SECTION 12. REASONS FOR

SUSPENSION

.01 The Service reserves the right to suspend an Electronic Filer from the Form 940 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 8 of this revenue procedure;

(5) failing to abide by the advertising standards in section 11 of this revenue procedure; or

(6) significant complaints about an Electronic Filer’s performance in the Form 940 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 its Form 940 e-file Program clients when that Agent or Transmitter is suspended from filing under the Form 940 e-file Program as provided in sections 14.02(4) and 14.03 of this revenue procedure. The Service reserves the right to extend the period of suspension of any Agent or Transmitter that fails to comply with this requirement.