SECTION 5. ACCEPTANCE AGENT

AGREEMENT

.01 In general . An acceptance agent agreement described under § 301.6109– 1(d)(3)(iv)(A) of the Regulations is an agreement between the IRS and a person authorized by virtue of the agreement to act as an acceptance agent on behalf of an alien individual or a foreign person with respect to that individual’s or person’s need to obtain an ITIN or an EIN from the IRS. The Assistant Commissioner (International) shall sign the agreement on behalf of the IRS. If the acceptance agent is a person other than an individual, the agreement must be signed by an authorized representative of the acceptance agent.

.02 Terms and procedures . The terms of an acceptance agent agreement may vary depending upon such factors as the nature of the applicant (e.g., bank, university, governmental agency, etc.) and its location (i.e., inside the United States or outside the United States). The acceptance agent agreement will generally contain the following terms and condi

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tions necessary to insure proper administration of the process by which the IRS issues TINs to alien individuals and foreign persons.

(1) Procedures for providing TIN ap- plication forms . An acceptance agent shall agree to maintain a supply of Form W–7 for obtaining ITINs, and of Form SS–4 for obtaining EINs from the IRS. The acceptance agent may use a substitute form that is approved by the IRS. For example, if the acceptance agent is a financial institution, the Form W–7 or Form SS–4 may be incorporated as part of an account opening package. In addition, an acceptance agent shall agree to send a Form W–7 to any individual client or customer (who is not a U.S. citizen or national) that it knows, or has reason to know, has been issued a temporary tax identification number by the IRS, and to advise the client or customer of the need to replace the temporary tax identification number with an ITIN.

(2) Procedures for assisting in completion of TIN application forms . An acceptance agent shall agree to assist in the preparation of the TIN application form. For example, the acceptance agent should make certain that every item included on the application form has been completed and should assist the TIN applicant in understanding the information required by the application form. The acceptance agent should contact the IRS for assistance regarding any questions about the forms, application process, the requirement to have TINs, etc. that it cannot reasonably answer. Questions regarding such matters should be directed to the IRS at (215) 516– ITIN (4846) (not a toll-free number).

(3) Procedures for IRS communica- tion with acceptance agent . The applicant’s signature on the Form W–7 provides the power of attorney to the acceptance agent, authorizing communication with the IRS regarding that particular application only. The acceptance agent may act as an agent for the applicant regarding any additional communication necessary with the IRS in connection with the application form. However, IRS communication with an acceptance agent in connection with a Form SS–4 application requires that the applicant has furnished a power of attorney (e.g., Form 2848) authorizing such communication.

(4) Procedures for submitting TIN application forms . An acceptance agent shall agree to submit promptly the TIN application forms or approved substitute

OO:WT 950 L’Enfant Plaza South, SW Washington, DC 20024 FAX: (202) 874–1984 (b) Content of application. The application shall indicate that the person is requesting permission to execute an agreement with the IRS pursuant to § 301.6109–1(d)(3)(iv) of the Regulations, and in accordance with this revenue procedure. The application shall include the information listed below.

(i) The applicant’s complete name, address, and EIN. If the applicant does not have an EIN, a completed Form SS–4 must be included to obtain such number.

(ii) The reason that the applicant wishes to become an acceptance agent, and the type of responsibilities the applicant expects to assume.

(iii) A description of the applicant, including the entity status of the applicant (e.g., bank, university, governmental agency, etc.) and the state (or if outside the United States, the country) under whose laws the applicant is created or organized.

forms (together with the required documentation for ITINs or the supplementary statement, if required, for EINs) to the IRS at the mailing address for the Philadelphia Service Center included on Form W–7 or Form SS–4, or the following street address (for registered or certified mail): 11601 Roosevelt Blvd., D.P. 426, Philadelphia, PA 19255.

