The firm, Principals and Responsible Officials of denied applicants and sanctioned Providers are entitled to an administrative review. The administrative review process is usually a two-step process. The firm, Principals or Responsible Officials request administrative review by the office that denied or sanctioned them. If the reviewing office affirms the denial of the sanction, the firm, Principals or Responsible Officials may request an appeal to the IRS Office of Appeals, unless the sanction is a written reprimand. Failure to respond within 30 calendar days of the date of any denial or sanction letter irrevocably terminates the right to an administrative review or appeal.
Administrative Review Process for Denial of Participation in IRS e-file
The firm, Principals or Responsible Officials denied participation in IRS e-file usually have the right to an administrative review. They may mail a written response to the address shown in the denial letter, within 30 calendar days of the date of the denial letter. The applicant’s response must address the IRS’ reason(s) for denial, have supporting documentation and be signed. During this administrative review process, the denial of participation remains in effect. Upon receipt of written response, the IRS reevaluates its denial of the participation in IRS e-file. The IRS may either withdraw its denial of participation in IRS e-file or will issue a second denial letter.
A firm, Principal or Responsible Official who receives a second denial letter is entitled to an appeal. They must submit the appeal in writing to the attention of the Office of Appeals, by mailing the appeal to the address shown in the second denial letter within 30 calendar days of the date of the denial letter. The written appeal must contain a detailed explanation, along with documentation supporting why the IRS should reverse the denial.
The Administrative Review Process for Sanctioning
Providers, Principals and Responsible Officials have the right to an administrative review if the IRS advises of either a proposed, recommended or immediate sanction. They may mail a signed, detailed written explanation with supporting documentation as to why the IRS should withdraw the sanction within 30 calendar days of the date of the letter to the office that issued the letter. During this administrative review process, an immediate sanction remains in effect
Upon receipt of the written response, the IRS reevaluates and may either withdraw or affirm the sanction in writing. If a Provider, Principal or Responsible Official receives a letter affirming a suspension or an expulsion, they may appeal to the Office of Appeals. The appeal must be in writing, signed and mailed to the IRS office that issued the recommended sanctioning letter within 30 calendar days of the date of the letter recommending the sanction. The written appeal must contain detailed reasons, with supporting documentation, to show why the IRS should not impose the recommended suspension or expulsion.
Reconsideration after Expulsion
Individuals that can't participate in IRS e-file because their firms were expelled may be reconsidered after a five-year waiting period. This period begins five years from the date the firm was expelled or five years after the individual has completed rehabilitation (e.g. incarceration, parole, probation, restitution, etc.). There are some expulsion situations not eligible for reconsideration.
To request consideration, send a letter to: Internal Revenue Service, Electronic Products and Services Support, 310 Lowell Street, Stop 983, Andover, MA 01812 You must provide an explanation as to why you should be allowed to reapply and include a copy of your expulsion letter and any pertinent documents to support your position. In addition, you must meet all eligibility requirements at this time to participate in IRS e-file. You will be notified in writing regarding your request.