues that did not appear through Business Rule results may be identified through research by the Tax Examiner.

  5. ) Review the comments to see if prior Business Rule issues were identified.

Automated Suitability Analysis Program Results
  1. All TINS requiring suitability are sent to Master File (MF) daily.

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

  3. MF returns results using ASAP and results are uploaded to the application on the Business Rule Results screen of the individual and/or firm.

  4. If there is no issue on a firm, the suitability status moves from In Process to Pass.

  5. If there is no issue on the individual and background check is not required, or credentials are verified, the suitability status will move from In Process to Pass.

  6. When a Business Rule is identified as Not Confirmed, a case is generated in the appropriate workgroup showing the business rule issue. The case is then assigned to an assistor to work.

Continuous Suitability Cases from Masterfile

  1. A case is generated when specific transactions appear on a tax account that would impact suitability.

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

  3. The current suitability criteria are used to generate a case for the firm and individual. The specific criteria used are:

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • Fraud penalties ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

    • Deceased taxpayers, TC 540.

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

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

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • No return posted and MF status 02, 03 or 04 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

    • Currently Not Collectible accounts (TC 530) with the following closing codes: 03, 09, 10, 12, 13, 37, 38 and 39.

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

  4. Cases are worked following continuous suitability processing procedures.

Research for Suitability

  1. The research tools for IMF and BMF are:

    • CC INOLE (valid and invalid)

    • CC IMFOL

    • CC INTST

    • CC BMFOL

    • CC ENMOD

    • CC TXMOD

    • CC IRPTR

    • CC MFTRA

    • CC SUMRY

    • CC FFINQ

    • CC DDBOL

    • CC TRDBV

    • IAT

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

    • Internal Revenue Manuals (IRMs)

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

    • Module balances

    • Returns filed

    • Reverse transaction codes

    • Installment agreements

    • Freeze codes

    • Unpostables

    • Offers in Compromise

    • Assessment of fraud penalty

    • Bankruptcy

    • Currently Not Collectible (CNC)

    • Citizenship

    • Incarceration

    • Identity Theft

    Note:

    If no issues are identified, edit "Business Rules" from "Not Confirmed" to "No Hit" and suitability of SSN and/or EIN to "Pass" and add Notes. Notate in the "Business Rule" additional information box, "Notes" (on the Suitability Status screen) and Application Comments.

Procedures for Suitability

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

  2. Documents received and passed validation or adjudication.

  3. Cases are generated for applicants when the “business rule” check results in "Not Confirmed" .

Offer in Compromise (OIC)
  1. Check for pending or posted OIC, (TC 480). Programs will check for TC 480 (offer pending), TC 481 (offer rejected) and TC 482 (offer withdrawn). The tax examiner will check CC TXMOD, IMFOL and BMFOL for these transaction codes.

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

    • If an OIC was rejected (TC 481), withdrawn (TC 482) or defaulted (TC 781) and cumulative balance is greater than or equal to ≡ ≡ ≡ ≡, send the appropriate suitability letter to resolve balance due.

Balance Due
  1. Programs will check the cumulative balances greater than or equal to ≡ ≡ ≡ ≡ within the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. The tax examiner will also check for and include ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

    Note:

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

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

    • If the liabilities have been addressed or resolved on all modules and no other literal/hit or issue is present, "Pass" .

      Example:

      Posted or pending transactions including payments, current or pending Installment Agreements (IA) and accepted/pending Offers in Compromise.

    • If all outstanding balances are in any valid Installment Agreement (IA) (current or suspended), "Pass" .

      Note:

      See Document 6209, IRS Processing Codes and Information, for valid installment agreements.

    • If all 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) is ≡ ≡ ≡ ≡ ≡ or greater, send the appropriate suitability letter to resolve those accounts.

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

    • Check for pending payments or transactions that reduce the cumulative modular balance to less than ≡ ≡ ≡.

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

Uncollectable Accounts
  1. The tax examiner will check for any uncollectable account. If TC 530 (Currently Not Collectible Account) is present on all balance due accounts, pass, unless any of the TC 530 closing codes listed in the following chart are present.

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

  2. If TC 530 is NOT present on all accounts and cumulative balance of the accounts on which TC 530 is not present is ≡ ≡ ≡ ≡ or greater, send letter to resolve those accounts. If the balance is less than ≡ ≡ ≡ ≡, then pass.

No Return
  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

  2. If the research shows no returns posted for the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and MF status is 02, 03 or expired 04, the tax examiner must request the return(s) if extension due date has expired.

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

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

    • If a TC 150 is posted under the spouse’s SSN, check the status of the tax account under the SSN.

    • If the account is in status code 02 or 03 or 04, the tax examiner must request the return(s) if extension due date has expired.

    • If there are no other issues, pass.

  5. Research all EINs on IDRS using CC BMFOL.

    • If CC BMFOL has “N” (for no return posted) and no status, pass.

    • A written statement from the provider saying that they are not liable is acceptable. However, the statement must be specific.

      Example:

      if the issue was 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.

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

    • 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.

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

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

Return Status Codes
  1. Use the following table to determine the status of a tax module and whether it passes or fails:

    STATUS CODE DEFINITION PASS FAIL
    02 Delinquent Return   X
    03 Delinquent Return in Collection Status   X
    04 Extension to File Return See Note 1 below See Note 1 below
    06 Taxpayer is not liable for that return See Note 2 below See Note 2 below
    10 Filed Return X  
    12 Filed Return and Fully Paid X  
    21 1st Notice for a BALDUE Return See Note 3 below See Note 3 below
    22 Taxpayer Delinquent Account (TDA) See Note 3 below See Note 3 below
    23 Return filed but below TDA tolerance See Note 4 below See Note 4 below
    48 System generated to suppress BALDUE notice   X
    53 Currently Not Collectible   X
    54 2nd Notice for a BALDUE return See Note 4 below See Note 4 below
    56 3rd Notice for a BALDUE return See Note 4 below See Note 4 below
    58 4th Notice for a BALDUE return See Note 4 below See Note 4 below
    60 Current Installment Agreement X  
    61 Suspended Installment Agreement See Note 3 below See Note 3 below
    63 Installment Agreement X  
    64 Defaulted Installment Agreement See Note 3 below See Note 3 below
    71 Offer in Compromise (OIC) pending    
    72 Litigation/bankruptcy X  

    Note:

    1: For current year returns on an unexpired extension: Pass; otherwise Fail.

    Note:

    2: For a business return(s) "Status 06" is acceptable to pass that module. For individual (Form 1040) returns, status code “06” normally indicates a spouse on a Married Filing Jointly (FSC 2) return but requires research. If the return was filed jointly, tax period would pass. If not filed jointly, check IAT IRPTRL to determine whether the module must be passed or failed.

    Note:

    3: If module's BALDUE is below liability showed in Outstanding Tax Liability: Pass; otherwise Fail.

    Note:

    4: Although the return has been filed, the tax compliance may fail because of the outstanding tax liability. If the liability no longer exists, is covered by an Installment Agreement, bankruptcy, Offer in Compromise, below the Acceptance Agent Program's threshold; Pass, otherwise Fail.

  2. Research IDRS (CC SUMRY) or SC-STS (Service Center Status) on (CC TXMODA) to determine the most status of a module.

Fraud Penalties
  1. Programs will check for any fraud penalties (TC 320) assessed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

    • The assistor will check CC IMFOL and/or BMFOL for TC 321 which reverses TC 320 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

    • If the penalty was abated in full, pass.

    • If the TC 320 is not reversed, recommend fail.

    • The tax examiner will also check for and include all unaddressed balances ≡ ≡ ≡ ≡ ≡ ≡ ≡.

  2. For specific “Pass” or “Fail” instructions, see, Suitability Procedures after Research.

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

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

    • If a joint return was filed and there are no other issues, pass.

    • If a joint return has not been filed with the cross-reference SSN, pass.

Citizenship
  1. Each individual who is a Principal or Responsible Party 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 given 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 Permanent Resident Alien, A Resident Alien Permit Holder, or a Green Card Holder.

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

    • If the Business Rule shows a literal “Citizenship Code C, D, E, F or Blank”, the tax examiner will research CC DDBOL to verify the citizenship code.

      Citizenship Code Description
      A U.S. Citizen
      B Legal Alien - Alien allowed to work
      C Alien not allowed to work
      D Other Alien
      E Alien Student - restricted work authorization
      F Conditionally Legalized Alien
      Blank  

      Note:

      Per the Social Security Administration, if an individual made a request for SSN card prior to May 1981 which has not been updated, e.g., request for a replacement card, the Citizenship code (CSP) field will be blank.

Suitability Documents for Proof of Citizenship
  1. Individuals will have to provide documentation for verification when SSA shows citizenship code hit on ASAP.

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

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

    • 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).

    • U.S. Passport - issued by the U.S. Department of State. (current)

    • 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.

    • 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. Applicant must submit document(s) via Certifying Acceptance Agent Document Upload Tool (CAA DUT).

Accurint Background Check
  1. Applicants that are required to be fingerprinted will have an Accurint background investigation done instead and are not considered for acceptance into Acceptance Agent program until any applicable results are received and analyzed.

  2. Employees must request access through Business Entitlement Access Request System (BEARS). Once you have access and a password, take the following steps to determine if there is any criminal activity:

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  3. If convictions or indictments are found, adjudication may recommend that the applicant be denied participation.

  4. Adjudication will evaluate other items on the criminal record to determine if the nature of the items will adversely impact IRS Acceptance Agent program.

  5. The following do not have to submit to Accurint check:

    • Principal or principal consent,

    • Responsible Party listed on an existing active e-file application,

    • Representatives from a VITA/TCE partner,

    • Educational Institution

    • Financial Institution

    • Local Government Agency

    • Federal Government Agency

    • Casino

    • Church or Church Controlled Organization

    • Military Organization

    • Foreign applicant living outside the United States.

    Note:

    Unless otherwise exempt, U.S. citizens living outside the United States and working for a foreign business must submit to Accurint check.

    Note:

    Except for foreign nationals living outside of the U.S., a positive "yes" response to questions asked (assessed penalties/criminal convictions) requires submission of an Accurint background check regardless of professional status or organization affiliation.

Processing of Accurint Checks
  1. If an authorized party passes the tax compliance checks but requires background investigation check, the tax examiner will:

    • Enter a comment in ESAM with the name of each authorized party that was pulled for processing. Make separate entries for each authorized party.

  2. The Lead/Reviewer will review the tax examiner’s recommendation and take the following actions:

    • If they disagree or find ESAM errors, return the application to the right tax examiner and discuss their finding(s).

Processing Accurint Check Results
  1. Accurint processing results include:

    • No data found. Indicates there was no record of any criminal activity in the FBI data base by the authorized party. If the results of the background check do not identify any criminal activity, the assistor will update ESAM comments Accurint check processed for [name of Individual] – no data found, Passed FBI Check.

    • Data found. Indicates the FBI data base shows criminal activity. If the results of background check identify any criminal activity, create PDF rap sheet.. Submit the Accurint check results to the Lead with the application for review. Leads will update ESAM. Enter the comment Accurint check processed for [name of individual] - data found.

      Note:

      The presence of data does not in itself mean a conviction. Data will also be showed for individuals that were only charged, found innocent, or had the charges dismissed.

    Note:

    Do NOT include the actual activity in the comments. Also, if results were received from multiple Authorized Parties for the same location, enter a separate comment for each individual.

  2. If Accurint checks for multiple Authorized Parties are processed, include the name of the correct individual when comments are entered in ESAM.

    Example:

    Accurint check processed for Fisher Brown-no data found or Accurint check processed for Robin Falcon-data found.

