SECTION 15. REASONS FOR

SUSPENSION

.01 The Service reserves the right to suspend an Agent from a Mag Tape Program for the following reasons (this list is not all-inclusive):

(1) failing to submit tax returns on magnetic tape according to the applicable Publication(s) 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) failing to provide to the taxpayer the records, information, or advice required by section 10.03;

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

(5) repeatedly submitting tax returns that have an Error Rate exceeding 5 percent or that cause a Processing Interruption (regardless of whether replacement magnetic tapes have been provided timely);

(6) submitting tax returns that have an Error Rate exceeding 5 percent or that cause a Processing Interruption after failing to submit the test tape required by section 12 or 13;

(7) submitting tax returns that are not in full-paid status;

(8) failing to abide by the advertising standards in section 14; or

(9) significant complaints about an Agent’s performance in the Mag Tape Program(s).

.02 If the Coordinator informs an Agent that a certain action is a reason for suspension and the action continues, the service center director may send a notice proposing suspension of the Agent. However, a notice proposing

suspension may be sent without a warning if the Agent’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.

.03 An Agent has an obligation to notify taxpayers filing through the Agent if and when such Agent is suspended from filing under a particular Mag Tape Program as provided in section 17.04. The Service reserves the right to extend the period of suspension of any Agent that fails to comply with this requirement.