SECTION 2. BACKGROUND AND

CHANGES

.01 Section 6011(a) of the Internal Revenue Code provides that any person liable for any tax imposed by this title, or for the collection thereof, must make a return or statement according to the forms and regulations prescribed by the Secretary. Every person required to make a return or statement must include therein the information required by such forms or regulations.

.02 Section 31.6011(a)–4 of the Employment Tax Regulations provides in general that every person required to make a return of income tax withheld from wages pursuant to § 3402 must make a return for the first calendar quarter in which the person is required to deduct and withhold such tax and for each subsequent calendar quarter until the person has filed a final return. Except as otherwise provided, Form 941 is the form prescribed for making the return.

.03 Section 31.6011(a)–7 provides that each return, together with any prescribed copies or supporting data, must be filled

in and disposed of in accordance with the forms, instructions, and regulations applicable thereto. The return may be made by an agent in the name of the person required to make the return if an acceptable power of attorney is filed with the Internal Revenue Service office with which such person is required to file returns and if such a return includes all taxes required to be reported by such person on such return. Form 8655, Reporting Agent Authorization for Magnetic Tape/Electronic Filers, is an acceptable power of attorney, if prepared in accordance with the requirements set forth in Rev. Proc. 96–17, 1996–1 C.B. 633, as modified by section 21.02 of this revenue procedure. .04 Section 31.6061–1 provides that the return may be signed for the taxpayer by an agent that is fully authorized in accordance with § 31.6011(a)–7 to make such return. An Agent may sign the Form 941 on behalf of a taxpayer that has a valid Form 8655 on file with the Service.

.05 Section 301.6061–1 of the Regulations on Procedure and Administration provides that the Secretary may prescribe in forms, instructions, or other appropriate guidance the method for signing any return, statement, or other document required to be made under any provision of the internal revenue laws or regulations. The Service has prescribed in the electronic filing instructions to Form 941 that an electronically filed Form 941 is signed by the entry of the Authorized Signatory’s Personal Identification Number (“PIN”).

.06 Section 31.6071(a)–1 generally provides that each return required to be made under § 31.6011(a)–1 for taxes imposed by the Federal Insurance Contributions Act, or required to be made under § 31.6011(a)–4 for withheld income taxes, must be filed on or before the last day of the first calendar month following the period for which it is made. However, under § 31.6071(a)–1, a return may be filed on or before the 10th day of the sec

ond calendar month following such period if timely deposits under § 6302(c) and the regulations thereunder have been made in full payment of such taxes due for the period.

.07 Procedures for the magnetic filing of Form 941 are in Rev. Proc. 96–18, 1996–1 C.B. 637, and the specifications are in Publication 1264. For further information, see Publication 1264, File Specifications, Process Criteria, and Record Layouts for Magnetic Tape Filing of Form 941, Employer’s Quarterly Federal Tax Return.

.08 This revenue procedure updates Rev. Proc. 97–47. The updates include changes in the Form 941 e-file Program and additional guidance derived from other Service documents that relate to the Form 941 e-file Program. Some of the updates are:

(1) returns for any quarter in the previous year can be filed electronically (section 3);

(2) On-Line Filers, who prepare and file Forms 941 on-line using their personal computer, modem, and commercial tax preparation software, have been added to the Form 941 e-file Program (section 4.05); (3) the signature provisions for an electronically filed Form 941 have been modified to allow On-Line Filers to use a PIN as an electronic signature alternative to sign electronic Forms 941 for the Form 941 e-file Program (sections 4.01 and 6.05); (4) the definition of an Electronic Filer has been expanded to include a Transmitter (Section 4.02);

(5) the limitations on balance due returns in section 3.03 of Rev. Proc. 97–47 have been eliminated; and

(6) the restriction in sections 5.03 and 23.02 of Rev. Proc. 97–47 on Reporting Agents filing fewer than ten returns has been eliminated.

1999–43 I.R.B. 533 October 25, 1999