Public Lists of Acceptance Agents

  1. To be placed on the public list of Acceptance Agents kept on www.IRS.gov, the applicant must select Yes for the question do you want your firm/organization contact information on the IRS.gov public website? This will be an indication to include the organization and location on the Business Operating Environment (BOE) report. RUP could answer no on another AA location application for that EIN. If the applicant does not want the information made available, the applicant must select No at the time of submission of their initial application or send a letter on office letterhead to the ITIN Policy Section at the following address:

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

  2. Acceptance Agents and Certifying Acceptance Agents may send an e-mail to the ITIN Policy Section or submit an amended Application to Participate in the IRS Acceptance Agent Program along with a statement to add their name to the Public lists.

New Acceptance Agent Application

  1. Applicants must select “New application” when creating an application:

    • Select the "esrv- ESAM- Applications"

    • Select "New Application" from the drop-down and select "AA Application"

    • Firm Information screen appears.

  2. New applications are started by the author who can complete most information on the application. The author cannot answer personal suitability questions or sign the terms of agreement for the Principals and Responsible Parties. In addition, authors cannot submit the application, unless they are either the Principal, Principal Consent or Responsible Party with designated authority.

  3. The AA application requires the user to complete all fields preceded by an asterisk (*) and TIN and legal name are verified against Masterfile.

  4. ESAM will verify that an existing AA Agreement / CAA Agreement for that EIN is not in the Suspended status. If the AA Agreement / CAA Agreement is in the “Suspended” status, new AA Location Application can’t be created and ESAM displays the error: "Previous Acceptance Agent Application was Suspended" .

Firm Information

  1. The firm must choose the Tax ID that they operate under by selecting "EIN" , or "Not Required" and then their Business Structure.

    If Tax ID Type is: The Business Structure is:
    EIN Association, Corporation, Credit Union, Federal Government Agency, Limited Liability Corporation, Limited Liability Partnership, Local Government Agency, Partnership, Sole Proprietorship, State Government Agency or Volunteer Organization (VITA)

  2. The AA Company, AA Company Application(s) and AA Location Application(s) are each identified by a unique combination of an Organization’s EIN, Firm/Organization Legal Name*, and Doing Business as, as well as (optionally) an EFIN, and a Physical Location and Mailing Address (using the Country, the first 5 characters from Address Line 1, the Province/State/U.S. Territory, City, and Postal Code). Multiple AA Location Applications can be created under an AA Company Application. The first AA Location Application generated will populate the AA Company and AA Company Application.

    Field Name Data Type Value Required Condition Validation Actions
    Type of Acceptance Agent Drop-down Select: Acceptance Agent/Certifying Acceptance Agent Yes CAA requires the upload of the Forensic Document Training Certificate via DUT Yes Type of Acceptance Agent field is permanently disabled (read-only) on a successful application submission
    Approved Acceptance Agent Type Drop-down Select: Acceptance Agent/Certifying Acceptance Agent Yes EUP Only Can’t be CAA when Type of Acceptance Agent is AA When the AA Company Application is Approved, this value will be set the same as Type of Acceptance Agent. Locked for RUP, open for EUP
    Organization Status Drop-down
    • VITA

    • Casino

    • Corporation

    • Church or Church Controlled Organization

    • Educational Institution

    • Financial Institution

    • Federal Government Agency

    • State Government Agency

    • Local Government Agency

    • Military Organization

    • Limited Liability Corporation (LLC)

    • Partnership

    • Sole Proprietorship

    • Other

    Yes Default (select)   Select Corporation: Question: “Is this a Publicly Held Corporation?” with radio buttons “Yes” and “No” will appear. Selecting “Yes” determines requirement for uploading a “Publicly Held Corporation Credential” for every RP via DUT. Locked on successful save.
    Other Brief Explanation Text   Yes (if “Other” is selected Grayed out text “Please insert a brief explanation that best describes the organization status” 35 characters max When “Other” is selected, a case will be opened to review the write-in Organization Status Selecting Other will add Supporting Information to an open Application case. Locked on successful save.
    Is this a Publicly Held Corporation Drop-down Select: Yes/No Yes (if Corporation is selected)a case will be opened to obtain the “Publicly Held Corporation Credential Grayed out text “Select” Required Field Locked on successful save.
    SIDN Text   Yes (if VITA is selected) Format: 9 alpha numeric Required Field Verify “S” followed by 8 digits Locked on successful save.
    Legal Entity Drop-down For-profit / Not-for-profit Yes Default Blank (Selecting Not-for-profit requires the Organization to submit a “Not-for-profit organization exemption letter” via DUT) Required Field  
    EIN Text   Yes 9-digits Required Field Locked on successful save.
    Firm/Organi-zation Legal Name Text   Yes 40 characters Required Field  
    Doing Business As Text   No 40 characters (When not entered, system will populate Firm Legal Name as DBA Name)    
    EFIN Text     6-digits Required Field (based on Organization Status) EFIN Check: ESAM will verify the EIN is associated with an EFIN (an e-File app) and will match the EFIN with (partial) Business Address (Physical Location) and Mailing Address Locked on successful submission
    Business Telephone Number Drop-down/Text Country Code will default to "001 - United States/Canada" Yes 20 characters Required Field Locked on successful save
    Business Fax Number Drop-down/Text Country Code will default to "001 - United States/Canada"   20 characters Required Field Locked on successful save
    Business Address (Physical Location) Drop-down/Text "Post office box (P.O. Box) is not permitted as part of the Business Address (Physical Location)" Yes 36 characters, City (30 characters, Postal Code (10 digits) Required Field Locked on successful save
    Mailing Address (Is your mailing address different from your Business Address?) Drop-down/Text   Yes   Required Field  
    Business Email Address Text   Yes Valid email address up to 70 characters allowed Required Field Format: Existing format for Email Addresses The Email field is permanently disabled (read-only) on successful application submission
  3. The system defaults the answer to "Yes" for the question "Do you want your firm/organization contact information on the IRS.gov public website?" If the applicant does not want the information made available, the firm must select "No" .

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

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

Firm/Organization Suitability Questions

  1. There are two firm suitability questions that the user must answer.

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

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

Application Details

  1. The applicant must choose the Service Type of either "For Profit" or "Not for Profit" . Software Developer defaults to "For Profit" .

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

  3. Selection of a business activity of VITA or TCE requires a valid Site Identification Number (SIDN). All other “Not for Profit” selections will generate a case for manual validation.

Authorized Users

  1. Acceptance Agent authors must input “Authorized Users” on the application.
    Principal, Partner, or Owner of the Business: For entities with shares of interests traded on a public exchange, or which are registered with the Securities and Exchange Commission, that individual is:

    1. the "principal" officer if the business is a corporation,

    2. a general “partner”, if a partnership,

    3. the “owner” of an entity that is disregarded as separate from its owner, or

    Note:

    For all other entities, it is the person who has a level of control over, or entitlement to, the funds or assets in the entity that, as a practical matter, enables the individual, directly or indirectly, to control, manage or direct the entity and the disposition of its funds and assets. The Principal, Partner, or Owner of the Business is the named individual with responsibility and authority for the entity. They may also designate a Principal Consent(s) who will have similar authority for all locations. Designating a Principal Consent is optional.


    Responsible Party: This person designated by Principal, Partner, or Owner of the Business (or Principal Consent) is the only individual, other than the Principal, Partner, or Owner of the Business (if also listed as an authorized party), who have authority to sign the Certificates of Accuracy and the Jurat on the application. Each business location is allowed to select up to ten (10) Responsible Parties represented by a single AA Application. A minimum and maximum of one responsible party is required for each location.
    Principal Consent: The individual with similar authorities as the Principal, Partner, or Owner of the Business including adding, or changing Responsible Parties and signing the Jurat on behalf of the Principal, Partner, or Owner of the Business. This individual cannot be the Principal, Partner, or Owner of the Business, Responsible Party (RP), Primary Contact, or Alternate Contact on this application.
    Primary Contact: The individual who will be available daily to answer IRS questions about this application and any processing issues throughout the year. A minimum and maximum of one Primary Contact is required for the applications.
    Alternate Contact: The individual who will be available daily to answer IRS questions about this application and any processing issues throughout the year. One, and only one Alternate Contact is optional for the applications.

Authorities for Authorized User
  1. User authorities for the Authorized User Page includes:

    • Only the Author and EUP(Tax Examiner) can add the Principal, Partner, or Owner of the Business

    • Only the Author, EUP(Tax Examiner), and Principal, Partner, or Owner of the Business and Principal Consent can add Responsible Party, Alternate Contact and Primary Contact

    • The Principal Consent can only view and edit their own entry on the Authorized User page

    • The Responsible Party can only view and edit their own entry on the Authorized User page and cannot add user

      Note:

      Add button will display an error if clicked: "You do not have permission to perform this action" .

Principal and Responsible Party

  1. Each Principal and Responsible Party must enter professional status information. Credential individuals who require verification of Professional Status can upload the documentation on Certifying Acceptance Agent Document Upload Tool (CAA DUT). The application tracking number must be included with the documentation.

Personal Credentials Screen for Principal and Responsible Party
  1. To input the personal credentials of the Principal or Responsible Party, click on the Application Summary and then select the personal credentials link.

  2. If the individual is a professional, select one or more of the professional statuses from the "Add Credentials" drop-down and provide the applicable information. The "Add Professional Status" drop-down menu contains the following list.

    Professional Status State License No. Expiration Date Professional Credentials
    Attorney By State Law License Number Provided by Registered User Portal (RUP) Law License (a record from the state bar)
    Certified Public Accountant By State CPA License Number Provided by Registered User Portal (RUP) CPA License
    Enrolled Agent N/A Enrolled Agent Number N/A N/A
    ERO N/A N/A N/A N/A
    Tax Preparer N/A PTIN December 31st of the Current Year N/A

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

    • 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 must not currently be under suspension or disbarment from practice before the IRS or the bar.

  4. An Enrolled agent cannot enter the enrolled agent number. The application will automatically populate this number when the enrolled agent check box is selected on this screen and the system validates it against the Enrolled Practitioner System (EPS).

    Note:

    An enrolled agent can submit a copy of a currently active enrollment card issued by the IRS, if requested.

  5. An officer of a publicly owned corporation needs to submit proof 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 Party.

  6. If a Responsible Party (RP) changes, the AA application will not be processed if you have not selected a professional status, entered required information and each RP has signed the jurat under penalty of perjury. The IRS will verify professional status and may request additional information and/or document as evidence.

Personal Suitability Answers and TOA Signature Screen for Principal and Responsible Party
  1. Each Principal and Responsible Party must answer the personal suitability questions and accept the terms of agreement by selecting the Personal Suitability Answers and TOA Signature link on the Application Summary screen.

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

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

    • 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.

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

      Note:

      The system does not require Responsible Party on Not- for- Profit applications to complete the suitability questions.

  3. The system requires comments for "Yes" or "No" responses to the suitability questions as described above.

  4. Each new Principal and Responsible Party must sign using their Personal Identification Number (PIN), acknowledging they have read:

    • The Privacy Act and Paper Reduction Act Notice

    • The Privacy Act Statement and

    • Accepted the TOA

Electronic Filing Identification Number (EFIN) Status

  1. EFIN is a six-digit number assigned if the business is an authorized e-file provider. An EFIN is not required.

  2. After the AA Location Application is in the Complete (Approved) status, ESAM monitors the status of the EFIN.

  3. If the EFIN has been set to “Dropped”, CAA create an AA Firm (Organization) Case.

  4. If/when a new EFIN is assigned, the Principal, Partner, or Owner of the Business / Principal Consent / Tax Examiner will need to add the New EFIN to the Firm Information page on the Completed (Approved) AA Location Application or a Renewal AA Location Application. Since this field is verified on the Firm Information page, there is no need to resubmit the application.

Preparer Tax Identification Number (PTIN) Requirements
  1. A Preparer Tax Identification Number (PTIN) must be obtained by all enrolled agents, as well as all tax return preparers who are compensated for preparing, or assisting in the preparation of all, or substantially all, of any U.S. federal tax return. The principal, partner or owner listed on the acceptance agent application must also include their PTIN, if issued.

