SECTION 12. ADVERTISING

STANDARDS FOR AUTHORIZED IRS e-file PROVIDERS AND FINANCIAL INSTITUTIONS

.01 An Authorized IRS e-file Provider must comply with the advertising and solicitation provisions of 31 C.F.R. Part 10 (Treasury Department Circular No. 230). This circular prohibits the use or participation in the use of any form of public communication containing a false, fraudulent, misleading, deceptive, unduly influencing, coercive, or unfair statement or claim. Any claims concerning faster refunds by virtue of electronic filing must be consistent with the language in official Service publications.

.02 An Authorized IRS e-file Provider must adhere to all relevant federal, state,

and local consumer protection laws that relate to advertising and soliciting.

.03 An Authorized IRS e-file Provider must not use the Service’s name, “Internal Revenue Service” or “IRS”, within a firm’s name. However, once accepted into the Form 1040 IRS e-file Program, a participant may represent itself as an “Authorized IRS e-file Provider.”

.04 An Authorized IRS e-file Provider must not use improper or misleading advertising in relation to the Form 1040 IRS e-file Program (including the time frames for refunds and RALs).

.05 An Authorized IRS e-file Provider using promotional materials or logos provided by the Service must comply with all Service instructions pertaining to the promotional materials or logos.

.06 An Authorized IRS e-file Provider using the Direct Deposit name and logo must comply with the following:

(1) The name “Direct Deposit” will be used with initial capital letters or all capital letters;

(2) The logo/graphic for Direct Deposit will be used whenever feasible in advertising copy; and

(3) The color or size of the Direct Deposit logo/graphic may be changed when used in advertising pieces.

.07 Advertising materials must not carry the FMS, IRS, or other Treasury Seals.

.08 Advertising for a cooperative electronic return filing project (public/private sector) must clearly state the names of all cooperating parties.

.09 In advertising the availability of a RAL, an Authorized IRS e-file Provider and a financial institution must clearly (and, if applicable, in easily readable print) refer to or describe the funds being advanced as a loan, not a refund; that is, it must be made clear in the advertising that the taxpayer is borrowing against the anticipated refund and not obtaining the refund itself from the financial institution.

.10 If an Authorized IRS e-file Provider uses radio or television broadcasting to advertise, the broadcast must be prerecorded. The Authorized IRS e-file Provider must keep a copy of the prerecorded advertisement for a period of at least 36 months from the date of the last transmission or use.

September 21, 1998 16 1998–38 I.R.B.

(10) having more than one EFIN for the same business entity at the same location (the business entity is generally the entity that reports on its return the income derived from electronic filing), unless the Service has issued more than one EFIN to a business entity at the same location. For example, the Service may issue more than one EFIN to accommodate high volumes of returns;

(11) failure on the part of a Transmitter to include a Service Bureau’s SBIN in the transmission of a return submitted by a Service Bureau;

(12) failure on the part of an ERO to include a Drop-Off Collection Point’s CPIN as part of a return collected from a Drop-Off Collection Point;

(13) failure on the part of an Authorized IRS e-file Provider to cooperate with the Service’s efforts to monitor Authorized IRS e-file Providers and investigate electronic filing abuse;

(14) failure on the part of an Authorized IRS e-file Provider to properly use the standard/non-standard W–2 indicator;

(15) failure on the part of an Authorized IRS e-file Provider to properly use the refund anticipation loan (RAL) indicator;

(16) failure on the part of a Service Bureau or a Transmitter to include the ERO’s EFIN as part of a return that the ERO submits to the Service Bureau or the Transmitter;

(17) violation of the advertising standards described in section 12 of this revenue procedure;

(18) failure to maintain and make available records as described in section 5.09(4) of this revenue procedure; (19) accepting a tax return for filing through the Form 1040 IRS e-file Program either directly or indirectly from a firm, organization, or individual (other than the taxpayer who is submitting his or her return) that is not an Authorized IRS e-file Provider;

(20) submitting the electronic portion of a return with information that is not identical to the information on Form 8453; (21) failure to timely submit a revised Form 8633 (or a letter containing the same information contained in a revised Form 8633) notifying the Service of changes described in section 4.03 or 4.04 of this revenue procedure; or

.11 If an Authorized IRS e-file Provider uses direct mail or fax communications to advertise, the Authorized IRS e- file Provider must retain a copy of the actual mailing or fax, along with a list or other description of the firms, organizations, or individuals to whom the communication was mailed, faxed, or otherwise distributed for a period of at least 36 months from the date of the last mailing, fax, or distribution.

.12 Acceptance to participate in the Form 1040 IRS e-file Program does not imply endorsement by the Service, FMS, or the Treasury Department of the software or quality of services provided.