SECTION 13. ADMINISTRATIVE

REVIEW PROCESS FOR DENIAL OF PARTICIPATION IN THE ONLINE FILING PROGRAM

.01 An applicant that has been denied participation in the On-Line Filing Program has the right to an administrative review. During the administrative review process, the denial of participation remains in effect.

.02 In response to the submission of a Form 8633, the appropriate district office will either (1) accept an applicant into the On-Line Filing Program, or (2) issue a proposed letter of denial that explains to the applicant why the district office proposes to reject the application to participate in the OnLine Filing Program.

.03 An applicant who receives a proposed letter of denial may respond, in writing, to the district office that issued the proposed letter of denial. The applicant’s response must address the district office’s explanation for proposing the denial to participate. The district office must receive the applicant’s response within 30 calendar days of the date of the proposed letter of denial.

.04 Upon receipt of an applicant’s written response, the district office will reconsider its proposed letter of denial. The district office may (1) withdraw its proposed letter of denial and admit the applicant into the On-Line Filing Program, or (2) finalize its proposed letter of denial and issue it to the applicant.

.05 If an applicant receives a final letter from the district office that denies the applicant participation in the OnLine Filing Program, the applicant is entitled to an appeal, in writing, to the Director of Practice.

.06 The appeal must be filed with the district office that issued the denial letter within 30 calendar days of the date of the denial letter. An applicant’s written appeal must contain a detailed explanation, with supporting documentation, of why the denial should be reversed. In addition, the applicant must include a copy of the applicant’s Form 8633 and a copy of the denial letter.

.07 The district office whose denial is being appealed will, upon receipt of a written appeal to the Director of Practice, forward to the Director of Practice its file on the applicant and the material described in section 13.06 of this revenue procedure that the appli

95

cant has submitted to the district office. The district office will forward to the Director of Practice these materials within 15 calendar days of receipt of the applicant’s appeal to the Director of Practice.

.08 Failure to respond within the 30day periods described in sections 13.03 and 13.06 of this revenue procedure irrevocably terminates an applicant’s right to an administrative review or appeal.

SECTION. 14. ADMINISTRATIVE REVIEW PROCESS FOR SUSPENSION FROM THE ON-LINE FILING PROGRAM

.01 An On-Line Filer that has been suspended from participation in the OnLine Filing Program has the right to an administrative review. During the administrative review process, the suspension remains in effect.

.02 If an On-Line Filer receives a proposed suspension letter from a district office or a service center, the On-Line Filer may submit a detailed written explanation, with supporting documentation, of why the proposed suspension letter should be withdrawn. The On-Line Filer must ensure that the district office or service center that issued the proposed suspension letter receives the On-Line Filer’s written response within 30 calendar days of the date of the proposed suspension letter.

.03 Upon receipt of the On-Line Filer’s written response, the district office or service center will reconsider its proposed suspension of the On-Line Filer. The district office or service center will either withdraw its proposed suspension letter and reinstate the OnLine Filer or finalize the suspension letter and issue it to the On-Line Filer.

.04 If the On-Line Filer receives a suspension letter from a district office or a service center, the On-Line Filer is entitled to an appeal, in writing to the Director of Practice.

.05 The On-Line Filer must ensure that the district office or service center that issued the suspension letter receives the On-Line Filer’s written appeal for review by the Director of Practice within 30 calendar days of the date of the suspension letter. The OnLine Filer’s written appeal for review must contain detailed reasons, with supporting documentation, for reversal of the suspension. In addition, the OnLine Filer must include a copy of its

6501 on July 1, 1996 (or such earlier date as the Commissioner may allow). (Section 9, below, provides an earlier date in some situations.) Section 1.1221–2(g)(5)(i). .02 Affected years . Affected years are the election year and all subsequent consolidated return years beginning before March 8, 1996.

.03 Before the Service . A taxable year is before the Service from the time the consolidated group has been contacted in any manner by a representative of the Service for the purpose of scheduling any type of examination of its federal income tax return for that year until the receipt of a ‘‘no-change’’ letter for that year, the execution of a waiver of restrictions on assessment and collection of deficiency in tax and acceptance of overassessment, the expiration of the period for filing a petition with the Tax Court for that year, or the filing of a petition with the Tax Court.