  2. Except as showed below, all responsible parties listed on the application must include their PTIN.

    Exception:

    CPA or Attorney (or person working directly under), college or university financial institution, gaming industry (casino), federal agency, VITA, LITC, or foreign entity that does not provide tax preparation.

  3. To research a PTIN use IDRS (CC RPVUE) with the current processing year as showed below:

    • To research by SSN:
      RPVUE YYYYNNN-NN-NNNNP

    • To research by PTIN:
      RPVUE YYYYPNNNNNNNN P

    Note:

    There is one space between the CC and processing year (YYYY). When researching by PTIN there are two spaces after the PTIN (PNNNNNNNN) and the definer code “P”.

  4. Use the following table to determine what action to take when a PTIN is researched:

    Status Definition Action
    Applicant The status assigned to an individual who has submitted an application, however, has yet to complete the process required to be issued a PTIN (e.g., individual has yet to pay their application fee). Return application as incomplete
    Pending Tax preparer was issued a PTIN but is not qualified to prepare tax returns for the years specified on their PTIN application. At the start of the new calendar year, the pending status is updated to Active or Provisional. Return application as incomplete.

    Exception:

    Process applications received during the PTIN annual renewal period October 1 to December 31.

    Active The status assigned to a PTIN holder who has self-attested to having one of the following credentials:
    • Certified Public Accountant

    • Attorney
      or who has one of the following IRS issued credentials:

    • Enrolled Agent

    • Registered Tax Returned Preparer

    • Enrolled Retirement Plan Agent

    • Enrolled Actuary

    Process application
    Provisional The status assigned to a tax preparer who must meet additional steps before becoming Active (e.g., passing a competency test and/or tax compliance check). Process application
    Withdrawn The status assigned when an individual was issued a PTIN and later informed the IRS they were not required to obtain one. If not required to obtain one, they must provide the documentation with the application. If not included with application, return it as incomplete for the documentation.
    Expired The status assigned when a PTIN holder does not renew. Reject application
    Inactive The status assigned when a PTIN holder who no longer practice requests to be placed in an inactive retirement status. Reject application
    Suspended The status assigned when the IRS determines a PTIN holder is temporarily not fit to practice. Reject application
    Revoked The status assigned when the IRS determines a PTIN holder is not fit to practice. Reject application
    Deceased The status assigned when a PTIN holder is deceased. Reject application
    Expired -DNRW The status assigned when a PTIN holder never renewed for previous year and does not have any open renewal for current years. Reject application

    Note:

    PTIN(s) fall under personal suitability. If a Responsible Party’s PTIN is expired, voluntarily inactive, suspended, revoked or for a deceased individual, send Letter 4958, Rejection - Suitability for Responsible Party, to notify them they failed their suitability check. Send Letter 4956, Rejection for Individual Suitability - Owner to notify the business owner one of the Responsible Parties on their application failed their suitability check but do not disclose who or why. If the PTIN issue is for an authorized party who is also the principal/partner/owner that signed the application, and they are the only responsible party listed on the application, return the application as incomplete using Letter 4963, Returned for Incomplete Application. Personal suitability is addressed to the individual home address.

  5. Tax Examiners are to add comments in ESAM.

Forensic Document Training Requirements
  1. All Responsible Parties listed on a CAA application must complete a forensic document training course by an accredited vendor. The training is at the CAAs own expense and must provide the skills to effectively recognize fraudulent documents, particularly passports, driver’s licenses, birth certificates, visas, national identification cards, military and US state ID cards. To identify a provider, Tax Examiners must direct applicants to the internet for a vendor. The IRS does not endorse any specific individual or firm.

    Exception:

    CAA applications from VITA/TCE partners do not need to submit proof of completion of FDTC. The Stakeholder Partnerships, Education & Communication (SPEC) office will provide a listing of applicants that have taken the FDTC directly to the IPS.

  2. For an amended CAA application adding a new Responsible Party and all new or renewal CAA applications, the original FDTC certificate must be provided with the application.

    Note:

    If original FDTC is not submitted in Certifying Acceptance Agent Document Upload Tool (CAA DUT) research ESAM comments for indication of receipt of original FDTC. If original FDTC not provided, send Letter 4963, Returned for Incomplete Information, to applicant.

  3. The following certificates are not acceptable:

    • Except for those from the University of West Virginia, any computer-generated certificate.

    • Certificates more than four- years old.

    • Certificate listing more than one Responsible Party. Each Responsible Party must provide their own certificate.

    • Certificate signed by same individual as both the instructor and student.

    • Certificate issued by the firm applying for the program.

    • Facsimile copy.

  4. Questionable certificates are referred to the IPS for a determination/decision on their validity on whether they meet the requirements for fraudulent document identification.

  5. Tax Examiners are to add comments in ESAM stating the receipt of original FDTC including the date taken.

Principal Consent

  1. A Principal, Principal Consent or Responsible Official with delegated authority can add Principal Consents through the Registered User Portal (RUP) by using the "Authorized Users" screen.

    Note:

    The author can also add them prior to initial submission.

  2. Principal Consents have the same authorities as the principal.

  3. The user must select "Add" and then "Principal Consent" from the drop-down and enter the first name, middle initial, last name, name suffix, title, SSN and e-mail address.

  4. After entering the information, the user selects the “Save” button.

  5. The application displays the Principal Consent information in the "Authorized User(s)" table on the "Summary" screen.

  6. Individuals can use the "Edit" button on the "Authorized Users" screen to change information for each Principal Consent.

Application Summary/Comments

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

  2. The Application Comments screen shows remarks made by either Registered User Portal (RUP) or Tax Examiner users.

    • Tax Examiner have 24 hours to edit their comments and they are not visible to the Registered User Portal (RUP) user.

    • RUP users can only edit their comments during the current application session.

    Note:

    Comments can’t be deleted by either user.

Completed Application Comments on AA Application

  1. The tax examiner or applicant must enter comments. The comments must be complete and accurate for the tax examiners and other IRS personnel to understand the account activities. All account documentation must be specific to the actions performed and case resolution. This includes:

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

    • New applications received from an applicant previously suspended or terminated by the ITIN Policy Section (IPS) and the eligibility date to reapply has not expired

    • Responses received for rejected or incomplete application

    • Applications previously returned for missing information or suitability failure. Comment will address if the previous issue has been resolved or supporting documentation received

    • CAA failed to submit Forensic Document Training Certificate (FDTC) after Tax Examiner request

  2. Limit comments for new, renewal and amended applications to specified number of characters.

  3. Exhibit—list abbreviation to be used when making comments in ESAM. Abbreviations showed in Document 6209 may also be used.

  4. Enter the individual’s name and suitability results in ESAM as a single comment.

    • If the Authorized Party is a tax preparer but did not include their PTIN or if it is invalid, include an appropriate comment.

    • Also include the name of the principal, partner or owner of AA application, and their PTIN (if required) if not listed on the application as an Authorized Party.

      Example:

      Fisher Brown, passed TCC-I; Fisher Brown, TCC-I failed or Fisher Brown, PTIN P00000000

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

  6. Include as a Comment the EFIN number if unable to enter in the ESAM Input Screen.

  7. Include as a Comment, the name of any Responsible Party that is a principal or responsible official on an active/completed e-file application to support why a background investigation is not required. Also, include the active/completed EFIN.

  8. Include a comment for Accurint check (data/no data) for licensed professionals and authorized party not listed as ERO on e-file application.

  9. In addition to comments that you may enter in ESAM, you will also need to review comments entered by others (i.e., IPS). Tax Examiners must check ESAM comment history for indication that an AA/CAA is on an IPS Identified Prisoner List or Specially Designated Nationals and Block Persons List (i.e., “IPS - IPL or IPS - SDNL”).

Submission of Application

  1. After the user has entered all information through the Registered User Portal (RUP) on an application, the application must be submitted by selecting "Submit" .

  2. Applications can only be submitted by the Principal, Principal Consent or Responsible Official with designated authority.

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

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

Certifying Acceptance Agent Document Upload Tool
  1. The CAA DUT is the platform that is used by employees and AA applicants. AA applicants submit their credentials, forensic document training certificate, green card, etc., through the CAA DUT. Employees with check the CAA DUT often for receipt of files.

  2. Foreign nationals without an SSN must submit their entire AA package through the CAA DUT. Leads retrieve the package and enter the information into ESAM.

  3. IRS employees use the CAA DUT to issue letters to AA applicant.

Correspondence
  1. Applications that are missing documents, incomplete, or rejected for a tax compliance failure is returned to the applicant.

  2. Indicated in the table below is a list of letters used to communicate with a representative about their application.

    Correspondence Type Correspondex Letter Generated/Systemic
    Rejection-Individual Suitability-Owner Letter 4956C Generated
    Rejection-Missing Requested Information Letter 4956C Systemic
    Rejection-Previous Termination Letter 4956C Generated
    Rejection - Suitability for Responsible Party Letter 4958C Generated
    Returned for Incomplete Application Letter 4963C Generated
    Acceptance Agent Preliminary Agreement Letter 5609C Systemic
    Renewal Agreement Reminder Letter 5613C Systemic
    Certifying Acceptance Agent Congratulatory Letter Letter 5614C Systemic
    Acceptance Agent Congratulatory Letter Letter 5615C Systemic
    Amended Acceptance Agent Application Response Letter 5616C Generated
    Withdraw Acceptance Agent Application Response Letter 5616C Generated

Rejection - IRS Acceptance Agent Program
  1. Letter 4956C, Rejection - IRS Acceptance Agent Program, is issued for any of the following reasons:

    • We did not select your organization to participate in the program. We are rejecting your application because you didn’t provide the information requested in our prior letter. If you still wish to be considered for participation in the IRS Acceptance Agent Program, you must reapply.

    • We conducted a suitability check on each of the individuals listed on the application and found that none of them passed. We notified each individual and provided specific reasons for their denial. By law, we cannot disclose their information to you. If you still wish to be considered, you must reapply.

    • We found one or more individuals listed did not pass our individual suitability check. We notified the individual(s) and provided specific reasons for their denial. By law, we cannot disclose their information to you. However, since at least one individual passed the suitability check, we will continue to process your application. No further action is needed at this time.

    • After reviewing your application to participate in the IRS Acceptance Program, we did not select your organization to participate in the program because your organization was previously terminated, which resulted in your removal from the program. Please refer to your prior letter for an explanation. If you have questions about this matter, email us at IRC ITINProgramOffice@irs.gov.

    • We could not approve your application because you did not sign the signature pages of the preliminary agreement within the required time. If you still wish to be considered for participation in the IRS Acceptance Agent Program, you must reapply.

Rejection – Suitability for Responsible Party
  1. Letter 4956C, Rejection – Suitability for Responsible Party, is issued for any of the following reasons:

    • You did not pass the federal tax compliance check for the following return(s) and year(s). Once all compliance issues are addressed, your employer can add you as a responsible party.

    • Your employer can submit an amended application to add you if they still want you to be a responsible party for their organization.

Returned for Incomplete Application
  1. Letter 4963C, Returned for Incomplete Application, is issued for any of the following reason(s):

    • We identified the following issues in a tax compliance check of you and your firm. You must resolve these issues before we can approve your application.

    • We have no record you reported the income you earned from tax preparation on Schedule C, Profit and Loss from Business, for the tax returns above. We show you used your electronic filing identification number (EFIN) to file individual or business returns for your clients. However, we don't show you reported the income you received from such filings on either a business income tax return or your personal return. Report the income by filing appropriate business returns or an amended individual income tax return with a Schedule C or upload an explanation of why you did not report the income.

    • We could not determine if you were required to file the missing business- related returns listed above. If your company is not required to file those returns, call us at 800-829-4933 (1+267-941-1000) for international callers to update your filing requirement.

