SECTION 4. ACCEPTANCE — Internal Revenue Bulletin 1996-4

ON-LINE FILING PROGRAM

.01 The Service reviewed and processed applications received on or before December 1, 1995, for acceptance into the 1996 On-Line Filing Program. Revised applications described in section 4.03 of this revenue procedure must be submitted within 14 days of the change(s) reflected on the revised Form 8633, Application to Participate in the Electronic Filing Program.

.02 Applicants were required to submit a new Form 8633 with fingerprint cards for appropriate individuals to the Austin Service Center, check the ‘‘new’’ box at the top of the form, and write the letters ‘‘OLF’’ next to this box, if:

(1) the applicant had never actively participated in the On-Line Filing Program;

(2) the applicant had previously been denied participation in the OnLine Filing Program; or

(3) the applicant had been suspended from the On-Line Filing Program.

.03 Participants in the 1995 On-Line Filing Program must submit a revised Form 8633 to the Austin Service Center, check the ‘‘revised’’ box at the top of the form, and write the letters ‘‘OLF’’ next to this box, to participate in the 1996 On-Line Filing Program if:

(1) the participant functioned solely as a Software Developer during the 1995 On-Line Filing Program and intends to function as an On-Line Service Provider or Transmitter during the 1996 On-Line Filing Program;

(2) there is an additional Principal, such as a partner or corporate officer, that must be listed on Form 8633, line 1k(1), ‘‘Principals of Your Firm or Organization’’;

(3) there is a ‘‘Principal’’ listed on Form 8633, line 1k(1), that should be deleted;

(4) the ‘‘Responsible Official’’ on Form 8633, line 1k(2) changes; or

(1) a letter of acceptance into the On-Line Program for the 1996 filing season;

(2) an Electronic Filing Identification Number (EFIN); and

(3) if appropriate, an Electronic Transmitter Identification Number (ETIN). No one without these credentials may participate in the 1996 On-Line Filing Program.

.10 If an On-Line Filer is a Software Developer that performs no other function in the On-Line Filing Program but software development, no Principal or Responsible Official needs to pass a suitability check.

.11 The following reasons may have resulted in the rejection of an application to participate in the 1996 On-Line Filing Program (this list is not allinclusive):

(1) conviction of any criminal offense under the revenue laws of the United States, or of any offense involving dishonesty or breach of trust;

(2) failure to file timely and accurate business or personal tax returns;

(3) failure to timely pay personal or business tax liabilities;

(4) assessment of penalties; (5) suspension/disbarment from practice before the Service;

(6) other facts or conduct of a disreputable nature that would reflect adversely on the On-Line Filing Program;

(7) misrepresentation on an application;

(8) suspension or rejection from either the Electronic Filing Program or the On-Line Filing Program in a prior year;

(9) unethical practices in return preparation;

(10) stockpiling returns prior to official acceptance into the On-Line Filing Program (see section 5.20 of this revenue procedure);

(11) knowingly and directly or indirectly employing or accepting assistance from any person who has been denied acceptance into the Electronic Filing Program or the On-Line Filing Program, or is suspended from the Electronic Filing Program or the OnLine Filing Program. This includes any individual whose actions resulted in the rejection or suspension of a corporation or a partnership from the Electronic

(5) there is any change to:

(a) the Firm name or Doing Business As (DBA) name;

(b) the business mailing address;

(d) the On-Line Filer’s form of organization, as described on Form 8633 line 1k; or (e) the electronic functions performed by an On-Line Filer, other than an On-line Filer that functions solely as a Software Developer.

.04 A Form 8633 submitted pursuant to section 4.03 (1) through (4) of this revenue procedure must have completed fingerprint cards attached for the appropriate individual(s). All Principals and the Responsible Official must sign the Form 8633.

.05 A Form 8633 submitted pursuant to section 4.03(5) of this revenue procedure needs to include only entries on lines 1a through 1i and the information being revised. A Principal or Responsible Official must sign the Form 8633.

.06 To be accepted into the 1996 On-Line Filing Program, an applicant or a 1995 On-Line Filing Program participant that is described in section 4.03(1) through (4) of this revenue procedure had to:

(1) file a properly completed Form 8633 with the Austin Service Center; and

(2) successfully complete the necessary testing at the Austin Service Center if the applicant intends to function as a Transmitter or Software Developer.

.07 Each individual listed as a Principal or a Responsible Official must:

(1) be a United States citizen or an alien admitted for lawful permanent residence as described in 8 U.S.C. § 1101(a)(20) (1988);

(2) have attained the age of 21 as of the date of application;

(3) submit with Form 8633 one standard fingerprint card with a full set of fingerprints taken by a law enforcement agency, except as provided in subsection 4.08 of this revenue procedure; and

(4) pass a suitability check that includes a credit check and a fingerprint check.

.08 An individual may choose to submit evidence of the individual’s professional status in lieu of one standard fingerprint card if the individual is:

(1) an attorney in good standing of the bar of the highest court of any State, possession, territory, Commonwealth, or the District of Columbia, and is not currently under suspension or disbarment from practice before the Service;

(2) a certified public accountant who is duly qualified to practice as a certified public accountant in any State, possession, territory, Commonwealth, or the District of Columbia, and is not currently under suspension or disbarment from practice before the Service;

(3) an enrolled agent pursuant to part 10 of 31 C.F.R. Subtitle A;

(4) an officer of a publicly held corporation; or

(5) a banking official who is bonded and has been fingerprinted within the last two years.

.09 The Service will issue to eligible applicants for the 1996 On-Line Filing Program, as well as participants in the 1995 On-Line Filing Program that do not have to reapply pursuant to section 4.03 of this revenue procedure:

Filing Program or the On-Line Filing Program; or

(12) knowingly and directly or indirectly accepting employment as an associate, correspondent, or as a subagent from, or sharing fees with, any person who has been denied acceptance into the Electronic Filing Program or the On-Line Filing Program, or is suspended from the Electronic Filing Program or the On-Line Filing Program. This includes any individual whose actions resulted in the rejection or suspension of a corporation or a partnership from the Electronic Filing Program or the On-Line Filing Program.