(5) Procedures for collecting and re- viewing required documentation for as- signment of an ITIN . A Form W–7 must be accompanied by documentary evidence of alien status and identity. The types of acceptable documentary evidence may vary depending upon such factors as the ITIN applicant’s country of citizenship or nationality, the ITIN applicant’s residency at the time of the application (i.e., inside or outside the United States), etc. The acceptance agent must review the applicant’s documentation in order to determine whether the documentation is of a type which the IRS regards as reliable evidence of alien status and identity. The acceptance agent agreement will specify the various types of documentary evidence that the acceptance agent should accept for submission with Form W–7. Examples of documentary evidence supporting alien status (i.e., non-U.S. citizenship or nationality) include a foreign passport, a foreign birth record, or a current document issued by the Immigration and Naturalization Service (INS) in accordance with that agency’s regulations. Examples of documentary evidence supporting identity include a driver’s license, identity card, school record, medical record, marriage record, voter registration card, military registration card, passport, or a current document issued by INS in accordance with that agency’s regulations. Generally, one piece of documentary evidence should contain a picture or photo identification. Generally, ITIN applicants must submit the required documentation during a personal interview with the acceptance agent. The agreement will generally require that original (or certified copies of original) documentation be submitted to the IRS with Form W–7. All original documents will be returned promptly to the acceptance agent (i.e., no later than 3 business days from receipt of a complete application by the IRS, Philadelphia Service Center). Copies of original documents, if allowed to be submitted under the acceptance agent agreement, will not be returned to the acceptance agent.

(6) Procedures for assisting taxpayers with notification procedures in the event of a change of alien status . When an acceptance agent knows that an individual assigned an ITIN has become eligible to obtain (or has, in fact, obtained) a SSN, such acceptance agent shall agree to inform the individual of the obligation to (1) apply for a SSN, (2) stop using the previously- assigned ITIN upon receipt of the new SSN, and (3) notify the IRS of this change in alien status. The acceptance agent’s duty with respect to this matter shall apply only to the situation where the acceptance agent has a continuing business relationship with the individual. An alien individual may become eligible to obtain a SSN if, for example, such individual has become a U.S. citizen or a permanent U.S. resident (i.e., ‘‘green card’’ holder), or is lawfully permitted by INS to work in the United States. The ITIN holder’s notification to the IRS should state that the individual either is eligible to have or has a SSN, and should include the individual’s name, address, previously-assigned ITIN and new SSN (if available), the current date, and the individual’s signature. This information may be provided to the IRS by FAX: (215) 516–3270 or by mail: IRS, Philadelphia Service Center, ATTN: ITIN Unit-D.P. 426, P.O. Box 447, Bensalem, PA 19020. Questions regarding this matter should be directed to (215) 516–ITIN (4846) (not a toll-free number).

(7) Procedures for IRS verification of compliance with acceptance agent agreement . The acceptance agent agreement will specify the procedures by which the IRS will verify the acceptance agent’s compliance with the agreement. In particular, the procedures must enable the IRS to verify that the acceptance agent has adequate procedures in effect to assist applicants properly. The procedures also must enable the IRS to verify that the acceptance agent is complying with any record retention requirements relating to the issuance of TINs. Verification of compliance with the acceptance agent agreement does not constitute an examination of the books and records of the acceptance agent.

(8) Procedures regarding termination of acceptance agent agreement . An acceptance agent agreement generally is not subject to expiration and renewal. Either the acceptance agent or the IRS may terminate an agreement 30 days after delivery of notice of termination to the other party. The decision to termi

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nate is solely at the discretion of the party giving such notice. However, the IRS generally will not give notice of termination unless the acceptance agent willfully fails to comply with procedures required by the agreement or to perform any duty or obligation required in the agreement (including failing to exercise due diligence under the agreement) and such failure constitutes material noncompliance. In addition, the IRS may give notice of termination where the acceptance agent has misrepresented material information given on its application to become an acceptance agent or on a TIN application. Further, notice of termination may be given where the acceptance agent accepts a TIN application with knowledge that material information on the form is false. The acceptance agent may request that the IRS reinstate the acceptance agent agreement by submitting, within 30 days of receipt of the notice of termination, a written explanation of how the acceptance agent proposes to correct the violation and, if appropriate, to modify its procedures to ensure that such violation will not occur in the future. The IRS shall accept or reject the request, or make a counterproposal within 20 days of receipt of the request.