SECTION 3. ELECTRONIC FILING

PARTICIPANTS—DEFINITIONS

.01 After acceptance into the Electronic Filing Program, as described in section 4 of this revenue procedure, a participant is referred to as an ‘‘Electronic Filer.’’

.02 An Electronic Filer is categorized as follows:

(1) ELECTRONIC RETURN ORIGINATOR. An ‘‘Electronic Return Originator’’ (ERO) is: (a) an ‘‘Electronic Return Preparer’’ who prepares tax returns, including Forms 8453, for taxpayers who intend to have their returns electronically filed; and/or (b) an ‘‘Electronic Return Collector’’ who accepts completed tax returns, including Forms 8453, from taxpayers who intend to have their returns electronically filed.

(2) SERVICE BUREAU. A ‘‘Service Bureau’’ receives tax return information on any media from an ERO, formats the return information, and either forwards the return information to a Transmitter or sends back the return information to the ERO. A Service Bureau may or may not process Forms 8453 and send them to the appropriate service center.

(3) SOFTWARE DEVELOPER. A ‘‘Software Developer’’ develops software for the purposes of (a) formatting returns according to the Service’s electronic return specifications; and/or (b) transmitting electronic returns directly to the Service. A Software Developer may also sell its software.

(4) TRANSMITTER. A ‘‘Transmitter’’ transmits the electronic portion of a return directly to the IRS Data Communications Subsystem. An entity that provides a ‘‘bump-up’’ service is a Transmitter. A bump-up service provider increases the transmission rate or line speed of formatted or reformatted information that is being sent to the Service via a public switched telephone network. For example, a bump-up service provider may increase the transmission rate or line speed of information from 4800 bits per second (BPS) to 9600 BPS. Service specifications for electronic filing require an asynchronous speed of 300 BPS to 38,400 BPS or a bisynchronous speed of 4800 BPS to 19,200 BPS. .03 The Electronic Filer categories are not mutually exclusive. For example, an ERO can, at the same time, be considered a Transmitter, Software Developer, or Service Bureau depending on the function(s) performed.

.04 An electronic filing controlled office: (1) is an office in which an Electronic Filer has an ownership interest; (2) uses hardware, software, and transmission services supplied by an Electronic Filer; (3) receives income tax returns for electronic filing; and (4) has direct contact with taxpayers. At a minimum, direct contact includes verifying dollar amounts, routing transit numbers, and depositor account numbers on Forms 8453. A controlled office may or may not be open all year.

.05 An Electronic Filer may have a drop-off collection point(s). The activity at a drop-off collection point is limited solely to receiving a return or return information that a taxpayer wants to have electronically filed and collecting a fee for electronically filing that return. No returns may be prepared at the drop-off collection point. An Electronic Filer need not have an ownership interest in the drop-off collection point.