    • Your organization’s IRS exemption letter is missing. Upload a copy of the IRS letter granting your organization nonprofit status. If you do not have a copy, you can request one from the Tax Exempt/Government Entities office at ≡ ≡ ≡ ≡ ≡ ≡ ≡.

    • The organization status shown on line 1 of your application doesn't match our records for the employer identification number (EIN) on line 4. Verify and update the type of organization and EIN on your application and resubmit it. If you believe the organization status and EIN are correct as originally reported, call us for assistance.

    • You did not provide a copy of the listed responsible party’s green card. You must upload a copy of the green card.

    • You did not provide a copy of the listed responsible party’s visa. You must upload a copy of the visa.

    • The responsible party is listed as a certified public accountant, attorney, or enrolled agent; therefore, you must upload proof of current professional status. Proof includes a copy of an unexpired, state-issued certification or membership card.

    • The Forensic Document Training Certificate is missing or invalid. Each listed responsible party must provide their certificate attesting they have taken the training course. We cannot accept faxed or photocopied certificates and the certificate must have been issued within four years from the signature date of the application. To find a vendor that provides the training, go to IRS.gov/forensic. The IRS does not endorse any particular vendor. You must evaluate the training based on the types of documentation that are accepted for the ITIN program.

  2. Provide the requested information within 30 days from the notice date by uploading it at www.IRS.gov/caaReply.

  3. If you do not upload the requested information within 30 days from the date of this letter, we will reject your application, and you'll need to reapply if you still want to participate in the IRS Acceptance Agent Program.

Acceptance Agent Preliminary Agreement
  1. Letter 5609C, Acceptance Agent Preliminary Agreement, is sent to inform the applicant that we processed their application to participate in the IRS Acceptance Agent Program.

  2. Log onto the Registered User Portal to access, review and sign the acceptance agent agreement. If you do not sign the agreement within 30 days from the date of this letter, we will reject your application, and you'll need to reapply if you still want to participate in the IRS Acceptance Agent Program.

Renewal Agreement Reminder
  1. Letter 5613C, Renewal Agreement Reminder, is issued for any of the following reasons:

    • Your IRS Acceptance Agent Agreement will expire on 12/31/XXXX. You must renew your agreement this year to prevent a lapse in service. As a renewal applicant, we encourage you to begin the renewal process at least six months before the end of your existing agreement. This allows us to approve your renewal application before your agreement expires and prevents delays in processing any of your Form W-7, Application for IRS Individual Taxpayer Identification Number.

  2. All new and renewing applicants must take the following steps:

    • Complete the mandatory ITIN Acceptance Agent training at IRS.gov before submitting their application. Each individual listed as a responsible party will have to electronically sign their training certification statement before the application can be submitted.

    • Log onto the Registered User Portal to complete and submit your application to participate in the IRS Acceptance Agent Program.

    • If applying as a Certifying Acceptance Agent (CAA), complete Forensic Document Identification Training and upload the original certificate from your designated vendor at IRS.gov/caaReply.

      Note:

      IRS will not process applications submitted without the required certification forms. If you have questions about the application process, email us at ITINProgramOffice@irs.gov.

Certifying Acceptance Agent Congratulatory Letter
  1. Letter 5614C, Certifying Acceptance Agent Congratulatory Letter, is issued for the following reason(s):

    • To notify the CAA of their approval as a Certifying Acceptance Agent (CAA). CAA can access their signed agreement and assigned office code on the Registered User Portal. If requested, we added your name to the public list of Acceptance Agents on our website at IRS.gov.

  2. You are required to notify us of certain changes to information you submitted on your initial Acceptance Agent application.

    • If you are adding a business location or responsible parties, submit an amended application using the Registered User Portal.

    • For changes to your Acceptance Agent type, e-mail us at ITINProgramOffice@irs.gov.

Acceptance Agent Congratulatory Letter
  1. Letter 5615C, Acceptance Agent Congratulatory Letter, is issued for the following reason(s):

    • To notify the AA of their approval as an Acceptance Agent (AA). AA can access their signed agreement and assigned office code on the Registered User Portal. If requested, we added your name to the public list of Acceptance Agents on our website at IRS.gov.

  2. You’re required to notify us of certain changes to information you submitted on your initial Acceptance Agent application.

Acceptance Agent Application Response
  1. Letter 5616C, Acceptance Application Response, is issued when an amended application is received to update AA current approved record for the following reason(s):

    • Withdraw from the AA program. (Note. If you later decide to participate in the program again, you must reapply).

    • Add responsible party(s)

    • Add new business location

    • Change legal name on the agreement

  2. If you withdrew your agreement to change your Acceptance Agent (AA) type, you must reapply under the desired AA type to receive a new agreement.

New Application Processing

  1. New applications are accepted year- round (January through December) each year.

  2. Applications previously returned as incomplete or rejected for a tax compliance issue must be resubmitted within 30 days of the date of the letter.

    • If application is subsequently resubmitted within 30 days and the issues are still outstanding, reject the application for failing to resolve the issue.

    • If response is received within 30 days and the issues are resolved, process the application.

      Note:

      An application resubmitted or new, received after the 30 days of the date of the letter is considered a new application. Care must be taken to not mistakenly reject a new application on the assumption that is a late response for a Failure to Respond.

  3. Applicant(s) may contact IPS to request withdrawal from the Acceptance Agent (AA) program. ITIN Policy Section (IPS) will update the status in ESAM and add comments. If the applicant reapplies to participate in the AA program, a new application is required.

  4. Prior to processing, check ESAM to ensure the application status is new and not an amended or renewal application. If ESAM reflects an approved agreement:

    • and it expires at the end of the current year, process as a renewal application

    • or it does not expire at the end of the current year, process as an amended application

Renewal Application Processing

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

  2. Renewal applications are accepted January through December of the year the current agreement expires. To prevent a lapse in service, Acceptance Agents must submit a renewing application at least 6-months before the agreement expiration date.

  3. Review the application for completeness. ESAM will run compliance checks for business and individual(s) listed as responsible party on the Acceptance Agent application. If a "Hit" occurs, a case will generate, and review must be conducted by the tax examiner.

  4. If a renewal application is submitted before the start of the renewal period and it reflects new data, contact the applicant or Responsible Party to determine if it must be processed as an amended application.

Amended Application Processing

  1. Accept and process amended applications year-round. Applicant must revise the application if there is any change to the following information:

    • Individuals on the application

    • Address, telephone number or e-mail address

    • Business Name Change

      Note:

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

  2. Applicants must submit a revised/amended application, electronically signed by a Principal, Responsible Party, or a user who has been given the authority to make changes to an application if:

    • There is a change to the Principal or Responsible Party such as adding an individual, removing an individual or changing information concerning a current individual.

      Note:

      Only a Principal, Principal Consent or Responsible Party with delegate authority may add or remove another Principal or Responsible Party.

Applications Requiring Resubmission

  1. Approved AA Location Applications in the Completed (Approved) status must be resubmitted after any of the following types of changes are made (triggers application status change to Resubmission Required).

    • Add a (Responsible Party (RP)

      Note:

      On Submission only Principal, Partner, or Owner of the Business and added RP(s) can sign.

  2. Application Submission / Resubmission Checks will run against the Responsible Parties that were added to the AA Location Application.

  3. Checks will not run against the following:

    • Organization

    • Principal, Partner, or Owner of the Business

    • Approved Responsible Parties

Reapply Application

  1. A "Reapply" application is for an applicant that has been denied participation and has resolved the issue and/or met the eligibility date.

  2. The suspension period and eligibility date are determined by the level of infraction resulted from a compliance review.

  3. Applicants may reapply when the suspension period is completed.

    Note:

    Research application comments, summary page, comments, to determine if the applicant is eligible to reapply.

  4. Once a “Reapply” application is submitted:

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

    • New professional status information for individuals is required.

    • The system verifies the receipt of the professional status information validation. The application status moves from "Submitted Pending Documents" to "Submitted Reapply" .

    • The application is systematically processed for suitability and treated as a new application.

Foreign Acceptance Agent Application Processing

  1. If the Principal, Partner, or Owner of the Business does not have a TIN (SSN or ITIN) they must submit their Form 13551, Application to Participate in the IRS Acceptance Agent Program, through the Certifying Acceptance Agent Document Upload Tool (CAA DUT). Once applications are received, they are worked on a first in first out basis. The application will be created by the tax examiner in ESAM. This includes identifying all parties on the application such as the Principal, Partner, or Owner of the Business, Responsible Parties, and organization contacts. Principal Consents cannot be added to a Foreign Acceptance Agent application. In addition to identifying all parties on the application, the tax examiner will also;

    1. complete the Personal Suitability questions for both the firm and any individuals listed as responsible party

    2. confirm the Training Certificate Statement for ITIN Acceptance Agents,

    3. accept the paperwork Reduction Act notice and

    4. accept and sign all applicable Jurats

Acceptance Agent Process

  1. When an application is submitted, the application status will default to "Submitted Pending Documents" except for "Not for Profit" applications. When necessary documentation is processed, credentials verified populated, the application status will systematically update to the next status.

  2. Statuses, shown on the "Application Summary" screen are:

    • "Saved" ”: The AA Location Application (or the Renewal AA Location Application) has been created but not yet submitted. The Principal, Partner, or Owner of the Business and at least one RP and one Primary Contact must be on the AA Location Application.

      Note:

      Applications that have not been submitted and remain in Saved status for 90 days, then they are automatically updated to Deleted status.

    • "Submitted Pending Documents" ”: All RPs and the Principal, Partner, or Owner of the Business (or Principal Consent) have signed the Jurat, and the AA Location Application (or the Renewal AA Location Application) is submitted. Selections in the AA Location Application require documentation to be reviewed by the Tax Examiner, so the status will change to Submitted Pending Docs and an Application Case will be opened.

    • "Submitted New" ”: All RPs and the Principal, Partner, or Owner of the Business (or Principal Consent) have signed the Jurat, and the AA Location Application is submitted. If the application has never been approved before, the status changes to Submitted New.

      Note:

      If a case is opened for any acceptance criteria hits, the app remains in this status until case is worked/reviewed to completion.

    • "Submitted Revise" : All RPs and the principal, Partner, or Owner of the Business (or Principal Consent) have signed the Jurat, and the AA Location application is submitted. If the application has been approved previously, the status will change to "Submission Revise" .

      Note:

      : If a case is opened for any acceptance criteria hits, the app remains in this status until case is worked/reviewed to completion

    • "Submitted Reapply" : All RPs and the Principal, Partner, or Owner of the Business (or Principal Consent) have signed the Jurat, and the Renewal AA Location Application is submitted. If the Renewal AA Location Application has never been approved before, the status changes to Submitted Reapply.

    • "Completed (Approved)" : Application has been submitted, the Organization Eligible and all RPs are Suitable with valid Credentials and the AA Agreement is signed.

    • "Completed (Rejected)" : Application has been submitted, the Organization is Eligible, and all RPs are not Eligible / Suitable with invalid credentials.

      Note:

      All the RPs on a new AA Location Application did not pass suitability. AA Location Application was not Completed (Approved).

    • "Resubmission Required" : Application was previously Submitted in Review (EUP), Suspended (EUP), or in Application Renewal (automated) and must be resubmitted (with possible RUP updates).

    • Withdrawn: Registered User Portal (RUP) (Principal, Partner, or Owner of the Business) requests the Tax Examiner to “Withdraw the AA Application” and Tax Examiner carries out the Withdrawal of the Location Application or Company Application.

      Note:

      RUP users can no longer access the AA Location Application. ESAM automatically updates Agreement status to Inactive on the app (location).

    • "Deleted" : Application was in Saved status without being submitted for 90 days (automatically deleted by system) or was manually deleted by EUP user.

      Note:

      A Deleted application CANNOT be undeleted by a tax examiner. RUP users can no longer access the AA Location Application when the app is in the Deleted status.

