SECTION 3. ON-LINE FILING

PARTICIPANTS—DEFINITIONS

.01 After acceptance into the Form 1040 On-Line Filing Program, as described in section 4 of this revenue procedure, a participant is referred to as an “On-Line Filer.”

.02 The On-Line Filer categories are: (1) ON-LINE SERVICE PROVIDER. An “On-Line Service Provider” is an online information service organization that provides paying subscribers (individuals who use the various services offered by

1997–52 I.R.B. 51 December 29, 1997

(f) the Professional Package name of the software submitted for Participants Acceptance Testing (PATS) and whether the software has successfully completed PATS;

(2) the applicant’s point of contact for matters relating to the Form 1040 OnLine Filing Program and the telephone number for the point of contact; and

(3) the applicant’s customer service telephone number.

.09 On-Line Filers that participated in the most recent Form 1040 On-Line Filing Program must submit any changes to the information contained in sections 4.08(1) through (3) of this revenue procedure to the IRS Headquarters Form 1040 On-Line Filing Program Analyst by December 31, 1997.

.10 Applicants and On-Line Filers described in sections 4.01 through 4.04 of this revenue procedure that intend to participate as a Transmitter or a Software Developer in the Form 1040 On-Line Filing Program must first successfully complete the necessary testing at the appropriate service center(s).

.11 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 section 4.12 of this revenue procedure; and

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

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

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

(2) a certified public accountant who is duly qualified to practice as a certified public accountant in any State, Common

On-Line Filing Program. However, an On-Line Filer that intends to participate as a Transmitter or a Software Developer in the Form 1040 On-Line Filing Program must first successfully complete the testing referred to in section 4.10 of this revenue procedure. In addition, section 4.13 of this revenue procedure provides for the Service’s issuance of credentials necessary for participation in the Form 1040 On-Line Filing Program.

.02 Applicants must file a new Form 8633, Application to Participate in the Electronic Filing Program, (hereinafter “Form 8633”), with completed fingerprint cards for the appropriate individuals, if:

(1) the applicant has never participated in the Form 1040 On-Line Filing Program;

(2) the applicant has previously been denied participation in the Form 1040 OnLine Filing Program; or

(3) the applicant has been suspended from the Form 1040 On-Line Filing Program. Applicants must designate that the Form 8633 is for the Form 1040 On-Line Filing Program by putting the words “ON-LINE FILING PROGRAM” across the top of the form and the letters “OLF” in the box in the upper left hand corner of the form that indicates whether the form is new or revised.

.03 To participate in the Form 1040 On-Line Filing Program, an On-Line Filer in the most recent Form 1040 OnLine Filing Program must submit a revised Form 8633 (designated for the Form 1040 On-Line Filing Program as described in section 4.02 of this revenue procedure), signed by all “Principals” and the “Responsible Official” (as described in section 4.11 of this revenue procedure) with completed fingerprint cards for the appropriate individuals if:

(1) the On-Line Filer functioned solely as a Software Developer during the most recent Form 1040 On-Line Filing Program and intends to function as an OnLine Service Provider or Transmitter during the Form 1040 On-Line Filing Program;

(2) there is an additional Principal, such as a partner or a corporate officer, that must be listed on Form 8633, line 8, “Principals of Your Firm or Organization”;

(3) there is a Principal listed on Form 8633, line 8, that should be deleted; or

(4) the Responsible Official on Form 8633, line 9 changes. .04 Except as provided in section 4.03 of this revenue procedure, to participate in the Form 1040 On-Line Filing Program, an On-Line Filer in the most recent Form 1040 On-Line Filing Program must submit either a revised Form 8633, or a letter containing the same information contained in a revised Form 8633, if any information on the On-Line Filer’s Form 8633 has changed. A revised Form 8633 or letter submitted under this section should include only the information requested on lines 1a through 1i of Form 8633 and the information being revised. A Principal or a Responsible Official must sign the revised Form 8633 or the letter.

.05 For applicants described in section 4.02 of this revenue procedure, the application period runs from September 2, 1997, through December 1, 1997. .06 Revised applications described in sections 4.03 and 4.04 of this revenue procedure must be submitted within 30 days of the change(s) reflected on the revised Form 8633 or in the letter.

.07 Applicants and On-Line Filers described in sections 4.02 through 4.04 of this revenue procedure must file Form 8633 (or a letter as provided in section 4.04 of this revenue procedure) with the Andover Service Center.

.08 Applicants described in section 4.02 must submit the following information (or the name and phone number of an individual who can provide the information) to the IRS Headquarters Form 1040 On-Line Filing Program Analyst (see section 17 of this revenue procedure) by December 31, 1997:

(1) the brand name of the software the applicant will be using, has developed, or will be transmitting, and the following information regarding the software:

(a) the name of the Software Developer for the software;

(b) the name of the Transmitter for the software;

(c) the retail cost of the software and any additional costs for transmitting the electronic portion of the taxpayer’s return;

(d) whether the software can be used to file Federal/State returns;

(e) whether the software is available on the Internet and, if so, the Internet address;

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wealth, possession, territory, or the District of Columbia, and is not currently under suspension or disbarment from practice before the Service or whose license to practice is not currently suspended or revoked by any State, Commonwealth, possession, territory, or the District of Columbia;

(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.

.13 The Service will issue credentials to eligible applicants for the Form 1040 On-Line Filing Program, as well as OnLine Filers that do not have to reapply pursuant to section 4.01, 4.03, or 4.04 of this revenue procedure (provided they have first satisfactorily completed the testing described in section 4.10 of this revenue procedure if they intend to participate as a Transmitter or Software Developer). No one may participate in the Form 1040 On-Line Filing Program without the following credentials:

(1) a letter of acceptance into the Form 1040 On-Line Filing Program; (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.

.14 If an On-Line Filer is a Software Developer that performs no other function in the Form 1040 On-Line Filing Program but software development, no Principal or Responsible Official needs to pass a suitability check.

.15 The Service may reject an application to participate in the Form 1040 OnLine Filing Program for the following reasons (this list is not all-inclusive). These reason apply to any firm, organization, Principal, or Responsible Official listed on Form 8633:

(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) disreputable conduct or other facts that would reflect adversely on the Form 1040 On-Line Filing Program; (7) misrepresentation on an application; (8) suspension or rejection from either the Form 1040 On-Line Filing Program or the Form 1040 Electronic Filing (ELF) Program in a prior year;

(9) unethical practices in return preparation;

(10) stockpiling returns prior to official acceptance into the Form 1040 On-Line Filing Program (see section 5.21 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 Form 1040 On-Line Filing Program or the Form 1040 ELF Program, or that is suspended from participating in the Form 1040 On-Line Filing Program or the Form 1040 ELF Program. This includes any individual whose actions resulted in the rejection or suspension of a corporation or a partnership from the Form 1040 On-Line Filing Program or the Form 1040 ELF 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 Form 1040 On-Line Filing Program or the Form 1040 ELF Program, or that is suspended from participating in the Form 1040 On-Line Filing Program or the Form 1040 ELF Program. This includes any individual whose actions resulted in the rejection or suspension of a corporation or a partnership from the Form 1040 On-Line Filing Program or the Form 1040 ELF Program.