SECTION 6. ACCEPTANCE IN THE

MAGNETIC TAPE PROGRAMS

.01 Within 30 days of receiving an Application, the service center will return a Validated Agent’s List to the Agent. Failure to use the names and EINs provided on the Validated Agent’s List may delay processing.

.02 After receiving a Validated Agent’s List, an Agent must submit a test tape by the following due dates:

(1) in the case of the Form 941 Mag Tape Program, the Agent must submit a test tape by the due dates preceding the corresponding quarter ending dates, as follows:

Test Tape Due For Quarter Date Ending

January 31 March 31 April 30 June 30 July 31 September 30 October 31 December 31

(2) in the case of the Form 940 or 945 Mag Tape Program, the Agent must submit a test tape by September 30 of the year preceding the due date of the return that will be filed on magnetic tape.

.03 The following criteria are used to evaluate a test tape:

(1) the test tape must be readable by the Service’s computers without a Processing Interruption; and

(2) the processed data on the test tape must have an Error Rate of 5 percent or less.

.04 If a test tape fails to meet the evaluation criteria, the Coordinator will notify the Agent. To receive further consideration of the Application, the Agent must submit a new test tape within 30 days of the Service’s notification. Submission of a test tape does not constitute the filing of tax returns.

.05 After testing the magnetic tape, the Service will notify the Agent in writing of approval or denial of magnetic tape filing privileges. An approval for each Mag Tape Program remains in effect unless the Agent is suspended from the particular Mag Tape Program. See section 17 of this revenue procedure for the effect of suspension.

.06 If a Agent is denied, or does not receive, approval for magnetic tape filing before the end of the tax period for which Forms 941, 940, or 945 will be filed, the Agent should file the returns on paper Forms 941, 940, or 945.

.07 If an Agent is denied acceptance into a Mag Tape Program, the Agent may reapply for a subsequent tax period by resubmitting an Application and test tape in accordance with sections 5 and 6 of this revenue procedure.