SECTION 14. REASONS FOR

SUSPENSION

.01 The Service reserves the right to suspend an Electronic Filer from the Form 941 ELF Program for the following reasons (this list is not allinclusive):

(1) failing to submit electronic tax returns according to the Specifications Guide as provided in section 10.01 of this revenue procedure;

(2) failing to retain the required records for the period specified in section 10.02;

(3) repeatedly submitting tax returns that have an Error Rate exceeding

5 percent or that cause a Processing Interruption; (4) submitting tax returns that have an Error Rate exceeding 5 percent or that cause a Processing Interruption after failing to submit the test file required by section 12; or

(5) submitting tax returns that are not in full-paid status.

.02 The Service reserves the right to suspend an Electronic Filer that is an Agent from the Form 941 ELF Program for the following additional reasons (this list is not all-inclusive):

(1) failing to provide to the taxpayer the records, information, or advice required by section 10.03;

(2) submitting tax returns for which the Service did not receive Authorizations;

(3) failing to abide by the advertising standards in section 13; or

(4) significant complaints about an Agent’s performance in the Form 941 ELF Program.

.03 If the Chief, Customer Service and Electronic Filing Branch (‘‘Branch Chief’’) informs an Electronic Filer that a certain action is a reason for suspension and the action continues, the service center director may send the Electronic Filer a notice proposing suspension of the Electronic Filer. However, a notice proposing suspension may be sent without a warning if the Electronic Filer’s action indicates an intentional disregard of rules. A notice proposing suspension will describe the reason(s) for the proposed suspension, and indicate the length of the suspension and the conditions that need to be met before the suspension will terminate.

.04 An Electronic Filer that is an Agent has an obligation to notify taxpayers filing through the Agent if and when such Agent is suspended from filing under the Form 941 ELF Program as provided in section 16.02 of this revenue procedure. The Service reserves the right to extend the period of suspension of any Agent that fails to comply with this requirement.