  3. Each application is counted and entered on the spreadsheet. Create one workbook to record both AA Types, (AA/CAA). It is important to accurately record all required information on the spreadsheet.

  4. The Acceptance Agent applications are processed by tax examiners after input in ESAM by Registered User Portal (RUP). Tax examiners are responsible for analyzing the applications and determining the final disposition.

  5. If there are no pending documents and no suitability issues associated with a submitted application, ESAM will systematically pass the firm and personal suitability, change the provider status(s) to “accepted”, move application status to “completed” and generate the AA agreement.

Applications from Volunteer Income Tax Assistance/Tax Counseling for the Elderly (VITA/TCE) Partners

  1. Tax Examiners will process applications from Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) Partners. TE’s must verify that each responsible party has completed forensic document training. A Forensic Training Document Certificate (FDTC) is required.

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

  3. Not for Profit business activities default the application status to Submitted New and generates a case with a business rule of NFP.

  4. New applications from a VITA/TCE partner operated by a nonprofit organization must submit a copy of the organization’s IRS exemption letter via the Certifying Acceptance Agent Document Upload Tool (CAA DUT).

Systemic Process: New Applications

  1. The user enters the requested information for the application.

  2. The application status defaults to “Saved” and assigns a tracking number.

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

  4. When all documents needed are processed/validated for "For Profit" applications, the application status changes to "Submitted New" .

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

  6. If no suitability is required or if suitability is in "Pass" , the application status will move to "Completed" .

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

  2. If documentation is received and additional suitability research is required, a case is generated 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 resubmission once the documents are received.

Systemic Application Changes

  1. If an individual is added, the application status moves to "Resubmission Required" .

  2. f the user resubmits the application and documents are needed; the application status moves from "Resubmission Required" to "Submitted Pending Documents" .

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

  4. If suitability is passed, the system will move Acceptance Agent status from Applied to Accepted, then move the application status to Complete and generate agreement.

Cases

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

    Priority
    1 Deceased (Application, Person)
    2 ITIN Deactivation (Application)
    3 Identity Theft (Firm) (Application, Person)
    4 Z -Freeze (Application, Firm, Person)
    5 Prisoner List (Application, Person)
    6 SDN (Application, Firm, Person)
    7 Background Check (Application)
    8 NFP
    9 Potentially Dangerous Taxpayer (PDT) (Person)
    10 EFIN Dropped (Firm) (Application, Firm)
    11 Penalty Assessment Business Rule (Application)
    12 Tax Compliance (Application)
    13 T- Freeze (Application, Person)
    14 RP at Other AA Location (Application)
    15 Documentation Required (Application)
    16 DUT Doc Received (Application, Firm
    17 Country Change (Firm)
    18 Agreement Signed (Application)
  2. For new and re-apply applications, ASAP is run after all other Business Rules. Therefore, many cases can contain multiple business rules for the same firm or individual (e.g., tax compliance business rule). When generated, these will be assigned to the workgroup identified.

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

    Note:

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

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

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

    Note:

    Certain cases with the business rules "Continuous Suitability" , "Prisoner/Convict" , "Date of Death Exists for RO/Contact" , and "Resubmission Required" will not be closed until the issue is resolved.

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

Case Action – Suspend
  1. When assigned any case with the business rule of "Continuous Suitability" , "Prisoner/Convict" , "Date of Death Exists for RO/Contact" , or "Resubmission Required" , the case will remain on the assistors "My Cases" until completion.

  2. These types of cases either move suitability to "Recheck" systematically or the assistor moves them to "Recheck" .

  3. When working these types of cases and the suitability is addressed as normal:

    1. Return to the "Case Overview" screen

    2. Mark case as "Worked" .

Business Rules
  1. ESAM will run applicable eligibility/suitability checks against the firm and users on AA Location Applications upon application submission or resubmission.

  2. Business Rule (BR) "Hit" opens Application Case.

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

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

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

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

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

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

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

    • ASAP Deceased – triggered when an ASAP result indicating deceased (TC 540) is returned for that specific SSN.

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

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

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

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

    • NFP EFIN – triggered when a Not- for- Profit program is selected except for IRS Sponsored Business activities containing a valid SIDN.

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

    • DUT Doc Received - triggered when documents are available for download from the Certifying Acceptance Agent Document Upload Tool (CAA DUT).

EUP Roles and ESAM Workgroups
  1. An EUP role will be associated with workgroups in ESAM. When cases are generated, they will be assigned to specific workgroups initially.

  2. ESAM automatically assigns the case to the designated AA workgroup associated with the Primary Issue per the ESAM Case Priority table . See IRM 3.21.264.7.4.

  3. A description of workgroups are as follows:

    EUP Role/Workgroup AA Daily Acceptance
    Suitability/Acceptance checks run upon application submission.
    AA Continuous Acceptance
    Continuous/Periodic Suitability/Acceptance checks.
    AA External Request
    BR checks run upon application submission to identify application specific requests that require manual review/processing.
    AA/CAA Agreement
    Eligibility and Suitability checks have passed for an initial AA Location Application and the AA/CAA Agreement has been issued and signed by the Principal, Partner, or Owner of the Business.
    AA Assistor
    • Assigned to Cases

    • Can Work Cases

    • Can Close Cases

    • Can Reassign Cases (only back to queue)

    X X    
    AA Clerk
    • Assigned to all Workgroups

    • Can Close Cases

    • Can Re-Open Cases

    • Prints F13551 from DUT

           
    AA Lead
    • Assigned to all Workgroups

    • Assigns Cases to AA Assistors

    • Can Work Cases

    • Can Close Cases

    • Can Re-Open Cases

    • Can Reassign Cases

    • Can Suspend Cases (for a certain number of days)

    • Inputs F13551 from DUT

    X X X  
    AA Manager
    • Assigned to all Workgroups

    • Signs the AA/CAA Agreements

    • Can Assign Cases to AA Assistors

          X

  4. EUP Assistor users granted all standard authorities regarding AA Location Applications (Application related Authorities):

    • Can create applications

    • Can submit applications

    • Can resubmit completed applications (if all applicable Registered User Portal (RUP) users have signed)

    • Can edit the Principal, Partner, or Owner of the Business user on a Saved or Completed (Approved) AA Location Application

    • Can edit the EFIN on a Submitted, Completed (Approved) AA Location Application

    • Can edit, or delete Responsible Party (RP) users on a Saved AA Location Application

    • Can edit, or delete Responsible Party (RP) users on a Completed (Approved) AA Location Application

    • Can suspend an AA Location Application after Completed the status is (Approved)

      Note:

      Suspend can be for 12 months (ESAM to keep track) or indefinitely

    • Can set all but the last AA Location Application for an EIN to Deleted

    • Can set the status for an AA Company Application (AA / CAA Agreement)

External Customer Data Store (ECDS)

  1. External Customer Data Store (ECDS), maintained at the Enterprise Computing Center in Martinsburg, WV, is a database that is used to store, update, and monitor Acceptance Agent application information. The database is also used to store information for other e-Services products as well. There are two ways to access the information:

    1. The Employee User Portal (EUP) is a web hosting infrastructure. It supports an Intranet portal that allows IRS employees to access AA applications and data. The Business Entitlement Access Request System (BEARS) is used to identify the EUP user roles for managerial approval. View “e-file” application, AVEA (ESRV-APPL-EFILE), is the most selected role associated with application usage. This role only allows view access of the application within the EUP.

    2. Registered User Portal (RUP) infrastructure gives users the ability to electronically create file and revise Acceptance Agent application(s).

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

Accessing Acceptance Agent Application

  1. Employees can access e-Services products via the EUP by using their SEID and password to login. Two menus display after login:

    • "Applications section" which allows the user to access various applications.

    • "Tools sections" which allows the user to perform actions such as password maintenance and logging out of the system.

External Services Authorization (ESAM) AA Application Menu

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

    • Select the "esrv-ESAM-Applications"

    • Select "New Application" from the drop-down and select "AA Application"

    • Firm Information screen appears

  2. To globally replace an authorized user:

    • Select "esrv-ESAM-Applications"

    • Select "Replace Authorized User"

    • Select "AA Application"

    • "Replace Authorized User" screen appears

  3. To access an existing application:

    • Select "esrv-ESAM-Applications"

    • Select "Search" , from the drop-down menu

    • Select "Application" from the drop-down menu

    • Under the "Search Criteria" use "Search By" application type with a

    • Value of "AA Application" from the drop-down menu

    • Select additional criteria as needed to refine the search

    • Search results will appear

Professional Status Review and Processing

  1. All Principals and Responsible Parties that have selected a professional status of Attorney, CPA, EA and officer of a publicly owned corporation will have completed the professional status information on the "Personal Credentials" screen. This will include:

    • Professional type

    • State where licensed/credential, license number, expired (Yes or No) and expiration date for CPAs and attorneys

    • Enrolled agent number for EAs

  2. Upon submission of the application, a case with the "Primary Issue" of "Credentials Needed" will be generated in the "AA Application Review" workgroup.

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

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

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

    • For enrolled agents, their number will auto populate. Because of this, a case is not generated.

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

  5. When an AA Professional Status is selected, and the credentials are in the process of verification (Credential Result Process) the status shown on the Application Summary page are as follows:

    • None Submitted

    • Status was selected, but the Professional Credential has not yet been provided via the DUT

    • Validated

    • The Tax Examiner has validated the uploaded Professional Credential

    • The system has found the PTIN (Tax Preparer), the person is an RO on the related E-FILE application that is an Electronic Return Originator (ERO); or the person is an Enrolled Agent

    • Expired

    • The Tax Examiner has manually set the Professional Credential to Expired

      Note:

      If only one AA Professional Status is verified, the status on the Application Summary page will be "Verified" , as only one Professional Status / Professional Credential is required for a Responsible Party. Select the appropriate response from the drop-down menu as to whether supporting documentation was received (Validating status as indicated above is equivalent to receiving documentation).

  6. 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

  7. Background checks, using Accurint®, are conducted on all CPAs, Attorneys and Enrolled Agents. Background checks are conducted on responsible parties identified on the Acceptance Agent application as an Electronic Return Originator (ERO) and not listed as a responsible official in ESAM. Comments are made in the Notes section of the Personal Suitability Status screen indicating if the Accurint report contained data or no data.

    • Credential cases with no data continue with normal processing.

    • Credential cases with data are reviewed by lead group for adjudication.

Professional Status and Credential Documentation

  1. Acceptable proof of a currently active professional status:

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

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

    • An officer of a publicly owned corporation must submit proof 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.

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

Quality Review

  1. Team Leads and Designated Assistors (Reviewers) will:

    1. Perform random quality checks of applications processed by an assistor.

    2. The results of the quality review process by the Leads/designated assistors are used to identify areas needing additional emphasis, training or clarification.

    3. Review at least one application for Embedded Quality Review System (EQRS) purposes monthly. These reviews are considered during the assistor’s annual performance evaluation.

  2. A review by a Lead/designated individual includes (but is not limited to):

    • Whether the assistor identified all incomplete or missing information or documents when the application was initially reviewed

    • Accuracy of ESAM entry

    • Compliance with this IRM

  3. The following items are critical to the ITIN Acceptance Agent program:

    • EIN

    • Responsible Party name

    • Mailing address

    • Background check requirement

    • Title must be correct for EIN owner

    • Signature

    • Fraud Document Training Certification (FDTC) for CAA applicants.

Compliance Reviews (ITIN Policy Section and Small Business/Self-Employed Field Examination Use Only)

  1. A Certifying Acceptance Agent is subject to compliance checks by the IRS to determine their compliance with the rules, procedures, and applicable laws related to the submission of Form W-7 applications and related tax returns.

