SECTION 8. INFORMATION AN

ON-LINE FILER MUST FURNISH TO THE TAXPAYER

.01 The Transmitter must advise a taxpayer to retain a complete copy of the return and any supporting material.

.02 The Transmitter must advise the taxpayer that an amended return, if needed, must be filed as a paper return and mailed to the service center that would handle the taxpayer’s paper return.

(3) If an On-Line Filer alters the return information in a nonsubstantive way, this alteration will be considered to come under the “mechanical assistance” exception described in § 301.7701–15(d)(1). A nonsubstantive change is a correction or change limited to a transposition error, misplaced entry, spelling error, or arithmetic correction that falls within the following tolerances:

(a) the amount of “Total tax”, “Federal income tax withheld”, “Refund”, or “Amount you owe” on Form 8453–OL differs from the corresponding amount on the electronic portion of the tax return by no more than $7;

(b) the amount of “Total income” shown on Form 8453–OL differs from the corresponding amount on the electronic portion of the tax return by no more than $25; or

(c) dropping cents and rounding to whole dollars.

(4) If an On-Line Filer alters the return information in a substantive way, rather than having the taxpayer alter the return, the On-Line Filer will be considered to be an income tax return preparer for purposes of § 7701(a)(36).

(5) If an On-Line Filer goes beyond mechanical assistance, the On-Line Filer may be held liable for income tax return preparer penalties. See Rev. Rul. 85–189, 1985–2 C.B. 341 (which describes a situation where a Software Developer was determined to be an income tax return preparer and subject to certain preparer penalties).

September 21, 1998 26 1998–38 I.R.B.

.02 Taxpayers who file balance due returns under the Form 1040 On-Line Filing Program for any taxable year are responsible for making full and timely payment of any tax that is due. Failure to make full payment on or before the due date of the return (determined without regard to extensions) will result in the imposition of interest and may result in the imposition of penalties.

.03 Taxpayers have several options for paying balances due, including the following:

(1) DIRECT DEBIT. Taxpayers may authorize the Service to debit their checking or savings account for the amount of the balance due;

(2) PAY BY CHECK. Taxpayers may pay any balance due by sending a check, along with Form 1040–V, Payment Voucher, to the Service. The Form 1040– V is contained in all software approved for use in the Form 1040 On-Line Filing Program (see section 5.10(6) of this revenue procedure); and

(3) INSTALLMENT AGREEMENT. Taxpayers who cannot pay the balance due with the return may request an installment payment arrangement by filing Form 9465, Installment Agreement Request, with their return.