SECTION 2. BACKGROUND

.01 Section 6011(a) of the Internal Revenue Code provides that any person liable for any tax imposed by this title, or for the collection thereof, must make a return or statement according to the forms and regulations prescribed by the Secretary. Every person required to make a return or statement must include therein the information required by such forms or regulations.

.02 Section 31.6011(a)–4 of the Employment Tax Regulations provides in general that every person required to make a return of income tax withheld from wages pursuant to § 3402 must make a return for the first calendar quarter in which the person is required to deduct and withhold such tax and for each subsequent calendar quarter until the person has filed a final return. Except as otherwise provided, Form 941 is the form prescribed for making the return.

.03 Section 31.6011(a)–7 provides that each return, together with any prescribed copies or supporting data, must be filled in and disposed of in accordance with the forms, instructions, and regulations applicable thereto. The return may be made by an agent in the name of the person required to make the return if an acceptable power of attorney is filed with the Internal Revenue Service office with which such person is required to file returns and if such a return includes all taxes required to be reported by such person on such return. Form 8655, Reporting Agent Authorization for Magnetic Tape/Electronic Filers, is an acceptable power of attorney, if prepared in accordance with the requirements set forth in Rev. Proc. 96–17, 1996–1 C.B. 633, as modified by section 22.02 of this revenue procedure. .04 Section 31.6061–1 provides that the return may be signed for the taxpayer by an agent that is fully authorized in accordance with § 31.6011(a)–7 to make such return. An Agent may sign the Form 941 on behalf of a taxpayer that has a valid Form 8655 on file with the Service.

1997–42 I R B 19 October 20 1997

.05 Section 301.6061–1 of the Regulations on Procedure and A d m i n i s t r a t i o n provides that the Secretary may prescribe in forms, instructions, or other appropriate guidance the method for signing any return, statement, or other document required to be made under any provision of the internal revenue laws or regulations. The Service has prescribed in the electronic filing instructions to Form 941 that an electronically filed Form 941 is signed by the entry of the Electronic Filer’s Personal Identification Number (“PIN”).

.06 Section 31.6071(a)–1 generally provides that each return required to be made under § 31.6011(a)–1 for taxes imposed by the Federal Insurance Contributions Act, or required to be made under § 31.6011(a)–4 for withheld income taxes, must be filed on or before the last day of the first calendar month following the period for which it is made. However, under § 31.6071(a)–1 a return may be filed on or before the 10th day of the second calendar month following such period if timely deposits under § 6302(c) and the regulations thereunder have been made in full payment of such taxes due for the period.

.07 Procedures for the magnetic filing of Form 941 are in Rev. Proc. 96–18, 1996–1 C.B. 637, and the specifications are in Publication 1264.

.08 The submission of federal tax deposit (“FTD”) information on magnetic tape is addressed in Rev. Proc. 89–48, 1989–2 C.B. 599. For taxpayers that are required to make FTDs by electronic funds transfer pursuant to § 6302(h), the submission of the FTD information along with the transfer of funds is addressed in Rev. Proc. 97–33, 1997–30 I.R.B. 10.

.09 This revenue procedure updates R e v. Proc. 96–19. The updates include changes in the 941 ELF Program, clarifications of prior Form 941 ELF Program statements, and additional guidance derived from other Service documents that relate to the Form 941 ELF Program. Some of the updates are:

(1) the signature provisions for an electronically filed Form 941 have been modified, amplified, and clarified to require use of a PIN instead of filing a Form 4996, Electronic/Magnetic Media Filing Transmittal for Wage and Wi t h h o l d i n g Tax Returns (sections 2.05, 4.05, 5.02, 6.06, 8.02, 10.02, 10.03, and 10.04);

(2) the definition of an Electronic Filer:

(a) is prospectively limited to Reporting Agents whose applications (received after the effective date of this revenue procedure) include an A g e n t ’s List containing 10 or more taxpayers (sections 4.02, 5.03, and 23.02); and (b) has been expanded to include Software Developers (sections 4.02, 5.02, 5.04, 6.04, 6.05, and 10.05); and (3) a Reporting Agent is not required to replace a previously submitted Authorization under certain circumstances (section 5.05).