  2. Rev. Proc. 2006-10, 2006-1 C.B.293 Section 5.03 (2) provides, A Certifying Acceptance Agent must also agree to furnish supporting documentary evidence to the IRS upon request in such manner as the IRS and the Certifying Acceptance Agent will establish. The Certifying Acceptance Agent agreement will specify the way IRS compliance checks will take place (i.e., either on-site or through correspondence).

  3. There are two types of Compliance Reviews: On-Site reviews and correspondence reviews. On-Site reviews are conducted by SB/SE and correspondence reviews are conducted by ITIN Policy Section.

  4. There are four categories of Compliance Reviews as shown in the table below:

    Referral Referrals are used to investigate allegations, complaints, and warnings against CAAs. Referral visits involve the receipt of a referral from return preparers, taxpayers, IPS, and other IRS function.
    Follow-up Follow-up reviews are mandatory and used to investigate allegations, complaints and warnings against CAAs and are based on violations identified in a previous year. They will usually be performed when a probation letter has been issued to the CAA to verify the corrective action was taken.
    Targeted Targeted selections are based on a risk-based selection criteria indicating that AA program compliance issues may be present in a particular CAA’s practice.
    Initial Initial reviews are used to determine general compliance with the AA Program in accordance with the CAA agreement and Rev. Proc. 2006-10, 2006-1C.B.293. The reviews are based upon a defined methodology that uses risk-based selection criteria.

Small Business/Self-Employed On-Site Reviews

  1. SB/SE Examination provides support to the ITIN Policy Section (IPS) by conducting on-site visits. Wage and Investment (W&I) will provide Examination Policy Analyst with the projected direct examination staff years needed to conduct the compliance visits so this workload can be incorporated into the examination plan for the next fiscal year. The Examination Policy Analyst will ensure this information is provided to Exam Planning and Delivery (EPD) for incorporation into the examination work plan for the next fiscal year.

  2. SB/SE Examination Policy and the ITIN Policy Section will meet and negotiate the proposed number of CAA reviews to be performed by SB/SE monitors. If agreement cannot be reached on the list of monitoring visits to conduct, the issue is elevated to the Director, Examination Policy.

  3. IPS will provide SB/SE with the listing of CAAs selected for review. The list will include the CAA, type of visit, and geographical location.

  4. The agreed upon CAA will then be forwarded by the Exam Planning and Delivery (EPD) analyst assigned to the Director, EPD, for approval.

  5. The IPS provides SB/SE Examination with the following:

    1. Compliance Review materials and support for training delivery. SB/SE will provide training on examination issues or procedures.

    2. CAA related information to build the case files.

    3. Data Collection Instrument (DCI)

    4. Support for technical questions

Certifying Acceptance Agent Workload Identification
  1. IPS will determine the method to select CAAs for compliance reviews by SB/SE Examination. Once the number of CAA reviews have been approved, a spreadsheet with the pertinent information is securely e-mailed to the designated Point of Contact (POC) in EPD and Examination Policy.

  2. EPD will establish each case file on the designated site and ensure the following is included:

    • Copies of the applications associated with each case

    • Data Collection Instrument (DCI)

    • Case Activity Record
      EPD will separate the list of CAAs by areas and send it to the correct Area Planning and Special Programs (PSP) Territory Managers (TM).

  3. The area PSP TMs will provide the list of CAAs for their areas to their PSP CAA/ITIN coordinator. The area PSP CAA/ITIN coordinator will evaluate the geographic locations of the staffing personnel in the area to determine the number of participants to monitor CAAs. They will then distribute the list to the group managers for assignment to trained monitors. The group managers will relay the assignment information back to the area who will relay it to EPD.

  4. The area PSP CAA/ITIN coordinator will coordinate with the field to ensure all participating monitors attend the CAA compliance review training.

  5. The area CAA/ITIN coordinator monitor the cases and track the progress of the assigned visits. They also address any inquiries from the monitors during the process.

Scheduling the Visit with the Certifying Acceptance Agent
  1. Visits must be made by appointment. Upon receipt of the CAA case file, the monitor must send Letter 6286, Appointment Notice, to schedule an initial appointment. The letter will inform the CAA of the purpose of the visit and the approximate time needed to perform the compliance review. If the CAA does not respond to the letter within 10 calendar days, the monitor must try to reach them by telephone using the contact information in the case file. If the monitor reaches the CAA, they can negotiate a date for the visit.

  2. If the monitor is not able to contact the CAA via telephone or letter, the monitor will contact the area PSP CAA/ITIN coordinator who will notify the IPS via e-mail.

Conducting the Visit
  1. It is recommended to conduct the interview prior to reviewing the CAA’s records. Interviews must only be conducted with the responsible party as listed on the application information sheet or person designated by the responsible party to act in their absence or contact or alternate contact as showed on the application information sheet.

  2. All visits must be conducted in a professional and courteous manner. Visits are conducted at the physical business location of the CAA.

  3. Monitors must use the CAA Compliance Review DCI to capture the results of the compliance review visit. The DCI for a specific CAA will already be in the case file for the assigned monitor.

  4. The CAA review includes, but is not limited to the following:

    • Interviewing the CAA to determine their ITIN application process;

    • Visiting offices and observing office space for interviews to evaluate safeguards used to keep confidentiality of client meetings and record;

    • Reviewing files, records, and standard operation procedures;

    • Analyzing advertising material;

    • Inspecting files, CAA must keep files for three years;

    • Discussing any issues or concerns the CAA may have about the program, and

    • Advising the CAA that the IRS ITIN office will send them a letter about the outcome of this visit.

Reasonable Cause
  1. Reasonable cause is considered by the ITIN Policy Section when addressing the CAA’s explanations for the non-compliance. The monitor must therefore include in the file any explanation or information the CAA provides. For example, the destruction of records due to a casualty qualifies as reasonable cause. The casualty must be substantiated by fire department or police records. The CAA must provide documentation that the circumstance was beyond their control and reasonable actions were taken to resolve the noncompliance as quickly as possible for reasonable cause to be present.

Identifying Violations
  1. The following techniques may be used to identify potential violations within the AA Program. The list is not all inclusive, and the monitors may develop their own techniques to identify violations.

    • Tax Returns - When reviewing the tax return, it is important to note the tax year as a recent legislation may affect specific line items such as exemptions and certain credits. Confirm the CAA submits a copy of the completed tax return along with the Form W-7 unless an exception is being claimed. Review the tax return submitted with Form W-7. The return will be reviewed to verify whether a dependent was claimed for the Form W-7 submitted. For each dependent child with a W-7 you must verify if the dependent was a resident in the U.S. and then check to see if Child Tax Credit (CTC) or Additional Child Tax Credit (ACTC) was claimed. Based upon the analysis of the returns, ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

    • ITIN AA Application -To become a CAA, an applicant must complete an application to participate in the IRS Acceptance Agent Program. Once approved to participate in the Acceptance Agent program, the CAA will receive an "congratulations letter" and agreement package containing their EIN/Office Code and a sample Certificate of Accuracy (COA) as well as a copy of Pub 4520, Acceptance Agents Guide for Individual Taxpayer Identification Number. Review the CAA’s application record provided by the area PSP CCA/ITIN Coordinator to ensure the CAA’s information is correct. The authorized party is the only person allowed to sign the COA. Verify the authorized party on the application.

    • Security - Inspect the interview area for Form W-7 and tax returns lying around where they might be in view to other taxpayers. Inspect the interview area to ensure the EIN/Office Code is not posted in large numbers. Interview the CAA to determine who has access to the taxpayer files. Verify if the taxpayer records are locked and secured at the end of each day by observing the storage area used for files.

    • Physical Checks - Inspect the interview area of the organization. If the office is in disarray, this could mean there are potential problems. The monitors must depend on their own instinct and judgment about the office environment, keeping in mind all offices are different. The Authorized Party must sign and complete all pertinent information in the Certificate of Accuracy including the EIN and Office Code.

    • Knowledge - The CAA must be familiar with Pub 4520, Acceptance Agents Guide for Individual Taxpayer Identification Number, the CAA Agreement and Rev. Proc. 2006-10, 2006-1 C.B.293. Inquire if the CAA attends the IRS sponsored Tax Forums. They must be aware of the new law changes. Ask the CAA if they have access to the internet. Law changes and other valuable information is available on the IRS.gov web site. Ask the CAA whom they contact when they need assistance with ITIN applications. Ask the CAA if they have viewed the ITIN Webinar on irs.gov. Inquire about the location of their Publication 4520.

Referrals
  1. During the CAA visit, the monitor may recognize compliance issues. Remember that the purpose of the visit is strictly to focus on the CAA’s adherence to the guidelines in Rev. Proc. 2006-10, 2006-1 C.B.293, the CAA Agreement, and Publication 4520. If a compliance issue arises outside the parameters of the visit, a "Referral" must be made to the IPS for further action.

  2. If the CAA has knowledge of other CAAs incorrectly completing the Form W-7, claiming dependents that may not be allowable to claim the Child Tax Credit (CTC) or Additional Child Tax Credit (ACTC), you can accept the information or tell the CAA to e-mail the ITIN Policy Section (IPS) at ITINProgramOffice@irs.gov. Ask them to include all information they have including copies of violations if possible.

Handling Results of Certifying Acceptance Agent (CAA) Reviews
  1. It is very important that the monitor document their observations. The monitor will need to provide all pertinent information in the Comments section of the DCI or in a separate document. The IPS will use the monitor’s data to evaluate the CAA’s compliance to program guidelines and send the CAA a letter.

    Reminder:

    At the conclusion of a visit, the monitor tells the CAA that the IRS ITIN office will send them a letter about the outcome of their visit. The monitor does discuss any recommendations.

  2. The IPS will decide the seriousness of the reported violations and issue the correct sanctioning letter.

  3. The IPS will issue an acceptance, warning, probation or termination letter to the CAA depending on the severity of the violation.

Case File Assembly and Case Closure to PSP Coordinator
  1. At the conclusion of the compliance review visit, the monitor must complete all related compliance review documents and upload them in the assigned case folder for that CAA on the designated SB/SE site. Generally, the file must be closed within five workdays of the visit from the group. Monitors must explain any delays in closure exceeding this time frame on Form 9984, Examining Officer’s Activity Record.

  2. The case file must include but is not limited to the following:

    • Form 9984 with manager’s initial or signature that case was reviewed;

      Note:

      Monitors are to use activity code 735 for all time associated with the CAA program.

    • Copy of appointment letter (if applicable)

    • CAA Compliance Review DCI

    • Any other work papers used to determine compliance

    • AA application information

Area PSP CAA/ITIN Coordinator's Responsibilities
  1. The area PSP CAA/ITIN coordinator is a direct link between the monitor and the headquarter analyst. The area PSP CAA/ITIN coordinator has several responsibilities before the case can be closed to ITIN Policy Section (IPS).The area PSP CAA/ITIN coordinator responsibilities include but are not limited to the following:

    1. Scheduling CAA/ITIN training for monitors in their area.

      Note:

      Area PSP CAA/ITIN coordinators may have to train monitors if they are unable to attend the national training.

    2. Reviewing all closed CAA/ITIN cases and closing them to IPS.

    3. Providing status updates to the headquarter analyst. The information for the status update is contained in the CAA Monitoring Document on the designated site.

    4. Provide ad hoc feedback/reporting to SB/SE headquarter analyst when requested.

Case Closure to ITIN Policy Section (IPS)
  1. The Area PSP CAA/ITIN coordinator will review the cases, retain a copy of Form 9984, Examining Officer’s Activity Record (electronic or paper) for their records. The coordinator must ensure the case file, including the completed DCI and related documents, are uploaded on the designated site.

  2. The designated IPS analyst will review the closed case files on the site to ensure they are complete.

CAA Monitoring Document
  1. SB/SE keep a CAA Monitoring Document to keep track of the progress of the on-site compliance reviews.

  2. Area PSP CAA/ITIN Coordinators must monitor this document and update to annotate follow-up actions, completion dates and closures. This document must be available to headquarter analysts for interim status reports. All applicable fields in the CAA Monitoring Document must be completed.

