SECTION 4. ACCEPTANCE IN THE

ON-LINE FILING PROGRAM

.01 The Service will review and process applications received on or before December 2, 1996, for acceptance into the 1997 On-Line Filing Program.

.02 Applicants and On-Line Filers are required to submit a new Form 8633 designated for the On-Line Filing Program (hereinafter ‘‘Form 8633’’), with fingerprint cards for appropriate individuals, to the IRS Headquarters OnLine Filing Analyst (see section 17 of this revenue procedure) if:

(1) the applicant has never participated in the On-Line Filing Program;

(2) the On-Line Filer intends to function as an On-Line Service Provider or a Transmitter during the 1997 OnLine Filing Program;

(3) the applicant has previously been denied participation in the On-Line Filing Program; or

(4) the applicant has been suspended from the On-Line Filing Program.

.03 An On-Line Filer must submit a revised Form 8633, signed by all Principals and the Responsible Official, with completed fingerprint cards for the appropriate individuals if:

(1) there is an additional Principal, such as a partner or corporate officer, that must be listed on Form 8633, line 8 (formerly line 1k(1)), ‘‘Principals of Your Firm or Organization’’;

(2) there is a ‘‘Principal’’ listed on Form 8633, line 1k(1), that should be deleted; or

(3) the ‘‘Responsible Official’’ on Form 8633, line 9 (formerly line 1k(2)) changes.

.04 An On-Line Filer must submit either a revised Form 8633 or a letter containing the same information contained in a revised Form 8633 if there is any change to the following:

(1) the Firm name or Doing Business As (DBA) name;

(2) the business or mailing address; (3) the contact representative or the alternate contact representative’s name or telephone number; or

(4) the On-Line Filer’s form of organization, as described on Form 8633, line 1k; A Form 8633 or letter submitted under this section needs to include only the information requested on lines 1a through 1i of Form 8633 and the information being revised and must be submitted within 30 days of the change(s). A Principal or Responsible Official must sign the Form 8633 or the letter.

.05 Revised applications described in section 4.03 or 4.04 of this revenue procedure must be submitted to the IRS Headquarters On-Line Filing Analyst within 30 days of the change(s).

.06 Applicants and On-Line Filers that intend to function as a Transmitter or a Software Developer in the 1997 On-Line Filing Program must first successfully complete the necessary testing at the appropriate service center(s).

.07 Each individual listed as a Principal or a Responsible Official must:

(1) be a United States citizen or an alien lawfully admitted for permanent residence as described in 8 U.S.C. § 1101(a)(20) (1994);

(2) have attained the age of 21 as of the date of application;

(3) submit with Form 8633 one standard fingerprint card with a full set of fingerprints taken by a law enforcement agency, except as provided in subsection 4.08 of this revenue procedure; and

(4) pass a suitability check that includes a credit check and a fingerprint check.

.08 An individual may choose to submit evidence of the individual’s professional status in lieu of one standard fingerprint card if the individual is:

(1) an attorney in good standing of the bar of the highest court of any State, possession, territory, Commonwealth, or the District of Columbia, and is not currently under suspension or disbarment from practice before the Service;

(2) a certified public accountant who is duly qualified to practice as a certified public accountant in any State, possession, territory, Commonwealth, or

the District of Columbia, and is not currently under suspension or disbarment from practice before the Service;

(3) an enrolled agent pursuant to part 10 of 31 C.F.R. Subtitle A;

(4) an officer of a publicly held corporation; or

(5) a banking official who is bonded and has been fingerprinted within the last two years.

.09 The Service will issue credentials for the 1997 On-Line Filing Program to eligible applicants and On-Line Filers (provided they have first satisfactorily completed the testing described in section 4.06 of this revenue procedure). No one may participate in the On-Line Filing Program for the 1997 filing season without the following credentials:

(1) a letter of acceptance into the On-Line Program for the 1997 filing season;

(2) an Electronic Filing Identification Number (EFIN) for each applicable service center; and

(3) if appropriate, an Electronic Transmitter Identification Number (ETIN) for each applicable service center.

.10 If an On-Line Filer is a Software Developer that performs no other function in the On-Line Filing Program but software development, no Principal or Responsible Official needs to pass a suitability check.

.11 The following reasons, which apply to any firm, organization, Principal, or Responsible Official listed on Form 8633, may result in the rejection of an application to participate in the 1997 On-Line Filing 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 tax returns, including returns indicating that no tax is due;

(3) failure to timely pay any tax liabilities;

(4) assessment of tax penalties; (5) suspension/disbarment from practice before the Service;

(6) other facts or conduct of a disreputable nature that would reflect adversely on the On-Line Filing Program;

(7) misrepresentation on an application;

(8) suspension or rejection from either the Electronic Filing Program or the On-Line Filing Program in a prior year;

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(9) unethical practices in return preparation;

(10) stockpiling returns prior to official acceptance into the On-Line Filing Program (see section 5.20 of this revenue procedure);

(11) knowingly and directly or indirectly employing or accepting assistance from any firm, organization, or individual that is prohibited from applying to participate in the Electronic Filing Program or the On-Line Filing Program, or that is suspended from participating in the Electronic Filing Program or the On-Line Filing Program. This includes any individual whose actions resulted in the rejection or suspension of a corporation or a partnership from the Electronic Filing Program or the On-Line Filing Program; or

(12) knowingly and directly or indirectly accepting employment as an associate, correspondent, or as a subagent from, or sharing fees with, any firm, organization, or individual that is prohibited from applying to participate in the Electronic Filing Program or the On-Line Filing Program, or that is suspended from participating in the Electronic Filing Program or the On-Line Filing Program. This includes any individual whose actions resulted in the rejection or suspension of a corporation or a partnership from the Electronic Filing Program or the On-Line Filing Program.