SECTION 22. EFFECTIVE DATE

This revenue procedure is effective for returns due after December 31, 1995 (without regard to extensions).

EXHIBIT 1

Letter of Application

AAA Payroll, Inc 111 Main St. Columbus, NY 11111 EIN XX-XXXXXXX

[Date]

Internal Revenue Service Memphis Service Center Electronic Filing Help Desk P.O. Box 30309 AMF Memphis, TN 38130 Attention: ELF Unit Stop 37

To whom it may concern:

This letter is an application to participate in the electronic filing program for Forms 941 (‘‘Form 941 ELF Program’’).

I understand and agree to the following points which are prerequisites for participation in the Form 941 ELF Program:

1. I will keep copies of the Form 8655, Reporting Agent Authorization for Magnetic Tape/ Electronic Filers (or its equivalent) on file at my principal place of business for a period no less than required under the period of limitation for assessment for the last return filed under its authority. I will provide these Authorizations for examination by the Service upon request.

2. I will abide by the recordkeeping requirements as set forth in section 10.02 of Rev. Proc. 96–19.

3. I will provide my clients documentation of filed returns as set forth in section 10.03 of Rev. Proc. 96–19.

4. I will comply with all electronic security restrictions as set forth in section 10.04 of Rev. Proc. 96–19 and the Technical Specifications Guide for the Electronic Filing System for Form 941, Employer’s Quarterly Federal Tax Return.

[Name, title] of [firm name] is the individual to contact concerning the userid/password.

[Name] can be reached at [telephone number]. [Name] has read and understands the rules that apply to the use of the userid/password.

[Name, title] of [firm name and address] is the designated recipient of the Personal Identification Number (PIN). [Name] is authorized to administer and use the PIN for the returns being submitted under the Form 941 ELF Program.

I will begin submitting returns using the Form 941 ELF Program for returns due XX quarter 19XX. I estimate that I will be submitting XXX number of returns. I expect to use [software brand name] translation software and EDI release version [number] for electronic transmissions.

I have included with this application a Reporting Agent’s List and an Authorization for each taxpayer on my Reporting Agent’s List.

Please contact [name, title & telephone #] to discuss this letter of application.

[Signature of Electronic Filer’s authorized signatory]

87

Exhibit 2

PIN/Userid/Password Receipt

I, [insert ‘‘name of authorized signatory, title, firm name and address’’] acknowledge receipt of the [insert ‘‘userid/password’’ or ‘‘PIN’’ as appropriate] for the Form 941 ELF Program.

I understand that I am bound by the requirements and responsibilities regarding [insert userid/password, or ‘‘PIN’’ as appropriate] as set forth in Rev. Proc. 96–19 and the Specifications Guide for Electronic Filers of Employer’s Quarterly Federal Tax Returns.

For userid/password: [Signature of employee recipient] For PIN: [Signature of Electronic Filer’s authorized signatory]

NOTE: Separate receipts are required for a user identification/password and PIN.

26 CFR 601.602: Tax forms and instructions. (Also Part I, Sections 6012, 6061; 1.6012–5, 1.6061–1.)

Rev. Proc. 96–20

CONTENTS

SECTION 1 PURPOSE SECTION 2 BACKGROUND AND CHANGES SECTION 3 ON-LINE FILING PARTICIPANTS— DEFINITIONS SECTION 4 ACCEPTANCE INTO THE ON-LINE FILING PROGRAM SECTION 5 RESPONSIBILITIES OF AN ON-LINE FILER SECTION 6 PENALTIES SECTION 7 FORM 8453–OL, U.S. INDIVIDUAL TAX DECLARATION FOR ON-LINE SERVICE ELECTRONIC FILING SECTION 8 INFORMATION AN ON-LINE FILER MUST PROVIDE TO THE TAXPAYER SECTION 9 DIRECT DEPOSIT OF REFUNDS SECTION 10 BALANCE DUE RE

SECTION 13 ADMINISTRATIVE

REVIEW PROCESS FOR DENIAL OF PARTICIPATION IN THE ON-LINE FILING PROGRAM SECTION 14 ADMINISTRATIVE

REVIEW PROCESS FOR SUSPENSION FROM THE ON-LINE FILING PROGRAM SECTION 15 EFFECT ON OTHER

DOCUMENTS SECTION 16 EFFECTIVE DATE SECTION 17 INTERNAL REVE

NUE SERVICE OFFICE CONTACT

limited number of subscribers. For the 1996 federal income tax filing season, the On-Line Filing Program is expanded to allow additional participants to transmit tax returns submitted for on-line electronic filing.

.02 Section 1.6012–5 of the Income Tax Regulations provides that the Commissioner may authorize the use, at the option of a person required to make a return, of a composite return in lieu of any form specified in 26 C.F.R. Part 1 (Income Tax), subject to the conditions, limitations, and special rules governing the preparation, execution, filing, and correction thereof as the Commissioner may deem appropriate.

.03 For purposes of this revenue procedure, an on-line electronically filed Form 1040, Form 1040A, or Form 1040EZ is a composite return consisting of electronically transmitted data and certain paper documents. The nonelectronic portion of the return consists of Form 8453–OL, U.S. Individual Income Tax Declaration for On-Line Service Electronic Filing, and other paper documents that cannot be electronically transmitted. Form 8453OL must be received by the Service before an on-line electronically filed return is complete. An on-line electronically filed return must contain the same information that a return filed completely on paper contains. See section 7 of this revenue procedure for procedures for completing Form 8453– OL.

.04 The Service will periodically issue a publication that lists the forms and schedules associated with a Form

TURNS SECTION 11 ADVERTISING

STANDARDS FOR ON-LINE FILERS SECTION 12 MONITORING AND

SUSPENSION OF AN ON-LINE FILER