  3. The CAA Monitoring Document may contain a selection of items listed below:

    • Record number

    • EIN

    • EFIN

    • Legal Name

    • Responsible Party

    • Business Address (City, State, and Zip Code), Post of Duty (POD)

    • Area

    • Stakeholder Liaison (SL) Name

    • Examiner Name

    • SEID

    • Appointment Letter Date

    • Closed to ITIN Group

    • Comments Tab

Correspondence Reviews ITIN Policy Section (IPS)

  1. IRS conducts correspondence reviews when the organization is selected for a compliance review but not referred for an SBSE on-site visit. IPS conducts the correspondence compliance reviews.

CAA Notification of Review
  1. The IPS Analyst contacts the CAA to request information to conduct the correspondence review using the Initial Correspondence Compliance Letter.

  2. The correspondence review letters request copies of the following:

    • Signed Form W-7

    • Related tax returns (whether prepared by you or another practitioner)

    • Form W-7 (COAs), Certificate of Accuracy for IRS Individual Taxpayer Identification Number

    • CP notices (i.e., assignment, suspense, or reject letter) received from the IRS

    • Intake and interview notes

    • Identification documents you relied upon to certify the applicant’s foreign status, identity, and residency where applicable

      Note:

      If Form W-7 is part of a Family Pack, all documents associated with the Family Pack must be submitted.

    • Exception documentation (if exception claimed in lieu of filing a tax return)

    • Standard of Operation

    • Preparer Tax Identification Number (PTIN)

    • Forensic Document Training Certificate

  3. The CAA is allowed 30 days to respond with requested information.

Conducting the Review
  1. The IPS Analyst reviews the information returned by the CAA to ensure that all information requested is received and takes the following initial actions:

    • Capture the information on the Document Collection Instrument (DCI)

    • Review the identified sanction(s) and make adjustments as appropriate.

  2. Refer to the table below for other appropriate Analyst responses to the CAA:

    If Then
    The CAA responds to the request and informs you that there was a theft, fire, natural disasters, and/or any situation beyond the CAA’s control, Determine if "Reasonable Cause" exist before proceeding. If reasonable cause is determined, the compliance analyst will consult with the Senior Tax Analyst on appropriate actions and notify the CAA.
    CAA does not provide the requested information, Contact the organization by telephone to determine their reason for not responding. If the telephone number is not valid, contact by email. Advise the CAA what is needed and tell them they must submit the requested information within 7 days to remain in the program. The analyst must document the chronology to reflect the contact and follow-update. If CAA advises of an email telephone or address change, update RTS as appropriate.

  3. Once the response is received the IPS Compliance Analyst must follow instructions below:

    • Staple letters sent, correspondence received, envelopes, and any other information related to the CAA case to the DCI.

    • Document the chronology to record the date the correspondence was mailed, the date the response was received, and the date analysis was conducted.

Case Closure

  1. IPS Compliance Analyst must follow instructions below to close the compliance review:

    • Review the information in the case file.

    • Compare the information in the case file with the submitted W-7 record in the Real Time System (RTS) to determine the correct sanction. Ensure the DCI reflects all sanctions identified.

    • Prepare a synopsis of the review identifying the infractions and counts, related W-7 applicant by first initial and last name, and overall final recommendation.

    • Prepare the correct sanction letter.

    • Forward the completed file to the Senior Tax Analyst for review.

Sanctions

  1. On-Site reviews may include reviewing Form W-7 applications and related documents, scrutinizing advertising material, inspecting files and observing office area (for client interaction). If the monitor discovers the CAA is noncompliant because of a violation of one or more of the rules governing the IRS AA Program, the monitor will provide all pertinent information in the Comments section of the DCI or in a separate document for IPS review. Correspondence compliance reviews are the same as On-site reviews excluding the ability to observe the office area.

  2. IPS will review the monitor’s CAA compliance package as well as the information provided by the CAA in response to a Correspondence Review to determine what infractions are appropriate.

  3. If no infraction is identified, the CAA will receive an acceptance notification. Otherwise, infraction(s) may result in a warning, probation, or termination. The monitor must therefore document their observations in detail.

Levels of Infraction
  1. The IPS will monitor a CAA for conformity with all rules and guidelines governing the IRS ITIN AA Program.

  2. The IPS will monitor the CAA’s compliance in the following areas:

    • Applicable rules listed in Rev. Proc. 2006-10, 2006-1 C.B.293 and Pub 4520.

    • Unacceptable cumulative suspense or reject rate

    • Significant complaints about a CAA’s performance in the program

    • Loosely kept/unorganized files

    • Violation of the advertising standards

    • Failure to keep and make available records as described in Rev. Proc.2006–10 and the CAA Agreement where the non-compliance has occurred.

    • Erroneous filing of W-7s to claim individuals who do not qualify as dependents to claim Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC), where applicable.

  3. Use reasonable cause criteria when addressing the above,

  4. In all cases, the IPS will review all the factors relevant to the violation. When the violation is minor, a written reprimand (warning) is issued. See Letter 6284, Warning Notice

Level One-Warning
  1. Level one (minor infractions) characteristics include:

    • Little or no adverse impact on the quality of ITIN applications or IRS

    • No negative media impact

    • Self-correcting compliance issues

    • Procedural infractions

  2. Level one infraction examples include:

    • Loosely kept or unorganized files

    • Failure to submit applications to IRS in a timely manner

    • Failure to keep copies of all notices from IRS

    • Failure to update IRS AA application for minor items

    Example:

    A monitor notes during a visit that the only violation is a discrepancy with the telephone number listed on the printout section of the AA application information. The CAA submits the correction to the ITIN Policy Section in the presence of the monitor. This action is a minor violation that warrants a verbal warning. The monitor will note the corrected violation on the daily activity record and indicate that a warning was issued to the CAA.

  3. Apply reasonable cause criteria when addressing the above examples. If the violation is due to lack of proper internal controls or office policy, consider a level two infraction.

  4. In most situations, the CAA can correct or take corrective action to resolve the minor violation immediately.

Level Two-Probation
  1. When the violation is major, a written reprimand (probation) is issued. See Letter 6281, Probation Notice. Level two (serious infractions) include:

    • Actions adversely impacting the quality of Form W-7, Application for IRS Individual Taxpayer Identification Number, submitted to IRS on behalf of their clients

    • Actions negatively impacting taxpayers

    • Continued level two behavior or significant infractions

    • Intentional disregard of the AA Program rules

    • Misrepresentation

    • Non-compliance (not self-corrected)

  2. Level two infraction examples include:

    • Information stated on W-7 not consistent with supporting documentation

      Example:

      If documents on the W-7 is different than what is kept in client file, this is considered significant.

    • Unauthorized party signed Certificate of Accuracy (COA)

    • Failure to complete Certificate of Accuracy (COA), three or more occurrences.

    • Failure to submit complete and accurate information (Supporting documentation, school records, tax return, etc.), three to four occurrences.

  3. Level two infractions generally result in:

    • Loss of CAA privileges

    • One-year probation

    • Status change from CAA to AA (required to submit documentation with every Form W-7 application

  4. CAA may submit a written request for reconsideration within 45 days of the date of the letter. A second compliance review must be conducted after a year to ensure corrective measures have been taken. If the results are favorable, they may request reinstatement as a CAA in writing. If the results are not favorable, they will remain an AA for the duration of their agreement.

Level Three-Termination
  1. When the violation is major and egregious, notification of termination from the AA Program is issued. See Letter 6280, Termination Notice. Level three (major infractions) characteristics include:

    • Significant adverse impact on the quality of submitted Form W-7 applications

    • Continued level two behavior

    • Egregious infractions

  2. Level three infractions are violations of rules governing IRS AA Program, that, in the opinion of the Service, have a significant adverse impact on the quality of submitted Form W-7 applications. Level three infractions include continued level two infractions after the Service brought the level two infraction to the attention of the CAA. Some level three infractions may result in termination from the IRS AA Program and referral to Compliance for a preparer project.

  3. The following reasons (not all inclusive) may lead to termination of a CAA from the AA Program:

    • Failure to keep any records

    • Maintaining invalid or expired documents

    • Failure to take Forensic Document Training

  4. Egregious infractions such as tax fraud and unethical practices in Form W-7 preparation may result in termination from the AA Program. Examples include:

    • Failure to cooperate with the Service’s efforts to conduct compliance reviews

    • Continued level one or level two infractions that are not corrected

Reconsideration
  1. Certifying Acceptance Agents may submit a written request within 45 days of the date of the Compliance Review letter to the ITIN Policy Section (IPS) for reconsideration of a Compliance Review determination for their organization. The request must be mailed to the IRS, ITIN Policy Section, Mail Stop 97-WI, 401 West Peachtree Street, NW, Atlanta, GA 30308. In order for a Compliance Review determination to be changed the CAA must be able to provide documentation related to the stated infractions that was available at the time the initial W-7 application was prepared or Compliance Review visit occurred.

  2. IPS will review the case and reconsideration letter request and determine if a change in the initial determination is warranted. If the CAA provides the necessary documentation, an adjustment is made which could result in removal of the initial infraction(s) cited and a change in the initial Compliance Review determination. IPS will notify the CAA of the result of their reconsideration request by mail within 30 days of receipt of the request.

External Services Authorization (ESAM) Acceptance Agent Application Navigation

  1. To start the first AA location application, Registered User Portal (RUP) will:

    • Login to ESAM and select Individual personality level

    • From the landing page, click on the "New Application" drop-down button and select "Acceptance Agent Application" option. User will be directed to the "Firm" page.

    • From the Firm page, fill in all the required information and click Continue to create the first AA location application.

  2. The EUP will input Form 3551 application for Foreign applicant without TIN. The EUP will:

    • Log into ESAM

    • From the landing page, click on the "New Application" drop-down button and select "Acceptance Agent Application" option. User will be redirected to the "Firm" page.

    • Fill in all the required information on the Firm page and click Continue to create the first AA location application

    Note:

    User can always come back to fill out the rest of the location application.

Resume working on Existing Acceptance Agent Location Application

  1. To resume working on an existing AA location or access and existing AA agreement to manage the existing location application, The RUP will:

    • Login to ESAM and select the Firm personality level.

    • From the landing page, click on the Continue button under the "Manage Acceptance Agent Agreement" section. User will be redirected to the "Current Agreement Summary" page.

  2. The EUP will take the following action:

    • Login to ESAM.

    • From the landing page, click on the "Search" drop-down button and select "Application" option. User will be redirected to the "Application Search" page.

    From the Application Search page,
    If Then
    Office Code has been assigned Add the "Office Code" search criteria and enter the Office Code
    Office code has not been assigned
    • Add the "Taxpayer ID" search criteria and enter the EIN.

    • Add the "Application Type" search criteria and select "Acceptance Agent Application" .

    • From the "Search Results" table, select the first result and click the "View" icon. User will be redirected to the "Location Application Summary" page.

    • From the "Location Application Summary" page, click on the "View Agreement Summary" link. User will be redirected to the "Agreement Summary" page.

Agreement Summary Page

  1. The "Agreement Summary" page is the most important page for the AA’s Principal, Principal Consent and EUP. There are three possible agreement types:

    • Old

    • Current

    • Renewal

    The default agreement type is Current.

  2. The Agreement Summary Page contains the following information:

    • Agreement section

    • Location Summary section

    • Filter criteria section

    • Location section

    The location section list all location applications associated to the current agreement. The maximum number of locations that ESAM will display is 250. If there are more than 250 locations associated the agreement at hand (mentions in the location Summary sect), user can apply additional filter to narrow the list to access the location application they wish to view.

    Note:

    EUP user can see all location application associated to the agreement, RUP can only see non-deleted location applications.

