SECTION 6. ACCEPTANCE IN THE

FORM 941 ELF PROGRAM

.01 In the case of an Applicant that is an Agent, the Applicant will receive a Validated Agent’s List within 45 days of the Service receiving the Agent’sApplication. Failure to use the names and EINs provided on the Validated A g e n t ’s List may delay processing.

.02 An Applicant must contact the ELF Help Desk, at the number listed in section 21 of this revenue procedure (unless instructed to use a different number), to notify the Service that the Applicant is ready

1997–42 I R B 21 October 20 1997

to begin the testing process. In the case of an Applicant that is an Agent, the Agent must contact the ELF Help Desk after receiving the Validated Agent’s List.

.03 An Applicant must transmit an initial test electronic transmission of Form 941 (“test file”) by the test file due dates preceding the corresponding quarter due dates, as follows:

Initial Test File For Quart e r Due Date Ending April 10 March 31 July 10 June 30 October 10 September 30 January 10 December 31

To transmit subsequent test files, contact the ELF Help Desk. Transmission of a test file does not constitute the filing of a tax return. See Publication 1855 for specific testing procedures.

.04 After evaluating the test file, the Service will notify an Applicant in writing of approval or denial of electronic filing privileges. An approval remains in effect unless the Electronic Filer:

(1) that is an Agent fails to comply with the Authorization requirements of sections 5.03(6) and 5.05 of this revenue procedure;

(2) that is a Software Developer fails to comply with the requirements of section 10.05 of this revenue procedure; or

(3) is suspended from the Form 941 ELF Program. See section 16 of this revenue procedure for the effect of a suspension.

.05 The acceptance by the Service of a Software Developer as an Electronic Filer:

(1) establishes only that the test electronic transmission(s) are formatted properly and may be processed by the Service;

(2) is not an endorsement by the Service of the software or the quality of services provided by the Software Developer; and

(3) does not entitle the Software Developer to electronically file Forms 941 unless the Software Developer is also accepted in the Form 941 ELF Program as an Agent.

.06 If an Application is approved, the Service will send the Electronic Filer the following two documents:

(1) a notification of approval that will contain the userid/password, and information and procedures regarding sign

ing onto the system for filing electronic Forms 941; and

(2) a PIN that may be used only by the Electronic Filer’s Authorized Signatory named in the Application.

.07 Upon receipt of each document referenced in section 6.06 of this revenue procedure, the Electronic Filer must return the following documents to the Service:

(1) an acknowledgement signed by each employee recipient of the userid/password indicating possession of, and responsibility for, the userid/password; and

(2) an acknowledgement signed by the Electronic Filer’s Authorized Signatory indicating possession of, and responsibility for, the proper use of the PIN for signing tax returns (pursuant to § 301.6061–1) filed in the Form 941 ELF Program. See Exhibit 3 in the APPENDIX of this revenue procedure for a sample userid/ password and PIN receipt.

.08 The Service will activate the userid/password and the PIN upon receiving the Electronic Filer’s acknowledgements of the receipt of the two documents referenced in section 6.06 of this revenue procedure.

.09 If an A p p l i c a n t ’s test file fails to meet the evaluation criteria, the Applicant must, within 15 days of the Service’s notification of the failure, transmit a new test file or contact the ELF Help Desk to make other arrangements.

.10 If an Applicant that is an Agent is denied, or does not receive, approval for participating in the Form 941 ELF Program before the end of the tax quarter for which the Forms 941 will be filed, the Applicant should file the returns on paper Forms 941 (or on magnetic tape if the Applicant meets the requirements of Rev. Proc. 96–18).

.11 If an Applicant is denied acceptance into the Form 941 ELF Program, the Applicant may reapply for a subsequent tax quarter by resubmitting an A p p l i c a t i o n and test file in accordance with sections 5 and 6 of this revenue procedure.