SECTION 12. MONITORING AND

SUSPENSION OF A 1040NR FILER

.01 The Service will monitor a 1040NR Filer for conformity with this revenue procedure. The Service can immediately suspend, without notice, a 1040NR Filer from the 1040NR Program. However, in most circumstances, a suspension from participation in the 1040NR Program is effective as of the date of the letter informing the 1040NR Filer of the suspension. Before suspending a 1040NR Filer, the Service may issue a warning letter that describes specific corrective action for deviations from this revenue procedure.

.02 The Service will monitor the timely receipt of Forms 8453–NR, as well as their overall legibility.

.03 The Service will monitor the quality of the 1040NR Filer’s submissions throughout the filing season. The Service will also monitor transmitted media returns and tabulate rejections, errors, and other defects. If quality deteriorates, the 1040NR Filer may receive a warning from the Service.

.04 The Service will monitor complaints about a 1040NR Filer and issue a warning or suspension letter as appropriate.

.05 The Service reserves the right to suspend the transmitted media filing privilege of any 1040NR Filer who violates any provision of this revenue procedure. Generally, the Service will advise a suspended 1040NR Filer concerning the requirements for reacceptance into the 1040NR Program. The following reasons may lead to a warning letter and/or suspension of a 1040NR Filer from the 1040NR Program (this list is not all-inclusive):

(1) the reasons listed in section 4.04 of this revenue procedure; (2) deterioration in the format of individual submissions;

(3) unacceptable cumulative error or rejection rate;

(4) untimely received, illegible, missing, or unapproved substitute Forms 8453–NR;

(5) stockpiling of returns while participating in the 1040NR Program;

(6) failure on the part of a Transmitter to provide clients with acknowledgement files within five days after receipt from the Service;

.05 If an applicant receives a final letter from the Project Office that denies the applicant participation in the 1040NR Program, the applicant is entitled to an appeal, in writing, to the Director of Practice.

.06 The appeal must be filed with the Project Office within 30 days of the date of the denial letter. An applicant’s written appeal must contain a detailed explanation, with supporting documentation, of why the denial should be reversed. In addition, the applicant must include a copy of the applicant’s Form MAR–8980 and a copy of the denial letter.

.07 The Project Office, upon receipt of a written appeal to the Director of Practice, will forward to the Director of Practice its file on the applicant and the materials described in section 13.06 that the applicant has submitted to the Project Office. The Project Office will forward to the Director of Practice these materials within 15 days of receipt of the applicant’s appeal to the Director of Practice.

.08 Failure to respond within the 30day periods described in sections 13.03 and 13.06 of this revenue procedure irrevocably terminates an applicant’s right to an administrative review or appeal.