  3. From the Current agreement summary, RUP user (when applicable), will be able to perform the following actions:

    • Add additional location(s) to this agreement (Principal or Principal Consent),

    • View and maintain existing individual location application associated the this agreement (Principal or Principal Consent),

    • Delete existing individual location application from this agreement (Principal or Principal Consent),

    • View the agreement PDF (Principal or Principal Consent),

    • View the appendix PDF (Principal or Principal Consent),

    • Sign the agreement (Principal),

    • Start the renewal process (Principal),

    • Navigate between the Current agreement and Renewal agreement (Principal or Principal Consent.

  4. From the Current agreement summary, EUP user (when applicable), will be able to perform the following actions:

    • Add additional location to the approved agreement (AA Tax Examiner or AA Lead)

    • View and maintain existing individual location application associated the this agreement (EUP who can view/edit AA application)

    • Delete existing individual location application from this agreement (EUP who can edit AA application)

    • View the agreement PDF (EUP who can view/edit AA application)

    • View the appendix PDF (EUP who can view/edit AA application)

    • Sign the agreement (AA Tax Examiner or AA Lead)

    • Approve the agreement (EUP who is AA Manager)

    • Edit the approved agreement Agent Type and Corresponding option (AA Lead or AA Manager)

    • Suspend the approved agreement (AA Lead or AA Manager)

    • Resume the suspended agreement (AA Lead or AA Manager)

    • Terminate the approved agreement (AA Lead or AA Manager)

    • Withdraw the approved agreement (AA Lead or AA Manager)

    • Start the renewal process (AA Tax Examiner or AA Lead)

    • Navigate to the Renewal agreement (EUP who can view/edit AA application)

  5. From the Renewal agreement summary, RUP user (when applicable), will be able to perform the following actions:

    • Add additional location to this agreement (Principal or Principal Consent)

    • View and maintain existing individual location application associated this agreement (Principal or Principal Consent)

    • Delete existing individual location application from this agreement (Principal or Principal Consent)

    • View the agreement PDF (Principal or Principal Consent)

    • View the appendix PDF (Principal or Principal Consent)

    • Sign the agreement (Principal)

    • Navigate to the Current agreement (Principal or Principal Consent)

  6. From the Renewal agreement summary, EUP user (when applicable), will be able to perform the following actions:

    • Add additional location to the agreement (AA Tax Examiner or AA Lead)

    • View and maintain existing individual location application associated to this agreement (EUP who can view/edit AA application)

    • Delete existing individual location application from this agreement (EUP who can edit AA application)

    • View the agreement PDF (EUP who can view/edit AA application)

    • View the appendix PDF (EUP who can view/edit AA application)

    • Sign the agreement (AA Tax Examiner or AA Lead)

    • Approve the agreement (AA Manager)

    • Navigate to the Current agreement (EUP who can view/edit AA application)

  7. How can RUP (Principal) or EUP (Tax Examiner or Lead) start the renewal process from the Current Agreement Summary Page?

    When And Then
    the Current agreement status is Approved with the expiration date is the current year RUP has not started the renewal process, user will be reminded to start the renewal whenever they come to the Current agreement summary.
    Click on the button to create the first AA location under the Renewal agreement.

  8. How can RUP (Principal) or EUP (Tax Examiner or Lead) continue the renewal process from the Current Agreement Summary Page?

    When And Then
    the Current agreement status is Approved with the expiration date is the current year RUP has started the renewal process, user will be reminded to navigate to the Renewal to finish whenever they come to the Current agreement summary.
    Click on the button to navigate to the Renewal Summary page.

Acceptance Agent (AA) Reports

  1. AA Reports are generated from External Services Authorization (ESAM). Access is gained by selecting the AA Reports link on the Home screen.

    Note:

    Additional reports are also found on the ITIN Reports link on the Home screen.

  2. AA Reports are available based on RTS role and include the following:

    Name Description Summary Note
    ESAM AA Applications Inventory Provide a count of AA Location Applications submitted for a current week (by AA / CAA and by status) plus year to date (YTD). Defined columns: Number of applications by AA / CAA and status (not including “saved”) Table 1 – Current Week Table 2 – YTD AAs vs. CAAs / Renewal Separately than ones that are approved. No date prompts. Note: Received Date is the date of submission; Count from Sunday through Saturday; Separate New, Renewal, Amended application counts if possible
    ESAM AA Applications Inventory Year Over Year Provide a count of AA Location Applications submitted for a selected date (by AA / CAA and by status). Select Received Start Date and Received End Date. Defined columns: Count of AA Location Applications separated by AA and CAA then by status (not including “saved”) Single Table  
    Approved AAs and CAAs, Approved AAs and CAAs by Location Details of Approved AA Location Applications by AA / CAA and AA locations / CAA locations. EIN/ EFIN/ AA TYPE/ AA CATEGORY/ LEGAL NAME/ NAME OF RESPONSIBLE PARTY/ BUSINESS ADDRESS 1/ BUSINESS ADDRESS 2/ BUSINESS CITY/ BUSINESS STATE/ BUSINESS COUNTRY/ BUSINESS ZIP/ MAILING ADDRESS 1/ MAILING ADDRESS 2/ MAILING CITY/ MAILING STATE/ MAILING ADDRESS/ ZIP/ AGREEMENT MAILED DATE/ AGREEMENT EXPIRATION DATE Listed by Postal Code and By State (for domestic Approved Applications) - Monthly
    Foreign Approved CAA/AA Foreign AA / CAA and Foreign AA/ CAA locations. Report by countries. (Locations total and list them individually Same as above, business address is foreign. Note: This can also be combined in the report above if the foreign AA/CAAs were isolated and then in EIN order. - Monthly
    ESAM AA Applications State and County Count of Approved AA Location Applications by Postal Code of the Physical Location (organized by state in alphabetical ) for AAs and CAAs (broken down by county) Note: would require a table of Counties by address... if not possible then by Postal Code Approvals by state and county Columns: State, County, Count.
    Approved Applications E-mail Addresses List of Organization’s business e-mail addresses. Current report columns: EIN/ EFIN/ AA TYPE/ LEGAL NAME/ EMAIL ADDRESS/ NAME OF PRIMARY CONTACT/ PRIMARY CONTACT EMAIL ADDRESS List is updated weekly
    Approved Applications for Published List of Acceptance Agents “If you would like to be included on the published list of Acceptance Agents located on the IRS website, check here” Fields: Legal Name, DBA, Business location, AA / CAA, Phone Number Weekly notification for posting.
    Scheduled to Renew (Agreements to Expire in Current Calendar Year) EIN, Legal Name, Expiration Date, Mailing Address (AA Company: Mailing Address) Sorted by EIN. AA Agreement / CAA Agreement will expire in the current Calendar Year. Annual; June reminder - Letter #[5613C]
    Organizations that did not Renew in Preceding Calendar Year List of Organizations that did not renew / What locations were not renewed from the previous year. Report Fields (existing report): EIN, Legal Name, Expiration Date, email address, company mailing address Expired after 12/31 of the preceding year - Annual
    Approved with Renew (In Process) around Expiration List of Organizations that have an existing approved application and a renewal in progress. Report Fields: Acceptance Agent Type, Legal Name, EIN, EFIN, Expiration Date, Renewal Application Submission Date In progress renewal will not automatically expire until 10 Business Days
    AA Over-Aged Report AA Location Applications in process. Define the “Standard Processing Time” (60 days from submission to approval) to set the number of days to consider the in-process application as “Over-Aged" Count of AA Location Applications in process that are Over-Aged. Intervals (Week, Month, Year). Date Prompt (Start Date and End Date) Intervals and Cumulative Over-aged Overage would be defined as anything that exceeds the 60 day Standard Processing Time and requires action by the EUP.
    • AA Agreements 180 Days Expiration Report

    • AA Over-aged Report

    • Acceptance Agent Summary Report

    • E-mail List for Approved AAs

    • Mailing Labels for Approved AAs

  3. The IPS Reports Analysts review reports and analyze trends as it relates to the AA Program. Feedback (e.g., number of Form W-7 per state vs. number of CAAs per state, immigrant populations by state and zip code etc.) is provided as appropriate to the IPS Communications Analyst for use in training and education/outreach efforts (e.g., tax forums, conferences, newsletters, etc.).

Other Non-Acceptance Agent Reports

  1. Other miscellaneous Non-AA Reports are available to the IPS and are used by the Reports Analyst to evaluate the program. Examples include:

    • ITIN Comparative Report (produced by PMPA, used to study Form W-7 receipt patterns)

    • MITS 180 Report (accessed through Business Objects, used to study ITIN usage and Child Tax Credit (CTC) on tax returns)

    • MITS 401 Report (accessed through Business Objects, provides CTC info by individual taxpayer; report accessed by ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and Examination

    • Media Requests (data gathered for media requests are sent through the IPS manager and/or designee to the Communication Analyst for approval and routing to the appropriate media source).

Acceptance Agent Quality Standards

  1. The IPS Quality Analyst (QA) determines which AA/CAAs are not meeting the quality standards of the program, notifies the AA/CAA of the status, monitors for improvements, and takes actions (e.g., probation) as appropriate.

  2. The QA requests/receives reports from the IPS Reports Analysts and takes actions as noted in the table below:

    Report Type Required Action
    Report of the CAAs that do not initially meet quality standards Review the reject/suspend applications to determine if there is a CAA error or Tax Examiner/IPS error
    • TE/IPS errors are added back to the total correct applications. If the percentage now falls into the standards scale, the CAA will not receive a warning letter.

    • If it is TE error, the analyst will provide feedback to the IRM analyst for possible alert/update and training emphasis.

    • If it is CAA errors, the CAA will receive a warning letter and be subject to a 6- month review.

      Caution:

      Warning letters must be sent no later than January so the warning letter period will encompass the filing season.

    Report of CAAs that received warning letters and are subject to a 6-month review Review the reject/suspended applications within the last 6-months
    • Review Form W-7 applications submitted during the 6-month warning period to determine if any rejections or suspensions were TE/IPS error or CAA error. TE/IPS errors are added back to the total correct applications. If the percentage now falls into the standards scale, the CAA will not receive a warning letter

    • If the CAA is now meeting the standards, send a letter notifying them of improvement.

    • If standards are not met, send letter notifying them of probation. The probationary period will last 1 year. Update status on ESAM to reflect CAA to AA demotion.

    Report of written requests of probationary AA’s that are requesting reconsideration back to CAA status Requests are only considered after at least one year of the probationary period is served.

    The agent will provide a client listing including the client name, date of birth, and country of citizenship. Use RTS to verify submissions and review for quality standards:
    • The agent must submit at least 75 high quality Form W-7 submissions.

    • If the agent submits at least 75 Form W-7 clients, review for quality standards.

    • If the agent meets the quality review standards, grant the reconsideration request and send a letter informing the agent of status.

    • Update ESAM status from AA to CAA and correspondence status from applicant only to both.

    • If the agent does not meet the quality standards, the agent will remain in AA status for duration of agreement and be subject to the policies and standards of the AA program.

    Report of CAAs that did not submit any Form W-7 applications for a 12- month period CAA is terminated for duration of contract:
    • Send letter to former agent about termination.

    • Send information to the Web site Analyst for removal from the web site.

    • Update status to Suspended 60 days after the date of the termination letter to allow for Form W-7 applications in process to continue.

    Report of written request from AA’s with required number of submissions for promotion to CAA status Requests are only considered if AA has been in the program for at least one year.
    • If the listing shows the required number of Form W-7 applications, review the applications for quality standards.

    • If the quality standards are not met, send rejection letter explaining quality standards were not met.

    • If the quality standards are met, send the agent a congratulations letter and a new agreement for signature (front end process). Receive signature pages and mail signed agreement (back end process).

    • Update status from AA to CAA.

ITIN Acceptance Agent Training Certificate Statement

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Common Income Tax Returns

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Acceptable Titles for Principal, Partner or Owner

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Acceptable ITIN RTS Abbreviations

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