SECTION 13. REASONS FOR

SUSPENSION

.01 The Service reserves the right to suspend an Electronic Filer from the Form 941 e-file Program for the following reasons (this list is not all-inclusive):

(1) submitting tax returns for which the Service did not receive Authorizations;

(2) repeatedly submitting tax returns that cause a Processing Interruption;

(3) submitting tax returns that cause a Processing Interruption after failing to submit the test file required by section 6.02 of this revenue procedure; (4) failing to comply with the responsibilities of an Electronic Filer set forth in section 9 of this revenue procedure;

(5) failing to abide by the advertising standards in section 12 of this revenue procedure; or

(6) significant complaints about an Electronic Filer’s performance in the Form 941 e-file Program.

.02 If the Electronic Filing Coordinator informs an Electronic Filer that a certain action is a reason for suspension and the action continues, the service center director may send the Electronic Filer a notice proposing suspension of the Electronic Filer. However, a notice proposing suspension may be sent without a warning if the Electronic Filer’s action indicates an intentional disregard of rules. A notice proposing suspension will describe the reason(s) for the proposed suspension, and indicate the length of the suspension and the conditions that need to be met before the suspension will terminate.

.03 An Electronic Filer that is an Agent or Transmitter has an obligation to notify

1999–43 I.R.B. 537 October 25, 1999

terly return copies of all Forms W-4, Employee’s Withholding Allowance Certificates, received during the quarter from any employee still employed at the end of the quarter who claims:

(1) more than 10 withholding exemptions; or

(2) exemption from withholding and is expected to earn more than $200 per week. Employers should not send other Forms W-4 unless notified by the Service in writing to do so.

.02 If an employer’s Form 941 is filed under the Form 941 e-file Program, copies of required paper Forms W-4 along with a cover letter providing the employer’s name, address, EIN, and the number of Forms W-4 included, must be sent to the service center that would have received the employer’s paper Form 941. See Publication 15, Circular E, Employer’s Tax Guide, for more information on sending Forms W-4 to the Service.

.03 Required Forms W-4 information may also be filed on magnetic media (5 ¹ ⁄4inch diskettes, 3 ¹ ⁄2-inch diskettes, or magnetic tape). For more information concerning magnetic media filing of Forms W-4, see Publication 1245, Specifications for Filing Form W-4, Employee’s Withholding Allowance Certificate, on Magnetic Tape, and 5 ¹ ⁄4 and 3 ¹ ⁄2-Inch Magnetic Diskettes.