SECTION 4. ACCEPTANCE INTO

THE 1040NR PROGRAM

.01 To be accepted into the 1040NR Program, an applicant must:

(1) file a properly completed application using Form MAR–8980 with the Project Office, unless previously accepted into the 1040NR Program;

(2) successfully complete the necessary testing with the Project Office if the applicant intends to file transmitted media returns or has developed software for formatting or filing transmitted media returns; and

(3) receive a letter of acceptance into the 1040NR Program.

.02 Once accepted into the 1040NR Program, a 1040NR Filer must, for each year that it intends to submit returns on transmitted media:

(1) submit a revised Form MAR– 8980 if there is any change to the information previously submitted on that form.

(2) successfully complete the necessary testing with the Project Office if the 1040NR Filer intends to file transmitted media returns or has developed software for formatting or filing transmitted media returns; and

(3) receive a letter confirming that the 1040NR Filer may submit tax returns for the current filing season.

.03 A 1040NR Filer may only submit actual tax returns beginning 30 days after successfully completing the necessary testing.

.04 The following reasons may result in a rejection of an application to participate in the 1040NR Program (this list is not all-inclusive):

(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 1040NR Program;

(7) misrepresentation on an application;

(8) suspension or rejection from the 1040NR Program in a prior year;

(9) unethical practices in return preparation;

(10) stockpiling returns (see section 5.06 of this revenue procedure) prior to official acceptance into the 1040NR Program; (11) knowingly and directly or indirectly employing or accepting assistance from any person who has been denied acceptance into the 1040NR Program or is suspended from that Program. This includes any individual whose actions resulted in the rejection or suspension of a corporation or a partnership from that Program; or

(12) knowingly and directly or indirectly accepting employment as an associate, correspondent, or subagent from, or sharing fees with, any person who has been denied acceptance into the 1040NR Program or is suspended from that Program. This includes any individual whose actions resulted in the rejection or suspension of a corporation or a partnership from that Program.