SECTION 5. APPLICATION FOR THE

FORM 941 e-file PROGRAM

.01 A prospective Electronic Filer must first submit an LOA to the Service to participate in the Form 941 e-file Program. See Publication 1855 for a sample LOA and the application procedures.

.02 A prospective On-Line Filer must submit an electronic LOA through a Transmitter to participate in the Form 941 e-file Program. The Transmitter is required to batch and bundle the electronic LOA files, and then transmit those files to the Service. The Transmitter is required to send an acknowledgment to the OnLine Filer to verify that the electronic LOA was transmitted successfully to the Service. The LOA is provided in the commercial tax preparation software used by the On-Line Filer in order to participate in the Form 941 e-file Program.

.03 In addition to the LOA, an Agent must also include an Agent’s List, providing the names of all taxpayers for which it will file returns. Each name on the Agent’s List must be accompanied by an Authorization made on Form 8655, except as provided in section 5.04 of this revenue procedure. See Rev. Proc. 96– 17, as modified by section 21.02 of this revenue procedure, for general instructions on preparing Form 8655. See Publication 1855 for instructions on adding names to, or deleting names from, the Agent’s List.

.04 A revised Authorization is not required to replace an Authorization made on Form 8655 with a revision date before October 1995 (or its equivalent) that was previously submitted to the Service by an Agent, provided that the Authorization places no restriction on the medium for filing Form 941, and the Agent:

(1) advises its client that its Forms 941 may be filed electronically, and provides the client with the option of rejecting electronic filing as the medium for filing its Forms 941. An Agent may use the

October 25, 1999 534 1999–43 I.R.B.

most efficient and timely method of clearly providing this notification to a client. A client’s rejection of electronic filing for its Forms 941 must be submitted in writing to the Agent; and

(2) immediately removes any client from its electronic filing client base that rejects having its Forms 941 filed electronically.