SECTION 17. EFFECT OF

SUSPENSION

.01 The Agent’s suspension will continue for the length of time specified in the suspension letter, or until the conditions for terminating the suspension have been met, whichever is later.

.02 If a return to which the suspension applies is due (without regard to extensions) within 60 days from the date on the suspension letter, the Agent may file the return under the Mag Tape Program. If a return to which the suspension applies is due (without regard to extensions) more than 60 days from the date on the suspension letter, the Agent may not file the return under that Mag Tape Program.

.03 A suspended Agent will be able to sign and file paper Forms 940, 941, or 945 for a taxpayer if the Agent has a power of attorney from the taxpayer that authorizes the Agent to sign and file such paper return(s). See section 11.02 of this revenue procedure. Form 8655 does not authorize the filing of paper returns outside of the Mag Tape Program.

.04 An Agent must provide written notification of a suspension to a taxpayer at least 45 days before the due date of the taxpayer’s first return affected by the suspension. Such notification must be provided even though the Agent may believe that the Agent will be able to meet the conditions for terminating the suspension before the due date.

.05 An Agent will be able to file returns under the Mag Tape Program from which the Agent was suspended without reapplying to the Program after:

(1) the stated suspension period expires; and

(2) the reason(s) for suspension are corrected.