SECTION 6. PENALTIES

.01 Penalties for Disclosure or Use of Information.

(1) A 1040NR Filer, except a Software Developer, is a tax return preparer (‘‘Preparer’’) under the definition of § 301.7216–1(b) of the Regulations on Procedure and Administration. A Preparer is subject to a criminal penalty for disclosure or use of tax return information, as described in

(1) Preparer penalties may be asserted against an individual or firm who meets the definition of an income t a x r e t u r n p r e p a r e r u n d e r §§ 7701(a)(36) and 301.7701–15. Examples of preparer penalties that may be asserted under appropriate circumstances include, but are not limited to, those set forth in §§ 6694, 6695, and 6713. (2) Under § 301.7701–15(d), 1040NR Return Collectors, Service Bureaus, Software Developers, and Transmitters are not income tax return preparers for the purpose of assessing most preparer penalties as long as their services are limited to ‘‘typing, reproduction, or other mechanical assistance in the preparation of a return or claim for refund.’’

(3) If a 1040NR Return Collector, Service Bureau, Software Developer, or Transmitter alters the return information in a nonsubstantive way, this alteration will be considered to come under the ‘‘mechanical assistance’’ exception described in § 301.7701–15(d)(1). A nonsubstantive change is a correction or change limited to a transposition error, misplaced entry, spelling error, or arithmetic correction that falls within one of the following tolerances:

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verify the information on the transmitted media return and on Form 8453– NR and sign Form 8453–NR. An easily readable file copy of the prepared return must be provided to the taxpayer at the time of signature.

(4) A 1040NR Filer must submit a Form 8453–NR to the Project Office with each magnetically or electronically filed return. A single Form 8453–NR (inscribed with the language ‘‘See attached Multiple Return Information Listing’’) may be used for a multiple return filing if the person who signs Form 8453–NR has authorization, either by a specific power of attorney or as a responsible representative or agent under § 1.6012–3(b) of the Income Tax Regulations, to sign each of the returns included in the multiple return filing. A person who makes a multiple return filing must attach to Form 8453–NR an information page(s) titled ‘‘Form 8453–NR for Multiple Returns—Tax Return Information Listing’’ at the top of the pages(s). Below the title, the multiple return 1040NR Filer must provide his or her name and address. The next item on the page(s) must be a list that includes every taxpayer’s name control, taxpayer identification number, and the information shown on lines one through five on Form 8453–NR, for each return included in a multiple return filing.

(5) If a 1040NR Filer functions as a 1040NR Return Originator, the 1040NR Filer must sign the 1040NR Return Originator’s Declaration on Form 8453–NR.

(6) If the 1040NR Filer is also the paid preparer, the 1040NR Filer must check the ‘‘Paid Preparer’’ box and sign the 1040NR Return Originator Declaration on Form 8453–NR.

(4) advise the taxpayer that an amended return, if needed, must be filed as a paper return and mailed to the Philadelphia Service Center;

(5) upon request, provide the taxpayer with the date the transmitted media portion of the taxpayer’s return was acknowledged as accepted for processing by the Service; and

(6) inform the taxpayer that the address reported on the transmitted media portion of the return, once processed, will be used to update the taxpayer’s address of record. The Internal Revenue Service uses the taxpayer’s address of record for various notices that are required to be sent to a taxpayer’s ‘‘last known address’’ under the Internal Revenue Code and for refunds of overpayments of tax (unless otherwise specifically directed by the taxpayer, such as by Direct Deposit). See Rev. Proc. 90–18, 1990–1 C.B. 491, for additional information about ‘‘last known address.’’

.02 A 1040NR Return Originator should advise the taxpayer to wait at least three weeks from the acceptance date of the transmitted media tax return before contacting the Service for the status of a refund. If such contact is necessary, the taxpayer should be advised to use the IRS Tele-Tax system.