SECTION 2. BACKGROUND AND

CHANGES

.01 Section 1.6011–1(a) of the Income

Tax Regulations provides that every person subject to income tax must make a return or statement as required by the regulations. The return or statement must include the information required by the applicable regulations or forms.

.02 Section 301.6061–1(b) of the Regulations on Procedure and Administration authorizes the Secretary to prescribe in forms, instructions, or other appropriate guidance the method of signing any return, statement, or other document required to be made under any provision of the internal revenue laws or regulations.

.03 Section 1.6012–5 of the regulations provides that the Commissioner may authorize the use, at the option of a person required to make a return, of a composite return in lieu of any form specified in 26 CFR Part 1 (Income Tax), subject to the conditions, limitations, and special rules governing the preparation, execution, filing, and correction thereof as the Commissioner may deem appropriate.

.04 This revenue procedure combines the rules governing the IRS e-file Program with the rules governing the Form 1040 IRS On-Line Filing Program (previously set forth in Rev. Proc. 98–50 and Rev. Proc. 98–51, respectively).

.05 This revenue procedure incorporates substantive changes made to the IRS e-file Program, including changes to the definitions of program participants (see section 3 of this revenue procedure) and changes to the sanctions that may be imposed upon Authorized IRS e-file Providers (see section 7 of this revenue procedure).

.06 Many of the rules governing participation in the IRS e-file Program are now set forth in IRS Publications. See section 5.01 of this revenue procedure.